Leverage the strategy of fdi-greenfield investment

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  1. Starbucks has been planning to gain more control or bargaining power over the supply chain of relevant raw materials essential to its global business operations.
  2. SZ is a fast-growing emerging economy dubbed by Time Magazine in 2021 as the next golden hub of agricultural and food production business opportunities in modern Asia.
  3. The World Bank noted that SZ, a new democratic country, is a highly adaptable country that is committed to undertaking radical social, political, and economic reforms to align itself with the leading economies in the world and actively engage with and participate in world socio-economic affairs.
  4. SZ is predicted to become one of the top countries in Asia in terms of ease of doing business in the next five years, according to the World Bank Ease of Doing Business Report.

How the strategic decision of Starbucks to enter the host country, the Republic of South Zetland (SZ), via foreign direct investment (FDI)-greenfield investment will enable the firm to influence or shape the local formal and informal institutional environment. (focus on institutional and industry-based considerations)

And give the recommendation of how Starbucks can leverage the strategy of FDI-greenfield investment to its advantage to address its 'liability of foreignness' as it enters a foreign market in SZ.(focus on the global mindset topic)

 

Reference no: EM133256321

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