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Starbucks Nestle

Starbucks Nestle

Q Read the CNN article from May 7, 2018 in the link below regarding Starbucks and Nestle engaging in a partnership to sell and distribute the Starbucks brand around the world. Based on the article, what do you feel is the greatest challenge facing Starbucks when entering global markets? Why? Also, how can partnering with Nestle help Starbucks in ways that they cannot help themselves? https://money.cnn.com/2018/05/07/news/companies/nestle-starbucks-deal-coffee-alliance/index.html

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The greatest challenge facing Starbucks entering the global market is supply chain problems. In today's covid world, supply chains are a mess, "The result has created shortages of key manufacturing components, order backlogs, delivery delays and a spike in transportation costs and consumer prices. Unless the situation is resolved soon, the consequences for the global economy may be dire (Friesen, 2021). Starbucks will have to find out how to get its coffee products to Nestle's warehouses.