Information Environment

   The information on Starbucks entry into United Kingdom’s market relates to factors influencing decisions on mode of entry for Starbucks and the best entry mode for United Kingdom market.

• The known information includes the fact that United Kingdom market is the first market in Europe that Starbucks entered. Moreover, the entry mode of Starbucks in the market opening about 500 retail stores in the market by 2003 (Starbucks, 2014).
• It is known that the firm had to endure high competition in the market from other brands providing sub-statutes product. Therefore, competition will intensify in this market due to increased substitutes which can affect the strategies employed by the firm in response it.
• It is also known that the entry into the market will be determined by various factors prevailing in these areas and which the management may need to explore. With the firm’s patents and trademarks, it would be right to conclude that the firm can use them in selection of the best entry method that will meet the expected results.
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• However, what is not known is the performance of the firm in that market and whether the expected rests will be finally achieved. Therefore, the uncertainties in the market including changes in customer preference cannot be known until such is experienced (Alderman, 2012). Other unknown information includes the specific cultural, political, economic and legal factors that are likely to affect the entry of the firm and which the management needs to explore.
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• Given the nature of the market, the assumption is that the firm can use a variety of strategies for entry, with best entry mode forming the most effective strategy.
• If the competition remains high, it would be assumed that a change of the strategy will be necessary.
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• The assumptions are important since they will assist an individual in covering for any scenario that may arise in the market.
• They represent available modes of entry into the market and preparing the firm for any risks that may be encountered in the process.

Recommendation

• The recommendation in the Starbucks study involves using the known information to develop a product that is more differentiated in order to create and maintain competitive advantage in the new market.

References

Starbucks. (2014). Starbucks Company Timeline. Dover: Starbucks Coffee Company

Alderman, L. (2012). In Europe, Starbucks Adjusts to a Cafe Culture. Retrieved October 13, 2014, from New York Times