When a business runs well or bad, company soon or later will consider entering global market for either even more profit or a chance to reborn. The biggest challenge of global business is to face different "environment", eg. different culture, different law. When Procter&Gamble faced the point to make changes, they decide to simplify the duplicated structures and form 7 self-contained global business units. Compared to previous redundant structures, this saves them up to $800 millions. At same time, their competitors still struggles with the high operation costs.
Wal-Mart has been very successful retailing in USA for decades. Even with its experience, it made several mistakes at first when tried to expand to global market. Different demands for products. Different transportation system and different partners. That all made great challenge to this retailing giant. With the modem low or no border trading environment, everyone needs to think about its position in industry. If it will face international challenge, it is better starting earlier and prepared.
Compared to Wal-Mart's global approach, Starbucks adopts a different and less painful way to enter global market. Starbucks uses joint ventures with foreign local companies to expand. With the initial success in Japan. Starbucks starts the global expansion with same formula. Local companies tend to know and adopt the difference between Starbucks and local culture. In Taiwan, Tong-Yi is the company which own thousands of 7-11 stores, therefore Tong-Yi has great face-to-face experience with local costumers and again Tong-Yi does a great job to make Starbucks adopts to local culture successfully when keep original spirit.
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