Innovation and Internationalization: A Case Study of Tesla and Starbucks Assignment Sample

Innovation and Internationalization: A Case Study of Tesla and Starbucks

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Introduction: Navigating Market Opportunities Through Innovation and Internationalization

Innovation and internationalisation are two aspects that are very important for an organisation in order to achieve success in the business largely. Innovation is essential for an organisation on its procedure so that organisation can come up with new products and services while saving money, time, and resources that helps in gaining a competitive edge with other companies who are stuck in old systems and procedures. Similarly, at the same time it can be observed that internationalization is important for an organization in order to expand its business in the international market globally. This assignment will shed light on the aspects of innovation and internationalization and its importance in business growth and development. In order to perform the assignment, the case study of Tesla and Starbucks will be taken. Tesla is known to be one of the famously known and topmost brands of electric vehicle and clean energy organizations headquartered in United States, California, Palo Alto. On the other hand, Starbucks is known to be one of the renowned coffeehouses from the American multinational chain which is headquartered in Seattle. Starbucks is known to be one of the world's largest coffee chains who have a wide range of subsidiaries.

Assignment 1

Description of current context of Tesla in terms of innovation

Tesla is known to be one of the most innovative organisations that have come up with products focusing on innovation. The business model of Tesla is such that it tends to produce an innovative product that largely includes a range of electric cars focusing on customer needs, environmental context and customer satisfaction (Habib et al., 2020). Organisation has largely focused as well as committed in bringing world-changing and modifying technology such as it has already come up with sustainable fast charging batteries and more. Currently it can be observed that Tesla is an organisation that has gained one of the top positions in the market through its innovative products.

Analyse strengths and weaknesses focusing on the innovation processes of organisation

Tesla being a leading automotive organisation can be considered to be one of the organisations which has experienced high sales and growth after its commencements. It in today's world is known to be one of the top brands in the global market that largely focuses on innovation and invention. Focusing on its innovation and invention, it can be observed that the organisation is considered best in class electric cars in comparison to the other automotive organisation. Tesla being one of the top brands in the UK and other countries largely dominates the electric vehicle sales in the United Kingdom and in the USA (Mangram, 2015). Being one of the innovative companies Tesla is largely involved in the diversification in business along with cross selling of products. On the other hand, it can be observed that being one of the top brands and one of the innovative organisations, Tesla tends to follow complicated procedures due to which it faces unbalanced demand and supply which can have a negative impact on the long run of the business. Besides, the organisation faces lack of high-volume production in the business which is one of the greatest weaknesses for the organisation.

Propose an action plan

Performance Metrics:Performances metrics are used in order to measure the activity, behaviour and performances of a business(Sabet and Dreytser, 2016). Performance measurement is known to be the procedure of collecting, reporting and analysing information focusing on the performances of a group or an individual or a team. Performance metrics is a set of data that tend to decide the achievement of the organization in the market.

Potential	High	Designing	Common Shares	Operations
Medium	Developing	Revenues	Market percentile
Low	Manufacturing	Net Income	Selling
High	Medium	Low
Performances

Table 1: Action Planner using performances metrics

Process innovation: Process innovation is known to be one of the important and significantly improved procedures of commencing various aspects in a particular business that helps in increasing the level of production while at the same time decreasing the cost (Riquelmeet al., 2015). Process innovation can be introduced as a new technique and procedure or software or new equipment. In the case of the organisation Tesla, process innovation is new technology that they use in order to bring creativity and innovation in the products. Tesla makes sure that they are being able to bring revolution in the market with the help of process innovation.

Product innovation: Product innovation is known to be the representation of the new way of solving a problem that a wide range of the consumers tend to face with a particular organisation(Schilling et al., 2019). Product innovation is largely defined as the development of the products or introducing a change in the design of the existing products or at the same time making use of new components or new materials in order to develop and manufacture an established product. Tesla makes sure that they are being able to come up with various innovations in its business with respect to the introduction of new products or new material in the existing products and so on.

Business model innovation: Business model innovation is known to be the art of developing and enhancing the value creation and advantages by implementing mutual and simultaneous support bringing changes both to the value proposition of the organisation such as Tesla to the customers along with its underlying operational model (Przychodzenet al., 2020). With the help of business model innovation Tesla tends to gain competitive advantages in the market with respect to its competitors. By adding innovation in the business model, Tesla ensures that they are being able to come up with minimally viable products along with the business model canvas in a noteworthy manner.

Innovation culture in organisation

An innovation culture is known to be the organisational culture that largely and immensely gives support as well as value to innovation in its operations so that they are being able to make innovation happen within the organisation and in the market(Adén and Barray, 2018). Tesla substantially develops an environment that supports creativity, creative thinking and advanced efforts in order to extract social and economic value from the knowledge and generating improved and new products, procedures or services in the market. Creating an innovative culture within the organisation is essential in order to identify better ways for innovation, increase in employee engagement, increase profits and more.

Innovation value chain

Innovation Value Chain is the concept that explains the importance of innovation in determining organisational strength and competitiveness. The value chain has three phases: idea generation, idea development and idea implementation. In the stage of idea generation an organisation takes initiative to take advantage of an opportunity (Banerjee et al., 2018). Tesla in this stage would create, develop and communicate concrete, abstract or visual ideas. Additionally, the organisation would also focus on possible solutions to a wide range of opportunities as well as issues. In the idea development stage, the organisation obtains approval for experimentation and executing its application. Lastly, in the implementation stage, the application of the products is done which is followed by its adaptation.

Business Model Canvas

Key Partners The key partners of Tesla are OEM suppliers, Panasonic, Manufacturing and Purchasing, Dana Holding.	Key Activities The key activities of Tesla include R&D, Innovation, Design, Sales & Marketing, Software Development, Maintain and Build charging Stations Network.	Value Proposition The value proposition of the organisation is to provide Solar Energy Systems, Electrical Vehicles and Advanced EV Technology.	Customers Relationship The organisation has been able to develop customer trust through providing high quality customer service, brand development, organisational reputation and free or low-cost charging stations to its customers.	Customer Segment Tesla provides high end luxury products for high income groups. It further has other segments like Green Community, Tesla followers, commercial vehicles for transportation business.
Key Resources The key resources of Tesla are technological knowledge, electric vehicles, battery system, engineering and automation.	Channels Tesla primarily provides its services through galleries, retail stores, websites, sales events and conferences.
Cost structure The costs of Tesla include material and labour costs, Research and Development and Sales and Marketing Costs and Administrative costs.	Revenue Stream Solar energy batteries and panels, Upgrades, car sales and maintenance are the primary sources of revenue.

Table 2: Business Model Canvas

Three Horizons Framework

The framework of three horizons of growth helps in managing growth in an organisation in a coordinated manner. The first horizon of the framework represents core business providing cash flow and greatest profits (Collsteet al., 2019). Tesla in this stage would emphasise on improving performance and maximising its value. In horizon two it leverages on emerging opportunities to generate profits. Tesla through investments develop business ventures and ensure steady growth. Horizon three is associated with profitable growth in the future or generating ideas for developing new products or services for the consumers.

Market Opportunity Navigator

Market opportunity Navigator is known to be the tool that helps in mapping the market opportunities present in the market and analysing the viability of the opportunities and making an adaptation of the wide views of the options suitable in order to set the strategic focus smartly and conveniently (Gassmannet al., 2015). Any of the invention technologically or innovation are to be applied in the organisation in order to serve a wide range of different customers efficiently. The organization such as Tesla can ensure and increase its opportunities in the market by analysing the market opportunities proposition. It can be observed that Tesla can have access to a wide range of success through appropriate market opportunity. In order to increase its success in the market the organisation Tesla can make use of market opportunity navigators through which they will be able to understand the market opportunities and make analysis of the ame and will be able to apply strategic focus and strategies within the operations of the organisation. Market navigator opportunity is essential so that Tesla is being able to make an evaluation of the opportunities that are viable for them to carry forward in order to achieve success and competitive edge in the market with respect to the other organisations present in the market.

Lean Thinking

Lean thinking is known to be a methodology of a business that aims in highlighting and defining a new and innovative way to think and commence operation and to organise activities of the workforce so that benefits can be facilitated to the society along with the value to the individuals in terms of eliminating waste (Mostafa et al., 2015). The term lean thinking was coined by the researcher and methodologists P James. There are five principles or elements of lean thinking and they are Identification of the value, mapping the value stream, creating the flow, establishing pull and at last seeking the perfection within the organisation.

Design Thinking

Design thinking is known to be the approach to innovation which substantially includes procedures of strategic, cognitive and are practical nature. Design thinking can be developed in terms of the needs of the customers, generation of the creative ideas along with the rapid prototyping so that the way or the operations of the development of products, procedures and services within the organisation can be enhanced and transformed. Taking innovative strategies along with capabilities can also be categorised to be design thinking (Grashilleret al., 2017). Tesla can initiate and implement design thinking in the area of the innovation and in the area of value chain implementation effectively.

Primary Evidences through interview

Question 1: How is the organisation planning to further develop its innovation culture?

Manager1: Tesla has developed a multi-faceted approach towards innovation in order to reduce friction and ensure greater operational agility. It will also give greater emphasis on choosing innovation metrics and developing strategic partnerships to ensure better results.

Question 2: What is the role of employees in the organisation in implementing innovation?

Manager 2: Employees are an important part of cultivating innovation in the organisation and hence they have a special role in implementing innovation. They need to provide appropriate habits and procedures in order to foster innovative culture. The employees can also create vision for addressing challenges and shape innovation by committed self-acting and new ideas to implement the change for good.

Analysis of the key inhibitors or drivers of innovation and creativity

There are four key inhibitors or the drivers of innovation and creativity which helps organisations in bringing innovative transformation and changes in the business so that the organisation such as Tesla gains competitive edge. These drivers are such as fostering and finding appropriate talent for the organisation who will be able to encourage diversity and build innovation within the organisation, effective managers and leaders who can implement appropriate action in order to achieve creativity and innovation, relationship between the employee and the employer so that trust is being built amongst both and at last setting out appropriate vision and goal through effective and strong leaders within the organisation (Phillips and Phillips, 2017). These inhibitors are important and essential for the organisation in order to achieve success in the market.

Influence of drivers and inhibitors in business performance

The key drivers of innovation in Tesla include adequate tools and skills, innovation processes, development of teams, infusion of various perspectives, encouraging diversity, building innovation culture and ensuring funding. The presence of adequate skills augments the process of innovation and improves productivity. The presence of robust innovative processes helps in generation of various ideas, developing implementation processes and monitoring progress (Sivamet al., 2019). Team development fosters an environment for collaboration and emphasises the feedback process to ensure growth. The infusion of various perspectives provides effective solutions and facilitate the process of innovation. Leveraging diversity introduces new ideas and accelerates growth. Additionally, the development of innovation culture supports creativity and is integral to organisational innovation. Lastly, funding is crucial for any innovation forming the basis for growth and sustenance of an organisation. The inhibitors include necessary infrastructure that hinder innovations that may take years to develop. Additionally, innovation is often unable to keep pace with government regulations as it changes at a faster rate. Additionally, there also lies a barrier in embracing technology by common people and risk tolerance limits by the investors as well (Boon and Edler, 2018).

Objective of innovation or creativity strategy proposals

The objective of creative strategy proposals or innovation for Tesla is to differentiate the organisation in the business markets. The approach of innovation also helps in building customer loyalty and in identifying savings potential of the organisation. Moreover, innovation would also enable Tesla to achieve its revenue potential through exploiting a wide range of business ideas. The organisation through innovation also focussed on developing an organisational culture to develop its brand identity and expand its consumer base. Additionally, the purpose of innovation would help in developing product quality, accessing new technology and developing new competencies. 

Measurement and evaluation of the success of the proposals

The evaluation of a proposal is a multi-dimensional construct. Hence it would be measured based on five different factors. The first factor is scheduling. It would ensure formal evaluation at the end of each stage or phase in the innovation process. The second aspect is quality. The review of quality would ensure whether all the standards were met while formulating quality plans. The third aspect of cost would determine the progression of the project in accordance to the budget. Furthermore, stakeholder satisfaction is another important parameter while evaluating the success of the proposal. The support of the stakeholders and their engagement are pivotal in delivering innovation strategy successfully. Lastly, business cases would be checked to ensure the fulfilment of business objectives.

Key implementation issues in delivering innovation/creativity strategy

The key issues that might hinder the process of delivering innovation or creativity strategy include the following:

Determining strategic goals: The issues pertinent to defining strategic goals may also lead to the development of implementation issues. Additionally, the lack of clarity regarding innovation potential and its potential benefits to convert the requirement into goals may lead to the failure in delivering creative strategy (Farmanovaet al., 2018). 

Centralisation issues: The innovation in Tesla is centralised to a definite functional group that is Research and Development. In such a scenario, the organisation may face hindrance in implementation issues and reducing pace of innovation through restricting unique perspectives provided by various departments in the organisation (Sedera and Lokuge, 2017).

Absence in accepting input conditions: The implementation of innovative processes could hinder through restrictions or ignoring input conditions. It restricts different characters causing serious issues in the future. Tesla therefore requires to identify input conditions by detailed analysis of the present state and actions associated with external conditions.

Overcome implementation issues

Tesla could overcome the issues associated with implementation of innovative strategy in following ways:

• The managers at Tesla in order to prevent any errors while determining strategic goals are required to keep evidence of innovative opportunities and ideas including those which the business does not apply at present times. It should also ensure a smooth flow of information regarding innovative ideas, innovations and opportunities in real-time. It should also develop a common database for gathering and storing information to prevent any complications.
• Tesla instead of centralising innovation to a functional group within the organisation may encourage inputs of various perspectives across various departments across the organisation. It would help in driving innovation and its successful implementation. 
• The managers through creating characteristic indicators could create innovative strategies in business. It should also have awareness of restrictions that include risks of failure, innovation capacity and the degree of exploitation of innovative potential. It must develop control points during the implementation process as well.

Assignment 2

Challenges of international growth

As stated by Osaulenkoet al., (2020), the challenges in international growth are directly associated with the operations of the supply chain. The intricacies pertinent to operational logistics, shipping, exports and imports are impacted by trade deals, international laws and various complex legislation. Additionally, supply chain strategies cannot be developed based on a one-size-fits-all method. It requires development of strategies relative to the location of its expansion. On the other hand, Singh (2019), is of the opinion that talent retention is a considerable challenge in international growth as it provides a solid foundation for knowledge. However, the hiring and onboarding process remotely poses a challenge for the organisations as it increases the risks of increased overheads, HR responsibilities and increasing difficulty in gauging the best fit. 

International growth also faces challenges in terms of compliance. It includes adherence to various forms of taxes, trade tariffs, fees that impact business operations. Organisations like Starbucks require to be aware of trading standards applying to its procedures. The failure of the company to adhere to the regulations may affect its expansion process and incur additional costs as well. Haseeb et al., (2019), asserts that competition in the new markets is also a challenge in international growth as it requires differentiation of the products to retain competitive edge. Starbucks during its international process needs to deal with various obligations related to transaction, payroll and other regulations. It is also important for the organisation to provide unique products and develop good working relationships with suppliers, shipping companies, local businesses that would determine the operations of the supply chain.

Internationalisation

Internationalisation is known to be the procedure that helps in increasing the involvement, collaboration and implication of an enterprise such as Starbucks in the international market. Internationalisation is largely described to be designing of a product in such a way that it is readily consumed by the consumers across the globe in terms of multiple countries. Internationalisation is used by the organisation in order to increase and expand the business perspective beyond the domestic market. In order to internationalise a business or expand a business an organization such as Starbucks make sure that they are being able to understand the needs and the requirements of the international market considering different tastes and necessities of the consumers (Magno and Cassia, 2019). In order to achieve success in the international business or international market or in achieving international growth within the organisation for its expansion it is essential that organisations such as Starbucks are being able to frame various international perspective strategies in the business operations. Starbucks is known to be one of the renowned coffeehouses from the American multinational chain which is headquartered in Seattle. Starbucks is known to be one of the world's largest coffee chains who has a wide range of the subsidiaries. Starbucks being one of the largest organisations is present in almost all over the world including approximately 75 counties.

Organisation has a broad international growth all over the country, however, the organisation is likely to face some of the challenges in order to expand its business in the international market. The most common and the obvious challenge that the organisation faces is to recruit appropriate talent and implement a workplace that supports cultural divergence. The second challenge that the organisation Starbucks faces is setting trading standards in the international market by analysing and understanding the ongoing trends of the market in an effective manner.

First mover advantage

The first-mover advantage (FMA), can be referred to as a marketing strategy that helps in gaining competitive advantages. According to the opinion of Feng et al. (2019), first-mover advantage (FMA) can be conceptualized as the phenomenon in which the company that moves first (early) and enters a new market is more likely to achieve superior performance in terms of market share and/ or profitability in comparison to the later entrants. On the other hand, the Second/late-mover advantage (SMA) tends to occur when the second (late) entrant enters a new market. Such entrants are likely to have a better chance of outperforming the first entrant despite entering the market and starting late. Starbucks can be considered as the first mover in several markets through effective innovations and creativity. The company is obsessed with finding the newest and innovative ways to make things arrears and better for the company's partners and customers (stories.starbucks.com 2021). One of the key examples of the company being a first-movers is its introduction of the new Starbucks Digital Traceability tool. With the help of this tool, each bag of coffee beans is transformed into a digital passport, followed by the launching of coffee lovers on a virtual expedition for meeting the company's farmers, baristas, and roasters and for exploring coffee-growing regions all over the world (stories.starbucks.com 2021). This has been a significant advantage for the company as it has allowed Starbucks to attract a range of customers and instil a sense of trust among its customers about the sustainability and authenticity of the company's products. Furthermore, Starbucks is the first one to make Starbuck a third place between home and office and bring this culture into practice today. Such approaches are expected to help the company to gain various competitive advantages and enhance its sales and revenue. 

Transient & Turbulent markets

To compete in a transient advantage economy, an organization must have the willingness to assess the risk ability of the current advantages honestly. Competitive and transient advantages are not exclusive or restricted to any specific industry. Starbucks can be stated to have transient and turbulent markets (Botes and Pretorius, 2020). The company has more than 32,000 stores around all over the world. Starbucks Corporation (SBUX) is known as a premier roaster, marketer, and retailer of specialty coffee, tea, and other beverages, and fresh food items in a global context. SBUX has been found to become the dominant coffee shop-themed chain of the world in 83 markets over five decades at a rapid pace. The coffee company operates through three core business segments. They are Americas, International, and Channel Development. The stock of the company has gained more than 70% in the last 3 years as a result of steady growth in the number of customers, increasing dividends, and stable cash flows. In addition to this, it can be asserted that Starbucks has an impressive long-term performance. This can be said because, over the past five years, the revenues of the company grew at a CAGR of 5.5% (stocknews.com 2020). This represents that the company is competent in dominating transient and turbulent markets. On the other hand, the company also bases certain challenges in terms of growth in the international markets. The company had been facing certain challenges in the past few years from the quick-service restaurants and other gourmet coffee shops (www.forbes.com 2021). 

Strategic Alliances

According to the opinion of Russo and Cesarani, (2017), a strategic alliance is a vital source of growth and competitive advantages. In regards to the strategic alliances of Starbuck, it can be asserted that the company had partnered with various corporations for growing and expanding its market share in varying different countries around the globe. Some of the key partners of the company involve Barnes and Noble, PepsiCo, iTunes, Nestle, Unilever, and many more. The company had joined a strategic alliance with Unilever to reduce food waste (www.bioenergy-ne ws.com 2021). This has helped the company to develop its social reputation and work towards environmental sustainability. In addition to this, the strategic alliance with Nestle has given ample opportunities to the company to increase its market share and increase sales. In this context, it can be asserted that the strategic alliance of the company with Nestle has allowed Starbucks to introduce a new premium coffee experience to the consumers in the market of China. The alliance between the two companies has developed a commitment to sustainability and makes high-quality arabica coffee that is also sourced ethically (stories.starbucks.com 2021). On the other hand, Russo and Cesarani, (2017), asserted that although strategic alliances provide opportunities to corporations in terms of knowledge sharing, there remains a chance of carrying the risk of knowledge leakage to partners. There are certain events when the American coffee company had to face such challenges of data leakage and data breaches which resulted in serious problems for the company. 

Joint ventures

The joint venture is one of the important international strategic alliances (Nippa and Reuer, 2019) and is a strategic approach towards managerial liabilities. It has been evident that entering a new business environment is mostly supported by shared ownership which involves the strategic alliance of two or more farms. Joint ventures are mostly implemented for a shorter period and a specific organizational objective. Starbucks has been adopting this strategic approach constantly to encompass the challenges associated with international growth and business expansion. In this process, two or more different organizational entities with different legal and economic perspectives invest their resources to gain organizational momentum in certain specific goals. Some of the combinational market entry strategies include foreign joint ventures, franchising joint ventures, and licensing joint ventures. Other than the USA most of the foreign business outlets of Starbucks is partially owned and are a part of licensing joint ventures. 

Starbucks entered the Chinese market through a joint venture with Mei-Xin International Ltd company, which is also known as the "Coffee Concepts Ltd". It started operating in the region of Macau, Guangzhou, Hong Kong, Shenzhen, and other parts of southern China. The company also announced a strategic partnership with one of the leading investment firms, Sequoia Capital China to further advance the retail industry in the Chinese subcontinent (www.starbucks.com 2021). The company also initiated a joint venture with Tata Consumer Products to further expand its business in the business market of India.

Global economy

The major challenge that Starbucks is currently dealing with is the financial crisis all over the global economy as a result of the outbreak of the pandemic that forced Starbucks to call closures of many of its stores around the world. Another significant challenge that the company is dealing with is its competitors. The number of both direct as well as indirect competitors is growing at a rapid pace resulting in numerous coffee shops all over the world. In such an environment, being able to stand out to generate customers is of utmost importance. Successful global brands are required to develop a balance between delivering a coherent message and keeping up with tailoring of different cultural local customs (Alaali and Vines, 2020). Such an approach is initiated by the coffee chain which in turn enables the corporation to ensure effective market development. By now the company has successfully developed a global presence and is one of the significant contributors to the global economy, the international coffee market, and the GDP of the nations in which the company operates. However, as a result of the outbreak of the pandemic, the company's sales have been drastically impacted. In 2020, the company had generated a significant amount of less revenue than its previous year. A graphical representation of the company's quarterly revenue has been produced in the following section (figure 1). 

Macro-economic environment

Since the company, Starbucks operates in the global market, therefore, it can be stated that the company has a varying macroeconomic environment in different nations where it operates. According to the opinion of Brown et al. (2017), a sound macroeconomic performance tends to stabilize the expectations, offers a secure environment for investment, while sustainable or low private and/ or public debt levels tends to facilitate the financing of private and/ or public investment through banks or the capital market. Some of the most favourable markets of Starbucks involve the USA, China, UK, India, and others. Based on the existing market evidence, it can be asserted that the demand for the company's products, its profitability, and the cost structure of Starbucks are greatly influenced by the fluctuating macroeconomic factors. Some of the key macroeconomic factors that influence the company's profitability involve economic growth, interest rates, exchange rates, and other factors in different nations. The macroeconomic environment of the company focuses on the investigation of how the corporation is affected by the regulatory and economic features. Based on the analysis of the annual report of the company, it can be stated that there are certain risks related to the macroeconomic condition of the company. Firstly, the financial condition and the results of operations of the company are expected to be adversely affected by the Covid 19 pandemic for a continuous period. Secondly, the company has been experiencing failures to meet market expectations for its financial performance followed by fluctuations in the stock market which in turn is likely to affect the market price and volatility of the company's stock in an adverse manner (investor.starbucks.com 2021).

Productivity & competitiveness Sustainability

Starbucks has always maintained its productivity and competitiveness in the global market and has always had a competitive advantage by being a leader in product innovation. The company recently relaunched its seasonal favourite "Pumpkin spice latte" which gave the company an incremental visit of more than 150,000 consumers on the first two days. On the other hand, its competitors, McDonald's and Dunkin', experienced a receding market share due to the launch of the same coffee product a week earlier (www.forbes.com 2021). Moreover, the company is committed to environmental sustainability. The company aspires to develop a positive impact on the environment, storing more carbon than emitting, eliminating waste materials, and providing cleaner freshwater than that is being used by the company (www.starbucks.com 2021). The company shows commitment and creativity towards its stakeholders and customers across the globe to encounter the challenges associated with international business growth.

Conclusion

Based on the above discussion it can be concluded that innovation capabilities is a vital component in the growth and development of an organisation. The study has taken into consideration two organisations Tesla and Starbucks. In the first section, the aspect of innovation has been discussed. It presented a detailed analysis of process innovation, product innovation, business model innovation and innovation culture in organisations. Furthermore, it shed light on the frameworks like innovation value chain, business model canvas, three horizons framework, lean thinking, market opportunity navigator that provided various aspects about organisational innovation. It also presented information about the important drivers and inhibitors in the process of innovation. The drivers included innovation processes, development of teams, adequate tools and skills, infusion of various perspectives, encouraging diversity, building innovation culture and ensuring funding while the inhibitors include difference in pace in government regulation and technological growth, lack of acceptance of innovation by the people and lack of risk tolerance. The second section encompasses the challenges associated with international growth in the context of Starbucks. It has taken into consideration the aspects of internationalisation, first mover advantage, transient and turbulent markets, strategic alliances, joint ventures, global economy, macro-economic environment and productivity and competitiveness sustainability.

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