Advantages of Joint Venture

First, watch Former Starbuck’s CEO Howard Schultz and Alibaba founder Jack Ma discuss the success of Starbucks in China.

https://www.youtube.com/watch?v=sBKL9752NWwLinks to an external site.

Then, read the article Links to an external site.about the success of Starbucks and McDonald’s in a difficult market such as China. Follow this with your own research on how other US companies found success in China. Answer the following questions –

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1. What are the reasons for Starbucks to choose Joint Venture as their choice of entry mode in China? List the advantages for this choice.
2. Let’s assume that Starbucks decides to go with franchising as the entry mode in South Africa due to some governmental regulation. How can Starbucks find success in such a situation?