Starbucks in Bogota

Presented by: Krystal Aguilar, Ashley Chennault, Chiho Nakayama, Brianna Stock, Philip Wall

Inspireandnurturethe human spirit

one person,one cupand one neighborhoodat a time.

ColombiaCapital city is Bogota

Colombia

• The official language – Spanish

• 95% are Roman Catholics

• Hierarchical society

• The society and power structure

Framework - Geert Hofstede Analysis

• Power distance

• Low individualism

• Masculinity

• Uncertainty avoidance

Relationship Building

• Establishing trust

• High context

• Avoid confrontation – lose face

Sending Expatriates to Bogota• World’s third largest coffee producer & exporter.

• Has already been successful in more than 650 stores throughout Latin America.

• Recently signed a three million dollar contract with U.S Agency for International Development in hopes to boost coffee yields in Bogota & help stabilize their economy.

• “Sell Colombian coffee in Colombia” – Craig Russell – Senior Vice President of Starbucks

Cultural Differences

• Terrorist organization, the Gerilla Group.

• Highly resistant to change, already accustom to Juan Valdez Café.

Colombia United States• Relatively stable

government.

• Population flocks to the nearest Starbucks.

Selecting Expatriates

• Multiple Interviews– Expats family

• Group Interview– Previous expats

• Observation method– Communication skills– Effectiveness of

enculturation into Colombia

• Written Tests – Cultural Toughness

Training & Preparation

• Foreign language training – Jargon– Patience – Speed of speaker

• Cultural briefings• Cases (real life scenarios)• Role-playing• Culture Assimilator • Field Experiences

The Four Phases of Repatriation

• Repatriation from the host country is often the “forgotten” phase of the expatriation cycle

• A 4-phase approach:1. Prior to Expatriation2. During Expatriation3. Before Repatriation4. Repatriation

Phase 1- Before Expatriation

1. Pre-departure briefings on what to expect during repatriation - Implement a formal and thoughtful process to repatriate from day one. Recognizes it is critical that the Expatriate understands the purpose of the assignment – before leaving.2. Career planning sessions3. Guarantee/agreement outlining the type of position expatriates will be placed in upon repatriation. Ensure that the expatriate does not have “unrealistic expectations” of a promotion upon their return.

Phase 2- During Expatriation

4. Mentoring programs while on assignment - designate a “high-quality” sponsor for the expatriates. 5. Continuous communications with the home office

Phase 3- Prior to Repatriation

6. Lifestyle assistance and counseling on changes likely to occur in expatriates’ lifestyles upon return7. Communications with the home office about the details of the repatriation process8. Reorientation program about the changes in the company

Phase 4- Repatriation

9. Repatriation training seminars on the emotional response following repatriation10. Financial counseling and financial/tax assistance11. Visible signs that the company values international experience

Questions?