Introduction:
Conducting business in present times is a task
that is reliant on so many factors. Overlooking
any one of these factors can result in significant
differences in the outcome of a research. While
conducting research in any subject, especially
business, it is vital to consider factors like
demography, gender and culture. This is because
factors like these vary considerably from location
to location. Particularly with globalization having
taken place there are even greater chances of
differences occurring, and even if research in
any areas that concerns demographic make-up has
been conducted in the past there would be significant
differences between then and now. This is explained
on the basis of demographic makeover in many globalized
places in the world.
While conducting research into feasibility in
exploiting the characteristics of gender, one
has to aware of the significant differences in
behavior of a single gender. This means that individuals
belonging to one gender and living in different
parts of the world may have completely different
mentalities. And while considering these mentalities
in relation to enhancing corporate morale and
organization development, there may be variable
results obtained. For example, in a globalized
setting too there may be considerable differences
between individuals in a particular gender. Organizational
influence in turn may affect a society over a
period of time, and societies such as China that
have Westernized organizations set in them have
the greatest chances of being transformed with
the passage of time(Harris, 1993, 755-776).
In considering this, isolated studies are usually
conducted to reveal the impact of certain gender
roles, in which case it may even be quite a task
to accurately determine the significance of the
study due to demographic reasons. However, there
are certain gender work patterns displayed in
organizations that reveal some differences between
the male and female employees. All this simply
demonstrates the manner in which, a westernized
organization may impact a society. This strongly
refers to the Multinational Entertainment Capitals,
which have the strength to transform people’s
lifestyles, as demonstrated in Taiwan.
In places like Taiwan, it is interesting to note
that modern day life has drastically changed with
the passage of time due to external influences.
With the passage of time, these external influences
have actually developed into internal influences,
and set the trend, so much so that people living
there would hardly feel that a number of the trends
are in fact not eastern. McDonaldization that
has taken place, with the passage of time, has
the capacity to control people’s minds.
This is refers to the manner in which it has influenced
people from the time they were young. Consuming
such products has led them to take things for
granted and eventually grow to believe that this
is a major part of their culture.
Another example of this is Starbucks that has
penetrated into the lives of the people (Wicentowski,
2000). This has resulted in people taking it for
granted and accepting it as another part of their
culture. Particularly in Taipei, this trend is
visible as far as the influence of Starbucks is
concerned. For this reason, it is worth investigating
the manner in which Starbucks has worked its way
into people’s lives in Taipei. In order
to study this, it is worth briefly examining the
manner in which other organizations such as McDonalds
influenced people in China generally speaking.
Globalization, in the forms above, has certainly
done a great deal to influence societies throughout
the world. There is now greater awareness of several
practices in the West being brought to the East,
and vice versa. The media has contributed largely
to this awareness, and the reinforcement of International
Law has helped streamline the economical approach
of dominant countries/cultures in the globalization
process.
Framework:
Advertising and Marketing businesses are one of
the most lucrative businesses in a globalized
economy. Through their strategies, organizations
are able to present organization in different
cultures and make them appeal to the people of
particular cultures. This is where advertisers
and marketers do their job; their job is to basically
capture the attention of the people (Campbell,
1997, 42).
In places like Taipei, Taiwan, it must be noted
that since there were no westernized setups, with
the introduction of organizations like McDonalds
and appropriate advertising and marketing, they
were a roaring success.
This explains why advertising and marketing are
most influential sources of earning billions of
dollars a year. For most of the businesses in
America, the volume of sale is dependent on the
advertising of the product. Furthermore, the business
firms and manufacturers persuade people by advertising
their product in the market. At the same time
they also keep follow advertising techniques to
promote their image in the market so whenever
they introduce their next product it would be
easy for the consumers to trust on their product
due to their image (Morrell & Capparell, ,
2001, 12-20).
The images that are set within a culture are directly
dependent on the way that they are marketed. As
in the case of McDonald’s being setup in
Taiwan, one experienced the friendly atmosphere
they had to offer. Along with this, their tea
was essentially welcomed, and it has become an
everyday affair for the youth there. Not just
in Taipei is this the case, but almost throughout
Taiwan.
The interesting part to follow comes here; Starbucks,
with its coffee and café’s have been
an interesting intrusion on McDonalds’ tea
supply (Coffee filters its way…, 2002).
This is because they are not received with the
same feelings as McDonalds is; due to the fact
that Taiwan has a long history of tea in the region,
supplying such a product on a large scale has
come to mean different things. It is almost as
though it speaks a new language or as though it
is a new set of vocabulary added to the culture
there. This certainly sounds interesting, and
for this reason it is worth investigating how
many feel that Starbucks is trying to insert itself
into Taipei as far as coffee and cafes is concerned.
By Understanding the historical impact behind
the way that the meaning of tea and coffee have
changed, reveals a great deal, and this approach
is one that will be significantly incorporated
in this study along with understanding the strategy
of Starbucks and McDonalds (Wicentowski, 2000).
Having asserted that there is considerable conflict
between the two organizations (McDonalds; a western
setup, and Starbucks; a coffee provider) it is
also interesting to learn about what Starbucks
stands for; is it simply a coffee provider that
faces opposition? O is it a culture symbol that
isn’t able to win the hearts of people due
to the product it is promoting?
Literature Review:
In an image conscious world, advertising can have
severe affects on certain areas of society. Flashy
advertisements that catch the eye of the individual
are ones that most commonly succeed in promoting
products. In particular, children are the ones
that are most attracted by the media hype for
the sale of goods. It must be realized that when
an industry blossoms the government also gain
a great deal from the products sold. If a government
is gaining economically from the sale of goods
then it is most likely that they would want the
process to continue smoothly. It appears that
in the fast food business has in fact been boosted
through the media and uninhibited strides have
been taken in the last century to spread this
trend as far and wide as possible.
So effective has advertising of fast food been
that this form of food is now eaten throughout
the world. In the United States itself on a daily
basis, one in every four individuals indulges
in a fast food meal, overlooking the dangers of
consuming these high cholesterol foods.
“Advertising to children does have an effect
on their preferences, purchase behavior and consumption,
and these effects are apparent not just for different
brands but also for different types of food”
(A rise in fast food adverts, 2003). The youth
are given to understand that they are well off
by grabbing a burger, which they think fulfills
all their nutritional requirements. What they
do not know is the fact that this food is actually
hazardous to them.
According to Schlosser , individuals such as Harlan
Sanders and the McDonald brothers are his first
targets. He also utilizes them as a tool to recollect
the history of the concept of fast food production,
as they were the ones who first applied the principles
of a factory organization to a commercial kitchen.
Others who are also exposed in the process of
this display are Burger King, Auggie's, The Chicken
Shack, Jack-in-the-Box, Little Caesar's, etc.
In exposing the way that food for this quick production
is stored and the manner in which the individuals
who handle the meat work, Schlosser presents a
frightening account as it is asserted that there
are more deaths occurring among the workers in
this area as compared to the number of policemen
dying annually. This is perhaps the severest piece
of information the writer gives the reader in
this research. Taking this into consideration,
one might assert that Taipei is also one that
could be victim of such ill-standards as emphasized.
Though this portion of the study refers to food
rather than coffee or tea consumption, it is enough
to present one with an idea of how societies such
as Taiwan can be a victim of unhealthy food standards.
Since the 1970s, it must be noted that there were
rapid transformations taking place. A large portion
of humanity in the US was allowed to have equal
status as others had in the US. The merging of
society meant that the society could progress,
and so it did. The post-modern age was promoted
with the establishment of overseas establishments.
These presented immense scope for organizations
in their origin as well as for those where the
outlets were set up. McDonalds is one organization
that can be used as an example of a fast-food
chain, as it has several outlets in places like
Taipei. It is worth particularly mentioning that
this place was recognized as a spot for establishing
food-chains as early as the 1980s, from when it
began to grow in popularity (Wicentowski, 2000).
McDonaldization: Business strategy implemented
in a particular market determines the success
that an organization would have. In a highly competitive
world, business strategy is vital to success and
as demonstrated by some individuals an ordinary
business can be converted into a massive chain
of outlets on an international scale. An example
of this kind of success is Ray Kroc’s MacDonald’s,
which developed from a relatively small fast-food
company into a fast-food chain with outlets in
nearly every corner of the world. Its tea business
in Taipei is of considerable value, especially
to the youth, because it has been their provider
for quite a while (Dessing, M. 1997, Vol. 1, No.
1). There has not been any local competitor that
has been able to come up to them.
However, Starbucks is believed to be one organization
aiming at replacing or shifting tea traditions.
The problem apparently is that the youth in Taipei
have been accustomed to McDonaldization, and they
have difficulty coming to terms with its (Starbucks)
supplies. The difficulty is posed because of the
fact that Starbucks is not supplying them a product
tat they are used to having; Starbucks is providing
something that is completely different, thereby
promoting a change to a tradition that has lasted
centuries. This is obviously something that the
people of that region do not want. They were apparently
satisfied with McDonalds because of the fact that
McDonalds provided them with something that was
originally theirs. Now, to change that too would
be an immense problem. This is because of the
fact that it would mean transforming the culture
set in Taipei, Taiwan (Wicentowski, 2000).
The name that Macdonald bears today is the same
as it did before its owners were replaced. Ray
Kroc at first worked for the MacDonald brothers
and it was from this business itself that he got
an idea of what this business could become. Kroc
had the ability not to just imagine but visualize
and make that visualization a reality.
Ray Kroc’s strategy is the key that changed
the manner in which things were being conducted
at the McDonald brothers’ fast-food. At
first he gained franchising rights from the owners,
and then founded McDonald's Corporation in 1955.
Six years later, Kroc bought the McDonald brothers
for a sum of $2.7 million. From then on, Kroc
implemented strategies of his own that changed
the future of Macdonald’s. Based on his
view of acquisition, which is as follows, he was
able to succeed.
If acquisition s added to existing kingdom: Similar
or differing cultures or customs?
a) Extinguished blood of old rulers?
b) Planted colonies?
c) Allowed to govern selves and pay tribute?
Once secure in acquisition:
1. Establish self as head and defender of the
less powerful, weaken potential competitors?
2. Foresight-anticipate and deal with problems
before they grow
to crisis proportions?
3. Effectively limit power of those who assisted
in rise to power?
Though all of Starbucks strategies are not similar
to McDonalds’, a great deal of similarity
is present. This is to say that they (Starbucks)
was interested in setting up an organization that
would weaken the power of competitors. Apparently,
this is a subtle strategy that has been implemented,
and may be said so because of the fact that Starbucks
has aimed at supplying coffee instead of tea in
order to break the tea supplying trend. Although
such an assertion might be a miscalculated one,
it is of course reasonable to assume that this
is the case. This is especially since everyone
has been following a trend for many, many years.
If the coffee suppliers remain successful wit
the tourists, one may, in time to come, witness
a change in the attitudes towards Starbucks (Tourism
and Poverty Alleviation, 2003). This is because
locals might want to adhere to tourist behavior;
they may endeavor being westernized to an extent
because of the style that some foreigners may
present. Also, by locals blending in wit the tourists,
they would inevitably end up in the coffee houses,
in order to mingle with them. Though this is one
way of looking at and judging the situation, it
is indeed one approach that cannot be over-ruled
(Wicentowski, 2000).
Since the demographic structure of the society
now has a great deal of tourists around, it is
reasonable to think that the coffee would develop
into a grand success. This is true to say because
of Starbuck’s success in other places. Already
due to its reputation, Starbucks has received
applause as one of the quickest growing companies.
This is in spite of the fact that it is not near
enough the top competing organizations (Koeman,
2003). It might also be asserted that this company
is in its early stages of development, and that
it still has immense scope for improvement. Also,
the level of success that Starbucks has had in
the past does not undermine its future prospects,
as this organization has the ability to work its
way into the Taipei culture.
This is true to say because of the fact that it
has succeeded in providing tourists with something
different, which directly refers to the fact that
it provides them coffee, which they are so used
to (Tourism and Poverty Alleviation, 2003).
Serving these tourists coffee while they are from
home is a delight, and something that would encourage
tourists to remain longer or tour more often.
Since remaining longer in Taipei means that the
region earns more revenue, authorities would be
pleased that an organization such as Starbucks
has encouraged the tourists. In a similar manner
that McDonalds had also encouraged tourists to
remain in Taipei because of its fast-food options,
Starbucks too has offered a variety or option
for them in case they would rather have coffee
than tea.
Tourism is something that a government can encourage
in order to promote its economy, and this helps
development to takes place in areas that are in
need of it (Blomey, 1996, 238-256). It has been
seen that with tourism areas that suffered economically
have been ameliorated significantly. This is because
people from richer industrialized countries have
been provided the opportunity of spending their
money in exchange for entertainment and relaxation
in these regions. Hence, there is naturally more
income generated for the inhabitants of tourist
resorts (Robert, Serge. 2003).
Tourist resorts are extremely effective in economic
terms regarding:
1. Foreign Exchange Earnings
2. Investment Attraction
3. Job Creation
Likewise, tourist resorts are extremely effective
in social terms regarding:
1. Community Enrichment
2. Cultural Preservation
3. Gender Equality
4. Youth Employment (Tourism and Poverty Alleviation,
2003).
Aside from these there are also other areas that
tourism is helping, and they are as follows:
1. Tourism is contributing to societal understanding
and mutual respect
2. Tourism as a vehicle for individual and collective
fulfillment
3. Tourism, a factor of sustainable development
4. Tourism, a user of the cultural heritage of
mankind and a contributor to its enhancement
5. Tourism, a beneficial activity for host countries
and communities
6. Obligations of stakeholders in tourism development
7. The human right to tourism and travel
8. The liberty of tourist movements
9. The rights of workers and entrepreneurs in
the tourism
industry (Tourism and Poverty Alleviation, 2003).
Regions maybe improved economically through promoting
tourism but it must also be realized that this
step does not end here. It may cause changes in
the structure of the society with the passage
of time. This means that the physical geography
of the place may be modified, coupled by the increase
in the diversity among the people (Wilson, 1994,
27-30).
In order for a government to promote tourism they
need to focus on the following areas:
1. Integration of tourism planning and general
planning activities in rural environments;
2. Costs of tourism development; and
3. Policy-making and planning processes (Tourism
Policy and Planning in Rural Areas Module 5. 2002).
However, these essential areas are often not given
the attention that they should be in some regions.
As a result of this they end up wasting valuable
time because much tourism is lost. Though this
is the case, but a significant number of people
are worried about particular places losing its
culture. In the case of Taipei, one might reasonably
assert that the tea-tradition that has a long
history attached to it, is one that they would
not want to lose overnight due to the coffee aspirations
of Starbucks (Wicentowski, 2000).
However, it also must be remembered that by encouraging
tourism, governments can alleviate poverty in
their rural areas. However, the fear is that there
is a risk of these rural areas adopting practices
that modernize these places beyond what governments
may want them to. And, as a result of this, the
cultural practices that are practiced traditionally
in these places are slowly overshadowed by newer
ones (Robert, Serge. 2003).
However, this is like a dilemma for the people
living there, as they are at crossroads; the problem
for culture retentiveness is that such food chains
are the kind that would encourage further westernization
of an already quite westernized Taipei while the
people are segregated in their approach. This
is considered a problem because of the fact that
there are people here who are the kind that remember
and wish to hold fast to their culture while others
want to be westernized (Marcouiller, 1997, 337-357).
With tourists around as well as significant proportions
of the youth in Taipei act in opposition.
The youth undoubtedly on the whole prefer to adhere
to the tea-consumption that McDonalds and other
cafés in Taipei have provided. They are
not very much inclined towards coffee consumption,
but with the passage of time are being encouraged
to do so. This is because of the fact that it
is very difficult to segregate two different cultures
that are placed within the same geographical location.
Since, there is no way of physically separating
them, they are bound to blend in. In the same
way that tourist tastes and the like ware off
on to the locals, practices in Taipei are bound
to become known in countries where tourists come
from. This is because they are most likely to
take back with them memories and mementoes after
visiting Taipei. In clearer terms, it is the blending
of cultures inevitable, for that is how human
beings and their cultures have evolved. On the
basis of this understanding, it is reasonable
to think that strategies for setting up firms
in places like Taipei have been successful (Wicentowski,
2000).
According to McDonalds’ strategy described
earlier, it appears that it has indeed achieved
what it set out to do; it has been able to establish
itself firmly in areas such as Taipei, where it
worked wisely in order to win the hearts of the
locals. It did this through capturing the attention
of the people through tea production. In a sense,
it must be asserted that McDonalds were wise because
of the fact that they succeeded in gaining popularity
by making use of a product in Taipei that was
already popular, and has been that way for a very
long time.
In spite of the advertising and eye-catching tactics
that the organization (Starbucks) has attempted,
they are still struggling in Taipei because of
the fact that they are trying to push people towards
coffee consumption rather than tea consumption
(Huang, 2002).
In contrast to McDonalds strengths, through which
they have won the hearts of the youth in Taipei
(providing tea), Starbucks is an organization
that proposes drastic change for Taipei culture.
The writer refers specifically to Taipei because
it is a region that is particularly known for
its McDonaldization effects and also has a great
number of Starbucks outlets. It must be asserted
that Starbucks has setup itself in this region
in considerable number because of the fact that
it can cater to western tourists here. Having
said this, it is worth asserting that there is
immense scope for more growth as there would probably
be a greater number of tourists attracted. Also,
since this chain is fast becoming popular, it
is worth asserting that it has the ability to
attract the locals out of curiosity, thereby ameliorating
its growth and competitive position.
Observing the manner in which food chains and
providers such as Starbucks have infiltrated Taipei,
it is worth considering the manner in which they
have affected the people living there, with major
concern for the economy.
It is often thought and given due consideration
that globalization has resulted in third world
economies being sucked. This refers to the manner
in which healthier economies have outsourced;
through this outsourcing they have managed to
save their organizations a great deal of spending
because of the lower cost of labor in third world
countries (Davis, 1998). With the kind of situation
that globalization has produced, it is understandable
why the job situation in the United States has
worsened. There is a need to reduce this kind
of situation, as the country will be in for greater
problems if the issue is not taken seriously (Bairoch,
1996,173-192). It must be emphasized that the
US will be in for gloomier economic times if the
rates of overseas expeditions are not curtailed
(Meade, 1993, 3-9). However, the main concern
is McDonaldization, which means that more and
more organizations result in particular regions
losing out economically due to outlets from the
west (Walker & Fox, 1996, 375-412).
According to Chen & Ravallion one finds that
the incidence of poverty decreased between 1987
and 1998. The level of poverty in some regions
of the world has gone extremely bad in the last
decade or so, and this is largely due to the effect
that free trade has had along with few other factors.
However, this is just one of the reasons for the
same in countries where there is far too much
freedom exercised with regard to trade. It is
also said that far too many “persistent
inequalities (in income and other measures)”
are responsible for the poverty of the world to
be in such bad shape.
The economic growth and the rate of it as well
are responsible for the condition that the world
economy is in today. Though globalization has
taken place, and the rate at which trade should
be taking place, it appears that the reverse has
resulted (Bairoch & Kozul-Wright, 1998, 37-68).
Reinforcing this are views that the west is still
exploiting the East, and they continue to do so
in a subtle manner. Without the masses realizing
it, they are sucking the economy through the number
of fast-food chains and the like that they have
established in countries where labor is cheap.
It is asserted that at the most these fast-food
chains do for the economy is provide them with
more jobs (Segal, 1995, 27-33).
In “Voices of the Poor: Can Anyone Hear
Us?” by Narayan, deepa et.al, there are
clear indications of the predicament that the
third world has been placed in as a result of
total exploitation. Even up till today, the same
continues. The colonists who dominated various
regions of the world extracted the resources therein,
and took them back with them so that they could
be polished and sold back again to these poor
people at higher rates. This is how these people
were always oppressed. In addition to this, the
means of polishing these raw materials was kept
away from the natives so that they could not industrialize
themselves like the colonists.
Though many may even be aware of this trend continuing,
one might add that it will carry on as individuals
are largely selfish, and will adhere to whatever
suits them (Scholte, 1997, pp. 13-30).
Nevertheless, it can hardly be asserted that Starbucks
strategy isn’t one that has helped them
succeed and get them where they are today. This
is because of the fact that they have implemented
a solid plan that has worked for them. They have
obviously calculated their risks and possible
successes, and have developed themselves tremendously
in order to be recognized; they are indeed recognized
as one of the fastest developing organizations
in the world today. With their initial success
in Seattle, Starbucks has managed to establish
more and more outlets wherever it can. Indeed
in Taipei, Starbucks have faced resistance, but
none that was enough to nullify their aspirations.
This is because of the fact that cultures are
known to give in to things that are freely available
to them, whether they are culture-conscious or
not. Though this is a general assertion, it is
one that speaks for many people who have begun
to adhere to products that are largely consumed
in the west. Coffee is now fast becoming a viable
commodity where Starbucks establishes its outlets.
Particularly it must be asserted that in Taipei
coffee consumed by the tourists is most encouraging
for those that want to experience something new.
In addition to this, those that want to be westernized
in their lifestyle would endeavor trying coffee.
Hence, there are quite a few people who would
even consume coffee simply for experimental purposes
(Reed et al, 1996, pp 173(30).
Regarding the notions regarding possible exploitation
of Taipei, it is reasonable to assert that exploitation
in the true sense is not what is happening through
the presence of organizational chains such McDonalds
and Starbucks. Rather, there is more opportunity
presented than anything else. This may be asserted
because of the fact that tourism earns a region
a great deal of revenue, and based on this, it
might be asserted that any earning that the region
is deprived off may be compensated through revenue
earned through tourism.
One very important point to also make a note of
along with discussing the tourism factor in Starbucks
operations is the diversity management and use
of staff that is of the region (Taipei). The staff
here is basically from Taipei; indeed, many of
them have hardly had any experience with serving
or preparing coffee before. These same people
have been conducting the operations, and have
been doing so successfully with little or no problems
(Wann & Wolfenbarger, 1994, 14-16).
Quite evidently, one may assert that though there
is much that many could say about the level of
success that Starbucks has had in Taipei, they
are proving themselves well. This may be asserted
because of the idea that they have come up with.
Their idea of selling coffee in a culture that
has tea in its traditions for hundreds of years
is something different; it is different, and so,
it is bound to be opposed by some and promoted
by others. This means that with the passage of
time it would gain some popularity, depending
on the level of consumption in Taipei.
Clearly, since there are many tourists and other
westerners residing in Taipei, Starbucks Coffee
will be consumed in increasing volumes. In addition
to this, it must be asserted that there is every
chance that locals there too would endeavor trying
out Starbucks product, and this may occur for
reasons that could range from mere curiosity to
a need for change.
As asserted earlier, the manner in which Starbucks
would gain popularity, to a great extent would
depend on the society giving in to eternal forces.
The eternal force here is of course Starbucks,
to which the locals to some extent would give
in. it is only natural that this would happen,
and so, it cannot be asserted that they are forced
to purchase and consume coffee. Hence, consumer
behavior is directly observed here as being modified
by the availability of products.
Other brands in the Taipei market or for that
matter any other market can demonstrate almost
the same trend. Consumers do need a variety to
select from, and so, it is quite understandable
that they would eventually end up experimenting
with products that go against their cultural norms.
In this sense, Starbucks is no different to other
products on the international market.
One may even assert that it is just another organization
with a newer product in a location that has never
had it in the quantity that they (Starbuck) offer.
However, there is one thing that must be reasserted
about Starbuck, and that is the manner in which
they have grown so quickly. It finally must be
asserted that although other organizations have
the potential to offer their services and gain
acceptance with the passage of time, Starbucks
has achieved this in quick time.
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