Starbucks early termination of cooperation with Kraft

http://www.bbc.co.uk/news/business-24923317

 2011, Kraft Foods, Starbucks suddenly decided to withdraw its distribution rights bagged coffee, and then expand the business themselves. Kraft Foods proceedings are instituted against Starbucks, with intent to prevent recovery of bagged Starbucks coffee business, but without success. Bagged coffee business from Kraft single-handedly built and painstakingly built up over 13 years, with annual sales of $ 500 million once.

The reason for the termination of cooperation, Starbucks feels that Kraft did not provide appropriate support to the business, which involves the promotion Starbucks Coffee and Seattle’s Best Coffee these two brands. In addition, Starbucks also refers to Kraft did not work closely with Starbucks, decisions on major markets and customer communication is not timely coordination with Starbucks. Kraft not well fulfill the obligations specified in the contract, resulting in impaired performance of Starbucks, we have the right not to pay compensation in case of termination of this co-operation. Starbucks has insisted that: “the bagged coffee business from Kraft corporate recovery, for Starbucks, our brand as well as shareholders, are the right choice.”

My point of view, cooperation between enterprises first and foremost is trust.Continuing operations of mutual trust is fundamental, if mutual suspicion must disband.In addition,Business process will inevitably produce a distribution of benefits, such as wages, such as the credibility of the purchase price, if everyone want their own interests, over time inevitably produce conflict, contradictions, the result is the development division.In actual operation, their ideas will not be the same, will inevitably cause some inadvertent mistakes, if we good communication, reduce errors, so it can ensure continuous operation and common development.

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