PREPARATION QUESTIONS:

1. What is Starbuck’s strategy?

Starbucks is a company that follows differentiation strategy.

2. Given your assessment to its competitive premise, how should it leverage its resources and capabilities to achieve its growth objective?

Starbucks built its own supply chain operation in order to reduce redundancy and maximize the efficiency. The uniqueness of the supply chain allows Starbucks to control its cost of it service and products.

3. How will you respond to McDonald’s offer?

I think that In order for Starbucks to gain more market share, Starbucks can partner with fast food giants and provide a different line of blend coffee to fit McDonald’s customer needs.(McDonald’s follows cost leadership)

WRITTEN ASSIGNMENT: (Must relate to the Case Study )

Base on your answers to the questions above (preparation Questions), and using the strategic concepts, tools, etc. that we have learned so far.) Identify and explain reasons to support your recommendation that Starbuck’s should partner with McDonald’s (in what way should they partner with McDonald’s? What does the partnership look like/ what type of partnership should it be? For what reasons? And what strategic/competitive advantages would this type of partnership give Starbucks? )

I attach the “Starbuck’s case” and the key term what we learn so far.