Guideline_Starbucks (1) - Starbucks FDI Case: 20...

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Starbucks FDI Case: 20 substantive points; 5 points given “free”. QUESTION 1: Initially Starbucks expanded internationally by licensing its format to foreign operators. It soon became disenchanted with this strategy. Why? (5 points) ANSWER 1: Award 5 points if the student mentions all of the following: *With licensing, Starbucks had limited control of their expansion rate . *Key to Starbuck’s strategy is quick expansion to build consumer habits while Starbuck’s is trendy. *Their licensees did not have the capability to expand as rapidly as Starbucks wanted. Award 4 points if the student mentions all of the above except “expansion rate” Award 3 points if the student mentions all of the above except “expansion rate” and “building consumer habits while Starbuck’s is still trendy: Award 2 points if the student only mentions “lack of control over the licensee” as the main issue QUESTION 2: Why do you think Starbucks has now elected to expand internationally primarily through
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This note was uploaded on 03/19/2012 for the course IACT 201 taught by Professor Rodgers during the Three '12 term at University of Wollongong, Australia.

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Guideline_Starbucks (1) - Starbucks FDI Case: 20...

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