Starbucks Question and Answers

Starbucks question

1. Identify the controllable and uncontrollable element that Starbucks has encountered global market.

ANSWER:Controllable - the pace of entry and growth,marketing

Uncontrollable-anti-globalism terrorism,prating and copying, consumer behavior differences and changes, health issue, the attractiveness of its us compensation plan depends in the direction of the stock market.

1. What are the major sources of risk facing the company?Discuss potential solution.

ANSWER:there is a risk for the company. Particularly frying to meet wall street expectation for 20% annual growth. Difficulty of maintaining quality of consumer service in most international markets. Decline in the economy in U.S.

1. Critique Starbucks’s overall corporate strategy.

ANSWER:The company’s ,hyper-growth rates is trying to maintain the result in huge blunders in new markets. In international expansion, they need to be careful on growth based in research  and experimentation.

1. How might starbucks improve profitability in Japan?

ANSWER:According to the discussion the hyper growth rates the company’s latest plan are focusing on broadening the product line to include alcoholic beverages(perhaps coffee based)and hot food.

Japanese prefer rending machines,indeed exploiting the brand in Japan may require a completely different operating philosophy given the substantial difference in consumer culture.

McDonald question

1. Analyse the various allegations levelled against McDonald’s before the French fries controversy, why do you think the company attracted so much hostility and criticism despite being the number one fast-food chain in the world?

ANSWER: the biggest lawsuit against the company was the one filed by the london greepeace octivrsts.

McDonald food increase the risks of diseases such as cancer,heart disease,obesity.

McDonald destroy tropical forests to facilitate cattle raching.

Company produced a huge amount of litter every year that polluted the environment.

The company suppressed negative action it by using its financial.

McDonald said the activists for libel. The case was fought for two years and McDonald spend around 10 million on legal expenses.

For instance, despite the constant problem with the high temperature of its coffee, McDonald refused to do anything about it.

Similarly the company maintain that french fries had always been made like that and it had no intentions of changing the procedure.

1. Discuss the French fries controversy and critically comment in the company’s stand that it had never claimed the fries were vegetarian. Do you think the company handle the controversy effectively? Give reasons to support your answer.

ANSWER: during  1990’s McDonald’s was accused of misleading people to believe that the product was vegetarian even though they contained beef flavouring. McDonald’s annanced its decision to stop using beef shortening for making french fries and switch to pure vegetable oil. Besides that, its decision to change from pure vegetable oil. The company discovered that it could have difficulty in retaining its customers accustomed to the beef flavoured fries. Therefore it decided to add beef flavour to the fries at the time of  par-frying.

1. Discuss the step taken by McDonald’s to play down the French fries controversy, and critically comment on whether the company will be able to come out if this unscathed.

ANSWER

McDonald’s second to have realized that it would not have been able to coin the French fries lawsuits against it. Thus, the company had to take the following measures to make amends to the offended groups.

Issue a new ,inconditional and detailed apology.

Pay $4000 each to the 12 plaintiffs in the five lawsuits.

Apologize for its mistakes in the newspaper.

Accroding to the research goodwill the McDonald’s brand enjoy globally despite the criticisms and lawsuits, it seemed quite probable that the company would be able to cover the negative publicity it attracted due to the french fries controversy.

Coke and Pepsi question

1. The political environment in India has proven to be critical to company performance fir both Pepsi’Co and Coca-cola India. What specific aspect of the political environment have played key roles? Could these effects have been anticipated prior to market entry? If not, could development in the political arena have been handled better by each company?

ANSWER:

The political environment of India is significant impact.

Both companies gain in early 1990’s.

Coca-cola 1997 was damaging effect due to the rules........

Coca-cola’s withdrawal from India because......secret formula.

Pepsi’co problems dealing with India government.

In 2001 the company lose $400 million.

1. Timing of entry into the India market brought different result for PepsiCo and Coca-cola India.

ANSWER:

What benefits or disadvantages accrued as a result of earlier or later market entry?

Discuss about the entry______ Coca-cola re-entered in the 1990’s about 4 to 5 years after Pepsi.