Lesson 2

Why was Starbucks not successful when it rapidly opened up multiple locations in Australia?

• Starbucks' failure in Australia was solely due to negative media coverage that portrayed the brand as an outsider infiltrating the local coffee scene.

• Starbucks' modern store design and large format clashed with Australians' preference for smaller, cozy coffee shop ambiance.

• They did not adapt their business model to a new environment.

• Australians found Starbucks' prices to be unreasonable compared to other local cafes.

How many stores did Starbucks close in 2008?

• 15

• 34

• 52

• 61

Why was 2008 a difficult time for businesses?

• Global economic recession triggered by the collapse of major financial institutions and credit markets.

• Heightened consumer spending and increased demand for goods and services.

• Rapid technological advancements that boosted productivity and profitability across industries.

• 1. Widespread political stability and favorable international trade agreements.

Australia's coffee market is one of the biggest in the world with how much annual revenue?

• 4 billion

• 5 billion

• 6 billion

• 7 billion

Which type of coffee introduced the Australians to coffee?

• Flat White

• Espresso

• Americano

• Australian Macchiato

What is the usual coffee choice favored by Australians?

• Big with loads of sugar

• something more sophisticated

What's the name of the American company who is thriving in Australia?

• John Jean

• Glenna Pants

• George Lean

• Gloria Jean

Starbucks will be opening stores in Italy. How is Starbucks learning from their mistakes to make their franchise successful in a country that is already rich in cafe culture?

• Starbucks' first step is to open up a roastery.

• Starbucks is focusing solely on mass-produced beverages

• Starbucks is maintaining their large store format to create a distinct contrast with Italy's smaller, cozy cafes.

• Starbucks is prioritizing a rapid expansion strategy to quickly establish a strong presence in Italy's competitive coffee market.