Starbucks Growth and Downsizing Quiz

According to the text, what was the problem with Starbucks' growth strategy?

• Inability to expand into international markets

• Loss of the unique neighborhood store feeling

• Overemphasis on customer service

• Lack of innovation in their products

What did Starbucks try to do to add value through innovation?

• Offering free coffee to customers

• Creating and selling its own music

• Introducing a loyalty program

• Expanding into the food industry

Why did many Starbucks veterans switch to other coffee brands?

• To get better discounts on their purchases

• To experience a more exclusive atmosphere

• To support local businesses

• To avoid the complicated menu of drinks

What was the impact of Starbucks' new products on the brand's integrity?

• It improved the baristas' job satisfaction

• It attracted a wider customer base

• It enhanced the brand's reputation

• It undermined the brand for coffee purists

What did the opening of new stores and launching of new products create for Starbucks?

• A more diverse and inclusive customer base

• Sustainable growth in brand loyalty

• Increased competition from other coffee chains

• Superficial growth without improving same store sales

Why is it challenging for Starbucks to remain a premium-priced brand as a public company?

• It requires them to focus on improving same store sales

• It limits their ability to expand internationally

• It puts pressure to open new stores and launch new products

• It attracts more competition from luxury brands

What is the reason why many luxury brands like Prada remain family businesses or are controlled by private investors?

• To avoid paying taxes

• To maintain a small, exclusive and premium-priced image

• To reduce competition from other luxury brands

• To have more control over their supply chain

What did Howard Schultz recognize as a problem in the leaked internal memo?

• Inability to attract younger customers

• Loss of the warm feeling of a neighborhood store

• Decline in customer satisfaction

• Lack of employee training

What did Starbucks attempt to put the focus back on, in order to revitalize the quality of its standard beverages?

• Customer service

• Expansion into international markets

• The coffee experience

• Innovation in products

What did the leaked internal memo reveal about the stores' atmosphere according to Howard Schultz?

• They were becoming more like neighborhood stores

• They were becoming more exclusive

• They were losing the soul of the past

• They were attracting a more diverse customer base