BUS 690 Case Study

1. Please analyze Starbucks with the two bargaining powers in Porter’s model of five forces of competition.

2. Starbucks and Sazaby signed a joint venture agreementfor Starbucks Coffee Japan.
a) What is typical for a joint venture?
b) Why was it beneficial to use a joint venture in this case?
c) Please describe why the expansion mode of licensing may be less ideal in this case. (25%)
3. Starbucks owns the Seattle’s Best Coffee brand and the latter franchises its stores. What does the franchisor give in this case to the franchisee and vice versa? (35%)
Franchisor gives to franchisee
Franchisee gives to franchisor
Equipment and Supplies
Expanding market
Employee Training
Low Risk
Intact Knowledge
Competitive advantage in local market
Business Model
Brand Marketing
Brand Name
Maintaining core values.

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