Case 3-2. Starbuck Expansion Study Questions Your analysis must answer these questions. These questions are just a guideline for the analysis portion of your Case Study! For your final submission, be sure to address and include your work for each section described in the Rubric. Things to consider in Evaluation of Starbucks Expansion Overview This Case discusses the history of the firm and outlines its largely failed diversification attempts prior to 2008. Our next phase of growth will come from extending the Starbucks Experience to our customers beyond the third place to every part of their day, through multiple brands and channels. Similarly, CFO Troy Alstead stated, Starbucks has reached a critical juncture as we move from a high unit growth specialty retailer focused on coffee in our stores, to a global consumer company with diversified growth platforms across multiple channels.

1. What is likelihood of Starbucks diversification efforts paying off?

1. Will it flourish under new CEO, Kevin Johnson?

1. How will they deal with the increased competition from McDonalds, the closure of Teavana stores, the roll back of plans to build Evolution Fresh and La Boulange free-standing stores?

Concerns

.. when unit growth no longer drove sales increases a company was in trouble.

The first was about Starbucks relying so heavily on growth in China.

The second concern was the likely fate of Starbucks when Howard Schultz backed out of the company entirely. What will happen to Starbucks if Schultz retires or gets bored?