Franchising is widely used in the casual dining and fast-food industry, yet Starbucks is quite successful with a large number of company-owned stores.

The Question (20 Points)

How do you explain this difference? Is Starbucks bucking the bandwagon effect, or is something else going on? Alliances are often used to pursue business-level goals, but they may be managed at the corporate level. Explain why this portfolio approach to alliance management would make sense. (Please explain throughly)