In your textHitt Ireland and Hoskisson, read case #14: Driving innovation and Growth at Starbucks: From Howard Schultz to Kevin Johnson. Once you have read the case, answer the following questions.

Questions:

1. Describe Starbucks' value chain. Both its primary and support functions. Where in the value chain are they creating value for the customer? For this question it will be helpful to carefully consider Exhibit 3 in the text: The market segmentation of Starbucks. Use this model of Starbucks' target customer to demonstrate how sections of the value chain could be providing value. It may be helpful to organize your thoughts in a table such as this:

Table Template

Value chain activity Brief Description How does it create value for customer?

Primary:

Inbound logistics

Operations

Outbound logistics

Marketing and sales

Service

Support:

Procurement

Technology Development

Human resource management

General administration

1. What are Starbucks' key resources and capabilities. According to the VRIN model, are they contributing towards a sustained competitive advantage?
2. Using a basic SWOT analysis, what future opportunities and threats will Starbucks face?