MGT489

Week 2: Strategy and World Domination

A: Your good friend is going to start a coffee shop in Ellensburg WA, which has three Starbucks, and several local coffee providers as well. She has $50,000 to start the business (enough, but not a limitless budget).

• Which of the three generic business strategies would you recommend she focus on? (Cost Leadership, Differentiation, Focus).
• Explain why that strategy.
• How/why would (would not) your recommendation be different if she were to start a car repair shop?
• Reply with suggestion to another classmate's recommendation logic.