Starbucks is mostly known to be a retailer of coffee drinks that are brewed in-house usingcoffee beans and other equipment sourced in the market. Starbucks is now consideringvertical and horizontal integration beyond coffee drinks retail. Using the theory of the optimalboundary of the firm, discuss the make-or-buy decision as well as the scope for horizontalintegration and diversification of Starbucks. What stages of the vertical chain should itconsider conducting in-house? What other horizontal markets may it integrate into and why?