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Assignment Purposes/Learning Outcomes:
After completion of Assignment-1 students will able to understand the
CLO1: State the concept of managementfunctions, roles, skillsof a manager and the different theories of management
CLO 2: Describe the current trends and challenges in global business management.
Assignment-1 Please go through the Case and answer the questions that follows.
Starbucks’ Growth Destroyed Brand Value*
Starbucks announcement that it will close few stores in KSA, it is a long overdue admission that there are limits to growth.
The founder Howard Schultz recognized the problem that his own growth strategy had created: “Stores no longer have the soul of the past and reflect a chain of stores vs. the warm feeling of a neighborhood store.” Starbucks tried to add value through innovation, offering Wi-Fi service, creating and selling its own music. More recently, Starbucks attempted to put the focus back on coffee, revitalizing the quality of its standard beverages. But none of these moves addressed the fundamental problem: Starbucks is a mass brand attempting to command a premium price for an experience that is no longer special.
Suppose you are hired by the Starbucks Coffee as CEO for Saudi Arabia. How will you help company to recover and expand its operation in Saudi Arabia?
(*Source: This information is taken from the article “How Starbucks Growth destroyed Brand Value” written by John Quelch published in HBR accessed from https://hbr.org/2008/07/how-starbucks-growth-destroyed on 19/9/2020)
Assignment Questions
Q1. To sustain and expand the Starbucks Stores in Kingdom of Saudi Arabia, you have to write a report (around 350-400 words) based on the following points:(4 marks)
a. Identify the competitive advantage(s) in business for growth.
b. What different products and type of services can be offered?
c. Business objective/goals/vision
Q2. Explain the different types of planning for the different levels of management in Starbucks in KSA. Include the typical time frame for which each plan is created. (250 words Approx.)
(3 marks)
Part B
What do you understand by the term “Stakeholders”? Explain the differences between internal and external stakeholders. Explain withexamples how the International forces are affecting the businesses organizations.(250 words Approx.)(3 marks)
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