Case uitwerking
Papa John Tutorial 3 answers premaster strategy
- Instelling
- Tilburg University (UVT)
Answers to the tutorial 3
[Meer zien]Voorbeeld 1 van de 3 pagina's
Voorbeeld 1 van de 3 pagina's
In winkelwagengesponsord bericht van onze partner
Voorbeeld van de inhoud
Tutorial 4 – Starbucks case – strategyQuestions:
a. Which business did Starbucks expand to? Which business did it exit from? Which kind
of CLS (individual moves) did these expansions and exists represent?
Starbucks expended into the coffee bean purchasing and roasting (which can be labeled as
vertically integrating backward). Next to this, the company horizontally expanded through
growing its retail stores, selling its product in grocery stores and opening company-owned
licensed stores. Moreover, Starbucks indicated in their blueprint for profitable growth that
they intended to introduce new products and brands in its Starbucks retail stores, and later
on expand distribution to mass-market channels like grocery stores. To do this, Starbucks
need to acquire some major distribution companies and thus vertically integrate. A. new
business that Starbucks entered in the late 2011 was the one of the fresh juices, which
requires a product diversification strategy. The same accounts for the takeover of La
Boulange (2012) and Teavana (2013). The main exit of the company in 2007 pressed
Starbucks to close down a big part of their stores, and focus again on the customer
experience, by cutting out breakfast items and only focus on coffee.
Mergers and acquisitions is more of a business-level strategy, a way to implement one of the
three (product diversification, horizontal integration, vertical integration).
Three implementations:
- Autonomic growth
- Acquisition
- Alliances
Horizontal expansion: you either come with a product variation in the same industry, f.e. ice
coffee. OR selling to a different market. (your customers change). So, you can say that they
expand with horizontal integration. Nevertheless, you can also say that Starbucks acts as a
wholesaler now, offering the product to end consumers, so then it is product diversification.
If a company exits a certain strategy, it can also be anti-product diversification, or f.e. if they
exit the breakfast, they might pursue a horizontal expansion strategy as they are focusing on
one industry.
Difference product diversification and vertical integration: vertical integration stays within
the boundary of the value chain and product diversification means going without your own
value chain. Sometimes there is an overlap, if you do an acquisition you serve multiple
corporate level strategies. If you buy a supplier, and they also generates outside sales as a
wholesaler, which can be seen as product diversification.
b. Assess the advantages and disadvantages of three of these expansions and exits for
Starbucks in particular.
Vertical integration backward into the supply chain:
- Advantage: Reduction of production costs and more bargaining power as you are not
dependent on the suppliers of coffee beans.
- Disadvantage: increased volatility. As you as a company own the distribution and
supply of your products, the pressure of handling them efficient and correctly
increases.
Horizontal expansion:
- Advantage: economies of scale. The per-units costs decrease as the production costs
can be divided over more units. An even more important advantage is the reduction
of competitors. By taking over different brands and opening licensed stores, you
reduce the chances of competitors taking this spot in the market.
Voordelen van het kopen van samenvattingen bij Stuvia op een rij:
Verzekerd van kwaliteit door reviews
Stuvia-klanten hebben meer dan 700.000 samenvattingen beoordeeld. Zo weet je zeker dat je de beste documenten koopt!
Snel en makkelijk kopen
Je betaalt supersnel en eenmalig met iDeal, creditcard of Stuvia-tegoed voor de samenvatting. Zonder lidmaatschap.
Focus op de essentie
Samenvattingen worden geschreven voor en door anderen. Daarom zijn de samenvattingen altijd betrouwbaar en actueel. Zo kom je snel tot de kern!
Veelgestelde vragen
Wat krijg ik als ik dit document koop?
Je krijgt een PDF, die direct beschikbaar is na je aankoop. Het gekochte document is altijd, overal en oneindig toegankelijk via je profiel.
Tevredenheidsgarantie: hoe werkt dat?
Onze tevredenheidsgarantie zorgt ervoor dat je altijd een studiedocument vindt dat goed bij je past. Je vult een formulier in en onze klantenservice regelt de rest.
Van wie koop ik deze samenvatting?
Stuvia is een marktplaats, je koop dit document dus niet van ons, maar van verkoper ayra1999. Stuvia faciliteert de betaling aan de verkoper.
Zit ik meteen vast aan een abonnement?
Nee, je koopt alleen deze samenvatting voor €3,99. Je zit daarna nergens aan vast.
Is Stuvia te vertrouwen?
4,6 sterren op Google & Trustpilot (+1000 reviews)
Afgelopen 30 dagen zijn er 78600 samenvattingen verkocht
Opgericht in 2010, al 14 jaar dé plek om samenvattingen te kopen