Based on the case study answer the following qestions. The answers to each question should be between 60-80 words.

1. Briefly discuss the changes that took place in Starbucks's external environment by describing these changes and identifying in which aspect (part) of the external environment did they occur. 2. To adjust to these changes, Starbucks introduced a change to one of its value chain activities. Discuss the action that Starbucks took by describing the change and identifying in which category of the value chain did it occur. 3. To what extent do you find this change to be effective? Explain. 4. What type of business level strategy is Starbucks pursuing? In addition to the changes discussed above, what other changes to its value chain did Starbucks make to enhance its strategy? Strategic Focus Starbucks Is "Juicing" Its Earnings per Store through Technological Innovations An important signal for a company is who is chosen as the coffee roasting facility and also a consumer real outlet. According new CEO, Howard Schultz of Starbucks has led the company to Schultz is a retail theater where you can watch beans being through successful strategic execution over much of its history roasted, tak to master grinders, have your drink brewed in front of In 2015, Kevin Johnson, a former CEO of Juniper Networks and you in multiple ways lounge in a coffee brary order a selection 16 year veteran of Microsoft took over as CEO of Starbucks, of gourmet brews and locally prepared foods Schultz calls this Succeeding Schultz Johnson has engaged with the company's Store in New York the W e Wonka Factory of coffee Based on digital operations and will supervise information technology this concept Starbucis wil open smal reserve stores inspired by and supply chain operations this flagship roastery concept across New York in 2015 Many brick and mortar stores have experienced decreas- These technology advances and offerent store offerings ing sales in the United States as online traffic has increased are also taking place internationally. For e mple Starbucks is Interestingly, 2014 Starbuck sales store operations have risen expanding a new store concept in India and it's debuting this 5 percent in the fourth quarter, this 5 percent came from new concept store in smaller towns and suburbs. These new increased traffic (2 percent from growth in sales and 3 percent outlets are about half the size of existing Starbuck cafes in India in increased ticket size). The driver of this increase in sales is mainly an increase in technology applications To facilitate this increase in sales per store, Starbucks is ramping up its digital tools such as mobile-payment platforms. Furthermore, it has ramped up online sales of gift cards as a way to drive revenue. In December 2014 it allowed custom ers to place online orders and pick them up in about 150 Starbucks outlets in the Portland, Oregon area. Besides lead- ership and a focus on technology, Starbucks receives sugges- tions, ideas, and experimentation from its employees. Starbucks employees, called baristas, are seen as partners who blend, steam and brew the brand's specialty coffee in over 21,000 stores worldwide. Schultz credits the employees as a dominant force in helping it to build its revenue gains. To further incentivize employees. Starbucks was one of the first to provide comprehensive health benefits and stock option ownership to part-time employees. Currently employ ees have received more than $1 billion worth of financial gain through the stock option program. As an additional perk for U.S. employees, Schultz created a program to pay 100 percent The photo illustrates the Starbucks that allows us of workers tuition to finish their degrees through Arizona State fomers to pre-order and speed service and payment University. To date, 1,000 workers have enrolled in this program Starbucks is also known for its innovations in new types of Sources L stores. For instance, it is testing smaller express stores in New York ST Soomes 2015, Camings Statud paesapamaders tom sechnology industry out soon round wawang.com anuary 28 A Adamczak Cty that reduce client wait times. As noted earlier Starbucks has 2014 The red big cotton crowserbuds swang colocoued cotton totes emphasized online payment in its approaches which facilitates the www.bes.com August Forcht 2014 Goebud e Works Factory speed of transaction. It now gives Starbucks rewards for mobile cotor, The whowtime.com December FRPT Real Snapshoe 2014 Study of nowhoto debutton and mert applications to its 12 million active users. Interestingly, Suburbs with these of the new Shoshat Seber ispust ahead of iTunes and American Express Serve with 9- L Loren2014 Fortune word most co m buis where des mobile payment app in regard to number of users notions for women Ober 30 2014 Sorbitory in 2015 in o n e Cos movation on display, Starbucks opened its first com November & Wong 2014 Your boss love the c arbuds de e y and Testing Room. This is a 15.000 square foot