please answer this 4 question from the following case study.

Mini-Case Starbucks Is "Juicing" Its Earnings per Store through Technological Innovations The choice of a CEO signals potential actions to stakeholders about a firm's potential actions. Howard Schultz served as Starbucks CEO for many years: the firm achieved multiple successes during his service. As of April 2017, Schulz became executive chairman of Starbucks's board while Kevin Johnson, a former CEO of Juniper Networks and a 16 year veteran of Microsoft. assumed the CEO position for the coffee giant. Johnson's background may find him concentrating digital operations, information technology practices and supply chain operations as a means of increasing Starbucks's effectiveness and efficiency. on the firm's CORO Chapter 1: Strategic Management and Sex Competition 20 Many brick and mortar stores have experienced decreasing sales in the United States as online traffic 12 million active users. Interestingly, this puts it ahead of has increased. Interestingly, 2014 Starbucks sales store iTunes and American Express Serve with its Starbados operations increased 5 percent in the fourth quarter this mobile payment app in terms of the number of in 5 percent uptick in revenue came from increased traf- To put its innovation on display, Starbucks opened its fic (2 percent from growth in sales and 3 percent in first"Reserve Roastery and Tasting Room. This is a 15.000 increased ticket size). square foot coffee roasting facility and a consumer retail Additional and more sophisticated technology appli- outlet. According to Schultz, it is a retail theater where you cations may be the driver of this increase in revenues. To can watch beans being rousted, talk to master prinder stimulate sales, Starbucks is ramping up its digital tools have your drink brewed in front of you in multiple way such as mobile payment platforms. Customers now can lounge in a coffee library, order a selection of gourmet place online orders and pick them up in about 150 Starbucks brews and locally prepared food." Schultz calls this store outlets in the Portland, OR area. Besides leadership and a in New York the "Willie Wonka Factory of coffee. Based focus on technology, Starbucks receives suggestions, ideas, on this concept. Starbucks opened small reserve stores inspired by this flagship roastery concept acrous New York and experimentation from its employees. Starbucks views in 2015. To attract customers in the afternoon, the firm is its employees, called baristas, as partners who blend, steam. rolling out new cold coffee and tea drinks and is intro- and brew the brand's specialty coffee in over 21,000 stores ducing happy hour promotions featuring cold beverages worldwide. Schultz credits the employees as a dominant These technological advances and different store force in helping it to build its revenue gains. offerings are also taking place internationally. For exam To incentivize employees further, Starbucks is among ple, Starbucks his expanding a new store concept in India the first companies to provide comprehensive health ben in smaller towns and suburbs. These new outlets are efits and stock option ownership opportunities to part about half the size of existing Starbucks cafes in India. In China, Starbucks is opening roughly one store daily and time employees. Currently, employees have received more than $1 billion worth of financial gain through the stock is rolling out its Roastery and Reserve brands to pene trate the country further. option program. An additional benefit for U.S. employ- Source: D. Klem 2008, Hedehow Starbucks placerin ces is the firm's program that pays 100 percent of work- The Motley Fool www.fol.com March 2008 Stadtrung ers' tuition to finish their degrees through Arizona State to woo con customer, Will Sem. May S.Nemaer, 2016. Walmart to per certain college confiar US workers, Wall Street May, Best Sms University. To date, one thousand workers have enrolled in this program. In mid-2018, Walmart offered subsidized college tuition to its employees as a means of attracting and retaining talent in a tight labor market. Walmart's actions may demonstrate the value of Starbucks's approach to sup- porting employees' efforts to earn a college degree. When developing new storefront concepts, Starbucks innovates. For instance, it is testing smaller express stores in New York City that reduce client wait times. Today, Starbucks emphasizes online payments as a means of increasing the speed of customer transactions. It now gives Starbucks rewards for mobile payment applications to its 2015. Earnings Starbucks picos aprendentfrues technology istry Wall Streetra.com, January 23. A. Adamk.3014. The setting caffeine Starbucks testing cold brewed co. Forbes, www.ores com. Augusti R. Foroch. 2012. Goinde Sarbuck/wild new "Willie Wanka Factory of coffee.Tim wwwtime.com, December & FUT Retail Snapshot, 2016. Starbuda' strategy of pansion with profitability to debut in towns and suburbs with all the of the new store FRPT Retail Strapshot, September 28,9-10 L Lorentett, 2016. Fortune world most admired companies: Nurbuschte innovation is always homag Fortune www.fortune.coal, October 30. Wahh.2014.Starbucks to otler delivery in 2015 in some key markets. Fores, www.fortune.com, November V. Wong, 2014. Your bou will love the new Starbucies deniery service. Flamberg Businesseek com, November Case Discussion Questions 1 What competitive advantage or competitive advantages do you believe Starbucks seeks to establish? What are the main challenges the firm faces as it tries to maintain the advantage or advantages you identified? 2 Identify three or four capabilities you believe Starbucks possesses of these are any a core competence? If so, explain your reasoning, 3. Starbucks's mission is to inspire and nurture the human spirit-one person, one cup and one neighborhood at a time What actions do you recommend the firm take to reach this mission? 4 As Starbucks's new chief executive officer and strategic leader what key challenges does Kevin Johnson and his firm face