QUESTION $1$

$(40$ Marks$)$

$1\mathrm{.}1$ Turnaround strategies are needed to rescue firms in crisis that are worth rescuing. This is achieved by reversing financial and other competitive weaknesses as quickly as possible.

Using an appropriate example of a successfult tumaround, describe strategic processes to tum Slarbucks around.

$(20$ marks$)$

$1\mathrm{.}2$ A focused differentiation strategy aims at securing a competitive advantage with a product offering carefflly designed to appeal to the unique preferences and needs of a narrow, well$-$defined group of buyers $($as opposed to a broad differentiation strategy aimed at many buyers$).$

Using an appropriate example of a successful implementation of a focused differentiation strategy, explain the utility of this type of strategy for Starbucks and its pros and cons.

$(20$ marks$)$