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Essay / Research Paper Abstract
A 6 page paper discussing Ivey Case 98M006, Starbucks. McDonald’s has made another attempt to persuade Starbucks to allow it to carry Starbucks’ coffee in its restaurants, at a time when Starbucks’ senior management is examining the company’s prospects for growth in the future. Doing business with McDonald’s certainly would increase Starbucks’ short-term revenues, but such close association with fast food appears to carry promise of damaging Starbucks’ existing image and brand equity. The paper recommends that Starbucks reject McDonald’s overtures in the interest of protecting its brand equity. Bibliography lists 3 sources.
Page Count:
6 pages (~225 words per page)
File: CC6_KSmgStarMcD.rtf
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Unformatted sample text from the term paper:
made another attempt to persuade Starbucks to allow it to carry Starbucks coffee in its restaurants, at a time when Starbucks senior management is examining the companys prospects for growth
in the future. Doing business with McDonalds certainly would increase Starbucks short-term revenues, but such close association with fast food appears to carry promise of damaging Starbucks existing image
and brand equity. It is recommended that Starbucks avoid becoming enmeshed with McDonalds. The two companies serve far different market sectors, and
that which Starbucks prefers is too difficult to regain if lost in the process. Introduction Starbucks Chairman and CEO Howard Schultz has been
questioning the companys present and recent approaches to growth. His specific focus is whether Starbucks is growing in ways most advantageous to the company; he is concerned that Starbucks
could be overextending itself in its quest for growth. These questions occurred to Mr. Schultz as he stopped at a university coffee shop
offering Starbucks coffee, but operating outside of Starbucks corporate control. He found that nothing about the shop was consistent with the way that Starbucks conducted its own business.
The shop "was messy, the service was poor, and the coffee was average" (Kachra and Crossan, 1997; p. 1) - the absolute opposite of everything most important in Starbucks own
stores. At the time that Mr. Schultz discovered this poor substitute outlet for Starbucks products, he also was made aware of yet another
overture by McDonalds Corporation to offer its customers Starbucks brand coffee through its restaurants. McDonalds already had made several requests, but in many respects, many McDonalds restaurants could be
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