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This test consists of 15 multiple choice questions and 5 short answer questions.

Multiple Choice Questions

1. During the disappointing holiday season, how is the design of the packaging changed, making it unacceptable to customers?
(a) Only in design.
(b) In design and size options.
(c) Only in size options.
(d) Neither in design nor size options.

2. Which music company does Howard work with to produce the compilation CDs that are sold in Starbucks stores?
(a) AEI Music.
(b) Infinity Music.
(c) RedEye Music.
(d) Koch Entertainment.

3. What does Howard encourage his team to do after the disappointing holiday season?
(a) Stop trying to anticipate trends and start developing new products.
(b) Anticipate trends and stop developing new products.
(c) Anticipate trends and develop new products.
(d) Stop trying to anticipate trends and stop developing new products.

4. Based on United Airlines' estimates, how many of their customers request coffee during the flights?
(a) Between thirty and forty percent.
(b) Between twenty and thirty percent.
(c) Between twenty five and forty percent.
(d) Between thirty five and fifty percent.

5. What comparison does United Airlines make about its decision to serve Starbucks coffee on its flights?
(a) Offering Happy Meals to kids.
(b) Offering free toys inside cereal boxes.
(c) Offering test drives to car buyers.
(d) Offering free samples of food at grocery stores.

6. How do the employees and managers react to Howard's concern for the low sales?
(a) They do not appreciate his honesty.
(b) They appreciate his honesty.
(c) They have mixed reviews.
(d) They have no reaction.

7. How does the interior design department at Starbucks select the decor for stores?
(a) Based on suggestions from customers.
(b) Based on designs that are relevant to the current trends.
(c) Based on designs that are relevant to the local areas.
(d) Based on suggestions from employees.

8. When does Starbucks face the crisis of rising coffee bean costs?
(a) February 1994.
(b) March 1995.
(c) June 1994.
(d) July 1995.

9. Which city has labor activists that attempt to defame Starbucks?
(a) San Francisco.
(b) Chicago.
(c) Boston.
(d) Denver.

10. What keeps shoppers away during the worst holiday season in the company's history?
(a) Poor advertising.
(b) Bad weather.
(c) Limited parking.
(d) High prices.

11. What mistake does Starbucks make in stocking the stores for the disastrous season Howard talks about in the end of the book?
(a) They price their gift baskets too high.
(b) They do not stock enough coffee.
(c) They stock expensive espresso machines.
(d) They do not stock enough tea.

12. What year does Howard open the first Starbucks store in Japan?
(a) 1996.
(b) 1995.
(c) 1997.
(d) 1994.

13. As the crisis and other companies lower their prices, how much does Starbucks increase its prices to compensate for the stock they have?
(a) Dramatically.
(b) Slightly.
(c) Moderately.
(d) They do not raise their prices at all.

14. What city in Japan hosts the country's first Starbucks store?
(a) Osaka.
(b) Nagasaki.
(c) Kyoto.
(d) Tokyo.

15. What date does Starbucks finally go public?
(a) June 26, 1992.
(b) November 18, 1992.
(c) September 18, 1992.
(d) July 26, 1992.

Short Answer Questions

1. When the Starbucks food and beverage department first tries to expand on the icy drink, what is the result?

2. What does Howard feel Starbucks' competitive advantage is?

3. What person is quoted at the very beginning of Chapter 21?

4. What year did Howard open Starbucks stores in Philadelphia, Austin, and Pittsburgh?

5. What year does Howard first meet with Pepsi to discuss the mass distribution of Starbucks products?

(see the answer keys)

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