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This test consists of 5 multiple choice questions, 5 short answer questions, and 10 short essay questions.

Multiple Choice Questions

1. What does Howard feel Starbucks' competitive advantage is?
(a) The ability to adjust prices as needed.
(b) The communication provided by other coffee companies.
(c) The communication provided by store employees.
(d) The ability to merge with other companies.

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

3. What happens when two local managers first create a blended icy drink?
(a) The reaction is positive and the drink has a great consistency.
(b) The reaction is negative, but the drink has a great consistency.
(c) The reaction is negative and the drink has an uneven consistency.
(d) The reaction is positive, but the drink has an uneven consistency.

4. When the Starbucks food and beverage department first tries to expand on the icy drink, what is the result?
(a) The develop a product that is exactly the same as the original one.
(b) They develop a product that is better than the original one.
(c) They develop a product that is worse than the original one.
(d) They develop a product that is good, but completely different than the original one.

5. What country are the detractors that accuse Starbucks of paying too little for their coffee from?
(a) Cuba.
(b) Brazil.
(c) Guatemala.
(d) Colombia.

Short Answer Questions

1. Based on United Airlines' estimates, how many of their customers request coffee during the flights?

2. Which area has Starbucks stores that become frustrated about the lack of cold drinks to offer customers?

3. Throughout the crisis, what do the Starbucks executives remain committed to providing?

4. What keeps shoppers away during the worst holiday season in the company's history?

5. Why does Howard take the risk of allowing people outside of Starbucks to brew and serve their coffee on airplanes?

Short Essay Questions

1. How is the Starbucks Frappuccino created?

2. Why does Starbucks begin selling music in their stores?

3. When does Starbucks list its first public stock on the market and how does it do?

4. How is the quality problem of the coffee served on United Airlines flights solved?

5. What changes does Starbucks make after receiving negative publicity?

6. How does Starbucks choose the design for its stores?

7. What is the result of the first Starbucks international store?

8. What crisis hits the coffee industry and how does Starbucks initially react?

9. What causes the lowered quality of the coffee that United Airlines serves on its flights?

10. What is an example of a negative claim that was made against Starbucks?

(see the answer keys)

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