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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. Why does Howard take the risk of allowing people outside of Starbucks to brew and serve their coffee on airplanes?
(a) The chance to reach people who have not tried Starbucks.
(b) The other executives convinced him.
(c) The airlines offered a large commission on top of the profits.
(d) The stockholders of the company made it mandatory.

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

3. Which one of the following is not one of the flavors of Starbucks coffee flavored ice cream?
(a) Double Mint Coffee Chip.
(b) Italian Roast Coffee.
(c) Low Fat Latte.
(d) Vanilla Mocha Swirl.

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

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

Short Answer Questions

1. What is the profession of Don Valencia, the person that invents a coffee extract?

2. How does the interior design department at Starbucks select the decor for stores?

3. Based on Howard's definition of corporate responsibility, what should managers be concerned with?

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

5. During the disappointing holiday season, how is the design of the packaging changed, making it unacceptable to customers?

Short Essay Questions

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

2. Who is Don Valencia and what is the impact of his invention?

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

4. Why does Howard agree to allow United Airlines to serve Starbucks coffee on their flights?

5. What reference is included at the end of Pour Your Heart Into It, and how does it reflect Howard's success with Starbucks?

6. What conflict between his professional and personal lives does Howard experience as a result of Starbucks' quick expansion, and how does he resolve it?

7. How does Howard find a bank to take Starbucks public?

8. What is historic about the meeting that Howard calls after the 1995 holiday season?

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

10. What makes the 1995 holiday season so disappointing for Starbucks?

(see the answer keys)

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