phenomenal growth

Case Study – Starbucks

Answer the following questions related to Case 2 in Business Ethics in a 2-page essay:

  • Why do you think Starbucks was able to convince so many people that a 400% markup on a cup of coffee that costs 50 cents to make was a brilliant idea?
  • Is the phenomenal growth of Starbucks due to its providing comfort food and comfort places to its customers or because of its mission of ethical and social responsibility?
  • On ABC’s 20/20, December 9, 2005, it was reported that Starbucks sued a mom-and-pop coffee shop on the Oregon coast called Sambucks (a family name) for violation of the Starbucks trademark. Was Starbucks right in suing? Why? How does it make you feel when you hear how Goliath goes after David and prevails?