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Pages:
2 pages/β‰ˆ550 words
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Style:
APA
Subject:
Management
Type:
Essay
Language:
English (U.S.)
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Topic:

Starbucks' Strategic Alliance with Barnes and Noble and its Reasons

Essay Instructions:

Instructions – PLEASE READ THEM CAREFULLY • The Assignment must be submitted (WORD format only)• Students are advised to make their work clear and well presented, marks may be reduced for poor presentation.• Students must mention question number clearly in their answer.• Late submission will NOT be accepted.• Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions. • All answered must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism). Assignment No 3   
From real national/international market, select any type of strategic alliance between two firms and answer the following questions:
1. Briefly introduce your chosen firms, partners of the strategic alliance (industry, nationality, size, market position…). - Max 150 words
2. What is the type of strategic alliance used by your chosen firms? Explain its different reasons. 
3. What is the method used by the firms to manage their cultures after alliance? underline the pros and cons of this method. 
4. Is this strategic alliance successful? Justify. 
5. What recommendations can you give for the managers of these firms to improve their competitiveness? 
Note. All references used should be listed by the end of your analysis, using the APA style.

Essay Sample Content Preview:

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Starbuck's strategic Alliance with Barnes and Noble
As the leading coffeehouse chain internationally, Starbucks is an American company headquartered in Seattle, Washington, United States of America. The company produces, markets, and retails specialty coffee internationally in Asia, the Middle East, Africa, and Europe. As of 2020, the company had 32,600 coffee stations in 83 different countries. Additionally, it has an estimated annual income of $23.52B and a market size of around 39.8% of the united states coffee market ("Starbucks", 2021). On the other hand, Barnes and Noble (B&N) is one of the biggest American booksellers, providing its customers with easy and expedient books, newspapers, magazines, and other related materials. The company headquarters are in New York and have a market cap of approximately $112.63M. It has a market share of roughly 40% ("Barnes & Noble (BKS)", 2021). Starbucks and Barnes and Noble formed their strategic alliance in 1993 after realizing that coffee and books, naturally, were a fit.
Type of Strategic Alliance between Starbuck and Barnes and Noble and Its Different reasons
Starbucks and Barnes and Noble used a non-equity strategic alliance. It is a type of alliance where companies have an agreement of sharing resources aiming at creating synergy. A non-equity strategic partnership is beneficial as it helps develop economies of scale when planning and execution are done correctly. As a result, both Starbuck and B&N enhanced their capabilities of competing with other players in the industry through expansion, product image improvement, and at the same time increasing their profitability by pulling their customers together, which is cost-effective (Funk, Collier & Krupp, 2016). Through this alliance, the companies pulled and boosted coffee drinking culture while reading books. Additionally, a strategic non-equity coalition enables partners to yield synergy and upgrade technical skills, improving business processes. Both Starbucks and Barnes and Noble were able to deal with a competition where both were facing competition from other firms within the industry as they were able to retain and increase customer satisfaction by offering coffee and promoting reading at the same time.
How Starbucks an...
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