When Starbucks Introduced Its Tazo Tea Line to Bring in New

question 117

Multiple Choice

When Starbucks introduced its Tazo Tea line to bring in new customers who had never gone to Starbucks because they don't drink coffee, Starbucks was employing a ________ strategy.

• A) market-penetration
• B) new-market segment
• C) geographical-expansion
• D) niche identification
• E) blue-ocean

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Definitions:

Budget

An estimate of income and expenditure for a set period of time.

Master Budget

A comprehensive financial planning document that consolidates all of a company’s budgets for sales, production, overhead, administration, and others into one overall budget.

Safety Stock

An additional quantity of an item kept in the inventory to reduce the risk of stockouts due to uncertainties in supply and demand.

Budgeted Income Statement

A financial statement that projects income, expenses, and net profit for a future period based on management's expectations and budgeting process.