For Starbucks and Other Companies Whose Business Models Include a Service

question 19

Multiple Choice

For Starbucks and other companies whose business models include a service component, it is not recommended that they use one of the following methods for going global.

• A)joint ventures
• B)licensing
• C)100-percent ownership
• D)exporting
• E)franchising

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Definitions:

Maneuverability

The ability of an organization or individual to quickly and effectively change directions or strategies in response to external conditions.

Reward Power

The capability to offer something desirable as a means of influencing others' actions or decisions.

Legitimate Power

Power that is officially recognized and derived from a position of authority within an organization or society.

Referent Power

A form of power that stems from being admired or respected, often because of personality, skills, or relationships.