Starbucks does a good job of pursuing nonmarket strategies that also support the company’s market strategy. An example of this is the company’s policy of offering full tuition to Arizona State University for benefits eligible employees. As discussed in class, which of the following statements explains why Starbucks pays for college for its employees? 1. Starbucks sells coffee, but its real product is the store experience. Offering tuition benefits can increase employee commitment to the company and ensures a workforce that is devoted to the firm’s best interests – including treating customers well. 2. There are high employee turnover rates in Starbucks’ industry, which can be expensive for firms and lead to poor customer experiences. Starbucks offers tuition to its employees as a way to reduce turnover, ensuring that employees stay with the company for at least four years. 3. Companies receive tax write offs for the benefits that they offer their employees, so Starbucks will be able to increase its employees’ compensation packages while getting a 100 percent tax break on the full amount paid out as tuition. a. 1. only b. 2. only c. 3. only d. 1. and 2. e. 1., 2., and 3.
Starbucks does a good job of pursuing nonmarket strategies that also support the company’s market strategy. An example of this is the company’s policy of offering full tuition to Arizona State University for benefits eligible employees. As discussed in class, which of the following statements explains why Starbucks pays for college for its employees?
1. Starbucks sells coffee, but its real product is the store experience. Offering tuition benefits can increase employee commitment to the company and ensures a workforce that is devoted to the firm’s best interests – including treating customers well.
2. There are high employee turnover rates in Starbucks’ industry, which can be expensive for firms and lead to poor customer experiences. Starbucks offers tuition to its employees as a way to reduce turnover, ensuring that employees stay with the company for at least four years.
3. Companies receive tax write offs for the benefits that they offer their employees, so Starbucks will be able to increase its employees’ compensation packages while getting a 100 percent tax break on the full amount paid out as tuition.
| a. |
1. only |
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| b. |
2. only |
|
| c. |
3. only |
|
| d. |
1. and 2. |
|
| e. |
1., 2., and 3. |
Nonmarket strategies are a collection of actions, plans, and tactics used by businesses to affect or respond to causes and events that occur outside of the typical market context. These causes and events are frequently related to the political, regulatory, social, and cultural components of a business environment as opposed to the conventional market forces of supply and demand. Nonmarket strategies are critical for businesses to handle the complicated web of non- market challenges that can have a substantial impact on their operations, reputation, and performance.
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