Question

Achieve 3000-"More Starbucks"

Question 9
Part A
Based on page 2 of the Article, with which statement would the author agree?
Euromonitor, a marketing research company, explained that McCafé will outperform Starbucks in the next few years.
Although sales are up in China since Starbucks began selling in that country, company leaders do not plan on continuing to expand operations there.
Although Starbucks is doing well in mainland China, the company is having some problems in the European Union.
Starbucks will be opening headquarters in the European Union to take advantage of the new tax breaks offered by the European Commission.
Part B
Look at page 2 of the Article. Which two statements support the answer to Part A?
By appealing the EU's decision, Starbucks and the Netherlands will try to change the tax code.
The EU has been tightening the regulations to get international companies to pay more in taxes.
Starbucks' closest competitors include McDonald's Corporation and Whitbread PLC.
The Netherlands would like to keep the tax incentive in place so companies invest there.
The European Commission has now ruled that multinational tax breaks are illegal.
To attract more Chinese customers, Starbucks has invented a number of new kinds of drinks

Answer 1

Under Culver's leadership, Starbucks has continued to expand across the Asia Pacific region, which consists of Japan, Korea, Hong Kong, Thailand, Malaysia, Singapore, Indonesia, Philippines, Australia and New Zealand. The company is also planning to expand into India and Vietnam later this year. As for the competition that Starbucks faces in China, Shen cites McDonald's as one candidate, "but probably not the major one [because] McDonalds' coffee is much cheaper and attracts different segments of consumers…. Currently, major competition comes from similar coffee chain stores from Taiwan and Japan, with some well-known brands. Competitors also include bakery stores that serve high-quality coffee. Many independently owned local coffee shops also are starting to populate the large cities. They typically have a very unique style and beautiful atmosphere," attracting the same type of consumer that Starbucks is targeting. "The local competition," Shen adds, "is intensifying."