Started on Monday, 29 July
2024, 4:34 PM
State Finished
Completed on Monday, 29 July
2024, 4:46 PM
Time taken 12 mins 13 secs
Grade 14.00 out of 15.00
(93.33%)
On 21 April 2016, Taste Holdings opened
the doors of the rst Starbucks in
Johannesburg, bringing the full
Starbucks experience to Rosebank. Taste
Holdings, under an agreement with
Starbucks, is a business franchise group
holding the rights to own and open
Starbucks stores in South Africa. This
was not the end for Starbucks in South
Africa. In 2019 Adrian Maizey, CEO of
Rand Capital Coffee (RCC) bought the
rights to own and operate Starbucks in
South Africa. RCC bought the 12 stores
for R7 million rand. After the acquisition,
Rand Capital Coffee (RCC) inherited the
12 Starbucks stores, with plans to
continue expanding the brand to roll out
30 new stores by March 2022. RCC
planned to restructure the business
model to include economies of scale,
and to enter an agreement with Shoprite
Checkers. This agreement extended
Starbuck into regions and
neighbourhoods that would have
otherwise not been a viable business
option. The change in strategy involves
moving away from large store roll outs,
and towards smaller kiosk-format
locations, reaching more market
segments. Despite the 2021 disruptions
of the pandemic, the related lockdowns,
looting, strikes, load- and water-shedding,
RCC managed to open 41 additional
stores in December 2022. Under RCC, a
total of 54 stores were opened in 2022.
Which of the following options is an
example of a corporate combination
strategy followed by RCC?
a. Growing the business and
opening 41 new Starbucks
stores in 2022.
b. Restructuring the business
model to include economies of
scale.
c. Buying the 12 Starbucks
stores from Taste Holdings.
Which one of the following is not a
question an organisation needs to ask
when formulating its mission statement?
a. How are we going to market
our brand?
b. What do we sell or what service
do we deliver?
c. Who are our clients?
d. How will we provide this product
or service?
In 2019, Taste Holdings restructured their
operations to eliminate ine ciencies.
Taste Holding’s six brands (The Fish &
Chip Co, Maxi’s, Domino’s Pizza, NWJ,
Arthur Kaplan and World’s Finest
Watches) each had their own dedicated
executive team. The respective executive
team was responsible for implementing
brand strategy and operational functions
such as human resources and marketing,
with little interference or interaction
between the six brand divisions. Looking
at the annual report of Taste Holdings, a
few highlights are evident concerning the
business, its activities, and its business
environment. Taste Holdings’ executive
team, with CEO Dylan Pienaar, made a
di cult decision. They announced their
exit out of the food business industry.
Taste Holdings reported that its
Starbucks stores are more expensive to
set up and run compared to their
competitors. Subsequently, they started
the process to sell their food businesses,
rebranded as Luxe, and will only be
focussing on their luxury divisions - NWJ,
Arthur Kaplan and World’s Finest
Watches. However, in March 2020, just
when the Covid-19 pandemic hit South
Africa, Taste Holdings started to liquidate
its food division as they could not nd a
buyer for Domino’s Pizza.
The restructuring that Taste Holdings
implemented in 2019, is an example of
_____ interdependence coordination.
a. reciprocal
b. pooled
c. sequential
d. progressive
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