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1. How are customer tastes changing in the fast-food industry? What impact do these changes have on McDonald’s sales and net income? 2. How well are these changes in customer tastes and preferences being reflected in competitive strategies in the industry? 3. What are McDonald’s strengths and weaknesses and what conclusions do you draw about its future? question 2. Case Study-Starbucks Starbucks was started in 1971 and grew to become a leader in the specialty coffee industry. Howard Schultz, chairman and CEO of Starbucks Corporation, attributes the company’s success to the experience created within the stores and the unsurpassed quality of its coffee. Schultz also attributes his company’s success to the 96,700 employees working worldwide. Starbucks employee training program churns out “baristas” by educating 300 to 400 hires per month in courses such as “Brewing the Perfect Cup at Home” and “Coffee Knowledge.” Starbucks sticks to its knitting, understands its core competencies, knows what the value proposition is for the customer, and does everything possible to get close to the customer. Starbucks has succeeded in maintaining its competitive advantage by providing an “experience” to the customer and es

tablishing itself in every nook and corner in major cities. The purpose of this case is to expandyour understanding of the positioning of a “product” as defined in the text: the sum of the physical, psychological, and sociological satisfactions the buyer derives from purchase, ownership, and consumption. Conduct an analysis of the case as written.Apply the general case analysis guidelines and ensure that you address the specific questions in your analysis. Specific questions to include in your analysis: 1. What is Starbucks’ product? 2. What changes in society have helped Starbucks be successful? 3. What strategic factors account for Starbucks’ success in developing brand equity? 4. What opportunities and threats face Starbucks? Case Study-Schwinn Bicycles This case discusses Schwinn Bicycles and their market strategy in the 1990’s as it emerged from bankruptcy. The company is looking at increasing their market share in the bicycle industry with an emphasis on mountain bikes. Most of you will be very familiar with Schwinn Bicycles and many of its competitors. Conduct an analysis of the case as written.Apply the general case analysis guidelines and ensure that you address the specific questions in your analysis.