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This test consists of 15 multiple choice questions and 5 short answer questions.

Multiple Choice Questions

1. What does Howard encourage his team to do after the disappointing holiday season?
(a) Anticipate trends and stop developing new products.
(b) Stop trying to anticipate trends and stop developing new products.
(c) Stop trying to anticipate trends and start developing new products.
(d) Anticipate trends and develop new products.

2. What does Starbucks develop to prevent customer burns and cut down waste?
(a) Cardboard sleeves.
(b) Thicker cups.
(c) Cups with handles.
(d) Ceramic mugs.

3. What date does Starbucks finally go public?
(a) July 26, 1992.
(b) November 18, 1992.
(c) September 18, 1992.
(d) June 26, 1992.

4. As the crisis and other companies lower their prices, how much does Starbucks increase its prices to compensate for the stock they have?
(a) Slightly.
(b) Dramatically.
(c) They do not raise their prices at all.
(d) Moderately.

5. During the disappointing holiday season, how is the design of the packaging changed, making it unacceptable to customers?
(a) Only in size options.
(b) Neither in design nor size options.
(c) Only in design.
(d) In design and size options.

6. How does Howard think the obstacles encountered can be solved?
(a) By only the store managers.
(b) By only the board members.
(c) By everyone involved.
(d) By only the store employees.

7. Which one of the following is not a Starbucks product developed from Don's coffee extract base?
(a) Instant coffee mix.
(b) Bottled beverages.
(c) Beer.
(d) Ice cream.

8. How was the store received in Japan?
(a) It had a moderate reception.
(b) There is no record of the initial reaction to the store.
(c) Crowds lined up around the store.
(d) No one visited the store at first.

9. What keeps shoppers away during the worst holiday season in the company's history?
(a) Bad weather.
(b) High prices.
(c) Poor advertising.
(d) Limited parking.

10. Bringing the story full circle, what reference does Howard make at the book's conclusion?
(a) An old letter.
(b) An old book.
(c) A fortune cookie.
(d) A crystal ball.

11. What mistake does Starbucks make in stocking the stores for the disastrous season Howard talks about in the end of the book?
(a) They do not stock enough tea.
(b) They do not stock enough coffee.
(c) They stock expensive espresso machines.
(d) They price their gift baskets too high.

12. How do the employees and managers react to Howard's concern for the low sales?
(a) They appreciate his honesty.
(b) They have no reaction.
(c) They have mixed reviews.
(d) They do not appreciate his honesty.

13. What role does Howard talk about transitioning into at the end of the book?
(a) An advisor.
(b) A silent partner.
(c) A cheerleader.
(d) A colleague.

14. What percentage of United Airlines passengers tasted their first Starbucks coffee, according to Starbucks' research?
(a) Fourteen.
(b) Twelve.
(c) Twenty.
(d) Sixteen.

15. What city is United Airlines based out of?
(a) Dallas.
(b) Seattle.
(c) New York.
(d) Chicago.

Short Answer Questions

1. Which city has labor activists that attempt to defame Starbucks?

2. Which shoe company did Scott Bedbury work at before joining Starbucks?

3. How much does Starbucks raise it's prices after the second freeze extends the crisis?

4. In a 1996 survey, what percentage of United Airlines coffee drinkers described the Starbucks coffee as excellent?

5. When does Starbucks face the crisis of rising coffee bean costs?

(see the answer keys)

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