MÁSTER UNIVERSITARIO EN GESTIÓN EMPRESARIAL EXAM

PROGRAMME: Choose your programme

PROGRAMME CODE: 20MSTMM02

SUBJECT: Strategy for Sustainable Business

PROFESSOR: Foce Massa Saluzzo, Federica

STUDENT CODE 335745

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Exam A

a) A business model is very important to ensure a business is set up properly

and has the ability to operate the business in the light of 8 key components
like Value proposition, Revenue model, Market opportunity, Competitive
environment, Competitive advantage, Market strategy, Organizational
development and Management team.
Whereas non-market strategy framework is built around the analysis of issues,
actors, interests, arenas, information and assets.

Value proposition:
This is describes how a company’s product or service fulfills the needs of
customers and why a customer would buy from the company. For example, a
successful value proposition must include personalization, customization,
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reduction of product search, price discovery costs and facilitation of

transactions by managing product delivery.

Revenue model:
This is describes how a company plans to make money from its business
because earning revenue and produce a superior return on invested capital is
the primary objective of a company. For example, the 5 major e-commerce
revenue models include advertising revenue model, subscription revenue
model, transaction fee revenue model, sales revenue model, affiliate revenue
model.

Market opportunity:
This is describes what market space does the company intend to serve and
what is its size. Basically, it is refers to the company’s intended market space
and the overall potential financial opportunities available to the company in
that market space.

Competitive environment:
This is describes the direct and indirect competitors who doing similar
business in the same market space. For example, the additional information
includes how large they are, their net profits, their share of the market space
and the price of their product.

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Competitive advantage:
This is describes the factors that differentiate the business from its competition
and which may encourage customers to purchase the company’s product or
service. For example, the product or service of the company may cheaper or
higher quality than its competitors.

Market strategy:
This is describes how the company plans to enter market and attract
customers and potential customers such as promoting the product and service
to attract a target audience.

Organizational development:
This is describes what types of organizational structures within the business
need to be in place to ensure it runs smoothly and all the necessary work is
completed. For example, the process of defining all the functions within a
business and the skills necessary to perform each job as well as the process
of recruiting and hiring efficient employees.

Management team:
This is describes what kinds of experiences and background are important for
the company’s leader to have. For example, a strong management team may
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not be able to salvage a weak business model, but should be able to change
the business model and redefine the business, and also a strong management
team should give a good credibility to outside investors.

B) Starbucks first non-marketing strategy was to partner with Conservation

International to create a C.A.F.E. label. CI partnership with Starbucks since
1998 and helped create C.A.F.E. practices in 2003. CI and Starbucks shared
similar vision and mission of ethical sourcing, environment sustainability and
economic and social welfare of producers.

Starbucks started purchasing 100% C.A.F.E. certified coffee by 2015. It was to

increase the visibility of Starbucks’ C.A.F.E. practices to the consumer. This
strategy was not only used to differentiate C.A.F.E. practices from other
certifications on the market but also to set Starbucks apart from quick-service
restaurant sector competitors. Also, this label make them justify premium costs
for handcrafted beverages.

In 2009, Starbucks bought 367 million pounds of coffee amidst which

299 million pounds (81%) was C.A.F.E. certified.

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Certificate Comparison

Rainforest Alliance Certification

20%

80%

Small Farms Large Plantations

Starbucks C.A.F.E. Practices

1%
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99%

Small Farms Large Plantations

Second marketing strategy used by Starbucks is to work with NGO’s and the
U.S. government to amend the 2007 International Coffee Agreement to
include a minimum price for specialty and premium coffee imports

a) Academic Article that describes the importance of non-market strategies for

Businesses.

https://insights.aib.world/article/18358-nonmarket-strategies-across-
complex-institutional-contexts

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