Question

Describe a type of company that has some elements of all three types of companies. It should be partially a Service Company, partially a Manufacturer, and partially a Merchandiser. Give examples of each the elements of the company’s operations that might fit into each of the three classifications listed.

Answer 1

Starbucks is a company that has all 3 elements - service company, a manufacturer. and a merchandiser

1) Providing Coffee as per customer requirements basically means to provide a service, their main business is providing coffee at their outlets as per customer requirements.

2) Coffee beans which they use, are manufactured by them hence, it is also an manufacturing company, it also provides an array of other products such as cakes, pastries etc. which is all manufactured by them, hence it is also an manufacturing company.

3) The flasks which they sell fall under merchandising, the flasks are not manufactured by them but have their branding and are marketed by Starbucks. Hence this falls under Merchandiser.