1)Starbucks CEO Howard Schultz has since quite a while ago opposed franchising to keep up command over the Starbucks brand and culture—and it's served him, Starbucks' representatives, and speculators well.

- Starbucks' stock have beated the S&P 500 record by almost seven-crease since Howard Schultz returned as CEO in 2008, up generally 800% from that point forward, contrasted with around 200% for the S&P 500

- Numerous enormous organizations today depend on franchising to rapidly develop business without noteworthy capital investments. In an ordinary establishment plan, one gathering (franchisee) puts a specific total of cash in return for admittance to a business' (franchisor) exclusive information, cycles, and brand names. The relationship likewise permits the franchisee to sell items or offer an assistance under the business name.

- McDonalds, Ace Hardware, and Dunkin Donuts have enormous establishment activities.

- Starbucks has seen quick development without utilizing an franchisee model.

- Starbucks has kept up progression over its stores, as far as items and customer service, by outstanding organization claimed as opposed to franchising.

- Starbucks has a few establishments in Europe and takes into consideration permitting of its stores within bigger efficient inns, shopping centers, and retail chains. Franchisees just impede the association between an organization and its customers.

- Culture is a major selling point for customers

- Franchising, which takes into consideration snappy extension with little measures of capital, isn't generally something to be thankful for. That is, widespread development can once in a while neutralize an organization. This happened to Starbucks in the mid 2000s after Schultz left. He returned as CEO in 2008 as that the espresso purveyor was battling due to over development. The organization attempted to extend excessively quick thus Schultz checked store development and returned more noteworthy concentration to customer service.

2)

Porter's Diamond Model as a framework for describing the technology based service industry(example search engine,software,online advertising, cloud computing) in Silicon Valley, United States- Firstly, we understand the meaning of Porter's Diamond Model- This   theory  describes or explain the competitive advantage that a national can grab the opprtunities and gain the competive advanatge with the help of resources available in their nations.Porter's Diamond Model reflects the four factor conditions to gain the competitive advantage-

Strategy and structure of the Firm- To gain the competitve advantage firm decides the strategy or structure to increase the production to meet the demand and upgradation in the technology.

Other supporting industries - Other supporting industries related to help them transferring or exchanging  their ideas as they are suppliers or the customers who offer an opportunity to the firms to gain competitive advantage by fulfilling their demands.

Demand Conditions- It involves the characteristics of product demanded by the customer.As to more customers firms differentiate their product and offers the product to custmers in an innovative way.

Factors Conditions- To gain the competitive advantage an economy utilise their factors pf production more efficiently and effectively.The factors of production of an economy are skilled labour,availability of infrastructure,better technology etc.

Use of Porter's Diamond Model as a framework technology based service in Silicon Valley,United States-

As according to factor conditions of Porter's Diamond Model Silicon Valley,United States - Silicon Valley uses their resources and known for the centre of the companies who have features of use of innovative technology. They offered more jobs to skilled labour and increase in the prices of stock which allows investors to earn more revenue.As all these activity allows the Silicon Valley to gain the competitive advantages over the other nations or country. The employees of the company of the Silicon Valley are ready to take risks ( innovation thinking) which allows them to innovation or developing new technology.

Other supporting industries - The reason behind the success of gaining competitive advantage by the company of Silicon Valley is the collaboration between the local companies.Local companies cooperate each other through the use of professional networks which allows them to exchange their ideas or information.As the cooperation between the companies help to innovate the products and also upgrade the technology to gain competitve advantage.

Strategy and structure of the firm- As companies of Silicon Valley,United States adopted the strategy to attrect skilled engineers from all over the world.As the Companies of Silicon Valley focused on the diversity which allows the comapny to upgrade or improve their technology and offer innovative products which leads the company to gain competitve advantage.

Demand Conditions - As the Silicon Valley comapnies known centre of the innovative technology companies, they offered the products according the demands of the customers as the customers demand for the computers,electronics etc which allows the company to grow thie market share and focus on the innovative and differentiated products.To focus on the products or services allows the company to grow in their local market and also golbally by meeting the demands of customers of other countries.

For example- The Company Cloud Computing faciliataes or make available the data to the customers as the cloud computing company is service provider company so that they take decisions related to investment, etc which help them to attract more customers and gain competitive advantage.Online advertising company of Silicon Valley give more importance or investment on advertisement which helps them to sell more innovative technological products to customers to meet ther demands.Companies of Silicon valley have the availbality of skilled professionals who are ready to take risk of innovation in technology and the supporting services which allows to gain competitve advantage over the different countries.

3)

We will create a cash flow diagram for here to calculate the PW first then we will calculate Annual Worth.

The interest rate is given as 8% 

PW = Cash Flow / (1+Interest Rate) ^ Duration

85000 + 15000 * ((1.08 ^ 3) + (1.08 ^ 4) + ........... + (1.08 ^ 8)) = 144450.61

EUAC = NPW / PW Annuity Factor

144450.61 / 5.7466 = 25136.54

please see the attached file.