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Answer :
The management team of Starbucks' have determined that the relative profitability of purchasing and owning the rival's existing shops is greater than the expected profitability of using the money to build additional Starbucks shops.
What is the relative profitability?
The main aim of most organisations excluding not for profit organisations is to make profit. Profit can be earned either by reducing cost or by increasing revenue.
If it is determined that purchasing the existing shops of rivals would be cheaper than building new shops, management would decide to purchase existing rivals' shops.
To learn more about profit, please check: https://brainly.com/question/14969763
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