Starbucks Case Study

Part 2 Chapter 6-9

1. Bounded rationality decisions because of specific goals, need to make decisions that are consistent and value-maximizing to reach these goals, it is dependent on a person’s ability to interpret, process, and act on information, starbucks manager satisfice to meet an acceptable level of performance to reach the company’s specific goals

2. Absolute certainty does not really exist, however a decisions under conditions of certainty might be the salary of an starbucks employee based on the set minimum wage of an area or the prices to set products based on the taxes of an area but those are subjected to change as well.

* Risk: launching new products and estimating expected revenue from addition of new products

* Uncertainty: Selling CDs and magazines, can’t estimate how receptive customers will be

3.

* Increase in stores to US (15000) and globally (30000), long term broad goal

* 3-5 years: Total revenue growth (20%) and earnings per share (20-25%), long term broad goal

* Help define pop culture, long term broad goal

a) Part-time barista in Winnipeg: provide good customer service ensuring smooth operation to generate revenue, represent company culture to customers

b) Quality assurance plan technician: quality products ensuring smooth operation

c) Regional sales manager: plans to increase sales, open more stores in strategic locations, hire competent managers to enforce culture and sales, customer service

d) Senior vice president of new markets: plan new ideas, products, locations, new frields for culture

e) President and ceo: vision for company, general direction, how to achieve goals

4. Growth strategies:

* Concentration: concentrate on increasing stores in the US but also globally on China, Brazil, India and Russia as targets, cater to audiences

* Vertical integration: domestic and international roasting plants, secure crops, fair trades

* Horizontal integration: new...