Starbucks Case Analysis: Planning

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Q.No.1
Managers would be more likely to make rational decision making or in some cases the bounded rationality in case of specific goals. It is because specific goals are clearly defined and they leave no room for interpretation. So a manager would be knowing all or most of the alternatives for decision making and would be knowing the outcomes, thus will be qualifying for the rational decision making. Q.No.2

Certainty: Rational Decision making would work under certainty. Also programmed decisions will work e.g the opening of 755 new stores in United States and 381 new stores overseas (Stephen P. Robbins & Mary Coulter). Risk: Bounded rationality would work under risk it is because the probability of certain outcomes is known but not all so a manager would like to “satisfice” rather satisfy by not evaluating all the alternatives e.g. the flopped carbonated coffee beverage product Mazagran (Stephen P. Robbins & Mary Coulter). Uncertainty: Intuitive decision making would work under conditions of the uncertainty. It is because when neither the alternatives nor their probabilities are known managers would most likely to rely on their feelings, judgments and experiences. Also managers will have to make non programmed decisions as the nature of the problems will undetermined. Q.No.3

GoalsTypePart Time Store EmployerQuality Assurance TechnicianRegional Sales ManagerSenior VPCEO April 2006 :
No. of stores 11,377
After 30 weeks:
No. of stores in USA = 755 new
No. of stores Overseas = 381 (Stephen P. Robbins & Mary Coulter) Short Term He will make new customer relationships and networking to expand businessHe will try to maintain the same standard as in previous stores regarding coffee taste, hygiene etcWill analyze and monitor current sales will compare it with expected new level of sales by these stores Will monitor the untapped potential areas for store expansion and will examine the performance i.e. revenue and quality of new markets recently entered He will develop more detailed growth strategy employing concentration and related diversification for the new markets 15000 US stores and 30,000 stores globally (Stephen P. Robbins & Mary Coulter) Long termHe will make new customer relationships and networking to expand business and will try to retain those customersHe will try to maintain the same standard as in previous stores regarding coffee taste, hygiene etcWill analyze and monitor current sales will compare it with expected new level of sales by these stores Will monitor the untapped potential areas for store expansion and will examine the performance i.e. revenue and quality of new markets recently entered He will develop more detailed growth strategy employing concentration and related diversification for the new markets Total Net Revenue Growth of 20 Percent and earnings per share growth between 20 to 25 percent (Stephen P. Robbins & Mary Coulter)

Medium TermRetention of customers and development of long term relationshipsMinimization of mechanical losses and inefficiencies to conserve raw materials and resourcesWill analyze and monitor current sales will compare it with expected new level of sales by these storesWill monitor the untapped potential areas for store expansion and will examine the performance i.e. revenue and quality of new markets recently enteredHe will develop more detailed growth strategy employing concentration and related diversification for the new markets Q.No. 4

Concentration: Starbucks has found a new way to appeal to diverse customer demographic. e.g. upper upper class, urban population, blue collar and white collar workers etc. Company has taken the direction to grow store numbers and locations and increasing same store sales (Stephen P. Robbins & Mary Coulter). Integration:

Vertical Integration: Prepaid cards act as gaining commitment from customers thus gaining control of them. Also 24 percent of customers visit 16 times per month, which is greater than...
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