Starbucks Case Analysis: Planning
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
Goals Type Part Time Store Employer Quality Assurance Technician Regional Sales Manager Senior VP CEO
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 business He will try to maintain the same standard as in previous stores regarding coffee taste, hygiene etc Will 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
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
Goals Type Part Time Store Employer Quality Assurance Technician Regional Sales Manager Senior VP CEO
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 business He will try to maintain the same standard as in previous stores regarding coffee taste, hygiene etc Will 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
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