1. Starbucks has some pretty specific goals it wants to achieve (look ahead to part 4 on
p. 325 for these company goals). Given this, do you think managers would be more
likely to make rational decisions, bounded rationality decisions, or intuitive
decisions? explain
(1) Manager that works for Starbucks is able to make decisions when they are at work. This
allow manager to react to what they think is the best way to approach a situation. Also,
this can make the manager to feel as of they are more in charge because they can make
bold decisions within company rules. This is what puts Starbuck about everybody else in
the coffee house business, with their unique way of running a business; Starbucks can
have trust in their employees to make the right decisions. This makes working a whole lot
better when you allowed making decision on your own and not getting in trouble for it.
There is also some risk with allowing employees to make rational decisions, because
there are some people out there that don’t have any common sense to make decisions that
are rational. Honestly when you walk into Starbucks anywhere in the world you are a
greeted with respect and you always feel welcome. When you have employees that make
their customers feel like that you don’t have to make rational decisions that often, but
when employees do have to make decisions they are bright enough to do so.
2. Give examples of decisions that Starbucks managers might made under conditions
of certainty. under conditions of risk. Under conditions of uncertainty
(2) Certainty under conditions of risk
The manager can make accurate decisions because outcome of every alternative is known
to him. In this situation the Starbucks manager will be certain about the result on acting
upon every available set of alternatives. Routine decisions which are mostly systematic
can come under this category like banking decisions, inventory keeping and other
operational decisions. The most common situation which manager face is risk conditions.
It is where the manager can estimate the like hood of certain outcome on the basis of past
experience or secondary data. In this case the manager has to keep their decision flexible
because of the risk factor.
Uncertainty
A manager has no certain idea about the outcomes and can’t even make reasonable
probability estimates to outcomes. In such conditions, the choice of alternative is
influenced by the limited amount of information available to decision makers. Investing
in completely new areas and ventures and expanding into new territories whose political
and economic variables are unstable or different from places where Starbucks is already
established and launching of new and unique products can be some examples.
p. 325 for these company goals). Given this, do you think managers would be more
likely to make rational decisions, bounded rationality decisions, or intuitive
decisions? explain
(1) Manager that works for Starbucks is able to make decisions when they are at work. This
allow manager to react to what they think is the best way to approach a situation. Also,
this can make the manager to feel as of they are more in charge because they can make
bold decisions within company rules. This is what puts Starbuck about everybody else in
the coffee house business, with their unique way of running a business; Starbucks can
have trust in their employees to make the right decisions. This makes working a whole lot
better when you allowed making decision on your own and not getting in trouble for it.
There is also some risk with allowing employees to make rational decisions, because
there are some people out there that don’t have any common sense to make decisions that
are rational. Honestly when you walk into Starbucks anywhere in the world you are a
greeted with respect and you always feel welcome. When you have employees that make
their customers feel like that you don’t have to make rational decisions that often, but
when employees do have to make decisions they are bright enough to do so.
2. Give examples of decisions that Starbucks managers might made under conditions
of certainty. under conditions of risk. Under conditions of uncertainty
(2) Certainty under conditions of risk
The manager can make accurate decisions because outcome of every alternative is known
to him. In this situation the Starbucks manager will be certain about the result on acting
upon every available set of alternatives. Routine decisions which are mostly systematic
can come under this category like banking decisions, inventory keeping and other
operational decisions. The most common situation which manager face is risk conditions.
It is where the manager can estimate the like hood of certain outcome on the basis of past
experience or secondary data. In this case the manager has to keep their decision flexible
because of the risk factor.
Uncertainty
A manager has no certain idea about the outcomes and can’t even make reasonable
probability estimates to outcomes. In such conditions, the choice of alternative is
influenced by the limited amount of information available to decision makers. Investing
in completely new areas and ventures and expanding into new territories whose political
and economic variables are unstable or different from places where Starbucks is already
established and launching of new and unique products can be some examples.
