Q.1) Star bucks have some pretty specific goals it wants to achieve. Given this, do you thinkmanagers would be more likely to make rational decisions, bounded rationality decisions orintuitive decisions? Explain.
Specific goals are goals that are clearly defined and leave no room for interpretations. Theresno ambiguity because the objectives are clearly defined. There are three ways managers canmake decisions:1.
RATIONAL DECISIONS:In these decisions, managers make consistent, value-maximizing choices where the problem isclear & unambiguous. Simple, well defined goal is to be achieved. Preferences are clear,constant and stable. Managers know all possible alternatives & consequences and the decisionsmade are in the best interest of an organization.2.
BOUNDED RATIONALITY:They make decisions rationally but are limited (bounded) by their ability to process information.The managers satisfice, rather than maximize. That is, they accept solutions that are goodenough.3.
INTUTION:It is the decision making on the basis of experience, feeling and accumulated judgments. Such amanager doesnt go for systematic analysis of problem or evaluation of alternatives but insteaduses his experiences & judgment to make decisions.From my point of view, managers in Starbucks are more likely to make bounded rationaldecisions instead of rational or intuition because they cannot possibly analyze all informationon all alternatives and know all outcomes. They accept decisions that are good enough. Theymake decisions rational, but are limited by their ability to process their info. Any growth thatStarbucks pursues is done with great care and planning but they are being rational within thelimits.