Question

As you may know, Starbucks is in a battle with McDonald’s to capture the early morning coffee customer. Last month, our location sold 180 lattes per day, while the McDonald’s down the street sold 220. We need to beat McDonald’s next month

Answer 1

To beat McDonald's next month, Starbucks should analyze their comparative advantage and make strategic decisions. By specializing in the menu item they have the lowest opportunity cost for, Starbucks can increase their production output and potentially surpass McDonald's sales.

Step-by-step explanation:

In order to beat McDonald's next month, Starbucks needs to analyze their comparative advantages and make strategic decisions. Comparative advantage refers to the ability to produce a good or service at a lower opportunity cost than another individual or entity.

For example, if Maria can make 8 sandwiches or 24 lattes in one hour, while Charlie can make 5 sandwiches or 10 lattes, Maria has an absolute advantage in producing both goods. However, Starbucks should also consider the opportunity cost of producing each item. If Maria specializes in making lattes and Charlie specializes in making sandwiches, they can maximize their production output and potentially beat McDonald's in terms of sales.

By determining the menu item for which each individual has the lowest opportunity cost, Starbucks can allocate their resources efficiently and increase their chances of beating McDonald's.

Answer 2

1) B) I'll be sharing some special sales tips with you tomorrow that will make your job easier.

2) B) Your goal for this month is to sell 10% more lattes, and you will receive a reward if you reach it.

3) C) Two days off with pay

Step-by-step explanation:

1) The E->P expectancy is related to the concept of investing effort into something that you know will lead to the desired performance. It is the part of the expectancy theory that is not related to rewards.

In this example. the goal (task) is to increase sales. The E->P expectancy is the probability that Ethan's efforts will result in the desired performance (increased sales). By giving sales tips to Ethan, he will get more self-esteem and know-how and believe that his effort will in fact result in the desired outcome.

Although this is an overlooked part of the expectancy theory sometimes, it is crucial. Despite the appeal of a particular reward, an employee may not get increased motivation if he/she thinks that the task itself cannot be completed.

2) The P->O expectancy is related to rewards, and it states that employees will get motivated if the desired performance will result in a reward. In this case, Emma's putting the goal (10% increased sales) in direct relation with a reward.

3) Since the Motivation Report states that Ethan is motivated by time off, two days off with pay is the most appealing reward for him. The money bonus is more appropriate for Jon, while a choice of work assignments is better for Blair.