Reference no: EM133069157

Decision rights at Starbuck's are more centralized than decision rights at Cooker's (a chain of family restaurants). For example, Cookers' store managers are given discretion concerning what items to place on the menu, pricing of meals and store decoration. Starbucks store managers are not provided this discretion.

(a) How is the specialty coffee business different from the family restaurant business and why would these differences make a centralized decision making structure optimal for Starbucks and a decentralized decision rights optimal for Cooker's?

(b) What should be measured to evaluate the performance of the store managers of a Cookers versus a Starbucks store manager and
why?

Note the words "versus" and "why" in part (b). Rather than providing an elaborate list of what you would measure, focusing on the differences between how performance is measured at the two chains.