Reference no: EM132670914

Decision rights at Starbuck's Coffee (a coffee house chain offering specialty coffee drinks) are more centralized than decision rights at Cooker's Restaurants (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 store managers of a Cookers versus a Starbucks store manager and why?

Note the words "versus" and "why" in part (b). Rather than provide an elaborate list of what you would measure, outline what you would measure focusing on the differences between the two chains and flush out the logic.