Refer to the information in Problem 1.35.

REQUIRED
Using the Steps for Better Thinking model in Appendix 1A, describes Steps 1, 2, and 3 of the Starbucks decision to install automatic espresso machines. In other words, what factors might the managers have considered as they made thisdecision?

Economic and Financial Weather Political and Social Reputation e Government policy or regulation change . Hurricane, typhoon, tornado e Economic collapse e Changes in credit, interest, . Perceived quality waterspout Earthquake Product obsolescence and currency markets e Confinement or imprison Government and/or regula ment of employees or tory investigation . Public boycott/condemnationWildfire . Human rights abuses Class action lawsuits . Rumors, gossip, libel, slande Climate change . Non-compliance with laws, Lightning e Strategic risks (e.g, change in customer tastes, unantici pated competition, joint venture/alliance relations, change in technology) Change in cost/availability of labor or other resources Lawlessness and hostile demonstration Civil war or military coup Expropriation or forced renegotiation of royalties .Extreme heat or cold regulations, internal policies Sinkhole Tax law changes Foreign market protectionism Environmental and Man-made Psychopathic, Criminal and Informational and People, Legal, Health and Terrorist Operational . Chemical, biological, radioac Product tampering . Disease or health epidemic Theft or other loss of proprietary/confidential data Poor information quality Terrorist acts Transportation accident Loss of key personnel Corporate governance issues Labor slowdown or strike Sexual harassment, work- place discrimination, wrong- ful dismissal, or labor law noncompliance tive, or nuclear release Arson or explosion . Sabotage, kidnapping e Fire or explosion Noise or dust pollution Carbon dioxide, other hazardous gas, or liquid emission Building, mine, facility condemnation or collapse Damage from water asbestos, or mold . Technology failure extortion, vandalism . Fraud, theft, embezzlement Key customer or supplier loss Insufficient capacity Technology obsolescence Workplace violence e ECOnomic espionage . Project management failure e Product counterfeiting Sourcing failures Poor sales strategylexecution Executive misdeeds, bribes, or Failure to innovate other conduct violations Accidents, errors, omissions e Animal/insect infestation Logistics disruptions Uncompetitive cost structure Inability to attract talent