STARBUCKS CASE STUDY

1. The 1% price increase appears to be a short-term decision. If you were the Product Manager for Starbucks, would you choose an increase of 1% every six months, 2% every year, or 5% the first year and 0% for the next two years? Why?
2. The Product Manager has designed an Anniversary Coffee called: Chocolate-infused vanilla latte with a hint of mint topped with whipped cream. As the head Chef for new products, what factors must be taken into consideration if the new coffee is to sell for $4.50 for a Tall with a contribution margin of 50%?
3. The Balanced Scorecard is a set of performance targets and results relating to four dimensions of performance: financial, customer, internal process, and innovation. It recognizes that organizations are responsible to different stakeholder groups, such as employees, suppliers, customers, community, and shareholders. What specific actions does Starbucks engage in to maintain high performance targets for the customer?