True / False:

Starcrocks Coffee is in the midst of a major and rapid national and international expansion plan, with the goal of placing one of its coffee shops nearly everywhere in the world In contrast, Blue Cup Coffee has decided to operate primarily a small collection of coffee shops in the large city Metropolis, whose residents are accustomed to and prioritize the finer things m life. Both chains are responding to the growing social trend of being perpetually caffeinated. Running a coffee shop requires both an espresso machine (used to make espresso coffee which is selved alone or as part of a latte or cappuccmo) and baristas (who prepare and serve the coffee). Baristas differ in terms of natural ability and trainmg_ As far as espresso machines, both use recently developed technological marvels. Starcrocks has decided to use a "super automatici- espresso machine that simply requires the barista to press a single button to make a coffee drink. Blue Cup Coffee has decided to use the Complex03000, an Italian machine that is difficult to use (Requiring many small and technical adjustments by the barista over the course of the day) but which allows the very- best flavors to be extracted from the coffee beans. For both Starcrocks and Blue Cup Coffee, decisions about which types of espresso machines and baristas to use are made at a corporate level and so all shops within a chain must use the same machines and types of baristas as all other shops. 22. Suppose that the time spent waiting for a drink at Blue Cup Coffee is longer than at Starcrocks_ This means Blue Cup Cofee is "operationally inefficient" (that is, not on the cost-q uahty frontier) _ 23 _ Blue Cup Coffee recently hired a consulting firm that reported that Blue Cup Coffee spends significantly more money than Starcrocks on training and wages for its baristas (in "real money" terms, that is controlling for any cost-of-living differences between Metropolis and other locations around the world). To stay competitive with Starcrocks, Blue Cup Coffee probably should not reduce its expenditures on baristas. 24. Michael Butler, who Mites a popular blog on strategy, recently observed that Starcrocks could, if it wanted to, change its corporate decision and install Complex03000 machines in all of its locations worldwide. Michael Butler added that "If Blue Cup Coffee makes any money, Starcrocks will just copy Blue Cup Coffee. I suggest selling any stock you hold in Blue Cup Coffee." Michael Butler 's reasoning amd conclusion are probably correct