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In 2002, Starbucks is the dominant specialty-coffee brand in North America. Sales are growing at 40% a year, with gross margins of 60%. Understandably, an
In 2002, Starbucks is the dominant specialty-coffee brand in North America. Sales are growing at 40% a year, with gross margins of 60%. Understandably, an aggressive expansion plan is underway. There are however concerns since satisfaction is on the decline. To better serve the customer, Starbucks is considering an $40 million investment in "barista" time at each store. Does satisfaction matter? Would you recommend spending the $40 million
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