The executive committee has asked you to join them to discuss what to do with this year’s training budget. Currently, The Daily Grind has a program in place where employees can request outside training opportunities to be approved by their supervisor. Within the program, non-management employees can receive up to $500 and managers up to $1,000 for relevant training. To access this training benefit, employees fill out a form detailing the training they’re interested in, how it will expand their knowledge and how it will improve their ability to do their job. Over the past five years, fewer and fewer employees have taken advantage of the program. Of those who have, many submitted the same training opportunities, making it difficult to accommodate everyone and continue running the business on those days. During this discussion, several ideas are brought to the table. Which one would you recommend and why?

A.) Create a Professional Barista program. This elite program would be created as a way to reward those baristas who really know their stuff—both with recognition and increased earning potential. It would also establish a clear path for baristas who are being groomed for management positions. The program would require management to comprise a series of learning modules for baristas to study, train on, and be tested on to showcase their knowledge and skills. To maintain its exclusivity, baristas would have to be nominated by their supervisors and there would be a limit of two baristas per store in the program at any given time—although some stores might not have any. The program could potentially take a year for management to design and deploy. Hard costs would include the creation of printed materials along with the food costs associated with the training (a comparable expense to the one incurred during new employee training).

B.) Invest in regular on-site cuppings and classes. Cuppings are a great way for staff members
to learn about the various coffees that The Daily Grind serves. The practice involves smelling and slurping a variety of coffees in order to study their distinct aroma, taste (i.e., mouthfeel, sweetness, acidity and flavor), aftertaste and region of origin. This option would include monthly cuppings and quarterly training courses (in subjects like latte art) by trainers who are brought in by the company. Cuppings and courses would all take place at headquarters, but each event would be offered at several different times to allow for the greatest staff participation. Hard costs for cuppings would consist of purchasing extra cups, spoons, tables, coffee grinders and kettles. Bringing in outside trainers would average $3,000-$8,000 per engagement.

C.) Expand bean-sourcing trips to include more employees. Each year, the president and CEO take a few trips to find new fair-trade farming partners across the globe. This allows The Daily Grind to ensure they’re getting the best possible products and continuing to expand their coffee selection. Past destinations have included Ethiopia, Guatemala, Costa Rica, and other top coffee-producing regions. Expanding the sourcing team to include district managers and two top-performing store managers would mean cutting down the number of sourcing trips per year, at least in the short term. However, over time, this expanded sourcing team could theoretically divide and conquer with a portion of the group going to each planned destination, making it more cost-effective over time.

After reading the prompt:

1. Select the best strategic options for dealing with that situation
2. Provide a rationale for your decision
3. Create lists of additional questions the company would ask, the information they would need, and factors they should consider in making that decision.