Christine Day, Starbucks’ senior vice president of administration in North America is facing a dilemma. In two days she’s scheduled to meet with Howard Shultz, Starbucks’ Chairman, and Orin Smith, Starbucks’ CEO, to offer her recommendation on whether the company should move forward with a plan to invest $40 million annually, adding 20 hours per week of labor to each of the company’s 4,500 stores. The aim of the investment is to improve speed of service and customer satisfaction. As the case reveals…
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