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McDonalds also has an extremely large bargaining power and runs each franchise with impeccable automation. 3. Catch people doing something right and focus on recognizing excellent performance. 6. 7. Yet, many managers run their business thinking that employees must be treated with a "watchdog" mentality. The majority of people want to do well - very few individuals approach a job with the intent of screwing up. 2. Give them the tools to succeed. 4. Tancer, B. (2008, January 10). However Starbucks has a much larger buying power then the local smaller coffee shops giving them a competitive advantage. These smaller coffee shops have their core customers who will not give their business to anyone else. They install hidden cameras, monitor email, and set up procedures that require employees to get multiple approval signatures for decisions. "McDonald's is planning to capitalize on the public's willingness to pay $4 for a cup of coffee by hiring baristas and dropping espresso machines in 14,000 of their fast-food outlets. My experience has taught me that people strive to achieve what is expected of them. Originally when Starbucks began they targeted the young college students, with slightly higher than average income levels. It never does and this "blind" approach affects profitability, causes higher turnover, and generates low morale.
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