Question

Note: Plagirism is Prohibited

Company Starbuck

1. Write the the incentive schemes used by Starbuck. Are this appropriate and effective? Why? Why not?

2. What incentive scheme might be more relevant given the organisation’s objectives?

Answer 1

1. Main incentive scheme used by Stabucks is the loyal rewards program wherein they provide free food and drinks at Starbucks outlets for their loyal customers. This scheme in my opinion is not appropriate and effective since it only caters to their loyal customers and does not cater to new or less loyal customers and gives them no incentive to try Starbucks. This creates a sense of unhappiness among the new customers.

2. Given the organization's objectives, incentive scheme wherein both new and old customers are incentivized needs to be developed. One such incentive scheme can be to provide cashback to the new customers and provide free food or drinks in order to encourage them to socialize more at Starbucks.