Question

Starbucks is at constant risk due to the fluctuating prices of coffee beans. They could offset this risk through:

Setting high prices

A hedge

Constantly changing their prices

A force majeure

Critics of this managerial approach generally argue which potential drawback of EBMgt?

Time commitment

Financial feasibility

Moral implications

Difficulty in finding managers who can utilize it

Answer 1

1. Setting high prices.

Setting high prices would offset the fluctuations in price.

2. Time commitment.

EBmgt can be a long term process which requires a lot of time investment,hence it is one of the disadvantages that time pressures may not be paired with this management technique.