Crack in the Mug: Can Starbucks Mend It Harvard Case Solution & Analysis

After 20 years of rapid growth in the last six months of 2007 saw a Starbucks jolted decline in stock prices of 50 percent and reduced customer visits. Its share price has been hovering around $ 19 to $ 20. By mid-2008 it had fallen to $ 18. Its fiscal first-quarter profit in 2007 increased by less than two per cent, and in January 2008 it announced the closure of 100 stores in the United States. In July, the number was increased to 600. The case was written to stimulate discussion in the classroom and research company policies and marketing practices in order to open the way to a possible turnover.

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by Michael Herriman, Motohiro Wanikawa, Ryoko Ichinose, Shobana Darak, Yumana Chaivan Source: Richard Ivey School of Business Foundation 15 pages. Publication Date: October 23, 2008. Prod. # 908A16-PDF-ENG

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