Case ID: S-0175
Solution ID: 39974

Starbucks Corporation A

Case Analysis

The issue in this case is whether it is a realistic for Starbucks to continue to be a high-growth company. Questions raised are whether all growth is good; whether bigger is always better; whether businesses must "grow or die"; and under what circumstances does too aggressive growth destroy value? In trying to remain a high-growth company, Starbucks has opened some stores in subprime locations, resulting in dilution of its customer value proposition and poor performance. When one of the founders steps in as CEO to "fix" Starbucks, students can follow the steps he took to get the company back on track.


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