Starbucks

Case Analysis
August 24, 2008

Analysis of Current Situation

Environment
1. Economic Conditions: In a time of inflation when the purchase of nonessential items is down, Starbucks is feeling the effects.
a. 600 Starbucks locations will close by mid-year 2009
b. This represents 8.7% of the stores nationwide..affecting 44 states..88 locations in California alone.
c. 12,000 employees will lose their jobs…Starbucks will offer relocation packages to many employees, severances to others.
d. Fewer than 200 new US locations will be opened in 2009….this is in comparison to 900 new US locations projected to be opened in 2008.
e. Infrastructure realignments of non-store support staff resulted in the reduction of 1,000 positions.
f. In response to competition and imitators, Starbucks now offers the “bottomless” $1.00 coffee.
g. Wireless internet is no longer free and the comfortable lounges in the stores are being replaced with less comfortable furnishings.......

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Title: Starbucks Case Analysis
Approximate Word Count: 1322
Approximate Pages: 6 (250 words per double-spaced page)

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