Case Name :      A Crack in the Mug: Can Starbucks Mend It?

Authors :           Michael Herriman, Motohiro Wanikawa, Ryoko Ichinose, Shobana Darak, Yumana Chaivan

Source :             Ivey Publishing

Case ID :            908A16

Discipline :        Operations Management

Case Length :    15 pages

Solution Sample availability : YES

Plagiarism : NO (100% Original work)

After 20 years of rapid expansion, the last six months of 2007 saw Starbucks jolted by a decline in share price of 50 per cent and a decrease in customer visits. Its share price was hovering around $19 to $20. By mid-2008, it had declined to $18. Its fiscal first-quarter profit in 2007 rose by less than two per cent, and in January 2008, it announced the closing of 100 U.S. stores. In July, the number was increased to 600. The case was written to encourage classroom discussion and research into the company policy and marketing practices in order to discover the means for a possible turnaround of the company.