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Starbucks Corporation (A)
Hess, Edward D.; Eriksson, Cassy Case S-0175 / Published October 13, 2010 / 19 pages.
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Product Overview

The issue in this case is whether it is 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. One of the founders steps in as CEO to "fix" Starbucks, and students can follow the measures he took to get the company back on track.

  • Overview

    The issue in this case is whether it is 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. One of the founders steps in as CEO to "fix" Starbucks, and students can follow the measures he took to get the company back on track.

  • Learning Objectives