Product Overview

This case follows S-0175 and explores the different responses Starbucks made to correct its operational and overexpansion problems as well as its experimentation with new growth ideas. Analysts who predicted that Starbucks wouldn't survive the global downturn must to eat their words. Under its former CEO, it has emerged from the economic downturn a leaner, better company. Now it must decide whether to build or buy a new concept to scale or reignite high growth without entering a completely new large underserved market.

Learning Objectives

Raise issues about the limits to growth and the risks of too aggressive growth Examine the four ways to grow a business: improvements, innovations, scaling, and strategic acquisitions Understand the relationship between size and growth opportunities and the limitations and complexity of organic growth in large organizations that lead to the strategic decision of whether to “build or buy”