This Case is about INTELLECTUAL PROPERTY, MARKETING, OPERATIONS MANAGEMENT
PUBLICATION DATE: October 23, 2008 PRODUCT #: 908A16-HCB-ENG
After 20 years of accelerated growth, the last six months of 2007 found Starbucks shocked by a drop in a decrease in customer visits and share price of 50 per cent. It had dipped to $18 by mid-2008. Its first quarter fiscal gain in 2007 grew by less than two per cent, and in January 2008, it declared the closure of 100 U.S. shops. In July, the amount was augmented to $600. The case was printed to sustain research and classroom discussion into promotion practices and the business policy in order to find the means for a potential reversal of the business.