Starbucks, the global coffee giant, experienced rapid expansion throughout the 1990s and early 2000s, becoming a dominant player in the specialty coffee market. However, by 2008 , the company faced significant financial challenges due to a combination of factors, including overexpansion, the global financial crisis, and changing consumer preferences. In response, Starbucks made the difficult decision to close 600 underperforming stores in the U.S. and lay off thousands of employees. This case study explores the reasons behind Starbucks' struggles in 2008, the strategic decisions made by its leadership, particularly its CEO Howard Schultz, and the company’s eventual recovery. It also highlights key lessons in corporate strategy, leadership, and brand management. Background of Starbucks' Growth Starbucks began as a single coffee shop in Seattle, Washington , in 1971. Under the leadership of Howard Schultz , who joined the company in 1982 and became its CEO in 1987, Starbucks exp...
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