easy assignment

· What is the situation?

The situation is that Starbuck’s has had to close up to 600 stores because its growth destroyed its brand value. Starbuck’s had grown tremendously, but that had affected it negatively because it eventually lost its value.

· What are the key problems the author is addressing?

The key problems being addressed by the author are Starbuck’s loss of value, integrity of its products and its superficial growth. Starbucks has opened many stores that has affected it negatively, and it has to close some of them.

· According to the author, why do these problems exist?

The problems exist because Starbucks decided to open various stores and launch new products. These created only superficial growth. Starbucks also increasingly appealed to grand and go customers and lost the early adopters who valued the club-like atmosphere. Introduction of new products undercut the integrity of the Starbucks brand for coffee purists. Starbucks could not focus on improving their stores while focusing on opening new ones.

· How do these problems impact the organization?

The impact was that Starbucks eventually lost its brand value and customers started going to the competitors such as McDonalds who increased their value at low prices. Many Starbucks lost brand loyalty because of opening numerous stores.

The impact to the organization was that the company had to close stores

· Who or what is responsible for these problems?

Starbuck’s strategy of opening new stores and launching new products was responsible for the problems. Starbucks should not have had the strategy of opening such stores because it ended up losing its value.

· What are some possible solutions to the problems?

Starbucks should have stayed private and grown at a more controlled pace. It should stay small, exclusive and premium-priced by limiting the number of stores.