Research Owned and Published Globally by The Paper Store, Inc. 1-800-90-WRITE
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Starbucks' Regroup
Introduction Based in Seattle, Starbucks Coffee is the leading specialty coffee retailer in America. Its presence is nearly ubiquitous in any area in which there is sufficient traffic to support the location. It operates cafés in malls, airports, office buildings, university libraries and hotels; customers can expect to find Starbucks kiosks at hospitals, smaller office buildings and other places lacking enough traffic to support a full café. Shoppers can find Starbucks coffee in grocery stores, and an alliance with Dreyer's has placed coffee ice cream there as well. An alliance with Pepsi resulted in placing a cold bottled Frappuccino® into grocery and convenience stores. After years of double-digit growth, in 2008 Starbucks experienced the worst business results to date within the US, experiencing a 97 percent decline in profits in 3Q08 and closing many of its more marginal stores. The company had more than 11,000 locations in early 2007; currently it operates 8,505 and announced the closing of 600 US locations beginning in July 2008 (Full List of U.S. Store Closures). This is not the case outside the US, however, where the company continues to expand through "joint ventures, licenses and company-owned operations" (International Business Development). The purpose here is to propose a recovery program for US operations. Business Model Starbucks is a single-business organization that is increasingly vertically integrated as Starbucks continues to generate alliances and supportive relationships with growers' co-ops in developing nations.
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Research Owned and Published Globally by The Paper Store, Inc. 1-800-90-WRITE
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Starbucks is focusing on increasing growth, while con