Starbucks Coffee Company is one company that has become a lifestyle or rather a need than a simple product. The company has stores all around the globe roasting the best quality Arabica coffee. Recently the company had a change in policies since like every company they aim to secure their future for long term growth and higher customer satisfaction. This transformation strategy has led the company to be rather less reluctant and finally understand the necessity of closing a number of stores for a variety of reasons.
The company has always been particular in keeping their employees motivated so laying off employees was a far fetched notion but a rigorous evaluation of theU.S.stores has forced them to decide to close 600 underperforming stores in order to improve their overall portfolio (Allison, 2008, p.A5). Being the General Manager of a new store in US that is going to open soon but has had its soft opening, it is important for me to analyze the situation prior to form a basis for convincing the corporate offices to withdraw the order of closing this store. Since a lot has already been invested and the staff has been hired and trained plus advertisement has been flowing in the market and after all this hard work I think it is not feasible to close this store before it even starts to operate in the market. The major objective for star bucks to implement this strategy and close down stores is to boost its stock price although around 12000 employees will loose their jobs. The foundation of the matter is the recession of the economy that has forced to cut down costs and consider long term consequences. It is essential to close down underperforming stores in order to cut down costs and these stores include those at unprofitable locations or giving low returns overall (Martin, 2008, p.A5).
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