The current situation is not favorable since Star bucks is feeling the economic crunch and thus has been forced to go against their policy of putting their people first and close down stores which will result in 12000 laid off employees. Their profits and stock prices are going down and costs are augmenting with time. Star bucks has promised to make efforts to help these laid off employees new jobs but it is rather going to difficult since they will have lesser stores now.
It is not just the economy but the company’s focus on excessive growth by opening new stores every fiscal year has contributed mostly to the current situation. Their strategy to transform and focus on improving the current state of stores and also to enhance long term growth is apt in this situation since they had no option but to close down their underperforming stores in order to make sure the company has a stable future (Ahrens, 2009, p.A2).
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