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Case Study

Starbucks

One cup too many?

Denry Machin analyses the roots of Starbucks’ success and the impact rapid growth has had on its fortunes

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Business growth, like brewing the perfect coffee, involves combining quality ingredients, time and skill. Starbucks, it seems, might be able to brew a decent coffee, but when it comes to managing growth, the company is struggling to find the right blend.

Starbucks started in 1971 with just a single store on Seattle’s waterfront. By 2007, it had grown into a company with revenues of $9.4 billion, profit of $672 million and over 15,000 stores worldwide. The rate of growth was phenomenal — in some cities it really did seem like there was a Starbucks on every corner.

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