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Tuesday, September 27, 2005

Starbucks Case Study Analysis

" Poor cost structure, caused the company's net income to be below their forecast: o The costs were high, and sales were low. o The operating expenses too high - high labor costs, and high real estate costs. o Joint ventures shared profits, and licensing fees. o High start up costs. " Poor management - management did not consider the unique needs of oversea customers: o Expanding too fast and they entered very complex joint ventures. o Lack of creative ideas to service local customers' needs. o The management did not consider the environmental difference between the US and overseas stores.

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