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After 20 years of rapid expansion, the last six months of 2007 saw Starbucks jolted by a decline in share price of 50 per cent and a decrease in customer visits. Its share price was hovering around USD19 to USD20. By mid-2008, it had declined to USD18. Its fiscal first-quarter profit in 2007 rose by less than two per cent, and in January 2008, it announced the closing of 100 US stores. In July, the number was increased to 600. The case was written to encourage classroom discussion and research into the company policy and marketing practices in order to discover the means for a possible turnaround of the company.