Starbucks has a very aggressive expansion policy; in the 2007 fiscal year alone it opened 1,342 new stores worldwide (Starbucks 2007 Annual Report). ... Changes in government leads to changes in policies affecting the firm or industry, and unfavourable government policies can hinder the growth and success of the firm. Common occurrences of such policies are high taxation by new governments, or increasing costs of coffee beans. ... For example, when opening its first branch in India, which is not a developed country, Starbucks chose a relatively upper-class area of Mumbai to attract customers...

• Word Count: 1562
• Approx Pages: 6
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• Grade Level: Undergraduate