Fixing the paper below that is attachedGlobal Policy - Essay Example

s because while half of new restaurants fail in the first three years of operation, “the failure for coffee shops is only ten percent” (Black, 2008). “The expansion of Starbucks into every available open space seems to be a given” (Black, 2008). The United States of America alone houses at least “11, 500” (Wikipedia) Starbucks’ coffee shops. We can see these coffee shops lining side by side in suburbs and exurbs areas located mostly in “prime real states” (Gross, 2008). With these numbers of stores, we can imagine the high costs of operating these shops.

In the purchase of equipment and maintenance of one venue alone can take millions of dollars each year. Logically speaking, one thing that attracts people to frequently visit a place is the place itself. It must be convenient and pleasurable. Aside from this, Starbucks spends also million of dollars for the salaries and other benefits of their thousand of employees, in the payment of taxes and bills, and other possible operational expenses payable not only the US government but to the government of other countries where they operate.

However, not all of their branches are profitable. “An ‘overzealous” growth strategy in the early 2000s led Starbucks to close more than 600 under performing U.S. stores to cut cost.” (The Associated Press, 2009). Gross (2008) noted: “Starbucks operated in on a ‘build it and they will come’ philosophy. Like many of the humiliated Wall Street firms, the coffee company let algorithms and number-crunching get the better sound of judgement.” The excessive number of outlets in which many of that do not bring much profit, brought Starbucks not only in trouble of suffering high operation cost but also in trouble of violating some US government policies.

For example, the US laws regarding the health care of employees is strict compared to other countries and health expenses are immense. Employees should provide enough support for the employees irrespective