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Where Starbucks Went Wrong

Starbucks, the Seattle-based coffee company, has announced that it is closing 600 of its 6,800 U.S. stores and laying off more than 12,000 employees. During the past year, the stock has dropped nearly 50 percent.

What went wrong at Starbucks?

Their core business was, frankly, overcharging consumers for coffee, which was very lucrative. But then they expanded into selling CDs, producing movies such as "Akilah and the Bee," which bombed at the box office, and other ventures.

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