Description: Good news for the caffeinated masses: Starbucks (SBUX) is cutting prices, starting May 10, on its bags of coffee sold in grocery stores. The $1-per-bag discount represents a 10 percent discount on its eponymous beans, a 12.5 percent drop on its cheaper Seattle’s Best brand.

Source: Businessweek.com

Date: Apr 12, 2013

Link: http://www.businessweek.com/articles/2013-04-12/the-game-theory-behind-starbucks-big-coffee-price-cut#r=hpt-lst

Questions for Discussions:

• What is the theory behind the move at Starbucks?
• Do you think it will be successful?
• How might this change affect cash flow and financial planning?