Starbucks: Back to Basics?
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Case Code: BSTR307 Case Length: 18 Pages Period: 2007-2008 Pub Date: 2009 Teaching Note: Available |
Price: Rs.500 Organization: Starbucks Industry: Food and Beverage Countries: USA, Global Themes: Growth Strategy, Globalization |
Abstract Case Intro 1 Case Intro 2 Excerpts
Excerpts
Storm in a Coffee Cup?
Beginning 2007, Starbucks saw a slowdown after years of growth. The company's shares fell 20 percent by mid-2007, compared to their value in mid-2006. The slide was attributed to several factors, but the main one was the economic situation in the US, believed to be the worst in decades. The plummeting US housing market was at the epicenter of the crisis.....
Schultz Returns
In January 2008, Schultz replaced Donald as the CEO of Starbucks. Schultz said in an official communiqué that he would focus on "customer experience and innovation"to reverse the slide in shareholder value...
Outlook
In July 2008, the company announced that some 600 stores would be shut down across the US, resulting in the loss of 12,000 full and part time jobs. The company also planned to shut down 61 of its 85 stores in Australia . Schultz said, "The current economic environment is the weakest in our company's history, marked by lower home values, and rising costs for energy, food and other products that are directly impacting our customers."...
Exhibits
Exhibit I: Starbucks' Logos - Old and New
Exhibit II: Starbucks' International Presence
Exhibit III: A. International Coffee prices in US cents per lb
Exhibit III: B. Reduced Fat (2%) # Milk* Prices in the US
Exhibit IV: The Starbucks Experience
Exhibit V: Starbucks' Retail Sales Mix
Exhibit VI: Starbucks' Financial Highlights
Exhibit VII: Starbucks' Stock Price (in US$) between 1999 and 2008
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