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Starbucks Case Essay

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8. Has Howard Schultz done a good job since his return as Starbucks’ CEO? Why or why not? What evidence can you cite in support of your position?

Howard Schultz has done a good job since his return as Starbucks’ CEO
Howard Schultz has done a good job since his return as Starbucks’ CEO by creating strategic initiatives in order to return Starbucks to where he thinks the company should be.
His vision includes becoming the authority on coffee, engaging and inspiring Starbucks’ partners, igniting the emotional attachment with customers, expanding global presence and making each store the neighborhood’s heart, being a leader in ethical sourcing and environmental impact, creating innovative growth platforms, and delivering a sustainable economic model. Every one of these visions is addressed in some way in his agenda, which shows he has a clear idea of where the company should go and how to get it there. In 2008-2009 the company experiences five quarters of deteriorating sales, but from 2009-2010 had five quarters of improving sales, which shows that Schultz’ transformation agenda has been working.
Since Howard Schultz returned as Starbucks’ CEO, he has transformed agenda for Starbucks base on several key elements. First, he planned on slowing new store openings to 73 internationally. Second, 900 underperformed company-owned stores were closed in the United States. The goal of this action was to raise sales and traffic at nearby sales. Around 75% of these stores that were considered underperforming were within three miles of an existing store which shows that their strategy of having a Starbucks everywhere was cannibalizing their sales. The third element of the transformation agenda was raising the projected return on capital requirements for proposed new store locations. This is a way for Schultz to be more particular about new store placement and to have a better...

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