Starbuck Essay

381 WordsMay 5, 20142 Pages
Starbucks Coffee Company (NASDAQ: SBUX) held its 21th global general meeting at the U.S. headquarters in Seattle. That day , Starbucks company's share price rose to $57/ share, company's market value was over 43 billion U.S. dollars historic highs. 2012 fiscal year (as of the end of September 2012) data show that Starbucks Company recorded $ 13.3 billion in annual revenue, with an increase of 14%, the number of stores reached 18,000. This is the Schultz's achievement after returning as Starbucks' CEO for five years. In 2000, Schultz stepped aside from the position of CEO of Starbucks, acted as chairman of the board. In late 2007, Starbucks's development began to approach bottlenecks. That time, Starbucks already had about 15,000 stores around the world, and planning to quickly expand the number of stores to 40,000. However, consumers did not buy Starbucks suddenly. According to the U.S. market feedback information, due to the bleak economic situation, consumer were cutting spending. At the same time, the rival McDonald's actively launched coffee products, snatching market space with Starbucks. As this situation aggravated, Starbucks' share price continued to fall, the lowest had dropped 48%. In January 2008, Starbucks announced that Schultz decided to return as CEO after an absence of seven years old. Schultz's comeback, sparking active response from the capital markets, Starbucks shares rose back 6.1% that day. Schultz was facing lots of difficulties. The core problem is that company need to adjust from high speed state to well-developed state, at the same time, company need to deal with the challenges from competitors such as McDonald's. To this end, Schultz announced a reform program including: cutting the company's management layer; slowing down the expansion in the United States, slowing the pace of new store openings; closing some poor profitability

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