Starbucks Case Study

Starbucks is considered one of the most successful service corporations, yet it has had it downfalls. In 2007, Starbucks performance was declining and its’ share price fell tremendously. In 2008 CEO Schultz returned to work for Starbucks and revitalization proceed two years after.

Of course Starbucks rapid downturn was unexpected with share price declining more than 75%. In 2008 Starbucks experienced some serious cutbacks. Stores were closed, positions were cut, and salaries were reduced. In the end operating costs were reduced by 500 million dollars. In addition Starbucks reaffirmed their values and business principles. Furthermore, operating practices were examined to review they’re consistencies. It resulted in an investment of new coffee machines, in addition to the withdraw of the breakfast sandwich. With more advanced technology Starbucks was also capable of providing better services to their customers. In collaboration with Square Inc, Starbucks cardholders could use their cell phones to make payments. In the end Starbucks was able to recover from its downfall. It’s turnaround made Starbucks realize its inefficiency and recover from such deterioration. Reversing its pitfalls was of major essence. After its turn around Starbucks introduces new products, expanded internationally and created a blueprint for profitable growth.

Starbucks Case

How is Starbucks’ performing?

Starbucks is considered one of the most successful service corporations, yet it has had it downfalls. In 2007, Starbucks performance was declining and its’ share price fell tremendously. In 2008 CEO Schultz returned to work for Starbucks and revitalization proceed two years after.

Of course Starbucks rapid downturn was unexpected with share price declining more than 75%. In 2008 Starbucks experienced some serious cutbacks. Stores were closed, positions were cut, and salaries