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Starbucks Is World 's Leading Coffee Chain Store With A Strong Vision And Values

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Starbucks is world’s leading coffee chain store with a strong vision and values. Today, they have more than 21000 stores in over 65 countries. Their product includes coffee, hot and cold beverages, pastries, sandwiches etc. Starbucks has been maintaining high quality product and customer services all over the world. They differentiated the company by introducing authentic Italian coffee culture to US market. However, in early 2008 they faced major challenges with the financial crisis in economic system which forced them to close many stores worldwide. Secondly, they faced challenges to deal with increased competition and cheaper rival hence, their earnings fell 28% to $109 million. In addition, the prices of the products are higher than their direct competitors. Also, they expanded their business at such level that they couldn’t focus on the brand image and quality of the products. They were losing core values of the company. At that time Howard Schultz, board chairman & founder of Starbucks had observed the urgency to transform the business immediately. He then returned as Chairman and Chief Executive Officer and announced to close more than 600 stores in 2008. To manage the challenges and to give their customers distinct ‘Starbucks Experience’ Schultz took different approaches. Schultz pointed out ‘Seven goals’ or ‘Big moves’ to transform the business and revamp the leadership team. The transformation agenda was created with a strong vision of the company as well as these
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