Question

Please explain on the role of Schultz ‘the returning CEO’ in Starbucks revitalization. What were the initiatives that he executed during the process?

Answer 1

The stocks of Starbucks was dropped by almost 42% when Schultz return as the CEO of Starbucks. He did a lot of changes that were highlighted by the national media and significantly gained attention. Let's discuss the initiative adopted by Starbucks during this process.

• Right after Schutz was appointed as the CEO, all the Starbucks stores in the united states were closed for 3.5 hours, and training was given to the staff about how to make a perfect espresso. The company lost $6 million that day but a much-needed task was done.
• Starbucks discontinued breakfast in the store so that it smells more like a coffee shop.
• Schultz invited people to email him personally regarding suggestions and complaints that people had about Starbucks and he received 5000 emails the same day.
• Shultz first time took advice from consultants outside the company for ideas regarding the revival of the company.
• Starbucks started a national advertisement campaign employing BBDO and it received 70 million media impressions.
• He appointed Chris Bruzzo from amazon to update the Starbucks website and to improve their social media impression.
• The company decided to offer only whole bean coffee and ordered the employee to grind the beans inside the stores only. They also decided to tossed off the coffee that remains sitting for 30 minutes.
• The company decided to update the old computer system from the store and this saved almost 700000 wait-in line hours.
• Better design was adopted for all the stores of Starbucks to attract more customers.
• 600 stores were shut down ,almost 7% of its global workforce saved $850 million.