Starbucks Shifts Gears

Starbucks recently had to face the prospect of declining earnings.  The bad news got worse in December 2008, when the share price was lower than $10 from a previous high around $38. 

Rather than pursue typical remedies to declining revenue, Starbucks undertook “The Transformation Agenda” (http://www.businessweek.com/stories/2008-01-07/howard-schultzs-memobusinessweek-business-news-stock-market-and-financial-advice).  This was essentially rebranding the company, where they focused on what they could do to differentiate themselves from their competitors.  Their primary focus was on having better employees, being a better corporate citizen, and providing the best possible customer experience. 

It worked for Starbucks, whose share is currently trading over $80.

http://www.businessweek.com/stories/2008-01-07/howard-schultzs-memobusinessweek-business-news-stock-market-and-financial-advice

Taken From Rita Dynan’s (@RitaDynan) Twitter Feed:  http://www.usatoday.com/story/money/business/2014/07/06/why-its-hard-to-hate-starbucks/12022699/

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