A third of these outside the United States. Starbucks had virtually 17,000 shops world-wide, by early 2009 despite multibillion-dollar annual revenues, the giant coffee retailer's yearly increase had declined by half, quarterly earnings had dropped as much as 97 percent, same- store sales were negative, and its stock price was languishing. Variables such as a worldwide economic downturn and rising competition from big players such as McDonald's and Dunkin' Donuts in the specialty coffee market had driven this decline, causing the closings of hundreds of national stores with numerous more intended. Founder Howard Schultz, who had freshly returned as CEO, and his executive team were prejudiced that Starbucks's growth chances lay abroad, where the business already had a strong foothold in markets like Japan and the Uk and was preparing to start hundreds of new stores in a variety of locations.
The key question was not whether Starbucks could transport its value proposition overseas, but the value proposition's three components would play in lately entered and new markets. And the stakes of making the appropriate international moves rose with each U.S. store closing. Schultz along with his team also confronted a broader question, one that applied to both their U.S. and foreign shops: Could they "grow big and stay small," remaining a tremendous retailer that delivered both high-quality products and a consistently familiar and satisfying experience to consumers worldwide? This case presents this challenge in the circumstance of Starbucks's history, well-recognized value proposition, and domestic and international growth and eyesight.
PUBLICATION DATE: December 01, 2009 PRODUCT #: KEL447-PDF-ENG
This is just an excerpt. This case is about ORGANIZATIONAL DEVELOPMENT
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