Strategic Turnaround of Starbucks (2008-current)

Strategic turnaround Starbucks (2008-current)

Outline

The paper will talk about the effects and after effects of the turnaround based on the following points.

1- The happening

The turnaround was based on 2007's targeted direct-response marketing effort to expand retail into new markets and reinforce brand recognition in existing markets International expansion which proved beneficial for the corporation.

2- Jesus Moment

The phenomenal growth led to a complete new structuring a dream come scenario for most of the over worked and underpaid employees who could imagine a life as different as and and night from the previous drudgery.

3- Change in corporate strategy

Starbucks corporate strategy has been to establish itself as the premier purveyor of the finest coffee in the world, while maintaining their uncompromised principles as the grow.

4- Latest Outcome

It upholds diversity and promises the highest standards for its products. The company satisfies customers and gives back to the community and the environment. Also, Starbucks persists to be profitable and it is. They live by a strict, slow growth policy completely dominating a market before setting its sights further abroad.

Background

In spite of a slew of stories in recent months criticizing everything from Starbucks' food to its seeming ubiquity, along with persistent sniping by Wall Street bears, Starbucks is on a roll. For starters, the stock is at an all-time high, up nearly 40% in just the past two months. What's more, the company is in the thick of its biggest wave of store openings ever, with plans to add at least a store a day, every day, for the next two years. And that's just in North America. Like McDonald's and Coca-Cola before them, Starbucks is convinced it can export its American-brewed concept around the world, especially to Asia. Starbucks already has 102 outlets in Japan, Taiwan, Thailand, Malaysia, Singapore, and the Philippines, and this year the company opened its first three locations in China. Ever the salesman, Schultz has also been talking up the company's e-commerce plans. His still-vague notion of making Starbucks the first brick-and-mortar retailer to convert physical store traffic onto the Web helped goose Starbucks' stock.

All this sounds properly ambitious and aggressive, but to some investors it may have an ominous ring. The late 1990s are littered with the wreckage of restaurant chains that expanded too fast for their market and eventually collapsed. Two years ago Planet Hollywood, with high-profile backers like Bruce Willis and Arnold Schwarzenegger, was an investor darling. On the other hand, one restaurant stock has proved to be a spectacular long-term investment: McDonald's. Analysts see similarities between Starbucks and the company that rode the humble hamburger to a market capitalization: The singular focus on one product, the overseas opportunities, the rapid emergence as the dominant player in a new niche--all this applies to Starbucks too.

The happening

After benefiting with the popular 2007 strategy that brught about the turnaround the firm principles of the company are seen with its maintenance of a great and proven work environment for every staff member in its retail ...