research paper on starbucks

• Harvard Business School →
• Faculty & Research →
• HBS Case Collection

Starbucks Coffee Company: Transformation and Renewal

• Format: Print
• | Language: English
• | Pages: 71

Starbucks Coffee Company: Transformation and Renewal analyzes the turnaround and reconstruction of Starbucks Coffee Company from 2008 to 2014 as led by CEO and co-founder Howard Schultz. The case offers executives and students an opportunity to examine in depth how Schultz and his team saved Starbucks from near-collapse, by both executing a deep, comprehensive return to its core values and, at the same time, investing in a range of new products, customer experiences and organizational capabilities designed to make the company fit for enduring success in a turbulent global economy. Set against the backdrop of the Great Recession, the case also considers the impact of unprecedented important shifts in consumer spending and confidence as well as new competitive forces on Starbucks' transformation. The case concludes by examining Schultz's own leadership journey, the lessons he learned personally during Starbucks transformation, and how he is using these lessons—within Starbucks and on the national stage—to redefine the roles and responsibilities of a public corporation in the 21st century.

Based on extensive interviews conducted with Schultz and other Starbucks executives from 2011 to 2014, the case offers a range of vital lessons on leadership, organizational transformation, restructuring, strategy, innovation, entrepreneurial vision, and customer service.

About The Author

Nancy F. Koehn

Related work.

• June 2014 (Revised March 2016)
• Faculty Research
• Starbucks Coffee Company: Transformation and Renewal  By: Nancy F. Koehn

Academia.edu no longer supports Internet Explorer.

To browse Academia.edu and the wider internet faster and more securely, please take a few seconds to  upgrade your browser .

Enter the email address you signed up with and we'll email you a reset link.

• We're Hiring!
• Help Center

Corporate Social Responsibility of Starbucks: A Critical Analysis

2022, International Journal of Research Publications

Related Papers

Ganiyat A D E J O K E Adesina-Uthman

Revista Iberoamericana de Economía Solidaria e Innovación Socioecológica

Gloria aznar

Kulsoom Ghias

Management & Marketing

Cătălina Radu

International Conference on Education

RONINA C TAYUAN

Stuart Dinmore

In this session, a conceptualized framework is presented to provide an organization a tool by which to self-evaluate their online learning initiative. The tool is a methodology that leverages Ellis and Goodyear’s framework, as well as leverages activity theory (Cole & Engestrom, 1993), and a new categorization of online learning as described by Norberg, Dziuban, and Moskal (2011). The methodology is presented in sufficient detail to permit application to most any online learning implementation. A case study will be forthcoming, as this framework will be initiated in 2012 at the University of South Australia.

Elena Bundaleska

In the dynamic global marketplace, understanding the fundamental connections between business, the environment, and society has become essential. The roles and responsibilities of business, as a global force, are becoming more complex, and concepts related to societal responsibility and sustainability are gaining recognition as essential elements in business management. Increasing complexity requires new approaches. Companies need integrative management tools that help incorporate environmental, social, and governance concerns into their strategic thinking and daily operations. They require talented and ethical leaders to do so. That is why companies need the help of the academia. By being involved in the education of current and future managers, academic institutions most directly act as drivers of business behavior. They help shape the attitudes and behavior of business leaders. Through different means, academic institutions have the potential to generate a wave of positive change...

InSITE Conference

Being on the wrong side of the digital divide limits the life chances of the socially excluded, who have had neither the wherewithal nor the opportunity to obtain highly paid, skilled positions in IT. Irish policy makers see education as the solution to this problem. However, providing institutional support for third level education in IT for the socially disadvantaged poses significant challenges. This paper describes these problems and explains how they were overcome in implementing an undergraduate university course. This diploma course has been an unqualified success has achieved its objectives and those of the policy makers who instituted it. However, what made it so was the commitment of concerned stakeholders, from members of the executive steering committee who developed and implemented the course, to the lecturers who delivered it, and the students who participated in it.

Vijaykumar Meti

Social network sites, video-sharing sites, online games, instant messenger and gadgets such as iPods, smartphones and tablets are now fixtures of youth culture. They have so infused the youths and it is hard to believe that less than a decade ago these technologies were barely existed. Colleges and universities are beginning to embrace social media and realizing the potential power and implications for using it as a component of the overall development. Social networking is one aspect of social media, where individuals are in communities that share ideas, interests, or are looking to meet people with similar ideas and interests. Students’ participation in this virtual networked world suggests a new ways of thinking about the new role of education. Students use social networking sites such as, Facebook, MySpace, YouTube, Flickr, Twitter and blogs, to explore interests and find information that goes beyond what they have access to at colleges or in their local community. They can also find opportunities to publicize and distribute their work to online audiences and to gain new forms of visibility and reputation. Our values and norms in education, literacy, and public participation are being challenged by a shifting scenario of media and communications in which students are central actors. Not surprisingly, this transformation has serious implications for us in the space of education. Nearly all institutions including business, industry, medicine, science and government have harnessed aspects of these technologies for decades. Increasingly, universities and other higher education institutions have been integrating sustainable development values and practices into their core activities of teaching and research. Social media also allow freedom and autonomy for students’ and that is less apparent in a classroom setting. Students’ respect one another’s authority online and are often more motivated to learn online, in contrast to classroom learning that is oriented toward set, predefined goals.

Upendra Lele , Dirar Obaid

Many debates on the topic of corporate social responsibility (CSR) have taken place since the late 20th century. As such, the notion of CSR is becoming more prevalent in the curricula of most universities (e.g., business and economics courses). For this study, university students and faculty members were surveyed on the importance of teaching CSR in business schools, how it should be taught, and at what level of higher education. The results indicate that promoting awareness and dialogue about this important phenomenon can help increase accountability, transparency, and integrity. Suggestions and implications are explored for higher education faculty and administrators working toward the promotion of CSR in education.

RELATED PAPERS

Jeffrey Ginsberg

Journal of Fermentation Technology

Mahinur Rahman

Salud Colectiva

Raquel Souzas

Alexander Almeida Morais

REMEA - Revista Eletrônica do Mestrado em Educação Ambiental

MICHELE SATO

Revista Cubana de …

adesanya taiwo

International Review of Victimology

Rebeca Carrias

Marlon Fluck

International Journal of Nephrology

Zaher Nazzal

Journal of Fluids and Structures

Michael Triantafyllou

Vietnam Journal of Endolaparoscopic Surgery

Human Ecology

Thomas Theis Nielsen

Journal of the Physical Society of Japan

Toshihito Osada

Medicine - Programa de Formación Médica Continuada Acreditado

Jose Cabezas Cerrato

Vol. 14 No. 2 (2022): October Edition

Achmad Room Fitrianto

Robiatul Adawiyah

Revista chilena de cardiología

miguel saavedra

Journal of Thermal Analysis and Calorimetry

Vesna Rakic

JSLS : Journal of the Society of Laparoendoscopic Surgeons / Society of Laparoendoscopic Surgeons

Abbas chamsuddin

Journal of Vietnamese Studies

09_Nguyễn Trần Vân Linh

Agricultural Sciences in China

Yueqiang Song

Turkish studies

vedi temizkan

Enseñanza de las ciencias

Gladys CONTRERAS SANZANA

Adnan Alhindi

Advances in Composite Materials - Ecodesign and Analysis

Pawel Gasior

RELATED TOPICS

•   We're Hiring!
•   Help Center
• Find new research papers in:
• Health Sciences
• Earth Sciences
• Cognitive Science
• Mathematics
• Computer Science
• Academia ©2024

• Election 2024
• Entertainment
• Newsletters
• Photography
• Personal Finance
• AP Investigations
• AP Buyline Personal Finance
• AP Buyline Shopping
• Press Releases
• Israel-Hamas War
• Russia-Ukraine War
• Global elections
• Asia Pacific
• Latin America
• Middle East
• Election Results
• Delegate Tracker
• AP & Elections
• Auto Racing
• 2024 Paris Olympic Games
• Movie reviews
• Book reviews
• Personal finance
• Financial Markets
• Business Highlights
• Financial wellness
• Artificial Intelligence
• Social Media

Starbucks lowers guidance, promises new drinks and deals after customer traffic fell in weak Q2

FILE - Starbucks sign hangs outside a casino along Main Street Wednesday, Sept. 20, 2023, in Deadwood, S.D. Starbucks will reports earnings on Tuesday, April 30, 2024. (AP Photo/David Zalubowski)

• Copy Link copied

Starbucks lowered expectations for its full-year sales and profit Tuesday after a disastrous quarter that saw a slowdown in store visits across the world.

The Seattle coffee giant said revenue for the January-March period dropped 2% to $8.56 billion. That was far short of Wall Street’s forecast of $9.12 billion, according to analysts polled by FactSet. It was the first time since the end of 2020 that the company saw a drop in quarterly revenue.

“Our performance this quarter was disappointing and did not meet our expectations,” Starbucks CEO Laxman Narasimhan said during a conference call with investors. Shares in Starbucks Corp. tumbled 12% Tuesday in after-hours trading.

Starbucks said a mix of issues impacted sales. In the U.S., the company saw a sharper and faster decline in consumer confidence and spending than it had anticipated. The Conference Board, a business research group, said Tuesday that U.S. consumer confidence fell for the third straight month in April as consumers continue to confront elevated prices and high interest rates.

Bad weather also closed some U.S. stores briefly during the quarter, Starbucks said.

In China, Starbucks said the post-COVID recovery has been choppy, and it’s also seeing increasing price pressure from competitors.

Starbucks is also facing ongoing boycott of its stores for its perceived support of Israel in the war in Gaza. Customers in the Middle East and elsewhere began boycotting the brand in the fall after it sued Workers United , the union organizing its workers, over a pro-Palestinian message posted on a union social media account.

Starbucks has said that the lawsuit was aimed at stopping the union from using the company’s name and logo, which it says confuses customers. Starbucks and the union have paused the court case and are now in mediation. But the company has also taken steps to undo the damage. Last month, Starbucks donated $3 million to World Central Kitchen to provide food aid in Gaza.

Starbucks said its same-store sales — or sales at stores open at least a year — dropped 4% in its fiscal second quarter. Wall Street had expected a 1% increase, according to analysts polled by FactSet.

In the U.S., customers spent more per visit, but that wasn’t enough to overcome a 7% decline in transactions. In China, the company’s second-largest market, same-store sales plunged 11%.

Starbucks said it now expects full-year same-store sales to be flat or fall by single-digit percentages, down from growth of 4% to 6%. It also said it expects full-year revenue growth in the low single-digit range, down from 7% to 10%. It’s also forecasting flat to low-single digit earnings growth, down from 15% to 20%.

Narasimhan said Starbucks will try to boost U.S. store traffic this summer with new drinks, including the brand’s first energy beverage. Later this year Starbucks plans to introduce sugar-free customization options for most of its beverages, another effort to draw in customers.

After a successful pilot, the company plans to start offering overnight service in many markets, Narasimhan said. And it’s trying to improve product availability and service speed. Narasimhan said Starbucks lost some customers because of short supplies of its potato, cheddar and chive bakes after introducing them earlier this year.

Narasimhan also said Starbucks plans to open its Starbucks Rewards app to non-Rewards customers in July so they can take advantage of the deals it offers. Narasimhan said that change is aimed at occasional customers whose visits to Starbucks dropped off during the last quarter.

“In this environment, many customers are being more exacting about where and how they spend their money,” Narasimhan said. “We need to be able to reach and communicate with our customers in a way that demonstrates our value.”

Starbucks’ net income dropped 15% to $772.4 million, or 68 cents per share. Wall Street had expected an 80-cent per share profit.

Starbucks’ comments were echoed earlier Tuesday by McDonald’s , which also reported lower traffic in key markets like the U.S. and the United Kingdom as inflation-weary customers eat out less often. Like Starbucks, McDonald’s said it plans to boost deals and messaging about product value.

Take the Quiz: Find the Best State for You »

What's the best state for you ».

Starbucks Lowers Guidance, Promises New Drinks and Deals After Customer Traffic Fell in Weak Q2

Starbucks lowered expectations for its full-year sales and profit after a disastrous quarter that saw a slowdown in store visits across the world

David Zalubowski

FILE - Starbucks sign hangs outside a casino along Main Street Wednesday, Sept. 20, 2023, in Deadwood, S.D. Starbucks will reports earnings on Tuesday, April 30, 2024. (AP Photo/David Zalubowski)

Starbucks lowered expectations for its full-year sales and profit Tuesday after a disastrous quarter that saw a slowdown in store visits across the world.

The Seattle coffee giant said revenue for the January-March period dropped 2% to $8.56 billion. That was far short of Wall Street's forecast of $9.12 billion, according to analysts polled by FactSet. It was the first time since the end of 2020 that the company saw a drop in quarterly revenue.

“Our performance this quarter was disappointing and did not meet our expectations,” Starbucks CEO Laxman Narasimhan said during a conference call with investors. Shares in Starbucks Corp. tumbled 12% Tuesday in after-hours trading.

Starbucks said a mix of issues impacted sales. In the U.S., the company saw a sharper and faster decline in consumer confidence and spending than it had anticipated. The Conference Board, a business research group, said Tuesday that U.S. consumer confidence fell for the third straight month in April as consumers continue to confront elevated prices and high interest rates.

Bad weather also closed some U.S. stores briefly during the quarter, Starbucks said.

In China, Starbucks said the post-COVID recovery has been choppy, and it's also seeing increasing price pressure from competitors.

Photos You Should See - April 2024

Starbucks is also facing ongoing boycott of its stores for its perceived support of Israel in the war in Gaza. Customers in the Middle East and elsewhere began boycotting the brand in the fall after it sued Workers United , the union organizing its workers, over a pro-Palestinian message posted on a union social media account.

Starbucks has said that the lawsuit was aimed at stopping the union from using the company's name and logo, which it says confuses customers. Starbucks and the union have paused the court case and are now in mediation. But the company has also taken steps to undo the damage. Last month, Starbucks donated $3 million to World Central Kitchen to provide food aid in Gaza.

Starbucks said its same-store sales — or sales at stores open at least a year — dropped 4% in its fiscal second quarter. Wall Street had expected a 1% increase, according to analysts polled by FactSet.

In the U.S., customers spent more per visit, but that wasn’t enough to overcome a 7% decline in transactions. In China, the company’s second-largest market, same-store sales plunged 11%.

Starbucks said it now expects full-year same-store sales to be flat or fall by single-digit percentages, down from growth of 4% to 6%. It also said it expects full-year revenue growth in the low single-digit range, down from 7% to 10%. It's also forecasting flat to low-single digit earnings growth, down from 15% to 20%.

Narasimhan said Starbucks will try to boost U.S. store traffic this summer with new drinks, including the brand's first energy beverage. Later this year Starbucks plans to introduce sugar-free customization options for most of its beverages, another effort to draw in customers.

After a successful pilot, the company plans to start offering overnight service in many markets, Narasimhan said. And it's trying to improve product availability and service speed. Narasimhan said Starbucks lost some customers because of short supplies of its potato, cheddar and chive bakes after introducing them earlier this year.

Narasimhan also said Starbucks plans to open its Starbucks Rewards app to non-Rewards customers in July so they can take advantage of the deals it offers. Narasimhan said that change is aimed at occasional customers whose visits to Starbucks dropped off during the last quarter.

“In this environment, many customers are being more exacting about where and how they spend their money,” Narasimhan said. “We need to be able to reach and communicate with our customers in a way that demonstrates our value.”

Starbucks’ net income dropped 15% to $772.4 million, or 68 cents per share. Wall Street had expected an 80-cent per share profit.

Starbucks' comments were echoed earlier Tuesday by McDonald's , which also reported lower traffic in key markets like the U.S. and the United Kingdom as inflation-weary customers eat out less often. Like Starbucks, McDonald's said it plans to boost deals and messaging about product value.

Copyright 2024 The  Associated Press . All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Tags: Associated Press , business , inflation , Washington

America 2024

Best States

Subscribe to our daily newsletter to get investing advice, rankings and stock market news.

See a newsletter example .

You May Also Like

The 10 worst presidents.

U.S. News Staff Feb. 23, 2024

Cartoons on President Donald Trump

Feb. 1, 2017, at 1:24 p.m.

Photos: Obama Behind the Scenes

April 8, 2022

Photos: Who Supports Joe Biden?

March 11, 2020

QUOTES: Stormy Daniels’ Testimony

Cecelia Smith-Schoenwalder May 7, 2024

Future of the Antisemitism Bill In Doubt

Aneeta Mathur-Ashton May 7, 2024

Biden’s Antisemitism Speech: Takeaways

Laura Mannweiler May 7, 2024

Israel Begins Rafah Strikes

Cecelia Smith-Schoenwalder May 6, 2024

Trump’s Trial Enters New Phase

Lauren Camera May 6, 2024

Judge Threatens Trump With Jail

Laura Mannweiler May 6, 2024