November 14, 2009
Starbucks has been on the rise in the last couple week and CEO Schultz contribute it to love.
Upon his return to Starbucks, Schultz said a decision was made to return to what made the company great: “We knew we had to go back to the core purpose of what we stand for: A people-based business.”
“Anyone can open up a coffee store, but the essence of our company has always been our guiding principals,'' Schultz said.
To get back on track, Starbucks admitted it made mistakes and, as it began to navigate through the first headwinds of recession, told employees everyone had to put their oar in the water.
But even as McDonald entered as competition and announced it would spend $150 million in advertising, and the world decided McDonald's would “kill Starbucks,'' Schultz said, “McDonald's made us better.”
Starbucks took to the Web, and ultimately became the “No. 1 brand on Facebook and Twitter,” according to Shultz. Today, Starbucks views social media as more than an art form.
The company also considered other massive cuts but the CEO would not allow cuts in areas such as employee health care.
However, layoffs were announced to make Starbucks more efficient.
Even for a company that's been around in the market as long as Starbucks, it is clear that they cannot stand still. They have to continue innovating in order to remain strong.