The Good and The Bad
With the global economic and financial crisis that the world is experiencing today, many businesses are having a hard time coping up with the situation. Many have decided to close down their stores or establishments which led to mass lay-off or unemployment. The economic recession really affects many people in many different ways.
Even popular companies like Starbucks are also affected by this present economic crisis. Starbucks is known world-wide for its famous coffee products. It has thousands of branches around the world.
Starbucks News / Bringing Back the Pioneers
Starbucks wants to recover from the problems they were experiencing. Bringing back the pioneers of the company is a great step. Mr. Howard Schultz, the original chief executive of Starbucks, returned to the company last January 2008 to manage the company once again. One of Mr. Schultz first moves is bringing back Arthur Rubinfeld to the company. Mr. Rubinfeld was the one who led the company’s expansion from 1992- 2002 with his different real estate techniques and designs.
In order to cut costs, Starbucks already announced its plans of closing approximately another 300 stores in the Unites States in addition to the more than 600 United States stores they started to close last summer. The stores were carefully evaluated and those that do not perform well are the ones to be closed.
Starbucks News / Location, Location, Location
Bringing the original team of Starbucks back together will help solve it present problems as well as one big mistake that caused Starbucks’ financial troubles which is the location selection. Starbucks use different ways to evaluate the locations where they will place their stores like the street traffics, community information and more.
They were very successful in choosing prime locations the previous years but because of their ambitious goal of reaching 15,000 stores in the United States, there are instances that Starbucks stores are very near to each other thus affecting the profit of one of the stores. Starbucks also established stores in places which have profitable potentials but because of the global economic crisis these potentials were not realized.
Starbucks News / Learn From the Mistakes
Business owners could learn from Starbucks’ mistakes and avoid having these mistakes in their own company. Business owners must really think very well and consider all the possibilities that may occur before coming up with decisions. One bad decision could have a great effect on your company. Be careful in taking risks; think about the present economic situation the world is facing today. What if that risk does not turn out the way you wanted, will your company be able to recover?
Business owners should also set goals that are attainable. They must not set goals and go for it realizing in the end that it is impossible to achieve or going for that ambition will negatively affect the company.
Starbucks News / Never Give Up
Find people who are competitive and are intelligent in making decisions that will bring out the best in the company and have no selfish interest but instead is concerned about the betterment of the business. It is also important having great people in your team that will stay in your company for a long time and will help in solving problems that may come.
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