Starbucks Coffee Company : Transformation and Renewal

Howard Schultz, its a former CEO of biggest coffee shop in the world. He was acquired the company in
1987. 20 years later, in 2007, Howard Schultz was no longer CEO of Starbucks. He is worried about the
company losing its core values, such as a sense of comfort, connection between barista and buyer, and
respect for its product and the communities Starbucks serves. On the opposite, the company seemed
more concerned with gross margins.

As a senior in the company Schultz made a memo to his collages about his perspective the phenomena
in his company. In it, he told about how the core value seems blurred ever since. Increasing the
economics, but robbed stores of some of their essential magic, such as the smell of roasting coffee, and
the soul of the past.Schultz also reminding the company, even though the expansion of the store is
major, and the potential commoditization of the Starbucks brand, he realize that it time to get back to
the core, and let people feel again the true Starbucks Experience.

In 2007, McDonalds and Dunkin Donuts had become a serious competitors, offering their own lines to
become a specialty of coffee beverages. Even though Starbucks revenues were up to almost 20.9%
(compared to 2006), but it had slowed by a number of transaction per store, from 5% (2006) to 1% in
2007. So after discussed with Wall Street analyst, Schultz returned as a Starbucks CEO.

Innovation : Customer Segmentation, Value Propositions, customer relationship, channels, key resouces,
key activities, partners

Partners :

From the start, Schultz sent the clear, unwavering message that Starbucks'
transformation would represent a return to its roots and an uncompromising
commitment to core values, such as health care benefits for any partners working
at least 20 hours a week.

At a March 2008 gathering of 200 senior-level company leaders, Schultz unveiled

a Transformation Agenda that included seven "Big Moves":

1. Be the undisputed coffee authority;

2. Engage and inspire our partners; provide them a companys lacklusters
training program. There was two tactical measures, first was nationwide
barista-retraining, second was Starbucks Leadership Conference in new Orlens
scheduled for October 2008.
3. Ignite the emotional attachment with our customers;
4. Expand our global presencewhile making each store the heart of a local
neighborhood;
5. Be a leader in ethical sourcing and environmental impact;
6. Creative innovation growth platforms worthy of our coffee;
7. Deliver a sustainable economic model.