Howard Schultz: Saving Starbucks | The Perfect Shot | 2

Business Movers

Wondery

History, Business, Entrepreneurship

4.8 • 1.5K Ratings

🗓️ 21 October 2021

⏱️ 42 minutes

🔗️ Recording | iTunes | RSS

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Summary

Howard’s decision to shut down all of Starbucks’ American stores leads to genuine concerns about the company’s chances for survival. In the face of declining sales and mounting criticism, Howard focuses on transforming the company by reconnecting with his customers and restoring a sense of community.

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Transcript

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0:00.0	Hey, prime members, you can listen to business movers add free on Amazon music, download the app today.
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0:13.0	Download the Wondry app in your Apple or Google Play mobile app store today.
0:31.0	It's January 2008 in a conference room at Starbucks Center in Seattle, Washington.
0:40.0	Members of Starbucks leadership quiet down as CEO Howard Schultz steps into the room and stands at the head of a long conference table.
0:48.0	The usually gregarious Howard has a serious look on his face.
0:52.0	Starbucks is collapsing and he's running out of time to save it.
0:57.0	In 2007 the company stock dropped by 42% and it shows no signs of rebounding.
1:03.0	It's been less than a week since Howard has re-assumed the role of Starbucks CEO, but he's already planning to take a drastic step to write the ship and help turn Starbucks failing financial situation around.
1:15.0	Howard addresses the team.
1:17.0	Alright, here's how I see it.
1:19.0	Everything about Starbucks comes back to the perfect shot of espresso.
1:24.0	We've forgotten how to make the perfect shot and the company is suffering because of it.
1:28.0	Starbucks chief operating officer Martin Coles quickly responds.
1:32.0	Howard Starbucks is suffering because the economy is suffering. American consumers are suffering.
1:38.0	It's as simple as that.
1:40.0	In January 2008 the United States is in the midst of what will become known as the Great Recession.
1:45.0	The economic downturn has hit retail and service industries hard, but Howard refuses to accept that as the reason for Starbucks failures.
1:53.0	Martin, it's easy to blame outside forces, but Starbucks sales started dropping back in 2006.
1:59.0	Store traffic declined at the same time.
2:01.0	Are you telling me that somehow the bad economy hit us a year before most other retailers felt any effect?
2:07.0	Look, I know there are other issues, Howard, but I'm not sure our espresso shots are the problem.
	...

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