This post is one in a series on prominent company nicknames. See all 25, and share your thoughts and memories about Four Bucks below in the comments.

As big multinational corporations go, Starbucks (NASDAQ: SBUX) had such possibility. Rooted in the heart of the Pacific Northwest, born of grunge rock and a commitment to really good coffee and a distinct sense of place, embracing the centuries-old European coffeehouse tradition with its literary name, Starbucks, Captain Ahab's first mate in Moby Dick. The company's founders were all about the beans, buying them directly from growers in Africa and Central America and roasting the beans themselves.

It was entrepreneurial upstart Howard Schultz who conceived of the strategy of making espressos, coffees, and lattes in the coffee shops and selling them for big profit margins. And in the 1980s, milk was cheap and coffee was cheaper. I like to imagine that, as the company's founders sat around a cafe table in Seattle's Pike Place Market, drinking their mellow brew and listening to Schultz's wild ideas, the others scoffed at the concept of someone paying upwards of three dollars for a latte.

"I've spotted an excellent opportunity to cash in on the turnaround of one of America's most visible companies -- Starbucks (NASDAQ: SBUX)," says Jim Stanton.

The quantitative analyst and contributing editor to Xcelerated Profits Report explains, "I've had my eye on a number of retail stocks for some time now, looking for signs of a potential turnaround, and Starbucks is now high on my list."

"One of the main reasons for the slide in SBUX shares from its high of $40 in November 2006 was the overly aggressive expansion plan.

"And as food and dairy prices have soared, this has led to higher operating costs. In turn, this forced Starbucks to raise prices, just as consumers were struggling from the housing slump and soaring inflation.

"And as competition from the likes of McDonalds and Dunkin Donuts has turned up the heat, Starbucks has suffered charges related to closing out unprofitable stores. But Starbucks is tackling the problems.

With its stock teetering near 5-year lows on concerns about its growth prospects and style drift from its roots as a coffee shop, returning Starbucks Corp. (NASDAQ: SBUX) CEO, Howard Schultz, said earlier this year that the company would stop selling sandwiches.

Let the backtracking begin. The Wall Street Journal reports (subscription required) that Starbucks won't be discontinuing sandwiches after all. Rather, the sandwiches will "evolve," according to a Starbucks spokesperson. The company will use a different kind of cheese and less butter in an effort to prevent the scent of sandwiches from overpowering the aroma of coffee.

This looks to me like a move motivated by Wall Street rather than a broad corporate vision. Mr. Schultz made it clear that he wanted to get rid of sandwiches back in January, telling investors that "In short, the scent of the warm sandwiches interferes with the coffee aroma in our stores, which is the key to the coffee experience that forges our connection with customers."

Did it all of a sudden occur to Schultz that it might be possible to make the sandwiches less pungent? I somehow doubt it. Rather Starbucks looked at the fact that sandwiches make up 3% of the company's sales -- plus whatever additional coffee sales they generate -- and that, with the stock about 50% of its 52-week high, this just wasn't the time to take a same-store sales hit in the name of long-term vision. If this were a private company, I seriously doubt that they'd have reconsidered the plan to stop selling sandwiches. The power of the institutional imperative appears to have trumped Schultz's ideas for returning the company to its roots.

Starbucks' (NASDAQ: SBUX) Howard Schultz came back to the CEO role in late 2007 to hopefully rescue the once great concept he has so passionately developed since the 1980s. Fair enough. Could this be the second coming of Steve Jobs of Apple (NASDAQ: AAPL) or would it resemble the mediocre return of Michael Dell of Dell (NASDAQ: DELL)? The jury is out and time will tell.

For now, I have one major bone to pick. Howard, let's take some time here to review the store closures. I am sure a mid-level vice president made the geographical decisions. But I hope you really scoured the list carefully.

Let's take an example: Minnetonka, Minnesota. Howard, I'm sure it may not mean much to you. After all, you were raised in New York and currently live in Seattle, so Minnesota may be flyover country. Minnetonka is a western suburb of Minneapolis sporting a growing population of about 52,000. Minnetonka is a fairly upscale suburb with near full employment. Just for your information, Minnetonka is also the world headquarters for the biggest private company in the world; probably one of your suppliers. The company is called Cargill -- just in case your VP missed it.

It's on the Starbucks hit list. You are closing the Minnetonka store. Are you nuts?!! I have written in the past that this store should serve as one of your models on how to do it right. Sure, economics eventually have to make sense. This store is about three years old and the growth of traffic has been steady. Used to be one person in line at 10:30 am, now it's common to see a continuous stream of 7-8 people in that off -hour line. Early mornings are very busy.

In a brilliant article in The New York Times, the paper points out that of all the mistakes that Starbucks Corp. (NASDAQ: SBUX) made in its expansion, picking real estate locations may have been the worst. Much of the analysis for the piece came from talking to real estate brokers. The paper writes, "In some cases, brokers say, Starbucks misjudged the risks of putting stores close to each other, leading to the decline in same-store sales."

It is astonishing that Starbucks would make such basic errors and speaks to what happened to management during the period when founder Howard Schultz was absent from the CEO job. The team that replaced him said it believed the company would eventually have 40,000 store worldwide. It clearly cut corners in terms of planning to get there.

The real trouble with the real estate location decisions is that it may take a very long time to fix. Closing stores may be easy, but finding better spots, negotiated for the space, and building out new stores will be time consuming and, perhaps, expensive.

Schultz and his minions are paying for rampant growth, and the poor souls who worked for him are paying more. Almost 12,000 will lose their jobs.

Douglas A. McIntyre is an editor at 247wallst.com.

Microsoft Corp. (NASDAQ: MSFT) co-founder Bill Gates is riding off into the sunset today, at least he sort of is. The man who made nerds and geeks "cool" is shifting his focus away from the world's largest software company to his philanthropic work.

Gates contributions to modern society cannot be understated. When he gets older, my 20-month-old son will no doubt be surprised to learn that there was a time when computers were expensive, impersonal devices the size of several refrigerators. Gates helped make the computer personal. Of that there is no doubt. How he did it remains open to debate. The elite geeks despise Microsoft for developing expensive, inferior operating systems that are prone to crashes and computer viruses.

The shift by Gates, which has been expected for some time, comes as the Redmond, Washington-based company is at a crossroads. Back in the 1970s and 1980s, Microsoft was the underdog that upended the tech establishment lead by International Business Machines Corp. (NYSE: IBM).

I almost can't believe that I'm writing about this, but I guess some prudes will get up in arms about anything.

BBC News reports that a U.S. based Christian group known as The Resistance is calling for a nationwide boycott of the coffee selling giant, Starbucks Corp. (NASDAQ: SBUX). The group's complaint against the company stems from the commemorative use of a toned-down version of the company's original logo. Starbucks states that the logo, which features a dual-tailed mermaid sporting cleavage, is not inappropriate. The fringe Christian group refers to the logo as a naked woman with legs "spread like a prostitute."

The news report from BBC states: "Howard Schultz, who bought Starbucks in 1982, described the emblem in his memoirs as "bare-breasted and Rubenesque; [it] was supposed to be as seductive as coffee itself."

To look at the logo that is claimed to offend, one has a difficult time even seeing it as raunchy. To call the flared dual tails a pair of spread legs might be a feat best accomplished while on serious hallucinogens. Clearly, this group of well-meaning Christians is at a loss for real issues to attack. The fringe group's lack of imagination in seeking some media exposure for itself is seen by me as a shallow act of spotlight grabbing.

Starbucks is reported by the BBC as stating that the bare breasted mermaid will appear on some of its cups for several weeks as part of a company promotion. It was not revealed which of Starbucks' 16,000 coffee shops in 44 countries will be featuring the racy mermaid cups. However, I'm sure that anyone who is interested in getting one of these alleged soft-porn coffee cups may rest assured that, before too long, they'll be available to anyone via eBay.

MSNBC reports on an earth-shattering scandal sure to make heads roll at Starbucks (NYSE: SBUX). Mary-Kate and Ashley Olsen have been ordering Grande nonfat lattes from their favorite New York City West Village Starbucks. However, a barista there has reportedly been serving the lattes with whole milk.

According to a source quoted by MSNBC, "the barista thought the Olsens were too thin, so whenever they ordered their usual drink, he would replace the skim milk with full-fat." The Olsen's representative commented: "This is ridiculous." But a so-called close friend blamed the Olsens for for their ignorance, noting: "It's also my worst nightmare -- that and getting a huge diet fountain soda that is mistakenly regular Coke -- but I can def(initely) taste the difference, so it's their own fault if they fell victim."

Did Howard Schultz, recently re-appointed Starbucks CEO make this latte swap? The Wall Street Journal [subscription required] reported that Schultz has been aggressively micro-managing Starbucks since he took over. The Journal notes that before Starbucks launched its new Pike Place Roast in April, Schultz selected which redesigned version of the old logo to use. As the promotional campaign neared completion, he decided it needed more warmth and called for revisions. He rewrote the press-release headline.

Neither MSNBC nor The Journal fingered Schultz as the barista who put the whole milk in the Olsen's lattes. So we await the nameless barista's fate.

Peter Cohan is President of Peter S. Cohan & Associates. He also teaches management at Babson College and edits The Cohan Letter. He has no financial interest in Starbucks securities.

The idea of serving customer needs and desires is rooted in the age-old notion of listening to the customer. One company taking consumer input to a whole new level is our favorite specialty coffee vendor, Starbucks Corp. (NASDAQ: SBUX).

How about ice cubes made from Starbucks' own coffee, so you can cool that java without diluting the savory stuff? That's what one customer suggested. What do you think? Another thoughtful consumer thinks that Starbucks customers might like shelves in the restrooms to rest their coffee on while "taking care of business." A nice idea perhaps, but I believe that the practice of taking consumables into restrooms is discouraged in most instances.

At least one Starbucks customer request has already had a major effect. Reusable "splash sticks" have been introduced by the company to reduce coffee splash through the sipping lid of its sturdy cups.

The entire focus of this new Starbucks business model is summed up by CEO Howard Schultz, who was quoted in BusinessWeek as saying that he wanted "to open up a dialogue with customers and build up this muscle inside our company." Mr. Schultz would like to make response to the consumer a cornerstone of company tradition.

So, what do you think? Should Starbucks initiate valet parking? Should it have barristas on roller skates cruising its parking lots? Maybe it should offer complimentary mocha caramel biscuits for the dogs that accompany its customers? What about individual caffeine packets so coffee addicts could personally customize their morning buzz?

One thing's for sure, Starbucks' says it's listening. Now is your chance to prove that you're a marketing genius. Howard Schultz wants to return the company to its former glory. Give him a piece of your mind, would ya?

Gary Sattler is a freelance blogger. He does not knowingly hold interest in the companies mentioned in this blog post.

When your business is struggling with the competition and your stock price down, it's time to focus on the fundamentals that got you the leg up when you first started. At least that's what Starbucks (NASDAQ: SBUX) seems to be thinking these days. Click below for video.

Interested in maybe hearing your voice on the BloggingStockCast? Leave a comment for the show by calling 567-226-4583 and leaving a message!

(I apologize for the temporarily wrong number on the video, the phone number handling the video there died! I'll get it right with tomorrow's BloggingStockCast -Tobias)

When Starbucks Corp. (NASDAQ: SBUX) brought back founder Howard Schultz to revitalize the company's image, product line and customer experience, the coffee chain's edge had disappeared. It had lost customers, revenue, the niche and most important -- the overall experience -- to newer competitors. That was not to say Starbucks still was not king, but it become diluted in the race for newer growth.

Well, to heck with that. Schultz slowed down growth after re-emerging as the company's CEO early this year, deleted breakfast sandwiches from the menu, retrained the company's baristas and ensured that fresh-ground coffee smells were the number one priority for every customer coming in the door to experience. But Schultz isn't stopping there. He also wants customers to push back to the company using MyStarbucksIdea.com. In other words, the coffeehouse's own social networking site. Schultz wants to empower his customers to help shape the future direction of the coffeehouse he founded.

This is more than a blog or a forum -- customers can discuss ideas, argue about them, post new ideas, vote on ideas and form more opinions on improving the Starbucks experience. Well, I though this was exactly what Schultz was busy doing these days? Is he really interested in what every Tom, Dick and Harry thinks?

Will customers really give him all this feedback? I'm skeptical. I agree that balancing the customer's needs and the business's needs is critical -- one can't overpower the other. Still, will this even have an effect on Starbucks at all? If it really is this interested, it needs to market the MyStarbucksIdea website just as much as its mocha lattes. Give every customer notice that they can have a voice in this.

Starbucks Corp. (NASDAQ: SBUX), the epitome of high-priced coffee and latte beverages, saw a drop-off in customer traffic in 2007. Founder Howard Schultz even returned to the CEO helm to try and figure out why customers stopped coming in its stores. He even announced some store closures and the banishing of breakfast sandwiches that were competing with its trademark coffee smell.

This year may see much of the same customer traffic patterns though it may be due to different reasons. With many people predicting gas prices of $3.75 to $4.00 per gallon by this summer, will customers simply stop buying $4 cups of macchiato? They already are in droves. Add that to the rising cost of coffee, and Starbucks may be in for a world of hurt in 2008.

In the meantime, Schultz is making changes at the top of the ranks, starting with the "retirement" of Launi Skinner as head of U.S. operations. Skinner's performance could be seen as semi-disastrous, so she'll be "spending more time with her family" while Cliff Burrows steps in to take over. Burrows formerly was president of Starbucks Europe, Middle East and Africa stores, but he'll have a much larger challenge in the U.S.

After Starbucks saw a share price decline of 43% last year in addition to a 13% drop this year, Shultz has to do something to stem the bleeding. Shoring up that trademark smell inside stores, limiting growth and decreasing store/brand dilution and stuffing in some new blood may do the trick, but 2008 won't be easy for the coffee retailer in way, shape or form.

Howard Schultz's effort to shake up ailing Starbucks (NASDAQ: SBUX) took an unpleasant turn today, at least if you're an employee at the company's headquarters. The coffee giant announced that it will cut 600 jobs at its headquarters in Seattle as part of Schultz's "transformation agenda." About 220 of the job cuts will involve layoffs, while the remaining positions will simply go unfilled.

If you're an investor, this may be a bit of good news. Investors typically love layoffs, since they reduce costs and, perhaps more importantly, send a signal that management is serious and in control. However, investor reaction has been muted so far, with the stock trading flat at $17.84 on Friday morning. It may be that 600 jobs is not a significant number given the company's total of over 170,000 workers.

Apparently the news of the layoffs arrived via email. Schulz has been sending a series of messages titled "Howard Schultz Transformation Agenda Communication," and the job cuts were announced in part seven in the series. Previous installments included plans to eliminate breakfast sandwiches, close some stores, and hold a company-wide training session for all baristas.

Somehow, I doubt that Starbucks employees are looking forward to the next email.

Howard Schultz is back in charge of Starbucks (NASDAQ: SBUX), and as expected lowered expectations for the current fiscal year. He took the opportunity with the mediocre December quarterly results to tamp down expectations and won't even issue guidance. A very smart and predictable move by the founder and visionary of Starbucks. This is a tough environment for Starbucks as well as many other retail concepts. Let's face it, theme concepts are competing for the consumers' shrinking wallet and need to stick to their core values and competitive advantages. Well, Howard, please read this and I think it may help your efforts.

Dear Howard,

I personally love Starbucks as a consumer of fine coffee and have bought its products from probably 250 different Starbucks stores around the world. To this day Howard, your Minnetonka, Minnesota, store should serve as your model for the other 11,000+ store. The manager of the Minnetonka store is Mario Macaruso and if enthusiasm and commitment could be bottled--Mario's is worth a billion.. His partners at the store are fabulous. Andrea Breen, a single mother of 3 growing and time-consuming kids, has an attitude that makes every customer feel special. Patty McGarrigle superbly handles every complicated drink order like a pro and always with a smile. When they are not busy with customers, they are looking for ways to make the store cleaner or more organized. They represent the type of partners every Starbucks store should strive for.

One of the key features of any Starbucks Corp. (NASDAQ: SBUX) location is the pungent aroma that emanates from its stores. That smell, the trademark scent of coffee beans being roasted, is a main reason customers flock to Starbucks locations instead of the competition. Okay, make that the only reason; well, in my opinion.

In the last year, Starbucks began serving breakfast sandwiches and other non-coffee fare in its U.S. stores under former (and short-lived) CEO Jim Donald. Founder Howard Schultz has made it a point that opening a plethora of new stores and offering a bunch of new items was a reason for falling sales and disappointing performance for the company last year.

As such, Donald was pushed out and Schultz returned to the CEO spot just recently. His main reason: Starbucks was not the company he founded. The "experience" had been lost and the coffee retailer was in contention to become yet another ordinary coffee shop. Donald was following short-term Wall Street greed; Schultz could care less about that and said he will return focus to the consumer experience (which will bring its own returns).

Schultz, over and over, makes the point that Starbucks needs ambiance, including that trademark roasting smell, if it is to become successful again. He's right -- the smell and the quiet, homely atmosphere are its largest marketing pitches, more than store openings and new product offerings. Schultz plainly said it, "In short, the scent of the warm sandwiches interferes with the coffee aroma in our stores." He then then announced that breakfast sandwiches are going away permanently and that the chain will also close 100 under-performing U.S. locations in order to slow down what he calls the "dilution" of the Starbuck's brand. Again, he is correct. The chain should be exclusive to each area it serves, not plowing down the landscape with so many locations that the brand itself loses its luster.