BloggingStocks http://www.bloggingstocks.com BloggingStocks http://www.blogsmithmedia.com/http://www.bloggingstocks.com/media/feedlogo.gif BloggingStocks http://www.bloggingstocks.com en-us Copyright 2012 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[Howard Schultz CEO of Starbucks again: Is the coffee going to get better?]]>http://www.bloggingstocks.com/2008/01/07/howard-schultz-ceo-of-starbucks-again-is-the-coffee-going-to-ge/http://www.bloggingstocks.com/2008/01/07/howard-schultz-ceo-of-starbucks-again-is-the-coffee-going-to-ge/http://www.bloggingstocks.com/2008/01/07/howard-schultz-ceo-of-starbucks-again-is-the-coffee-going-to-ge/#commentsFiled under: ,

howard schultz of starbucksI first heard the news that Starbucks legend Howard Schultz would once again become CEO of the company via Twitter, and the tidings are accompanied by a generous measure of skepticism: Rick Turoczy asks, "I wonder if this means I'll still get crap coffee 90% of the time?" Baristas and buzz-mongers on Starbucks Gossip seem giddy ("Uncle Howie to the rescue!!!"), although even in the land of the faithful there is some suspicion, calling the decision "smoke and mirrors" and calling exiting CEO Jim Donald a "scapegoat." I call it a classic move for a company whose stock is tumbling: bring back whatever charisma we can yank from the back of the closet.

As Chairman, Howard Schultz was certainly still involved with company and its strategy. But the stock had been plunging throughout 2007 -- and has only tumbled further in 2008 with a downgrade from Bear Stearns. As I wrote in that post, the company's coffee quality was a predictor of its stock price, tumbling from its peak under Schultz previous reign. At one point, the baristas were pulling shots in high-quality, old-fashioned manual machines that coffee connoisseurs agree make far-superior espresso to that made in the newer, idiot-proof automatic models. Drip coffee was routinely thrown away if it was burnt. Now? I have to sweeten my lattes to disguise the taste of inferiority.

Bringing back an old chief executive -- and making a scapegoat (whether expressly in the press release, or just between the lines as is the usual way) of the Jimmy-come-lately CEO -- is a well-worn trick for a once-popular company whose stock is spinning every downward. It only rarely works, and Schultz will have to do a lot more than close stores to bring me back. To get me? You'll have to not only liven up the management team, but also your core product. I want good coffee back.

Investors, other than me, seem as pleased as the baristas -- they have given the stock a nearly-9% boost from its close at $18.38, up $1.65 to $20.03 as of 8 p.m. EST.

Howard Schultz CEO of Starbucks again: Is the coffee going to get better? originally appeared on BloggingStocks on Mon, 07 Jan 2008 20:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>ceochairmancharismaexpire-images:2009-1-6howardhoward schultzHowardSchultzinthenewssbuxschultzstarbucksMon, 07 Jan 2008 20:00:00 EST<![CDATA[Starbucks brings Schultz back as CEO; plans to close stores]]>http://www.bloggingstocks.com/2008/01/07/starbucks-bring-schulz-back-as-ceo-plans-to-close-stores/http://www.bloggingstocks.com/2008/01/07/starbucks-bring-schulz-back-as-ceo-plans-to-close-stores/http://www.bloggingstocks.com/2008/01/07/starbucks-bring-schulz-back-as-ceo-plans-to-close-stores/#commentsFiled under: ,

Major news from struggling coffee seller Starbucks (NASDAQ: SBUX) this afternoon: CEO Jim Donald is being replaced by Chairman and visionary Howard Schultz, who will lead a major restructuring of the company.

The company said it will close underperforming US stores and slow its pace of expansion. Shares of Starbucks are up more than 8% after-hours, as investors apparently believe the company's problems can be fixed by a strong and highly-respected leader. Donald's resignation and Schulz's decision to return signal that the company's management is aware of its problems and determined to right the ship.

In a PR announcing the shake-up, Schultz said that "I am enthusiastic about returning to the role of chief executive officer for the long term and excited to lead Starbucks and its dedicated partners (employees) to even greater heights of achievement on a global basis. We must address the challenges we face and we know what has to be done. Put simply, we are recommitting ourselves to what has made Starbucks and the Starbucks Experience so unique: ethically sourcing and roasting the highest quality coffee in the world; the relentless focus on the customer; the trust we have built with our people, and the entrepreneurial risk-taking, innovation and creativity that are the hallmarks of our success."

Whether these initiatives will be enough to combat the company's problems and a big push by McDonald's (NYSE: MCD) into Starbucks' territory remains to be seen. But for now, investors are lovin' it.

Starbucks brings Schultz back as CEO; plans to close stores originally appeared on BloggingStocks on Mon, 07 Jan 2008 17:35:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>ceohowardhoward schultzHowardSchultzSBUXschultzStarbuck'sMon, 07 Jan 2008 17:35:00 EST<![CDATA[Starbucks chairman still passionate]]>http://www.bloggingstocks.com/2007/02/23/starbucks-chairman-still-passionate/http://www.bloggingstocks.com/2007/02/23/starbucks-chairman-still-passionate/http://www.bloggingstocks.com/2007/02/23/starbucks-chairman-still-passionate/#commentsFiled under: , , , , , , , , ,

There is a report out that Howard Schultz, Chairman of Starbucks Corp. (NASDAQ:SBUX) wrote an internal e-mail to the company's executives basically warning them about complacency. The text of his e-mail sent shivers through the ranks at Starbucks, but investors should be applauding.

I wrote an earlier article about Starbucks becoming bigger than McDonald's Corp. (NYSE:MCD) in the years to come. Ray Kroc, the legendary founder of McDonald's, had a similar reputation as Howard Schultz. Both men could easily have gone to the golf course and been clipping coupons, but their passion and energy is boundless. Kroc was known to show up at any McDonald's across the country unannounced and start interviewing dining customers. He wanted to know what they thought, what they liked and more importantly, what they disliked about McDonald's.

Howard Schultz is in essence doing the same thing. His memo warned company management about the competition creeping up and catching Starbucks. He also warned about the commoditization of the brand and the service. There is no room for this at Starbucks.

Schultz mentioned that even though the company has grown from 1,000 store units to now 13,000, this is no time to be complacent or take the Starbucks customer for granted. This type of leadership is what will propel Starbucks to their goal of 40,000 store units worldwide. It's also the kind of leadership that will allow Starbucks to achieve that goal with excellence.

Georges Yared is the author of recently released books "Baby Boomer Investing...Where do we go from here?" and "Stop Losing Money Today" For more info go to http://www.georgesyared.com

Starbucks chairman still passionate originally appeared on BloggingStocks on Fri, 23 Feb 2007 19:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>commoditizationcommoditization of starbucksCommoditizationOfStarbuckscommodityhowardhoward schulzHowardSchulzmemosbuxschulzstarbucksstarbucks memoStarbucksMemoFri, 23 Feb 2007 19:30:00 EST