Shortly after CEO Howard Schultz stepped down from Starbucks in 2000 the company "lost a certain soul" and the stocks nosedived. Schultz returned as CEO in 2008 and reorganized the company by closing 800 stores, laying off 4,000 employees and letting go of most top executives. After a couple of years, the company turned around, the result of better operations, modernized technology, a reinvigorated staff, and several innovations.
Do you think another economic downturn could alter Starbucks’ fortunes in spite of its product innovations, attempts to rekindle the cozy neighborhood café, and emphasis on positive social values?
What can Starbuck’s do now to prepare for a potential economic downturn. .
Do you think any company is "too big to fail?" or too important to fail? What makes a company too important to fail?