Starbucks has made a spectacular alteration concerning its policy, a change that seemed to be of importance to the financial position of the company on the stock market. Howard Schultz (founder of Starbucks) decided to reverse the tendency towards expansion, by giving the shops a more cosy setting and improving the efficiency, through which the operating costs declined by around $500 million. The company returned to its roots and simultaneously decided to pay more attention to charity, the social media and the quality of the service; factors that have lead to an increase of the value of shares of nearly 120%. Starbucks has also sent up its margins by successfully launching new projects, and almost halted its decline despite of the hard rivalry.
Tessa De Backer
Source: Starbucks
1 opmerking:
S2: improving efficiency
S2: more explanation is needed to show that focusing on cosiness equals reversing expansion tendencies
S3: that have led
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