During 1st decade of 21st century Starbucks faced some dismal financial problems

3. US Housing Bubble Competition with McDonald's Schultz’s bow out Marketing strategy Service gap Controversies Internal business Strategy

5. Company’s shares fell 20% in value compare to mid-2006.

6. 2 star states- California & Florida – generate one third of Starbucks’ revenue were among worst hit by housing slump.

7. It was attributed to several factors, main was US housing slump.

9. distribution expenses- price of oil was touching record levels,

12. Marketing Strategy “A Slip between Cup and Lip.” “Starbucks built its whole empire on the experience in the store - the aroma, the seats, the fact that customers can relax, read a newspaper or work on a laptop. There may have been brand dilution between the airport kiosks, its availability in bookstores, and the coffee beans appearing on shelves. It may have become just another coffee brand,” -- Rick Ferguson, editorial director, colloquy, a loyalty marketing consultancy.

15. Schultz’s bow out Schultz’s stepping down from the post of CEO in 2000 was also seen by analysts as a mistake. Schultz found new interests: Followed National health-care legislation In 2001, co-owner of the Seattle Supersonics, basketball team. Spent US$ 84mn for 42% stake in entity and “the principal voice of ownership.” “Even though I was not the CEO, I was around. I wasn’t here everyday, but I was here enough,” Schultz said.

16. Controversies Labor disputes Lattes & frappuccinos were calorie rich, reported by Center for Science , US. Opening without planning permission Violence against Starbucks in Canada & UK US military viral email “Over the past ten years, in order to achieve the growth, development, and the scale necessary to go from less than 1,000 stores to 13,000 stores and beyond, we have had to make a series of decisions that, in retrospect, have lead to the watering down of the Starbucks experience, and, what some might call the commoditization of our brand.” --Schultz wrote to employees, internal company memo, February 14, 2007 (latter became public)

18. Price

19. Place