Summary of How Starbucks nearly collapsed | Inside The Storm | Full episode

00:00:00 - 00:40:00

In this video, it is discussed how Starbucks nearly collapsed in 2008 due to the economy. CEO Walter Schultz tried to rebuild the integrity of the brand by addressing the sheer size of the company and the negative growth. This ultimately saved the company.

• 00:00:00 In the 1980s, Starbucks' then-director of marketing, Howard Schultz, visited Italy and was inspired to bring the Italian coffee bar experience to America. Schultz' strategy for the future of Starbucks was influenced by his experience abroad.
• 00:05:00 Howard Schultz, founder of Starbucks, introduced the word "cafe" into the American vocabulary and it was a completely different drink to anything coffee lovers were used to. Starbucks' success can be attributed to Schultz's entrepreneurial spirit and his unwavering belief in his management style - dubbed "Shultzstyle." Starbucks became a popular place to hang out, meet friends, and relax. Schultz's love for coffee and his appreciation for the unique coffee shops he frequented inspired him to create Starbucks. The vocabulary Starbucks has introduced into the world is now commonly used. Starbucks is a popular place to work, meet friends, and relax.
• 00:10:00 In the early 2000s, Starbucks underwent a period of incredible expansion, with revenue doubling every three years. However, this growth came at the expense of their brand, as people began to get tired of seeing the iconic mermaid logo everywhere. Later in the decade, Howard Schultz decided to step down as CEO and take a more hands-off position in the boardroom, and the company made a number of appointments that were not the right kinds of people. This led to a period of stagnation.
• 00:15:00 The video discusses how Starbucks nearly collapsed due to saturation and competition from other coffee chains, as well as automation of the coffee making process. The company's stock price plummeted, and although the company made attempts to adjust, they ultimately failed. The author discusses how the Chinese market is different, as Starbucks has been more successful there.
• 00:20:00 Howard Schultz returned to lead Starbucks in 2008, shortly after the company's stock price had plummeted due to the global recession. Schultz's presence revitalized the company, and he emphasized the company's core values of creativity and innovation. Starbucks' global workforce of over 175,000 employees continues to work hard despite the company's success.
• 00:25:00 The presenter discusses how Starbucks nearly collapsed in 2008 due to the economy. CEO Walter Schultz tried to rebuild the integrity of the brand by addressing the sheer size of the company and the negative growth. This ultimately saved the company.
• 00:30:00 The video discusses how Starbucks nearly collapsed due to the recession, and how they overcame it by focusing on the customer experience and localizing their business. They also made a deal with Alibaba, a Chinese e-commerce company, to create a mobile payment and delivery service.
• 00:35:00 In this video, Starbucks' early response to a discrimination controversy is discussed. The two men involved were offered a 200,000 dollar settlement, which the company turned down. Starbucks also released a video to its employees reminding them of the company's history of discrimination against African Americans.
• 00:40:00 In this farewell ceremony, Starbucks CEO Howard Schultz announces that he will retire at the end of 2018. Schultz also announced that Kevin Johnson will take over as CEO. Johnson aims to increase the number of Starbucks stores worldwide by 40 percent, but the challenge will be to manage this growth whilst preserving the heart of the company.