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Howard Schultz's: The New CEO Saving the Company Out of Its Crisis

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Howard Schultz's: The New CEO Saving the Company Out of Its Crisis
CASE STUDY

TITLE: HOWARD SCHULTZ'S (SBUX) NEW CEO SAVING THE COMPANY OUT OF ITS CRISIS.

SUBJECT: IE652 ASSIGNMENT #1

STUDENT: xxxxx

ID NO. :

DR xxxxxx

DUE ON DATE: 27-MAR-2013

QUESTION #1: ABOUT WHAT CHALLENGES THE RETURNED CEO FACED WHEN HE STARTS GENERATING SOLUTIONS TO PROTECT THE ENTERPRISE FROM CRISIS….
HE FACED SEVERAL CHALLENGS ANALYZED AS FOLLOW:

1- FOUNDERS ARE THE FIRST HINDER TO HIS PLANS, THEY NATURALLY WILL CHALLENGE HIS IDEA TO CHANGES FROM A CLASSICAL COFFEE SHOP TO MODERN AND STYLISH COFFEE SHOP AND THAT IS IN A WAY WILL HURT THEIR FEELINGS WHICH MIGHT BE DANGEROUS. THERFORE, TRANSFORM THAT NOSTALGIA INTO POSITIVE TREND TO SUPPORT HIS PLANS. INDEED, WOULD BE A BIG CHALLENGE.

2-THE UNCERTAINTY OF SUCCESS UPON THE NEW PLANS OF DESIGN MODIFICATION, NEW PRODUCTS AND ADDING MUSICAL IN THE STORES, AS A FIRST ACTION HE TOOK IS DEFINATELY A CHALLENGE FOR A MANAGER TO AT LEAST SAY THAT WILL WORK OUT. 3-HISTORICAL ISSUES OF OTHER COMPANIES THAT HAD SIMILAR MATTERS AND THEIR CEO'S COULD NOT RESCUE THEM.

4-SHUTTERING SOME STORES INSIDE OR OUTSIDE THE U.S WILL RESULT LAID OFF EMPLOYEES AND BECAUSE OF THAT SOME OTHER STAFF REMAINING ON THE JOB WILL BE ATTACHED TO THEIR RESENTMENT WHICH SUBSEQUENTLY WILL LEAVE AN AFFECT.
5- BEING A RETURNED CEO WILL DOUPLE THE STRESS AND HARDEN THE MANAGEMENT ISSUES.
SUMMARY TO THE MAIN POINT:
1-BUILDING A COMPETITIVE ADVANTAGE BOTH IN THE PRODUCTS AND THE PLACE AMONG THE RIVALS TO PROSPER IS THE FIRST CHALLENGE.
2-CRISIS IS ALLREADY THERE AND CHANCE OF FAILURE MUST NOT EXIST.
3-SINCE THE PRIORITY FOR OVERSEAS STORES SURE WILL HAVE A DIVERSE WORKFORCES AND UTILIZATION IS IMPORTANT TO GET THE OPTIMUM BENEFIT FROM THE CLUSTER OF RELIGION, RACES, GENDER AND CULTURE FROM WORKFORCES AND CUSTOMERS, AS WELL AS, THE PRINCIPLES CONSIDERATION FOR CUSTOMER'S MORAL.
4- REASSURING THE REMAING STAFF ABOUT THEIR JOB SECURITY BY INCENTIVES, MOTIVATIONS AND/OR PROMISES.

QUESTION #2: ABOUT THE

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