EFFECTS OF THE 2007 FINANCIAL CRISIS ON STARBUCKS

EFFECTS OF THE 2007 FINANCIAL CRISIS ON STARBUCKS
Luiz Carlos Jacob Perera, Presbyterian Mackenze University, São Paulo, Brazil
Hans Ulrich Lenk, Presbyterian Mackenze University, São Paulo, Brazil
Mariana de Souza Corrêa, Presbyterian Mackenze University, São Paulo, Brazil
Anderson Nobuo Yoshikawa, Presbyterian Mackenze University, São Paulo, Brazil
Alex Alves Gomes da Silva, Presbyterian Mackenze University, São Paulo, Brazil
Rodrigo Kenji Arasaki, Presbyterian Mackenze University, São Paulo, Brazil
ABSTRACT
Changes in Starbucks began after 2005, when problems to challenge Starbucks’ success. These problems continued to affect the performance of the company until December 2010. The objective of this research is to analyze Starbucks’ response to the effects of the 2007 financial crisis when its shares were devalued by more than 80%, dropping from US$39.63 in May 2006 to US$7.17 in November 2008, at the peak of the global crisis. Results show that the competence of its charismatic leader, Howard Schultz was essential to implement a restructuring of the company and bring it to your path of success. Really a story worth telling.
Keywords: Starbucks, Howard Schultz, Global Financial Crisis, Stock Market, Event Studies
1. INTRODUCTION
Starbucks is a company with unique characteristics. As the coffee bean was losing market value in the
United States, Starbucks was able to go against the tide and transform a commodity into a premium product offered in 16,800 stores in 54 countries around the world.
What Starbucks offers is not simply a place to drink coffee. As you arrive in one of the stores, you become part of the Starbucks experience, as the company’s CEO, Howard Schultz, explains:
When you start a relationship with Starbucks, you are going beyond the coffee experience. You become a special person, in a nice place with quality music. We establish the purchase value of a product through quality and building a personal relationship with each one

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