Analysis of Starbucks Management Strategy in 2023 the Future Development trend of Starbucks Coffee

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Last September, Starbucks announced Laxman Narasimhan as CEO (CEO) and will take the helm of the company in April. In the meantime, Howard Schultz will continue to serve as interim CEO and lead Narasimhan to manage the company's team, get in touch with the brand, the company's culture, and participate in Starbucks' reshaping program.

The arrival of Narasimhan will require urgent treatment of the unionization of baristas in the United States, as well as slowing global competition, shipping disruptions and coffee price fluctuations, as well as changes in some market areas with poor performance, opening up new business in market areas, redesigning store decoration, and so on.

But all these require the cooperation of the management of other companies. However, after Schultz returned as chief executive last year, Starbucks underwent a leadership reshuffle and company reforms, and a number of executives left, and now there is a shortage of staff everywhere.

In the past year, Rossann Williams, head of Starbucks North America, Rachel Gonzalez, general counsel, George Dowdie, executive vice president of global supply chain, and John Culver, chief operating officer, have all left or been dismissed. JavierTeruel, a longtime board member, also resigned at the end of 2022. A few days ago, the vice president of Starbucks Creative Studios, who has worked for the coffee giant for 14 years, also announced that she would leave.

The loss of such executives may be due to new candidates and new strategies for both Schultz and Narasimhan. Narasimhan has been a leader at McKinsey, Pepsi and Reckitt for nearly 30 years, as well as experience in advising global consumer-oriented brands.

Narasimhan works very decisively in every new company, and the veteran management of some companies will fire and introduce new sources of blood. This is also very much in line with what Schultz mentioned last year: my return is not a long-term solution, but it needs to be taken over by someone younger, more far-sighted and highly executive. This sentence is not just for the position of chief executive, but for all senior executives.

According to the current situation, Howard has solved some of the problems and has begun to reshape Starbucks' corporate culture, but Howard is not strong enough for rising labor unions, rising employee turnover rates and declining performance in the Chinese market.

Another reason for inviting Narasimhan is that he has very deep and rich qualifications in the consumer industry and overseas market management, of which the United States and Asia are the two largest markets of Starbucks.

At present, Starbucks' performance in China has rebounded after the liberalization of China policy, but some new layouts and strategies are still needed. American trade unions are still a thorny issue, though. I hope that the appointment of Narasimhan this time will bring a new chapter to Starbucks.