Chapter 1014: The Black Knight
The crisis that Starbucks has suffered this time is very serious. As early as 2006, Starbucks, which was growing rapidly, announced a big YUE expansion plan.
In the next three to five years, Starbucks plans to open about 15,000 stores in the U.S. and overseas. Starbucks' ultimate goal is to open 25,000 chain stores around the world, just like McDonald's, which has nearly 30,000 stores around the world, to make Starbucks stores ubiquitous.
This strategy of frenzied expansion was well executed. Over the past 10 years, Starbucks has expanded from 1,000 to 13,000 stores. A striking example is Starbucks, which has more than 1,400 locations in California, but is still opening 5 new locations every day.
The expansion eventually took a toll on Starbucks. In 2007, Starbucks' performance in the United States fell by 50 percent. In January, Schultz, the founder of Starbucks, had to return to the company as chairman and chief executive to cope with the operational pressure of the company's frenzied expansion, and announced the closure of 100 stores on the spot.
And had to announce that it would continue to close 600 stores in the United States, and was ready to lay off 12,000 employees in the next 9 months...
Since the financial tsunami last year, Starbucks has faced internal and external troubles, and its stock price has fallen from $40 in 2006 to $19.8.
Schultz, who has returned to Starbucks, is reforming the company with crazy shock therapy, asking Starbucks across the United States to stop business for three hours and retrain employees on how to make good coffee, regardless of the loss of turnover.
Andy admits that Howard Schultz does have the courage and ability to save Starbucks, after all, Starbucks later almost occupied the whole world, which means that the other party's reform tricks are very feasible.
But for a listed company, these confusing behaviors, resulting in profit losses, are undoubtedly tantamount to suicide, the stock price teaches him to be a man in minutes, the market value of the enterprise has shrunk seriously, and the shareholders who have suffered huge loss of interests will have all kinds of dissenting intentions.
There is only one opportunity, and if you miss Andy, you just want to catch Starbucks again, and you need an astronomical purchase price to do it, and now, hehe, with a market value of less than $7 billion, as long as you control 10% of the shares, Andy can become the largest shareholder, more than 50%, Andy can completely pocket this global coffee chain, survive the economic crisis, and bring Andy more than 20 billion dollars in profits every yearγγγγγγ
In the bedroom, Ivana clinged to Andy's arms, caressed Andy's abs with her small hands, and asked softly, "Are you really planning to launch a hostile takeover of Starbucks?"
"If you don't take it, you will suffer it!"
Ivana pouted, looking up at Andy with a frowning face full of question marks, and it was the Celestial Empire again.
This means that if you don't want what God has given you, you will suffer in turn ... Sleep, this needs to be well planned, it's a time-consuming battle ... β
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"First of all, we want to continue to suppress their stock price and use media public opinion to create panic about Starbucks' operation and profitability... β
The next day, in Gaia's conference room, a 10-member Starbucks team began explaining their plan to Andy.
Whether it is the cow nai containing artificial growth hormone rBGH that happened before, or the expired juice problem that occurred in the rabbit country, it can be used and even concocted... β
Andy was a little noncommittal about this proposal, he didn't want to smash the Starbucks signboard, if he really messed up, he would be really depressed, and shook his head slightly.
Seeing that the boss was not satisfied with this idea, the person who spoke just now immediately crossed out this article, and then said: "Starbucks layoffs are too large, and there will definitely be a lot of violations of the fair employment law, we just need to find these people, let them charge Starbucks, and bring in the United States Labor Relations Commission to file a lawsuit against them...
At the same time, according to the data, Starbucks' turnover in the UK for 9 years reached 2 billion pounds, but the cumulative payment of corporate income tax was only 5.6 million pounds, and last year, Starbucks' turnover in the UK was 298 million pounds, but it announced a loss of 32.9 million pounds and did not pay any taxes.
According to our analysis and data, Starbucks has adopted a sophisticated set of methods to evade paying taxes, including collecting patent and royalty fees, providing high-interest loans to its UK branch and using the company's supply chain to shift profits to the UK as if it were a trick to disappear without a trace, and to cleverly avoid taxes.
Although tax avoidance is legal, and the British tax department can't say anything, Starbucks' move in the current global financial tsunami, unemployment rate has increased sharply, the economy is sluggish, and the consumption level is declining. β
The corners of Andy's mouth twitched, and he looked around with a strange expression, and complained in his heart, these guys are really poisonous enough, bastards enough, what tricks can they come up with.
"There's also the issue of instant coffee, boss, we need to use the public opinion of the media to hit Howard Schultz's personal prestige and Starbucks' brand value.
Schultz's aggressive assault on the instant coffee market contradicts the idea of rebuilding the brand's value that it has been preaching since its return.
You must know that in the traditional concept, instant coffee has nothing to do with superior quality, and instant coffee has always been disdained by those coffee lovers, and even Starbucks, which regards coffee quality and consumption experience as life.
Starbucks has made coffee a unique cultural and spatial experience, significantly distinguishing it from the mass products of food giants, which has made it so popular and skyrocketing, and now they are willing to fall into it, and public opinion will greatly affect their stock price!"
Andy opened his mouth a little crying and laughing, but in the end he didn't say anything, and smiled wryly at the head that began to hurt, Nima, are you trying to suppress Starbucks' stock price, or do you want to kill Starbucks all at once?
As if seeing his entanglement and worry, Alvitatl, who had been sitting on the side and listening silently, stretched out his hand and waved, interrupting the continuation of his subordinates' explanation, and said to Andy: "Boss, you don't need to worry about these crises we have created for Starbucks, because they will find ways to deal with and carry out public relations to reduce the impact, we are a hostile takeover, and the goal of everything is to smash their stock price to the lowest, and then they can buy shares at a price 50% to double the market price."
Boss, Starbucks has 6,000 shareholders, and if we go to the door to buy it one by one, it will be a nightmare, and what we need is to force them to come and sell to us.
If you want to spend less, then you have to create a market panic, first cut off half of the 6,000 shareholders, let them sell in the secondary market, and after we absorb enough chips, we will directly and publicly announce their hostile takeover!
Take 10,000 steps back, even if we fail to acquire, the value of the shares in our hands will skyrocket because of the acquisition, I have never been able to understand, such a scattered shares, no one has made a move, although Pennsylvania's anti-hostile takeover bill has a new judicial interpretation and restrictions on hostile takeovers, but this huge number of shareholders is really easy to break!"
Hearing Al's question, Andy shook his head slightly and said: "Before Starbucks's big YUE expansion, if you were an investor, looking at the company that continues to seize market share and is almost a monopoly, will you choose to sell the shares in your hand?
So be it, make the plan a little more detailed, and then start implementing it... By the way, this plan is called the Black Knight!"
Andy stood up, propped his hands on the conference table, leaned forward, looked around the faces of everyone with a happy or sad expression, slowly straightened up, and said in a somewhat clear voice.