Starbucks an Alex poole strategy case-full text

Case study for starbucks

Starbucks: An Alex Poole Strategy Case

Alex sighed heavily and rubbed his tired eyes. It was the fourth time in the past hour he had read the letter from his grandfather. I dont know what to do, Alex thought. I wish Gramps could

have put someone else in charge of his estate. What if I make a mistake? Then what will Grandma do? Alex Poole was a senior in college, working on a double major in Finance and Management, and a minor in Chinese. He hoped to land a job with a large, multinational company after graduation and move to Hong Kong or Singapore. He was determined to get his foot in the door at a Fortune 100 company no matter how hard he had to work. Alex was used

to hard work. For the past three years, he had held down a part-time job while attending school full time. His philosophy was that he could afford to go to school only if he earned enough money to cover his expenses, so he would find a way to do it.

Alex shuffled some papers on his Grandfathers desk and pulled up the stock chart on Starbucks on his MacBook. This chart is amazing, he thought. After going public at a split-adjusted

$0.53 per share in June 1992, the stock had taken off. A person who had invested $1,000 in Starbucks in the initial public offering would have had shares worth nearly $22,000 on the same day 10 years later. The stock continued its run until late 2006 when the combination of the Great Recession and internal problems caused it to fall from a high of $39.43 per share to a low of $6.80 per share in November 2008. The Board brought Howard Schultz, the iconic founder of Starbucks back as CEO in January 2008 as the company faltered. Schultz engineered a spectacular turnaround of the company. As of November 2013, the stock traded at over $80 per share.

Gramps sure was a savvy investor. When everyone else was saying Starbucks was roasted, he bought the stock. Alex thought. But now what should I do? I could sell it and take profits, but Grandma will end up paying a lot of taxes. I dont know where to put the cash either. If I hold on to it and the stock goes down a lot, Ill feel terrible. Alex yawned and rubbed his eyes again. I guess Id better get some sleep and try to figure it out tomorrow. I think Ill stop by the Starbucks on the corner in the morning and check it out. If its crowded, Ill feel better.


and tried to hit the snooze button on his Clocky alarm clock. The Clocky expertly evaded his hand, rolled off the night table, and on to the floor. In order to cut off the ear-piercing shriek of the alarm clock, Alex was forced to roll out of bed and chase it around the room. Sarah, Alexs girlfriend, had given him the alarm clock after a couple of close shaves in which Alex slid into his seat next to her their 7:30AM investments class just in time to take the weekly quiz. The