Chapter 1014 Black Knight
The crisis that Starbucks suffered this time was very serious. As early as 2006, Starbucks, which was developing rapidly, announced a major expansion plan.
In the next 3 to 5 years, Starbucks plans to open about 15,000 branches in the U.S. and overseas markets. Starbucks’ ultimate goal is to open 25,000 chain stores around the world, just like McDonald’s, which has nearly 30,000 branches around the world, making Starbucks’ stores everywhere.
This crazy expansion strategy has been well implemented. Over the past 10 years, Starbucks has expanded from 1,000 stores to 13,000. A prominent example is that Starbucks has more than 1,400 branches in California, but it still increases at the rate of opening 5 new stores every day.
Expansion finally made Starbucks suffer. In 2007, Starbucks' performance in the United States fell sharply by 50%. In January this year, Schultz, as the founder of Starbucks, had to take down the fire again and serve as the company's chairman and CEO to cope with the operational pressure brought by crazy expansion, and announced the closure of 100 stores on the spot.
It has to be announced to the public that it will continue to close 600 branches in the United States and is preparing to lay off 12,000 employees in the next nine months...
Since the financial tsunami last year, Starbucks has faced internal and external troubles, and its stock price has also dropped from US$40 in 2006 to US$19.8.
However, Schultz, who returned to Starbucks, is using crazy shock therapy to reform the company. Regardless of the loss of turnover, he asked Starbucks across the United States to stop operating for three hours and retrain employees how to make good coffee.
Andy admitted that Howard Schultz is indeed courageous and has the ability to save Starbucks. After all, Starbucks occupied almost the whole world later, which means that the other party’s reform moves were very feasible.
However, for a listed company, these behaviors that make people confused and bring profit losses are undoubtedly suicide. The stock price teaches him how to be a person in minutes. The company's market value has severely shrunk, and shareholders who suffer huge losses of profit will have various disagreements.
There is only one opportunity. If you missed Andy just wanted to capture Starbucks again, and it also needed an astronomical acquisition price to achieve it. Now, haha, with less than 7 billion US dollars in market value, as long as you control 10% of the shares, Andy can become the largest shareholder. If you exceed 50%, Andy can completely acquire this global coffee chain and survive the economic crisis, it will bring Andy a profit of more than 2 billion US dollars every year...
In the bedroom, Ivana was tightly pressed into Andy's arms, gently stroked Andy's abdominal muscles, and asked softly: "Are you really planning to launch a malicious acquisition of Starbucks?"
"If God doesn't take it, he will suffer the disaster!"
"?" Ivana pouted, frowned and looked up at Andy with a question mark on her face. It was another Chinese dialect.
"It means that if you don't want what God gives you, you will suffer in turn... Let's go to bed, this requires a good plan, this is a time-consuming offensive and defensive battle..." …
"First of all, we must continue to suppress their stock prices and use media opinions to create panic about Starbucks' operations and profits..."
The next day in Gaia's meeting room, a 10-person Starbucks team began to explain their plans to Andy.
"Food safety issues! Whether it is the cow nai that has previously occurred with artificial growth hormone rbgh, or the expired juice problem that has occurred in the rabbit country, it can be used or even fabricated... "
Andy was a little uncommon about this proposal. He didn't want to smash the Starbucks sign. If he really messed up, he would be so depressed that he 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 continued: "Starbucks layoffs too much, and there will definitely be many things that violate the law of fair employment. We only need to find these people, let them charge Starbucks, and introduce the US Labor and Industrial Relations Commission to file a lawsuit against it...
At the same time, according to data, Starbucks' turnover in the UK reached 2 billion pounds in nine years, but the cumulative corporate income tax was only 5.6 million pounds. 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 series of complex methods to evade tax payments, including charging patents and copyright fees, providing high-interest loans to British branches and using the company's supply chain to transfer profits, making the profits they generate in the UK disappear without a trace, and cleverly avoiding taxes.
Although tax avoidance is legal and the British tax authorities cannot say anything, Starbucks' move, in the current global financial tsunami, the unemployment rate has increased significantly, the economy is in a downturn, and consumption levels have declined. Once these are exposed, it will definitely arouse the anger of the British people and the stock price will surely plummet again..."
Andy's mouth twitched, and looked around with a strange expression for a week. He complained in his heart that these guys were really poisonous and bastard, and he could figure out any tricks.
"There is also the problem of instant coffee, boss, we need to use media public opinion to crack down on Howard Schultz's personal prestige and Starbucks' brand value.
The move to attack the instant coffee market led by Schultz is inconsistent with the idea of reshaping brand value that it has been promoting when it first returned.
You should know that in traditional concepts, instant coffee has nothing to do with high quality. Instant coffee has always been those coffee lovers, and even Starbucks, which regards coffee quality and consumption experience as life, disdained it.
It is precisely because Starbucks has made coffee a unique cultural and spatial experience that is significantly different from the popular products of food giants that it is widely loved and its value has skyrocketed. Now they are self-deprecating, and public opinion will greatly affect their stock prices!"
Andy opened his mouth with a little amused and cried, but in the end he didn't say anything. He smiled bitterly and said his head that started to hurt. Damn, are you trying to suppress Starbucks' stock price, or do you want to kill Starbucks in one go?
It seemed to see his entanglement and worry. Alvetre, who had been sitting on the side and listening silently, stretched out his hand and waved it, interrupted his subordinates' continued explanation, and said to Andy: "Boss, you don't need to worry about the crises we created for Starbucks, because they will find ways to deal with and conduct public relations and reduce the impact. We are malicious acquisitions. All the goals are to minimize their stock prices, and then they can acquire shares at a price of 50% to twice the market price.
Boss, Starbucks has 6,000 shareholders. If we come to buy it alone, it would be a nightmare. All we need is to force them and let them come to sell it to us with no choice.
If you want to spend less money, you have to create market panic. First cut off half of the shareholders of these 6,000 people and let them sell in the secondary market. After we absorb enough chips, we will directly publicly announce a malicious acquisition of them!
Let’s take a step back, even if the acquisition fails, the value of the stock in our hands will surge due to the acquisition. I have never understood that no one has taken action with such a scattered shares. Although Pennsylvania’s anti-malicious acquisition bill has provided new judicial interpretations and restrictions on malicious acquisitions, this huge number of shareholders is really easy to break!”
Hearing Al's question, Andy shook his head slightly and said, "Before Starbucks' big-time expansion, if you were an investor, you would choose to sell your shares as you keep seizing market share, almost a dominant company? No, people are always profitable, the development speed and future prospects have made these people very united. Now, they can no longer sit still!
Then let’s do it in detail and then start implementing it… By the way, this plan is called Black Knight!”
Andy stood up, supported her hands on the conference table, leaned forward, looked around everyone's faces with neither joy nor sad expression for a week, slowly straightened her body, and said with a clear voice.
Chapter completed!