Morning Joe in the afternoon in China, India and beyond: The new StarbucksMaterials:Starbucks changed how people in the United States ordered coffee, how much they paid for it, and how and where they drank it. In other words, this company changed the way that Americans experienced their cup of "joe". They now drink coffee in many places, such as in coffee shops while using WIFI, or on trains and subways, ordering grandees, lattes, and other once strange-sounding names. Most of all, they are willing to pay more than $4 for a cup of "joe". With thousands of stores on street corner, in retail outlets in shopping malls, and in bookstores, among other locations, Starbucks seemed almost on its way toward becoming a generic name for a cup of coffee. It had become one of the "darlings" of Wall Street because almost every action it took appeared to be successful. But, on the way to the bank, something happened in 2008. A major recession occurred and consumers were less willing to pay the high prices for a premium cup of coffee, leading to a reduction in same store sales for the first time in Starbucks’ history. In addition, competitors (e. g., McDonald’s) started to eat away at Starbucks’ market share. Finally, Starbucks appeared to be unable to control the quality of the "experience" across the thousands of stores. In short, Starbucks started to lose its "differentiation" and its luster. Howard Schultz stepped up to take over the CEO position again, and shortly thereafter he announced major changes. For one, he announced that Starbucks was closing 900 poorly performing stores in the United States. In addition, Schultz announced that the firm would regain its focus on innovation. With more than 17000 stores globally, Starbucks was on the move again in 2011. For example, it has regained its emphasis on innovation by introducing several new products, such as its instant coffee, Via. Although originally Starbucks’ customers questioned the sale of instant coffee, Via has been highly successful with sales growing to more than $200 million annually in only two years after its introduction. Starbucks celebrated its 40th anniversary with a new brand/logo, in which the name of the company was deleted. Although some questioned this move, others think it will have a neutral to positive impact. Essentially, the Starbucks name was removed to allow the company to introduce new products well beyond coffee, which has become synonymous with the product. Starbucks also announced an agreement with Green Mountain to distribute Starbucks coffee pods for use with the company’s Keurig single cup coffee brewing system. A significant part of Starbucks’ growth goals target China and India. In 2001, Starbucks had 430 stores in China with plans to have 1500 stores operating in the country by 2015. Additionally, Starbucks signed an agreement with Tata Coffee in India to buy coffee beans and to open stores in hotels and other Tata-affiliated retail stores in India. Along with these developments, Starbucks now allows customers to pay for their purchases with their iPhones. Starbucks continues to display environmental consciousness with the goal of recycling all of its used paper cups. Finally, it continues to offer all of its employees, full-time and part-time, health insurance that costs the company about $250 million annually. Therefore, Starbucks has stepped up to differentiate the firm from all competitors and many other companies operating in other industries as well.1. How did Howard Schultz make Starbucks doing great in a weak economy?2. Which strategies dis Starbucks take in this case?