Starbucks: Searching for the Right CEO

Arpita Agnihotri, Saurabh Bhattacharya

Product #:W42612

Supplier:Ivey

Discipline:Human Resource Management, Strategy

Setting:United States, 2024

Details:Case (PDF) • 13 pages • 2025-06-01

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In August 2024, Starbucks Corporation terminated the services of its chief executive officer (CEO) who was facing performance pressure from the chairman emeritus of Starbucks, a hedge fund management company, and the board. The CEO had no prior experience in the restaurant industry and the board of directors had lost confidence in his leadership. After the termination, Starbucks announced the new CEO. What were the issues with the hiring of the CEO that was terminated? Was terminating his services the right decision? What should the new CEO’s turnaround strategy be for Starbucks?

Learning Objectives

The case is intended for undergraduate- and graduate-level courses on business strategy and strategic management, strategic human resource management, and leadership. Instructors may also use this course to discuss corporate governance and organizational behaviour issues related to succession planning, corporate culture, change management, and stakeholder engagement theory. After working through the case and assignment questions, students will be able to do the following:

Analyze how a CEO’s performance is evaluated.
Examine how long-tenured CEOs sustain their influence on the firm even after stepping down from their position as CEO or board director.
Examine strategies an incoming CEO needs to turn a firm’s financial performance around.
Evaluate whether the CEO should prioritize menu innovation, pricing adjustments, or operational efficiency.

Starbucks: Searching for the Right CEO

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Learning Objectives