• A few years ago, Starbucks was facing serious challenges. Sales per store were stagnant or declining, and its growth rate and profitability were down. Many believed that its introduction of breakfast foods had diverted its “baristas” from their traditional jobs as coffee-preparation experts. McDonald’s and Dunkin’ Donuts were introducing lower priced but still high-grade coffees. Starbucks’ former CEO stepped back into the company’s top job. You need to help him formulate a new direction for his company. Purpose: The purpose of this exercise is to give you experience in developing an HR strategy, in this case, by developing one for Starbucks.