10 Reasons Why Starbucks CEO Laxman Narasimhan left the post

Starbucks CEO Laxman Narasimhan: There can be many reasons behind Laxman Narasimhan’s decision to leave the post of CEO of Starbucks. Let us understand these reasons one by one:

10 Reasons Why Starbucks CEO Laxman Narasimhan left the post

1. Disagreement with management: There may be some differences between Laxman and other company officials. If there is no agreement in the direction and decisions of the management, it can lead to conflict.

2. Differences with the company’s strategy: If Laxman had to disagree with the company’s plan or future goals, then this can create pressure to resign.

3. Health problems: Sometimes personal health can also become a big reason. If Laxman’s health was not good, then he may have decided to leave the post.

4. Family and personal life: He may have felt the need to devote more time to family responsibilities or personal life, which led to leaving the work.

5. Work stress: There is a lot of stress and pressure in the responsibility of a CEO. If this stress has increased a lot, then it makes sense to resign.

6. Cultural differences: If Laxman is facing difficulties in the company’s culture or way of working, then this can also lead to resignation.

7. Financial problems: If the company’s financial condition was not good or there was financial pressure, then this can also lead to resignation.

8. New opportunities: It is possible that Laxman saw new and better prospects in his career and hence he chose a new opportunity.

9. Improvements and changes: If there were plans for major changes or improvements in the company, and Laxman did not agree with those changes, then he may have decided to leave the post.

10. Public pressure: Pressure from the media and public eye can also be a big reason sometimes. If Laxman was facing this pressure, then this can also lead to the decision to resign.

Starbucks CEO Laxman Narasimhan

Starbucks, which is a very big and famous coffee brand in the world, is going through a very difficult phase right now. Here are some of the main reasons why Starbucks is facing financial pressure and CEO Laxman Narasimhan had to leave the company:

1. Declining sales: Starbucks’ same-store sales fell in April, the first time in nearly three years. This forced the company to cut its annual sales expectations. This decline was seen in both the US and international markets. CEO Laxman Narasimhan said that this quarter’s results do not reflect the company’s strength or future opportunities, because the environment was very challenging.

2. Increasing competition: In the US, where Starbucks has its largest market, the coffee chain has increased competition. Now brands like Dunkin Donuts have started offering new products and discounts. Dunkin Donuts has launched a new line of iced energy drinks, especially keeping the young customers in mind. To avoid this, Starbucks has spent a large part of its marketing budget on attracting young customers. In 2023, Starbucks has spent about $508 million on advertising globally, but despite this, competition is increasing and the path to growth is becoming difficult.

3. Impact of US inflation: Due to inflation in America, the pockets of customers have become loose. Due to this people have started spending less, and this has affected Starbucks’ sales. Due to the reduction in the spending capacity of customers, sales have decreased further.

4. Lower than expected growth in China: Starbucks had set expectations of business growth in China, but the growth there was also less than expected. Due to this, the company had to cut its forecasts, and this increased the financial pressure.

All these reasons together affected the financial position of Starbucks and brought Laxman Narasimhan to the point of resigning from the company.