Starbucks Corp Appointed Laxman Narasimhan Its CEO For This Reason
Laxman Narasimhan holds the reigns of beleaguered Starbucks Corp. He is named the next chief executive officer and he is expected to undertake a “reinvention” of the world’s biggest coffee chain.
• Laxman Narasimhan has resigned from Reckitt to join Starbucks Corp
• Starbucks is facing a turbulent due to the business slowdown in China
• Mr. Narasimhan will utilize his experience in executing a reinvention plan for Starbucks
Who Is Laxman Narasimhan?
Laxman Narasimhan was previously associated with PepsiCo as its global chief commercial officer. He joined Reckitt as CEO in September 2019 and earned plaudits from Reckitt investors. His management style helped revitalize the company after a sales slump. His departure from Reckitt which makes Durex condoms, Enfamil baby formula, and Mucinex cold syrup resulted in a 4% fall in FTSE-listed Reckitt’s shares.
Why did Starbucks Corp Choose Laxman Narasimhan?
Starbucks is looking for a CEO who can execute its reinvention plan and Laxman Narasimhan is credited with revitalizing the maker of Lysol disinfectants. He led Reckitt through the pandemic by boosting its sales. Also, Mr. Narasimhan was instrumental in navigating a baby formula crisis in the United States, culminating in a raise in the annual forecast of Reckitt earlier this year.
In Starbucks, Mr. Narasimhan will face challenges related to employee dissatisfaction with better wages and work conditions. Also, more than 200 Starbucks stores in the US have unionized and COVID restrictions in China have slowed the business. China is the biggest overseas market for Starbucks.
Also, Starbucks is working on a reinvention model involving long visits to mobile pickup and delivery. It appointed Laxman Narasimhan as its CEO after considering his global perspectives as a CEO of a public multinational corporation and background in beverages at PepsiCo.
As soon as the news of Laxman Narasimhan joining Starbucks Corp was out, the coffee chain’s shares saw a marginal gain of less than 1%. The coffee chain is quite excited about the new CEO.