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Noting they've gotten off the track of what made Starbucks (SBUX) what it was, former and newly named CEO Howard Schultz said the company had lost its way concerning its purpose.

"We are going to fix it. There's going to be a comprehensive focus that hasn't existed around here for a long time," he said. "We have to get back to what has made this company great." Schultz added that he isn't returning on some intermim basis, but he will be in the CEO role "for the long term."

Schultz replaces Jim Donald, who took over the reins from retiring CEO at that time, Orin Smith, in March 2005. Donald used to run the North American division of the company before being named CEO. Schultz previously ran the company from 1987 to 2000 before stepping down. He still serves as chairman.

Talking to analysts, Schultz said he isn't going to use the economic conditions as an excuse for the company's performance.

The major problem with Starbucks in the eyes of Schultz was losing "the romance, warmth and theater" of the stores that customers used to enjoy. I think he's right there. There customer base has consistently changed as they attempted to compete with their fast-food counterparts, losing many of their upper income customers as lines blurred as to differentiation.

Schultz said most of their problems come from within the company, not from competitors and economic conditions.

I like the attitude he has, because I agree with him. This is a company that could only lose by it's own default, and it started to happen, and a huge door opened up for competitors to enter into.

While competition will continue, if they can get back to their main focus, I think they'll gain back some of the ambience and atmosphere their core customers used to enjoy.

Other changes being looked at is the streamlining of its management, closing underperforming stores, focusing on international growth and slowing down new store openings in the U.S.

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