In front of 6,000 investors, employees and analysts at the annual shareholder meeting on Wednesday, Mr. Schultz introduced an improved automated espresso machine that grinds coffee for each drink and has a lower height that will allow customers to see baristas making their beverage. He said the company would roll out the Swiss-made Mastrena machines to three-fourths of Starbucks stores by 2010.

Mr. Schultz also announced the acquisition of the Coffee Equipment Company, the four-year-old Seattle-based maker of the Clover coffee machine, which brews a more expensive, higher-quality coffee one cup at a time. The price was not disclosed. Starbucks will roll out Clover systems in select markets.

Mr. Schultz described a host of other plans: a pungent new coffee blend, a partnership with Conservation International to certify environmentally responsible whole-bean espresso products, and a rewards program for users of the Starbucks customer card.

Beginning in mid-April, users of the customer card will be able to customize their drinks — with soy milk or vanilla, for example — at no cost.

The announcements are intended to help Starbucks hang on to customers in the face of intensifying competition for brewed coffee from Dunkin’ Donuts and McDonald’s, which is widely introducing espresso beverages this year.

“This was more of a position statement. They are going back to their core,” said Sharon Zackfia, a securities analyst with William Blair & Company. “They are saying, ‘We are not going to change who we are, we are going to defend turf aggressively.’ ”

Mr. Schultz obliquely referred to the powerful new rivals in an afternoon question-and-answer session with reporters. “A lot of people are making unique claims about coffee and what they do,” he said. “What’s interesting to me is that they are not coffee roasters.”

But Mr. Schultz tried largely to keep the focus on the company’s internal challenges and future moves. “This is the first time the U.S. business is under pressure; it’s a character test,” he said. “But it’s not about the economy. We don’t want to use that as an excuse. And it’s not about the competition. Don’t believe the media hype. There’s no coffee war going on. This is about us.

“We somehow evolved from a culture of entrepreneurship, creativity and innovation to a culture of, in a way, mediocrity and bureaucracy,” Mr. Schultz said.

His remarks combined self-criticism with musings on the turbulent economy, which he noted was reducing traffic to Starbucks stores. The company faces a hurdle that may be impossible to overcome in the short term: Will penny-pinching Americans, in the grip of an economic downturn, still pay $4.10 for their daily dose of white chocolate mocha-flavored coffee?

Mr. Schultz said several times that the economy looked grim for the rest of the year, particularly in regions of the country hit hard by the subprime mortgage crisis.

Starbucks has also suffered from rising wholesale prices for coffee and dairy products. In the face of those pressures, Mr. Schultz returned as chief executive 11 weeks ago after serving eight years as chairman. He quickly announced 600 layoffs and the closing of 100 of the least profitable Starbucks stores in the United States. He also said Starbucks would stop selling a line of breakfast sandwiches that were served warm, creating an aroma that overwhelmed that of the coffee in stores.

At the heart of the new announcements is a desire to revisit the company’s early devotion to high-quality coffee. The new coffee blend, called Pike Place Roast, is a reference to the location of the first Starbucks store. Starbucks will introduce the blend in stores next month. Baristas will be directed to brew smaller batches of coffee and refresh the coffee in urns every 30 minutes. Today, coffee can sit in Starbucks’s urns for as long as two hours.

Mr. Schultz called the new blend “a coffee so fresh that those people who drink it with milk and sugar will want to drink it black because of the sweetness.”