Executive Summary of Starbucks

SUMMARY OF Howard Schultz Building Starbucks Community This text speaks most Howard Schultz and how he built a Starbucks Community. * Early Years This man was the oldest of iii children in a modest family of Brooklyn. Indeed, his tyro combined 3 antithetic jobs to support his family. His m otherwise was a homemaker who transmits her value to her children. She was a strong-minded person who wants a good future for her children with the respect of these value. Her dearest respect was that all go to college. Howard, who believes in the Ameri laughingstock dream, felt that he had to mean his accept future because he didnt want to hitch in Brooklyn.Indeed, he met many different people who came from different backgrounds. He say that Diversity isnt whateverthing I had to learn. I lived it. Its a mastermind which influenced his future behavior. During his teenage, Howard and his father clashed often. He will realize later that sometimes you learn lessons, except you dont reali ze them in the moment. alone at the time he thought that his father could grant set up so much more if only he had tried. This natural leading ability stood out in the schoolyard. The Sports domain was the example.Indeed, it allows him to deplete a scholarship until University in Northern Michigan. After graduating, Schultz made a sales trainee in New-York in Xerox. Despite a good income, he didnt like this job for several reasons This Company was too bureaucratic, harsh and rigid and he didnt have a voice. Finally, he didnt find a link between this company and his values. * Creating Starbucks Howard had already plant in the field of drinking chocolate bean. So one day, he was encountered Starbucks Coffee and was actually sensitive to the product and the business.He said that he felt he had discovered a whole new continent. After that, he joined Starbucks as a director of operations and marketing. He saw the enormous ontogenesis potential of this Company especially in th e gourmet and food markets. He realize that during a trip to Italy. Indeed, he noticed the uncommon partnership experience that Milanese espresso bars played in their customers daily lives. He will be based on this model to launch his hold business Il Giornale. This business was a chain of espresso cafes from Starbucks in downtown Seattle. It had three locations but had not yet turned a profit.So for practice to this problem, Schultz planned to consolidate the new company with the name of Starbucks Corporation. Indeed, this name was so known by customers. But the development of this business wasnt so simple. The first in which Schultz has grammatical cased was the following atomic number 53 of these original investors proposed to grease ones palms Starbucks instead, on terms that would have dramatically diluted his stake and that of his other investors. Furthermore, investors put pressure on Schultzs head. They said If you dont take this deal, youll never work in this town again. Youll never chivy another dollar.Youll be dog meat. As a leader, Howard Schultz didnt renounced. He prepared an alternative plan cancelled the dilution and he wishd. * outgrowth Starbucks The fathers death of Howard Schultz has completely changed his state of mind. He realized that his fathers purport wasnt the same as hers. In those days thither was no health insurance and no workmens compensation. So, he fixed to make Starbucks the first American company to let access to health coverage for qualified employees. Indeed, this event is directly link to the shade and the values of Starbucks.He treasured to build the king of company that his father never had a chance to work for, where you would be valued and prise no matter where you came from, the color of your skin, or your lever of education. He valued to build a company that linked shareholder value to the ethnic values that he created with the other employees of the company. The original business plan of Starb ucks provided cxxv new stores in five year. In the first year, the company had already open 15 stores in Northwest cities with a strong java culture. The growth was running.And for continue at this pace, Schultz recruited Howard Behar, an executive 10 years his cured who had 25 years of retail experience. His assignment was to innovate in reply to customer requests and develop the customer experience. In an other hand, Starbucks nidused its tutelage into values and culture of the stores, reasoning that fulfill and happy baristas made for satisfied customers. For continuing in this way, Schultz was aware that growth is intoxicating and seductive but likewise that it covers up a tremendous amount of mistakes.To solve this problem, he overlap power with others. Indeed, Schultz & Behar wanted to stay in the way of their values so they distinguishable to codify the values in the company military mission and values statement. Its important for the cardinal leaders to sharing th e culture of the company in each Starbucks stores. This is what distinguishes this company from others and allows it to continuing growth. For reach this goal, in that location were two key The first was to hire people with like-minded values and the southward was to reinforce the values and culture of the company.The expansion of Starbucks making this own language into a common usage (like latte, half-caf). Schultz was also sublime of making difficult choices to pass up certain growth opportunities and to stay cerebrate. The new way adopted by Starbucks was to explore marketing cautiously selected. For example, they were experimenting to combined music and coffee stores and other entertainment ventures. It was a succeeder. * Staying Grounded As an entrepreneur, Schultz should be irreproachable. For being that, he should learn several things like to manage vulnerability and doubt.But for understand him there werent a lot of people. So he decided to talk with Warren Bennis, a wi dely sympathize leadership and with a rabbi, during a trip in Israel, where he had intentional closely the power of humility. These lessons helped Howard to understand that success is best when its shared and be better in his business. * Whither Starbucks and Schultz? The hope of Howard Schultz is that Starbucks can be a model for building a company the right way. Especially he wants that the size of the company cant erase the integrity.Its an spokesperson of the state of mind of Schultz. He took advantage of every opportunity for delivering his communicate like in leadership conferences for his store managers in which he focus on people and the military personnel connection, not on numbers. He also focused on the consumer especially on customer experience. The vane wants to have a big place in customers life because it pretends that it wants to be the third place in customers lives between the home and the office. For that, Starbuck offers a global range from coffee to CDs w ith the music that you can find in Starbucks stores.To combine these two ambitions, Starbucks responds to customer demand which is sharp-set for humanity and authenticity. * The Schultz E- ring mail After the big success of Starbucks, Howard Schultz was worried virtually one important thing for him With the growth, Starbucks could lose the personal feeling of the resemblance coffeehouse which Howard Schultz wanted to create. Indeed, at his arrival, his goal was to develop Starbucks as a model company including financial performance and mainly the respect of the human relationship. But this ambition wasnt simple to apply in the reality.Indeed, Starbucks had rifle the fastest growing chain in the history of retailing The brand began with three stores in Seattle for reach, twenty years ago, 40,000 outlets worldwide. This phenomenal expansion allows Starbucks to wage in competition with the big company like McDonalds and Dunkin Donuts. Despite this success in financially field, a q uestion for Schultz was essential Had Starbucks lost its brain in the process of becoming a global brand? For having an answer, Schultz decided to send an E-mail to Jim Donald, Starbucks new CEO, with copies to members of the executive team.In his mail, Schultz explained his point of view intimately the situation of Starbucks at this moment. He said that the growth had not a good effect in the customer experience. He described Starbucks with the infertility and the uniformity of store decor. The turnover is the first priority than the small coffee heritage of the brand and compromised the passion for coffee. He send this mail and waited the response of the senior team. Schultz memo was published on Starbucks Gossip, a web site about Starbucks, the experiences and opinions of the customers and employees. So, we could find some rumors in this about the company.But when the memo was public, the corporate communication had tried to manage the crisis and the solution was to smudge a confirmation that the memo was authentic. For keeping a good image, Starbucks decided to position this memo as a new way of the company. Indeed, it explained that Starbucks reinventing itself, aspect it reflected the companys philosophy that ongoing success was not mechanically a given. It created a bombinate on Internet and in Press. The Wall Street Journal dedicated an oblige about Schultzs memo with 1,500 words and some blogs like BusinessWeek. om, Bloomberg. com * Joe Noceras Challenge The buzz continued two weeks later when the business journalist for New York Times, Joe Nocera, wrote an article about Howard Schultz in his column Talking Business. He focused his attention on the two personalities of Schultz. So the name of article was dickens Howard Schultz. First, he described Schultz as a sensitive man who is disposed on humans values in his company with health assurance for employees, and coffee experience for customers. The article speaks about the huge amicable resp onsibility program established by Schultz.But in a second time, he described a face completely different of Howard Schultz. For him, Schultz was a businessman who thinks about profit, benefit and growth so an aggressive competitor. For Nocera, Schultzs aim was to grow as soon as possible by making the best financial result. For illustrating this, he collected some testimonials of Schultzs colleagues who said Mr. Schultz is an enormously competitive businessman for example. An other colleague told an account Howard said that they would never serve food. He thought it would dilute the experience. ) For Starbucks, there was always going to be a limit to how much coffee it could sell in any one location, so to goose same-store sales, it began selling food. All these testimonies supported the thesis that Howard Schultz was a man who wanted a quickly growth with a big profit. His first face was just a disguise to hide his true nature as Nocera. After having made an opposition between th e two faced of Schultz, the journalist concluded that there was in reality only one Howard Schultz and the two things he wanted were unfitting.Finally, after this event, Schultz analyzed the situation and some questions arrived Was it possible to have it both ways, or were growth and authenticity incompatible? Starbucks pursue such aggressive global growth and remain the unique local coffeehouse that attracted customers in the first place? We can see that these issues were in link with the first ambition of Howard Schultz So we can bring us if this ambition was really feasible or if Schultz has failed to achieve his goal. One thing was certain The issue wasnt going to go by