Executive Summary of Starbucks

unofficial OF Howard Schultz Building Starbucks Community This text speaks about Howard Schultz and how he built a Starbucks Community. * Early Years This man was the oldest of three children in a crushed family of Brooklyn. Indeed, his father combined 3 contrary arguments to support his family. His m otherwise was a home threadr who transmits her values to her children. She was a strong-willed person who wants a in force(p) future for her children with the respect of these values. Her dearest wish was that all go to college. Howard, who believes in the American dream, felt that he had to plan his own future because he didnt want to stay in Brooklyn.Indeed, he met many different mass who came from different backgrounds. He tell that Diversity isnt something I had to learn. I lived it. Its a point which influenced his future behavior. During his teenage, Howard and his father clashed often. He will realize later that sometimes you learn lessons, but you go intot realize them in the moment. tho at the time he thought that his father could come accomplished so much to a greater extent if only he had tried. This natural leadership ability stood out in the schoolyard. The Sports domain was the ex adeninele.Indeed, it allows him to give way a scholarship until University in Northern Michigan. After graduating, Schultz do 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, strict and rigid and he didnt have a voice. Finally, he didnt find a pertain between this confederacy and his values. * Creating Starbucks Howard had already studys in the field of umber. So one day, he was encountered Starbucks Coffee and was very sensitive to the product and the bloodline.He said that he felt he had discovered a whole raw continent. After that, he joined Starbucks as a director of trading operations and marketing. He saw the enormous gravelth potential of this Company oddly in the gourmet and food markets. He realized that during a touch off to Italy. Indeed, he noniced the unique community experience that Milanese espresso proscribe played in their nodes daily lives. He will be ground on this model to launch his own 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 answer to this problem, Schultz planned to consolidate the bracing society 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 approach was the following One of these original investors proposed to purchase 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 neer work in this town again. Youll never r aise another dollar.Youll be firedog meat. As a leader, Howard Schultz didnt renounced. He prepared an choice plan cancelled the dilution and he managed. * Growing Starbucks The fathers decease of Howard Schultz has completely changed his state of learning ability. He realized that his fathers manner wasnt the same as hers. In those days at that place was no health insurance and no workmens compensation. So, he distinguishable to make Starbucks the first American company to provide access to health reporting for qualified employees. Indeed, this event is directly connectiveed to the culture and the values of Starbucks.He treasured to build the king of company that his father never had a incur to work for, where you would be valued and respected no matter where you came from, the colouring of your skin, or your lever of education. He cherished to build a company that linked shareholder value to the cultural values that he created with the other employees of the company. The original business plan of Starbucks provided 125 new inventorys in v year. In the first year, the company had already open 15 stores in Northwest cities with a strong coffee culture. The growth was running.And for continue at this pace, Schultz recruited Howard Behar, an executive 10 years his sr. who had 25 years of sell experience. His assignment was to innovate in response to customer requests and develop the customer experience. In an other hand, Starbucks focused its attention into values and culture of the stores, cerebrate that satisfied and happy baristas made for satisfied customers. For continuing in this representation, Schultz was mindful that growth is intoxicating and seductive but also that it covers up a tremendous amount of mistakes.To solve this problem, he shared place with others. Indeed, Schultz & Behar precious to stay in the way of their values so they pertinacious to codify the values in the company mission and values statement. Its grievous for the devil leaders to sharing the 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, there were two learn The first was to hire people with like-minded values and the second was to honor 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 proud of making awkward choices to pass up sealed growth opportunities and to stay focused. The new way adopted by Starbucks was to explore marketing carefully selected. For example, they were experimenting to combined medicinal drug and coffee stores and other entertainment ventures. It was a success. * Staying Grounded As an entrepreneur, Schultz should be irreproachable. For world that, he should learn several things like to manage vulnerability and doubt.But for pick up him there werent a lot of people. So he decided to talk with Warr en Bennis, a widely respected leadership and with a rabbi, during a trip in Israel, where he had learned about the power of humility. These lessons helped Howard to understand that success is crush when its shared and be give in his business. * Whither Starbucks and Schultz? The hope of Howard Schultz is that Starbucks can be a model for twist a company the right way. Especially he wants that the size of the company cant erase the integrity.Its an illustration of the state of mind of Schultz. He took advantage of every opportunity for delivering his message like in leadership conferences for his store managers in which he focus on people and the homo connection, not on numbers. He also focused on the consumer especially on customer experience. The differentiate wants to have a thumping place in customers life because it pretends that it wants to be the tertiary place in customers lives between the home and the office. For that, Starbuck offers a global clutch from coffee to CDs with the music that you can find in Starbucks stores.To combine these two emulations, Starbucks responds to customer demand which is Hungry for humanity and authenticity. * The Schultz netmail After the big success of Starbucks, Howard Schultz was worried about one important thing for him With the growth, Starbucks could lose the personal feeling of the neighborhood 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 inhalation wasnt simple to apply in the reality.Indeed, Starbucks had become the fastest outgrowth 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 engage in aspiration with the big company like McDonalds and Dunkin Donuts. Despite this success in financially field, a question for Schultz was essential Had Starbucks lost its soul in the functioning 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 about the situation of Starbucks at this moment. He said that the growth had not a good egress in the customer experience. He exposit Starbucks with the sterility 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 memoranda was published on Starbucks Gossip, a web put 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 incorporate communication had tried to manage the crisis and the solution was to post a bank check 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, saying it reflected the companys philosophy that on exit success was not automatically a presumptuousness. It created a buzz on Internet and in Press. The Wall route Journal dedicated an article about Schultzs memo with 1,500 wrangling 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 Two Howard Schultz. First, he describe Schultz as a sensitive man who is attached on humans values in his company with health assurance for employees, and coffee experience for customers. The article speaks about the huge social resp onsibility syllabus 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 anecdote 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. completely these testimonies supported the thesis that Howard Schultz was a man who wanted a speedily growth with a big profit. His first face was just a disguise to hide his true nature as Nocera. After having made an oppositio n between the two faced of Schultz, the journalist concluded that there was in reality only one Howard Schultz and the two things he wanted were incompatible.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(prenominal) 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 ask 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 away