...Leadership Paper: Howard Schultz You can get a sense of what’s important to someone by the stories they tell. And Howard Schultz, the CEO of Starbucks and inspirational leader, tells a great story. He uses stories to establish an emotional connection with people and to inspire them to share his passion and vision. In his book titled, Onward: How Starbucks Fought for Its Life without Losing Its Soul, Schultz writes, “…Listen with empathy and over-communicate with transparency. Tell your story, refusing to let others define you. Use authentic experiences to inspire. Stick to your values, they are your foundation.” (Schultz & Gordon, Pg. 309, 2011) Values and a passionate belief are what drive leaders like Schultz. One way to inject that passion into a business is to tell a “creation-of-the-enterprise story.” (Dubrin, 2013) This type of story inspires people to rally around a cause that they feel, will “make the world a better place!” For example, Schultz tells a story that began in 1961, when his father broke his ankle at work and was left without income, insurance or any way to support his family. The family’s suffering and fear inspired change and Schultz grew up driven to create a company in which employees have a safety net woven of respect and dignity. (Durbin, 2013) And when confronted by angry shareholders to end the company’s health care benefits to boost stock prices; Schultz vehemently declined and then used this personal story to boost morale and inspire the...
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...Howard Schultz was born in Brooklyn, New York, on July 19, 1953. He is best known as the CEO of Starbucks. Howard is 302nd on Forbes 400 (2014) and the 259th wealthiest in the United States, with a net worth of $2.6 billion in 2015 by Forbes Magazine. Starbucks has become the leading coffeehouse company worldwide, founded 1971 in Seattle. In 2014, there were over twenty- two thousand Starbucks worldwide. Fred Schultz, Howard’s father, was a former army medic during WWII, and later a blue collar job worker. His dad never had a plan for his life. His mother Elaine, also referred to as Bobbie took on the role of raising the three children. The family had little money, resulting in both parents working long hours to support his family. Howard...
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...For Starbucks, the term’ people’ encompasses all of their customers, employees, farmers, shareholders and the founder of the company himself. ‘Onwards’ is basically a book about the return of Howard Schultz as the ceo of Starbucks on January, 2008. Howard Schultz returned to his former post in a very difficult time. The company’s overall performance was deteriorating in addition to the ongoing financial crisis of the economy. In spite of all the difficulties, he turned the wheel of the company towards success. So, how did this success come? Was it all about the people or about some other factors? Moreover, what was the reason behind Starbucks’ initial success? In ‘Onwards’ Howard Schultz said, ‘’ we succeed by creating an experience that comes to life, in large part, because of how we treat our people, how we treat our farmers , our customers and how we give back to communities.(chapter-4, page27)’’ and I completely agree with him. Before 2008, Starbucks all focus was limited to company’s growth and store expansion and in the meanwhile they started to overlook their people doing what Wallstreet want them to do. This gradually caused Starbuck to fall from their once secured financial condition. Where to Wallstreet people success in business is high turnover rate, there to Howard Schultz, it was all about peoples satisfaction, how were their experience, feelings etc. His mission was to bring back the magic of “the Starbucks experience’’. And once he ensured that the magic of Starbucks...
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...[pic] Howard Schultz Erika Alfano Yasmyn Oramas MAN3240 Howard Schultz is a very well defined, intellect, knowledgeable man. Howards Schultz was born in Brooklyn, New York on July 19,1953. Schultz graduated from Northern Michigan University with a bachelor’s degree in communications. He was elected as one of the “World’s 50 Great Leaders”, you will know more about why he is during this paper. Howard Schultz is best known as the chairman and CEO of Starbucks and a former owner of the Seattle Super Sonics. Howard Schultz began his career very quickly. It all started after he graduated from college, he was working as a salesman for Hammarplast, a business that sold European coffee makers. As Schultz made his way through the company he noticed they were selling more to a company in Seattle. So, Schultz went to Seattle to see whom they were selling to and once when he walked through the doors of Starbucks he knew he needed to work there, Schultz he said “I can’t explain it. But I knew I was in a special place, and the product kind of spoke to me.” Drawn to Seattle and its extraordinary coffee culture, Howard moved from his native New York and joined Starbucks, in 1982, as director of operations and marketing when Starbucks had only four stores. In 1983, he travelled to Milan, Italy, he saw that there were so many coffee bars, that he came with the idea of coffee drinks. Schultz said, “I saw something. Not only the romance of coffee, but a sense of community. And...
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...Within the Starbucks organization control mechanisms such as, bureaucratic control, market control and clan control are put to use daily. With any type of control mechanism there are positive and negative aspects to each. Let us look at the positive and negative reactions to control mechanisms within the Starbucks organization starting with bureaucratic control. The use of bureaucratic control for Starbucks is implemented and managed on the executive level. At this level, bureaucratic control is used by management to control employee behavior through a system of rewards and formal procedures. One way Starbucks implements its formal procedures is through the control of franchising. Howard Schultz the owner and creator of Starbucks is quoted on franchising by stating, “Starbucks remain steadfastly opposed to franchising, so that the company could control the quality of its products and build a culture common to all stores”(MHHE). Starbucks uses bureaucratic control positively by maintaining control over its product and location sites. Negatively this can impact bureaucratic control when it comes to franchising. Unlike Starbucks, McDonalds encourages franchising. It is through the independent owners of McDonald’s franchises that creative and new products are made and added to the companies menu. Many ideas for new items on the menu come from the franchisees responding to customer demand (MCDONALDS.CO.UK) Market control is another type of control mechanism used by...
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...Starbucks is all about where it started from, GAAP and description of the account principles, cost, revenue and matching for Starbucks Company. Show the application of GAAP in cost recording, revenue recognition, and the matching expenses and revenues. Basically show how Starbucks became a million dollar company. Give a description of their recent accounting standards and pronouncement of the company. Describes how the assertion of internal controls of the company financial statements. Starbucks Coffee Company Introduction/Background Information The founder and CEO of Starbucks Corporation is Howard Schultz. Howard Schultz is a man of vision who turned and unknown coffee company in Seattle Pike Place Market into a large global coffee and the most want and best respected brands to have. (Moe, m 2006) The first store open was in 1971. Starbucks got a new name in 1987 when Schultz Company, II Giornale brought Starbucks and change the name to Starbucks Corporation, at that time it was only 17 stores open. Today, with more than 17 thousands stores in 50 nations, Starbucks has the best roaster coffee and retailer of all kinds brands of coffee in the world. (2012 Starbucks Corporation) From the beginning, Starbucks set out to be a different kind of company. One that not only celebrated coffee and the rich tradition, but that also brought a feeling of connection. (2012 Starbucks Corporation) Here are their Mission Statement that is required by each employer and employee: (2012...
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...Background + Category Starbucks Corporation is an American coffee company. It falls under the restaurant category. It operates as a marketer, roaster, coffeehouse chain and it is the world’s leading specialty coffee retailer. It retail products includes more than 30 types of the world’s top coffee beans, handmade espresso coffee, a variety of hot and cold beverages, fresh food and delicious pastries, coffee machines, coffee mugs and other merchandise. The first Starbucks was founded in 1971; it was a single store in Seattle, Washington. It did not sell brewed coffee and espresso, but only coffee beans. In 1983, Howard Schultz, a former employee of Starbucks traveled to Italy and attracted by Italian coffee bars and the romance of the coffee...
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...STARBUCKS COFFEE HISTORY Starbucks’s history began in 1971 by three teachers who opened a small cafe called Starbucks Coffee, tea and spice in Seattle, USA. They were assertive about their good coffee and exotic teas. They were selling coffee beans and quality teas for people to prepare at their homes. In the early 1981 they hired Howard Schultz who changed the destiny of Starbucks Coffee as director of retail and marketing. Actually Schultz had an experience with the delicious taste of Starbucks Coffee as a customer and thought. When he became a part of company he was thinking there was something magical about Starbucks like passion he had never felt in business before. Schultz offered company to expand their product range and increase the number of stores. Logos and shops were readjusted. In 1990, starbucks made decisions to create headquarters and to centralize the decision making, thus they could easily stimulated the generation of new ideas. They informed their employee and kept responsible them from strategies in daily contact with each other. Individual Creativity is very important in building an innovation. People from different diciplines working effectively together helps them to solve many problems. In 1996, Starbucks was owning 1015 stores all around the world. The next step was to strengthen the brand. They should change the brands image that it was not only product and service also an unique experience on coffee drinking. They had partnership with United...
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...Mr. Howard Schultz, the chairman and CEO of Starbucks Corporation is faced with some immediate and long term challenges in the year 1996. He needs to keep up the brand image of Starbucks, beat the competition, foray into new horizons for expansion, improve on the real estate strategy while maintaining the ‘coffee ‘ experience Starbucks is known for. Immediate issues 1. MacDonald is petitioning for a contract to serve Starbucks coffee. Mr. Howard is sceptical that granting this contract will dilute the brand image of Starbucks. While this can boost revenue in the shorter term, this can also lead to loss in clientele and reputation. Should Mr. Howard agree to the proposal? 2. Starbucks has a goal of having 2000 stores by the year 2000. The number of ‘A’ sites in market has decreased and the task of “street sniffers” is becoming increasingly difficult. The immediate challenge is to expand in different regions of the city. Should he put laser focus on Doppio strategy ? Basic Issues 1. Given Mr Howard’s bad experience at the University store , Starbucks needs to take an active look at the speciality agreements with retailers , restaurants and service providers. They are a big source of revenue generation but any compromise either on the coffee quality or coffee ‘experience’ could lead to loss in clientele, loss of brand and a hard earned niche market segment. 2. The regional competitors such as Second Cup in Canada and Best coffee in Seattle are eating the Starbuck’s...
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...Abstract Starbucks Coffee Co. states it is their mission to inspire and nurture. They have a list of principles used as guides to focus their mission. The culture created by Starbucks embraces diversity within its organization and beyond as its associates engages with customers, suppliers, and the community. Howard Schultz, Starbuck’s CEO, plays a pivotal role in making decisions that impact the entire corporation. He prefers to be a hands-on manager. His main concern is ensuring all pertinent information is communicated to the associates so they are properly equipped to perform their jobs. Howard Schultz is passionate about his job. He understands Starbucks can only be successful if the right decisions are made to promote growth and knowledge. He understands sometimes one step back is necessary to take a giant leap forward. Through training provided to associates, the culture, mission, and values which Starbucks strives to achieve can be attained each day they are open serving cups of coffee to its customers in every neighborhood they touch. Starbucks and Diversity On an average day, each Starbucks location serves approximately 500 customers. As it would happen, serving widely adored coffee is not their only mission. Neither the warm atmosphere nor the constant, friendly chattering of customers is the concentrated goal of Starbucks Coffee Co. The decision to embrace diversity, act with excellence, create exultant customers through a positive environment, look...
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...Executive Summary Starbucks is an international coffee corporation which is a special corporation. In the past 40 years, Starbucks gain a huge success. However, in the process of gainning success, Starbucks also faced a lots of challenges. So what the difficulties it suffered and how it solved the problems are very improtant to our corporation’s success. Introduction Starbucks is an international coffee corporation. When Howard Schultz, the chairman & CEO of Starbucks, attended the Commonwealth Club, he said that “ Starbucks is a special company, not a company better than other companies, but a company different from other companies.” Starbucks creates a third place between working place and home which can provide the sense of community and human connection in every Starbucks store. At the same time, Starbucks provides high quality coffee at high price, so the market target of Starbucks should be the middle-class. Background According to the Starbucks Offical Website we can know that the first Starbucks store was opened in Seattle at 1971s. At that time, Starbucks just sold coffee beacons and coffee equipment for people and only has four stores. In 1987s, Starbucks creates its coffee culture. In 1990s, Starbucks expanded beyond seattle and first to the rest of the America. In 1992s, the stock of Starbucks was traded on the NASDAQ National Market. In 2000s, Starbucks has 6,000 stores over 30 countires. In 2010s, Starbucks has 17,000 stores...
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...EXECUTIVE SUMMARY This analysis succeeds in discussing Howard Schultz’s leadership qualities and how he excels in providing the most beneficial opportunities for Starbucks to be successful and effective. CHANGES IN THE LEADERSHIP TEAM Starbucks is now undoubtedly the leading coffee seller in the world. Its mission statement has transformed over time because the leaders of Starbucks recognize they have profound influence over communities and the world around them. In general, the company recognizes that leadership is not only about supporting a company’s growth, but also about helping communities and societies grow into better places. THEORIES CONTRIBUTING TO SCHULTZ’S SUCCESS Schultz’s management of Starbuck reflects his embodiment of many different theories. Through his intellectual stimulation and consideration, Schultz is responsible for providing a structure for employees to thrive and innovate. This transformational leadership creates an efficient, revolutionary, and inspiring culture that has formed Starbucks into the most successful coffee company in the world. FACTORS INFLUENCING STARBUCKS’ GROWTH There are many factors affecting Starbucks' initial success as a corporation: Schultz's first exposure to Starbucks as an isolated Seattle coffee business, his trip to Italy, and the entrepreneur's experience with venture capital. Schultz was able to stay focused on his goal and mission for Starbucks. By maintaining his focus, he was able to develop...
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...Starbucks’ success is accredited to charismatic leadership as well as a mutual respect of its employees. The company strives to promote effective management, the need for training and development, a supportive work environment, and a standard of equality within the workforce and for their product. Starbucks is a company focused on the customer experience, its employees, and improving the planet. The founder and Chief Executive Officer, Howard Schultz, “knew the baristas would be everything to the company, so he treated them well, offering stock options and health insurance to even part-time employees (and everyone was called a partner)” [sic] (Berfield, p. 30). Schultz is a charismatic and transformational leader and his vision always has been to “sell an experience and so he created a gathering place with its own language and culture” (Berfield, p. 30). Because transformational leaders are those who have a profound effect on their followers and encourage them to transcend their own self-interests (Robbins & Judge), it is not surprising that Schultz is always encouraging the company to be more innovative. He strives to find additional ways to improve operations and continue to grow while maintaining the customers’ experience. Because of Schultz’s vision Starbucks in the same league with many other worldwide American-based food and beverage chains and not simply just a small, quaint coffee shop in the Seattle area. Starbucks attributes a bulk of its success to effectively...
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...culture that contributed to its success in a global economy and look into management’s role with creating and sustaining the organizational culture. I will next assess the effectiveness of the company’s management decisions in providing innovative offerings for its customers. Then I will look into determining one key management competency and indicate one way the competency is a good fit for the organizational culture. Lastly, I will evaluate Starbuck’s ability to achieve long-term sustainability as a global leader in the coffee industry without the organization’s CEO, Howard Schultz. Starbuck’s is a multinational company famously known for its coffee. Starbucks offers some of the world’s finest grown fresh roasted whole bean coffee. The company first opened in 1971, at the historic Pike Place Market in Seattle as one storefront. The Starbucks’ name is from the first mate in Moby Dick. In 1981, now CEO Howard Schultz first walked into a Starbucks store, his first cup of coffee had him intrigued and he joined it a year later. Starbucks maintains its great success by standing by its mission statement “to inspire and nurture the human spirit, - one person, one cup, and one neighborhood at a time”. In addition to offering exceptional coffee, the company offers a selection of teas, pastries, and other treats. Starbucks is one of the most admired companies from 2003 to 2015 in Fortune magazine and has received many other rewards and recognitions over the years. Key elements of Starbucks’...
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...Starbuck’s Job Design Job Purpose is being a leader and role model by showing by example customer service and community involvement. Essential Functions: Set goals for team, recruit and hire team members and shift supervisors, generate reports, train team members safety standards and health standards, implement policies, lead your team by example, communicate and recognize any problems, act quickly for solution, get involved in the community, recruit patrons feedback, delegate task, hold group meetings, create employees work schedules, setting goals for the work group, developing organizational capability, and modeling how we work together, monitors and manages store staffing levels to ensure partner development and talent acquisition to achieve and maintain store operational requirements, utilizes existing tools to identify and prioritize communications and regularly uses discretion to filter communications to the store team, ensures adherence to applicable wage and hour laws for nonexempt partners and minors, solicits customer feedback to understand customer needs and the needs of the local community, uses all operational tools to plan for and achieve operational excellence in the store, tools include Automated Labor Scheduling, monthly status report, Quarterly Business Review, cash management, and inventory management, utilizes management information tools and analyzes financial reports to identify and address trends and issues in store performance, provide partners...
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