Executive Summary of Starbucks

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SUMMARY 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 modest family of Brooklyn. Indeed, his father combined 3 different jobs to support his family. His mother was a homemaker who transmits her values to her children. She was a strong-willed person who wants a good 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 didn’t want to stay in Brooklyn. Indeed, he met many different people who came from different backgrounds. He said that “Diversity isn’t something I had to learn. I lived it”. It’s 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 don’t realize them in the moment. But at the time he thought that his father could have accomplished so much more if only he had tried. This natural leadership ability stood out in the schoolyard. The Sport’s domain was the example. Indeed, it allows him to have a scholarship until University in Northern Michigan.

After graduating, Schultz made a sales trainee in New-York in Xerox. Despite a good income, he didn’t like this job for several reasons: This Company was too bureaucratic, strict and rigid and he didn’t have a voice. Finally, he didn’t find a link between this company and his values.

* Creating Starbucks

Howard had already works in the field of coffee. So one day, he was encountered Starbucks Coffee and was very 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 growth potential of this Company especially in the gourmet and food markets. He realized that during a trip to Italy. Indeed, he noticed the unique community experience that Milanese espresso bars played in their customers’ daily lives. He will be based on this model to launch his own business: Il Giornale. This business was a chain of espresso cafés 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 new company with the name of Starbucks Corporation. Indeed, this name was so known by customers.

But the development of this business wasn’t so simple. The first in which Schultz has faced 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 Schultz’s head. They said “If you don’t take this deal, you’ll never work in this town again. You’ll never raise another dollar. You’ll be dog meat”. As a leader, Howard Schultz didn’t renounced. He prepared an alternative plan cancelled the dilution and he managed.

* Growing Starbucks

The father’s death of Howard Schultz has completely changed his state of mind. He realized that his father’s life wasn’t the same as hers. In those days there was no health insurance and no workmen’s compensation. So, he decided to make Starbucks the first American company to provide access to health coverage for qualified employees. Indeed, this event is directly linked to the culture and the values of Starbucks. He wanted to build the king of company that his father never had a chance to work for, where you would be valued and respected no matter where you came from, the color of your skin, or your lever of education. He wanted 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 stores in five year. In the...
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