Howard Schultz
I. Introduction
Starbucks today is widely recognized as the megabrand for coffee, and there clearly are no close competitors that have its international recognition and scope. Starbucks has grown to employ over “160,000 people and generates about 13.6 billion dollars annually” (Forbes). Much of Starbuck’s success is attributed to a man with a clear vision and drive: Howard Schultz. Howard Schultz’s passion for delivering quality coffee along with a positive café experience has given him the motivational determination to demonstrate exceptional leadership traits. This paper will give a brief overview of the history of Starbucks, and will then investigate the changes that were made after Schultz stepped in. Furthermore, problems that Schultz encountered throughout his time as CEO will also be discussed, along with the key steps he took to bring Starbucks back on to a road of recovery. As a concluding remark, Schultz’s leadership style and abilities will be analyzed in terms of effectiveness.
II. A Brief History of Starbucks
Looking at the Starbucks company today, it is difficult to imagine that a company that has over twenty thousand locations in sixty-one countries (Starbucks) was once a single small retailer that had only three employees. In 1971, three academics, Jerry Baldwin, Zev Siegel, and Gordon Bowker, opened a small store at Pikes Place Market based on their collective love for fine coffee-making. Baldwin, Siegel, and Bowker’s initial goals were to expose Seattle to bring a refined coffee culture that existed in the San Francisco Bay Area. The three looked to Alfred Peet, an expert coffee roaster from Berkeley, CA, who taught them the art of dark-coffee roasting. Baldwin, Seagel, and Bowker took on that knowledge to produce their own roasts and blends that were then distributed in their stores. Ten years later, Howard Schultz, then the vice president and general manager for a Swedish kitchen and housewares, visited Starbucks to see why they were
Starbucks today is widely recognized as the megabrand for coffee, and there clearly are no close competitors that have its international recognition and scope. Starbucks has grown to employ over “160,000 people and generates about 13.6 billion dollars annually” (Forbes). Much of Starbuck’s success is attributed to a man with a clear vision and drive: Howard Schultz. Howard Schultz’s passion for delivering quality coffee along with a positive café experience has given him the motivational determination to demonstrate exceptional leadership traits. This paper will give a brief overview of the history of Starbucks, and will then investigate the changes that were made after Schultz stepped in. Furthermore, problems that Schultz encountered throughout his time as CEO will also be discussed, along with the key steps he took to bring Starbucks back on to a road of recovery. As a concluding remark, Schultz’s leadership style and abilities will be analyzed in terms of effectiveness.
II. A Brief History of Starbucks
Looking at the Starbucks company today, it is difficult to imagine that a company that has over twenty thousand locations in sixty-one countries (Starbucks) was once a single small retailer that had only three employees. In 1971, three academics, Jerry Baldwin, Zev Siegel, and Gordon Bowker, opened a small store at Pikes Place Market based on their collective love for fine coffee-making. Baldwin, Siegel, and Bowker’s initial goals were to expose Seattle to bring a refined coffee culture that existed in the San Francisco Bay Area. The three looked to Alfred Peet, an expert coffee roaster from Berkeley, CA, who taught them the art of dark-coffee roasting. Baldwin, Seagel, and Bowker took on that knowledge to produce their own roasts and blends that were then distributed in their stores. Ten years later, Howard Schultz, then the vice president and general manager for a Swedish kitchen and housewares, visited Starbucks to see why they were