Book reporting of Onward

1. Book Report
C-Suite Perspectives
Leadership & Integrated Marketing
Chiawei Chang
Yunqing Gu

2. Background
Howard Schultz
Chairman, President, CEO
Born in Brooklyn, NY
1981 Moved to Seattle
Worked in the Starbuck
(Marketing Director)
1985 Left Starbuck
Opened ll Giornale
1988 Starbucks was sold to
ll Giornale > Starbucks
2008 Returned as CEO

3. ------------LOVE------------
-------CONFIDENCE------
------------PAIN------------
------------HOPE------------
---------COURAGE---------
How Starbucks fought for its live without losing its soul

4. ------------LOVE------------
-------CONFIDENCE------
------------PAIN------------
------------HOPE------------
---------COURAGE---------

5. PART1-LOVE
• Love what you do
- Passion

6. • Love your product
- Perfect shot of
Espresso

7. • Love your customer
– Community
– Understand the need
– Extend the brand
beyond coffee into
entertainment

8. • Love your employees
– Memo, Walk to talk
– Full health care benefit
and equity

9. • Love environment
– Global Green USA
– Educate customer
– Renewable energy

10. 2007
Traffic slow down tremendously, stock dropped by
42 percent
• Growing too fast
• Deviate from its heritage
• Out-dated digital platform
How to make it right ?

11. ------------LOVE------------
-------CONFIDENCE------
------------PAIN------------
------------HOPE------------
---------COURAGE---------

12. CONFIDENCE
To instill confidence.
why?
• Sense of safety
• Competitor: McCafe

13. SEVEN BIG MOVES
1. Be the undisputed coffee authority.
2. Engage and inspire our partners.
3. Ignite the emotional attachment.
4. Expand our global presence and make each
store the heart of the local neighborhood.
5. Be a leader in ethical sourcing and
environmental impact.
6. Create innovative growth platforms worthy of
our coffee.
7. Deliver a sustainable economic model.

14. • Be the undisputed coffee authority.
– Quality

15. • Expand our global presence and make each
store the heart of the local neighborhood.
– Increase local relevancy by redesigning products
and stores.

16. • Create innovative growth platforms worthy of
our coffee.
– Products expanding and complementing.

17. ------------LOVE------------
-------CONFIDENCE------
------------PAIN------------
------------HOPE------------
---------COURAGE---------

18. PART.3 PAIN
• Sales fall down
• Close 600 stores
• Fire 550 employees
• Products failure
“Starbucks is a people company service coffee.”
-Howard Schultz

19. PART.3 PAIN
Reason:
• Economy downfall
• Low services ratio
• High Investment

20. PART.3 PAIN
Solution
1. Customer- value proposition
– increase service speed
– meet seasonal needs
– Loyalty program value
2. Employees- clarify
– Barista buy-in required
– cut low efficiency products
– find believing people

21. ------------LOVE------------
-------CONFIDENCE------
------------PAIN------------
------------HOPE------------
---------COURAGE---------

22. PART.4 HOPE
• Supply chain problems
• Social responsibility event
(New Orleans annual conference)
• Digital marketing campaign
(presidential elect day)
• Making friends of boards
“People want to do business with companies
they respect and trust, especially in the current
climate.”
-Bono(U2)

23. HOPE
Because
• company- supply chain problems
– northeast services speed slowdown
– short of provision
– some fund in the bankruptcy bank
• Consumer-economic crisis
– customer become frugal
– Look upon respect and trust

24. HOPE
Don’t blame for the past, find future confidently
1. cut operating costs - New laptops and POS system
2. close to partners - $30 M New Orleans conference
3. social responsibility - Homeless volunteer with SYP
4. emotional connect - Partnership with Bono(U2)
5. Interactive online - Digital campaign with BBDO

25. ------------LOVE------------
-------CONFIDENCE------
------------PAIN------------
------------HOPE------------
---------COURAGE---------

26. Part 5: COURAGE
• Reinvented by scientists
• Engagement online
• Met merchant in Italy
• Rwanda trip for charity
• Trip to Shenzhen-globalize
“If this was your store, what would you do differently?”
-Howard Schultz

27. COURAGE
• category innovation -
Via instant coffee
– team work as a science
– relevant to public interests
(blizzard partnership reject)
– emotional connection
(Unique local culture stores in Seattle)
– Employees’ care
(how to improve their works)
(Health care plan)
– Commitment supplier
(helping Rwanda famer by Charity)

28. COURAGE
• Globe strategy
– challenged or fighting for survival
– globally stabilization refocus on growth
– opportunities and risks implied.
• China
– 1.3 billion population
– 700 stores in 2009
– locally relevant culture

29. Take-away
Authentic
Customer
Employee
Passionate
Idea
Execution
Encouraging
Business
Management
Partner
Valuable
Internal
External
Loyalty
Strategic
Globally
Locally
Exquisite
Expertise
Technology

30. Take-away
• Authenticity
– Customer
– Employee

31. Take-away
• Passionate
– Idea
– Execution

32. Take-away
• Courage
– Risks
– Changes

33. Take-away
• valuable
- Internal - External -Loyalty

34. Take-away
• Strategic
– globally
– Socially

35. Take-away
• Exquisite
- Expertise -Technology

36. About Books
• More like a marketing plan than actual story
• Dramatic tone (likes more and haters worse)
• the story of Howard Schultz other himself
– (who has the help of a ghostwriter, Joanne Gordon).
• skeptical about the some parts

37. For Me
• Choosing a career that
I am passionate about.
• Choosing a career where
my employer appreciated
what I bring to the firm
• Choosing a career that
has great benefits is a
big plus.

38. Thank You
&
Questions?