Starbucks
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Howard Schultz originally joined Starbucks in 1982 and helped grow the company before leaving in 1985 to start his own coffee business, which he later sold to Starbucks while retaining the Starbucks name. Schultz rejoined Starbucks as CEO in 2008 to help address various challenges like financial troubles, disconnect from core values, and changes in consumer behavior. Under Schultz's renewed leadership, Starbucks refocused on its core coffee business and values of customer connection. Schultz emphasized strong leadership, a clear vision, deep company knowledge, and returning to roots to successfully transform Starbucks culture and reinvention.
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Starbucks has become the number one coffee retailer of the world. It is also the largest coffeehouse in the world with more than eighteen thousand coffee shops in 60 countries and opens on average, two stores per day (Farfan, 2014). Starbucks success has been accomplished with unconventional methods. For example, Starbucks does not use advertisement on billboards or on commercials. Instead their success is based on building enduring relationships as well as creating a “third place”. This third place is a place in-between home and work. People want to go there because it is convenient, inviting, familiar, safe, comfortable and unhurried. With thousands of stores and over a million of customers, they still focus on “one customer, one partner, one coffee at a time” (starbucks, 2014).
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Overview of the organization
Starbucks Corporation commonly referred to as Starbucks coffee is one of the organizations from the Fortune 500. Starbucks is an American Coffee company that was founded by Jerry Baldwin, Zev Siegel and Gordon Bowker in 1971. The company has its headquarters in Seattle Washington and serves a worldwide region with an approximately 22,551 locations. Starbucks’ web address is starbucks.com. Starbucks coffee was ranked 5 in the Fortune 500 in 2015 in relation to food services. Starbucks coffee is the leading coffee dealer in the world. Under the effective management of the Howard Schultz ,who is both the president and the Chief executive officer of the company, it has been in a position to achieve its goals and objectives of being the leading dealer in quality coffee. Starbucks coffee has an employee standing of approximately 191, 000. The many employees enable it to execute its duties and responsibilities effectively (Schultz, Howard, 2011).
Organizational strategy and business model
Organizational strategy and business model are key concepts that determine the success of any business. With regard to organizational strategy, Starbucks coffee adopts a very effective organizational structure where there are clearly spelt out duties and responsibilities of each member of staff. However, the company’s main goal is to provide quality coffee and other products to the customers. Starbucks adopts a business model made up of various elements. Some of these elements include personal passion, an emotional connection as well as standing for something. These are the key elements of the company’s business model and that has helped the business achieving its glorious success.
Products
With reference to products and services, Starbucks Coffee offers a wide range of products in order to meet the diverse needs of the customers. Some of the products that the company provides to the customers include whole bean coffee, tea, Frappucino, espresso, pastries as well as snacks. The company’s products are usually highly priced compared to those of its close competitors (Schultz, Howard, 2011).
In terms of market positioning, Starbucks Coffee is the best and most successful company in the Coffee shop industry. Much of its success is associated with the effective leadership and very effective customer service. Quality is a core value in the organization as it strives to provide not only quality coffee but also quality treatment of the customers (Bussing-Burks, 2009).
There are various sources that I have used in gathering information about Starbucks coffee. Some of these include the company’s website, the company’s annual reports as well as textbooks.
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Starbucks began in 1971 in Seattle and grew to over 140 stores in the Northwest and Chicago by 1987 when founder Gerald Baldwin sold the company to Schultz. Under Schultz's leadership as Chairman and CEO, Starbucks established itself as the dominant coffee chain in North America, growing to over 6,000 stores by 2002 through focus on quality products, atmosphere, service, and innovative distribution channels. However, surveys found problems with brand image and meeting evolving customer needs and preferences. To improve customer satisfaction, Starbucks conducted more market research, enhanced training, and engaged in corporate social responsibility initiatives.
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Starbucks
- 1. MBA -2016 Presentation on “Starbucks reinvention and Howard Schultz” Group 1 Antonio Paula Arianna Anupam
- 2. Starbucks’ Timeline •Founded by Jerry Baldwin , Zev Siegl & Gordon Bowker1971 •Howard Schultz Joins1982 •He quits and opens Il Giornale1985 •He acquires Starbucks but retain its name1987 •Launches IPO in market1992 •He quits the position of CEO2000 •Schultz Joins again2008
- 3. Starbucks stores opening Trend Reference - Wikipedia article on Starbucks
- 4. Financial Trend (2000-2009) Reference :-The HBR Interview : “We had to own the mistakes”
- 5. Group Members and focus on different Management perspectives Antonio Technology Driven Workplace Paula Contingency approach Anupam System thinking Approach Arianna Total Quality Management
- 6. 2008 Financial & Economic Crises Challenge from Social Media Leadership Crises Vision & Mission Crises Outside Competitors Changed Consumer behavior Disconnection from Core Values Management Challenges for Howard Schultz
- 7. Schultz’s skills to run Starbucks effectively as new CEO Strong Leadership Proven Credibility Responsible Innovation Efficient & effective decision making Great Communicator Deep Knowledge about the company Clear vision
- 8. Being True to the core Value Readiness for transformation Customer Orientation Strong Ethics Going back to the roots Earn respect instead of earning only profits Main principles behind Schultz’s approach to managing
- 9. New Skills required to learn by Managers and Employees for Starbucks’ new culture Cultural Transformation Systemic Approac h Accepta bility for transfor mation Technolo gical advance ment Accepta bility for the feedback New communi cation method Belongin gness CSR
- 10. Thank You !