The document provides a history of Starbucks, describing its founding in 1971 in Seattle and expansion globally. It discusses Howard Schultz's transformational leadership, including inspiring employees by making them shareholders. Schultz sources coffee knowledge from international travels. The summary also outlines Starbucks' corporate social responsibility efforts and how it can gain a competitive advantage, such as expanding food options and drive-thrus.

1. Compiled by:
Keshia Chithray
STARBUCKS

2. COMPANY HISTORY
A) ENGRAVING OF A TWIN-TAILED SIREN (15TH
CENTURY);
B) FIRST STARBUCKS LOGO (1971 - 1987);
C) IL GIORNALE LOGO;
D) MERGING OF STARBUCKS AND IL GIORNALE
(1987 - 1992);
E) REDESIGNED STARBUCKS LOGO (1992 -
TODAY);
F) CURRENT STARBUCKS LOGO, A REVIVAL OF
THE ORIGINAL
SEATTLE, 1971 - FIRST STARBUCKS

3. COMPANY HISTORY
• BEGAN IN 1971
• FIRST STORE - SEATTLE
• SEVERAL BRANCHES OF
STARBUCKS ALL OVER THE
WORLD

4. • FRESH BREWED COFFEE
• ITALIAN - STYLE ESPRESSO BEVERAGES
• TEA
• COFFEE RELATED ACCESSORIES &
EQUIPMENT
• FOOD
PRODUCTS

5. HOWARD SCHULTZ - A
TRANSFORMATIONAL LEADER
HOWARD SCHULTZ - CEO OF
STARBUCKS
• TRANSFORMATIONAL LEADERSHIP ARE
SIMILAR TO CHARISMATIC LEADERS, BUT ARE
DISTINGUISHED BY THEIR SPECIAL ABILITY TO
BRING ABOUT INNOVATION AND CHANGE.
• TRANSFORMATIONAL LEADERS EMERGE TO
TAKE AN ORGANISATION THROUGH MAJOR
STRATEGIC CHANGE.
• HOWARD SCHULTZ STYLE REVOLVES AROUND
INSPIRATION FROM OTHER COUNTRIES AND
PLACES THAT HE CAN IMPLEMENT IN HIS
BUSINESS.
• HE FINDS PLACES OF CONVENIENCE WHERE
HIS PRODUCTS ARE SUITABLE AND CAN BE
ENJOYED.
• HE HAS MADE THE EMPLOYEES
SHAREHOLDERS IN THE BUSINESS SO THEY
CAN GO BEYOND THEIR EXPECTATIONS AND
HE HAD IMPLEMENTED COMMUNITY
INITIATIVES.

6. LEADERSHIP POWERS THAT
HOWARD SCHULTZ POSSESSES
THE POWER OF REWARD
• EMPLOYEES ARE MADE SHAREHOLDERS OF THE ORGANISATION HENCE THEY
ARE REWARDED FOR GOING THE EXTRA MILE WHEN PERFORMING THEIR
DUTIES
EXPERT POWER
• HOWARD SCHULTZ POSSESSES KNOWLEDGE ABOUT THE DIFFERENT TYPES
OF COFFEE. DUE TO HIS EXPERT KNOWLEDGE WITH TOURING THE WORLD TO
FIND OUT HOW COFFEE IS SERVED THEREFORE HE HAS EXPERT POWER.

7. HOWARD SCHULTZ
LEADERSHIP ETHICS
• PROVIDE A GREAT WORKING ENVIRONMENT AND TREAT EACH OTHER WITH RESPECT
AND DIGNITY.
• EMBRACE DIVERSITY AS AN ESSENTIAL COMPONENT IN THE WAY WE DO BUSINESS.
• APPLY THE HIGHEST STANDARDS OF EXCELLENCE TO PURCHASING, ROASTING , AND
FRESH DELIVERY OF STARBUCKS COFFEES
• DEVELOP ENTHUSIASTICALLY SATISFIED CUSTOMERS ALL THE TIME.
• CONTRIBUTE POSITIVELY TO OUR COMMUNITIES AND OUR ENVIRONMENT.
• RECOGNISE THAT PROFITABILITY IS ESSENTIAL TO OUR FUTURE SUCCESS.
• THE CORNERSTONE VALUE OF STARBUCKS IS “TO BUILD A COMPANY WITH SOUL”
• NEVER STOP PURSUING THE PERFECT CUP OF COFFEE, BUYING THE BEST BEANS
AND ROASTING THEM TO PERFECTION.
• CONSISTENTLY PLEASING CUSTOMER SERVICES, PROVIDED BY KNOWLEDGEABLE
AND ENTHUSIASTIC EMPLOYEES WHO KNOW THE COMPANIES PRODUCTS, PAY
ATTENTION TO DETAIL WHEN PREPARING DRINKS, AND COMMUNICATE THE
COMPANY’S PASSION FOR COFFEE

8. CORPORATE SOCIAL
RESPONSIBILITY
• BROAD-BASED INITIATIVES
TO CONTRIBUTE
POSITIVELY TO THE
COMMUNITIES IN WHICH
IT’S STORES ARE
LOCATED AND TO THE
ENVIRONMENT.
• ALSO CONTRIBUTING TO
CARE FOR THE WORLD
WIDE RELIEF EFFORT
THAT SPONSORED
HEALTH, EDUCATION, AND
HUMANITARIAN AID
PROGRAMS, IN ALL THIRD
WORLD COUNTRIES
WHERE THEY PURCHASED
COFFEE SUPPLIES

9. TRAITS OF A LEADER
• TRAIT LEADERSHIP: INDIVIDUAL WHO LEADS THE COMPANY WITH A SET OF
TRAITS IS A GOOD LEADER
• GREAT LEADERS: CRITERIA ARE INTELLIGENCE, ASSERTIVENESS, GOOD
VOCABULARY, ATTRACTIVENESS, SELF-ASSURANCE AND AN EXTROVERT
PERSONALITY.
• HOWARD SCHULTZ: A SELF-DRIVEN EXTROVERT. HIS “IDEA” WAS BOUGHT TO
THE FOUNDERS OF STARBUCKS.

10. BEHAVIOURAL LEADERSHIP
• CHARACTERISTICS INFLUENCED BY THEIR
BEHAVIOUR, DELEGATION, COMMUNICATION AND
MOTIVATION OF SUBORDINATES
2 TYPES OF BEHAVIOURAL LEADERS:
• AUTOCRATIC BEHAVIOUR: TASK ORIENTATED,
SUPERVISION AND CONTROL OVER SUBORDINATES
TO ENSURE THAT THE WORK IS DONE.
• DEMOCRATIC: EMPLOYEE ORIENTATED, THE
LEADER IS FOCUSED ON MOTIVATING EMPLOYEES,
LESS CONTROL, CREATING MOTIVATED GROUPS
• HOWARD SCHULTZ: FOCUSES ON EMPLOYEES,
TRUSTING STAFF TO KEEP THE FRANCHISES UNDER
CONTROL

11. SITUATIONAL LEADERSHIP
• LEADER OR MANAGER OF AN
ORGANISATION MUST ADJUST HIS STYLE
TO FIT THE DEVELOPMENT LEVEL OF
THE FOLLOWERS HE IS TRYING TO
INFLUENCE (SMALL BUSINESS)
• HOWARD ADAPTED TO THE RELEVANT
SPECIALTY OF COFFEE SALES AT
GIORNALE THAT WERE POPULAR IN
MILAN.
• USING THE SITUATION AT HAND TO
DEVELOP GIORNALE TRANSFORMED
THE BRAND INTO BECOMING
STARBUCKS.

12. CONTEMPORARY LEADERSHIP
• LEADER WHO USES HIS PERSONAL INFLUENCE TO
MOTIVATE HIS EMPLOYEES.
• HOWARD USED HIS VISION OF CREATING A COMPANY
THAT CARES FOR ITS PATRONS AND THE COMMUNITY
AT LARGE.
• TO INFLUENCE HIS EMPLOYEES TO BE FOCUSED AND
MOTIVATED IN THE DIRECTION OF HIS VISION AND
MISSION.

13. COMPETITION
MACDONALDS ADVERT IN SEATTLE

14. HOW CAN STARBUCKS GAIN A
COMPETITIVE ADVANTAGE

15. HOW CAN STARBUCKS GAIN A
COMPETITIVE ADVANTAGE
• EXPAND FOOD SELECTION TO SALADS,
SOUPS AND SANDWICHES.
• EXPAND TO MORE COUNTRIES AROUND THE
GLOBE.
• TYING WEBSITE TO THE STORE BY
ORDERING ONLINE AND PICKING IT UP AT
THE STORE.
• OPENING MORE STARBUCKS WITH DRIVE-
THRUS.
• WIDENING MORE INTERNATIONAL
EXPANSION OF STARBUCKS AND ADAPTING
TO THE DIFFERENT CULTURES’ AND TASTES
• CREATE PARTICULAR FLAVOURS
ASSOCIATED WITH BIG EVENTS OR PERIODS
OF THE YEAR OR DIFFERENT CULTURES TO
ATTRACT CURIOUS PEOPLE
• FORMING PARTNERSHIPS WITH CELEBRITIES
TO PROMOTE THE BRAND

16. REFERENCES
BOOKS:
SMIT, P.J., CRONJE, G.J., BREVIS, T., AND VRBA, M.J. 2013. MANAGEMENT
PRINCIPLES: A CONTEMPORARY EDITION FOR AFRICA. 5TH ED. SOUTH AFRICA:
JUTA & COMPANY LTD.
INTERNET SOURCES:
HOGG, B. 2015.10 CHARACTERISTICS OF TRANSFORMATIONAL LEADERS.
AVAILABLE: HTTP://WWW.BILLHOGG.CA/2015/11/10-CHARACTERISTICS-OF-
TRANSFORMATIONAL-LEADERS/ (ACCESSED 9TH JULY 2016)
MINDTOOLS. 2016. TRANSFORMATIONAL LEADERSHIP. AVAILABLE:
HTTPS://WWW.MINDTOOLS.COM/PAGES/ARTICLE/TRANSFORMATIONAL-
LEADERSHIP.HTM (ACCESSED 8TH JULY 2016)

17. THANK YOU FOR YOUR ATTENTION!
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