We examined various leaders throughout the course of history. In each session, we saw how certain leaders exercised specific traits of leadership. Transferring these learnings to the case of Howard Schultz and STARBUCKS, one can see that it is exactly because of Schultz’ comprehensive leadership capabilities, that he was able to lead the successful turn-around of the organization in 2008. Through the following detailed analysis, we’ll highlight critical instances when Schultz employed the ten pillars focused on during class.
Exploration and Discovery. The idea for STARBUCKS came as a result of a personal trip Schultz took to northern Italy. While there he observed the Italian cafe culture. He interacted with and gained an understanding of the local culture and was convinced that it had something to offer to Americans. Commerce and Society. Previously in Seattle, wealthy women would gather in each other’s homes during the day to drink tea or coffee and socialize. Schultz’s plan was to monetize this experience.
He wanted STARBUCKS to become “The Third Place,” (the other two being the home and the office).
Culture. Schultz was convinced that the Italian cafe culture was something that would mesh well with Americans and American culture; Americans, themselves, just didn’t know it yet! It was only through Schultz’ knowledge of both cultures that he was able to make this idea a reality. Emotional Intelligence. Schultz had a very high level of emotional intelligence. On many occasions, he directly demonstrated these attributes in an array of situations.
The Homework on Chinese Culture American Values Abc
Socialization American Born Chinese Children under Chinese Culture According to the American Heritage Dictionary, socialization is "the process of learning interpersonal and interaction al skills that are in conformity with the values of one's society" (American Heritage). It is a process of learning culture. During socialization, children will acquire attitudes, norms, values, behaviors, ...
Self-awareness “We had to admit to ourselves and the people of this company that we owned the mistakes that were made. ” Self-regulation “’Are you out of your mind? ’ — ‘I am doing the right thing. ’” Motivation “We are living in a society where there is a need for human connection…and what we do is bring people together. To look in the mirror and feel like I’ve done something that has meaning and relevancy. ” Empathy “We had to understand that everyone be personally accountable and responsible.
” Social skills “You have to be honest and authentic and not hide. ” Vision. From the initial concept to the turn-around plan, Schultz devised the way to make it all happen. Where an external CEO might have downsized and made drastic spending cuts, Schultz realized that the way to affect change was by getting back to the basics. He said, “The challenge was how to preserve and enhance the integrity of the only assets we have as a company: the values, the culture, the guiding principles, the reservoir of trust with our people. ” Influence.
In order to carry out his vision, Schultz had to have the ability to influence others – his staff, the store workers, the board and the shareholders. While each one is a unique audience with its own set of interests to preserve, Schultz had the know-how in order to convince each party to join his cause. He sums it up by saying, “I think the leader today has to demonstrate both transparency and vulnerability, and with that comes truthfulness and humility and obviously the ability to instill confidence in people, and not through some top-down hierarchical approach.
” Failure. STARBUCKS had failed. Profits and ROA were decreasing; new stores weren’t meeting growth targets. The first step Schultz had to take was to admit something was wrong. “There had to be a time when we stood up in front of the entire company as leaders and made a confession – that the leadership had failed,” said Schultz. Rather than offer excuses or blame others, he went on to add, “The ground was crumbling underneath us because of self-induced issues. I was chairman and I am culpable. ” Innovation and Adaptation.
The Term Paper on Motor Company Ford Web Product
INTRODUCTION The Twentieth Century was profoundly affected by the innovations of Henry Ford. The invention of the automobile gave opportunities to multitudes of people. These opportunities were not just in transportation, but in occupation as well. Today, no matter where a Ford is produced, the consumer knows that they are receiving a high quality product. The reason for this is that the majority ...
Not many people would disagree with the statement that Howard Schultz was a great innovator. Innovation through creation, as well as innovation through adaptation. “Not innovation for innovation’s sake, but innovation that is relevant, usable and core to the culture. ” This included an expanded product line as well as product mix. The option was not just a hot cup of coffee – flavoring, ice, whipped cream could all be added to create a personalized drink. Moreover, STARBUCKS started selling coffee beans in supermarkets, coffee equipment and even food.
As the company expanded overseas, it did not try to force a standard template on new markets. Instead, Schultz recognized the importance of adapting to local cultures and tastes and developing products and design accordingly. This approach was specifically successful in China. Action. Howard Schultz’s action style is that of an alchemist. He successfully led an organizational-wide reinvention of the company, the brand and its people. Schultz went on to define the equity of the brand as, “whether or not the customer feels valued, appreciated and respected.
” The current environment at STARBUCKS did not embody such a sentiment. Strategy. No matter the situation, Howard Schultz was always prepared with a strategy. The main tactic of STARBUCKS was to develop and provide a personalized experience – through increasing its product line and product mix, while also focusing on creating an individual relationship with each customer. Moreover, it expanded to provide drive-thru and Wi-Fi services to meet an even more diversified customer base.
With the increase in competition from McDonald’s, Dunkin and independent cafes, STARBUCKS focused on avoiding the middle by targeting those customers who don’t mind spending a bit more of coffee while receiving more added value. Also, STARBUCKS global, but local presence and its effective use of social media contributed to increase brand awareness and value. In summation, Schultz strategy was to, “Focus on the things that were most important: Be authentic [and find] balance between profitability and having a social conscience and being a benevolent company. ”
The Term Paper on Starbucks: Delivering Customer Service 3
The focus of the paper is to explore the marketing process at Starbucks and evaluate the firm’s decisions. Marketing concepts portrayed in the case will be examined as well. Mission Statement The company’s mission is to: Establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles as we grow. Starbuck’s mission ...
