How Howard Schultz Is A Proven Effective Business Leader

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Table of Contents; Page Cover Page 1 Table of Contents 2 Introduction 3 Motivation 3 Planning and Decision Making 4 Restructured Organization 6 Conclusion 8 References 9 Introduction “Our mission: to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.” (Starbucks, 2013). That is the mission statement of Starbucks. Whenever you think about who has the most premier cup of coffee or the most mouthwatering Frappuccino, you can’t help but visualize the green twin-tailed mermaid coffee icon. With more than 21,000 locations in 66 countries and revenue upwards of US $16.44 billion (Fortune 500, 2015), something or more importantly someone is…show more content…
Howard Schultz transformed the local coffee manufacturer into a profitable national retailer with a simple, if radical, growth strategy: investing in employees. The centerpiece of Schultz 's master plan is a generous and comprehensive employee benefits package encompassing health care, stock options, training programs, career counselling and product discounts for all workers, full-time and part-time. Although the connection between such an aggressive employee benefits package and the bottom line is often difficult to show conclusively, the circumstantial evidence is compelling. The company is posting higher profit margins every year, and the company 's health care costs, despite the extensive coverage, are well within the national average.” (Guilsborough, Eng., Wellens Pub, 1997) Considering this, Howard Schultz gives his employees more incentives to love working in Starbucks. He sees that rewards and benefits help retain skilled and dedicated workers to solidify the foundation, which will promote better job performances and evidently to a successful business. Employees feel a sense of ownership towards the company, the sense of which they feel economically and spiritually tied to their work. This not only increases morale but also motivates and increases the appeal to work for the company. In addition, this decreases turnover rates. Attractive benefits from a company is not always easy to find, which can help build a tight-knit team of cohesive members who will
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