Ian Munroe
Savannah State University
Critical Leadership Issue
Ian Munroe
Dr. Nicole Cannonier
MNGT 4110
14 April 2015
Howard Schultz: Leading Starbucks Through Change Starbucks Coffee opened the doors to its first location in Seattle in 1971 and moved to its permanent home at Pikes Peak Market in 1976. The humble enterprise was the creation of three college friends; Jerry Baldwin, Zev Siegl, and Gordon Bowker. The original business model was to sell high-quality coffee beans and equipment. Between 1971 and 1986, the company expanded to 6 locations around Seattle. In the beginning, Starbucks did not sell one cup of coffee (Starbucks). The way that Starbucks evolved from its modest roots into the world’s leading coffeehouse company must be credited to the leadership and vision of Howard Schultz. Howard Schultz was born into a poor, Jewish family in 1953 in Brooklyn, New York. He excelled in sports and as a result was offered a full athletic scholarship to Northern Michigan University, becoming the first member of his family to attend college. He graduated with his bachelor’s degree in communications in 1975. His modest childhood led him to develop a strong work ethic and an unwavering tenacity which was shown at his first job at Xerox Corporation. He started his work with Xerox just after graduation and was quickly promoted to a full sales representative. After learning some business prowess, Schultz became the general manager at a Swedish drip coffee
Starbucks Coffee originated in 1971 as a coffee and tea café opening in a small neighborhood of Seattle, Washington (Starbucks Corporation, 2010). Starbucks continued its service for Seattle residents for a decade when the new director of retail operations and marketing, Howard Shultz, decided to make some beneficial changes to the company. After two years of employment Howard Shultz decided to expand Starbucks outside of the Seattle area. In 1987 Starbucks was entering in the coffee market and the few numbers of Starbucks were now becoming a corporation (Starbucks Corporation, 2010). Fast forwarding to current times, Starbucks is
The first Starbucks opened in 1971, in Seattle’s historic Pike Place Market. The name, inspired by Moby Dick. Howard Schultz (Starbucks chairman, president and chief executive officer) had first walked into a Starbucks store. “He had a vision to bring the Italian coffeehouse tradition back to the United States. A place for conversation and a sense of community.” A third place between work and home. From the beginning, Starbucks set out to be a different kind of company. One that not only celebrated coffee and the rich tradition, but that also brought a feeling of connection. ("Company Information | Starbucks Coffee
However, later in life he would have a realization that altered his story and confirmed other aspects of his authentic leadership. This epiphany moment occurred after the death of his father, “’I realized I had judged him unfairly. He never had the opportunity to find fulfillment and dignity from meaningful work’” as a result, Schultz’s story included a second trait of authentic leadership: values (George, 2007, p.4). In George’s article, the confirmation of values occurs when they are challenged. Schultz’s life story created a value driven company of supplying its employees with meaningful work and comforting benefits. Due to his childhood of not having health insurance, Schultz wanted his employees never to have this fear. However, when starting the company, and in need of financial capital, Schultz was presented a decision that challenged his values. Although difficult to walk away from the monetary gain, Schultz maintained his core value of providing his employees with stock options and health insurance (Nocera, 2007, p.1). The last component of authentic leadership to discuss is the practice of
Howard Schultz is the man who grew up in a New York City Housing projects to eventually own Starbucks and gain a personal worth of $2.3 billion. The operating profit of Starbucks was US$3,081.1 million in FY2014, compared to an operating loss of US$325.4 million in FY2013. (Publication, 2015)
The original Starbucks was founded in 1971, in Seattle’s historic Pike Place Market, by three owners Jerry Baldwin, Zev Siegl and Gordon Bowker; who later hired Howard Schultz to be their director of sales in 1982 (Sun). During one of Schultz’s trip to Italy, he saw the essence of how cozy little coffee shops on neighboring street corners played a vital role in the social life of most Italians. It was the main point for the neighborhood, where friends met, mingled
Most Americans know Starbucks, the ever-present retail chain that steadily turned coffee drinking into a prominent activity. Nevertheless few know Howard Schultz, the humble CEO and genius behind Starbucks’. Schultz is credited with envisioning Italy’s “coffeehouse culture” in the United States and packaging it for mass consumption. This eccentric marketer converted a four-chain store operation in the foremost retailer of gourmet coffee in North America.
Starbucks Coffee Company was founded in 1971, opening its first location in Seattle's Pike Place Market. Starbucks, named after the first mate in Herman Melville's Moby Dick, is the world's leading retailer, roaster and brand of specialty coffee with coffeehouses in North America, Europe, Middle East, Latin America and the Pacific Rim. Worldwide, approximately 33 million customers visit a Starbucks coffeehouse each week.
Howard Schultz is the current CEO of the famous and well-known Starbucks Coffee. He was born on July 19, 1953, and grew up in a Brooklyn, New York housing project. Schultz got a football scholarship from Northern Michigan and was the first in his family to graduate from college. He first got a job working as a salesman for Xerox Corporation. He later moved back to New York to sell kitchen equipment and housewares for a Swedish company before landing a marketing job at a small coffee bean store called Starbucks. He traveled to Italy and was inspired to open an espresso bar in the United States. His bosses at Starbucks immediately said no, so he started a rival store in 1987, making his java with Starbucks beans. Two years later he
In 1971, three young entrepreneurs began the Starbucks Corporation in Seattle Washington. Their key goal was to sell whole coffee beans. Soon after, Starbucks began experiencing huge growth, opening five stores all of which had roasting facilities, sold coffee beans and room for local restaurants. In 1987, Howard Schultz bought Starbucks from its original owners for $4 million after expanding Starbucks by opening three coffee bars.
When it comes to the introduction of Starbucks , The Starbucks was initially opened in 1971; the store was in the pike place market in Seattle and sold coffee beans. Where three coffee lovers were huge lovers to their day today coffee was the initials to this world renowned business , Starbucks grew slowly , what they differentiated from the ordinary coffee’s is they looked beyond it
The Starbucks Company was founded in Seattle in 1971 by Jerry Baldwin, Gordon Bowker and Zev Seigel with a dream to inform American customers about the fine coffee drinking experience. In a short time, they became a multi-million-dollar company in the industry from a small coffee business house by keeping their standards high and only purchased premium quality coffee and by giving a unique experience to their customers. Currently, the company is considered on top in the coffee line, and has over 12,000 locations in more than 35 countries. (Starbucks Company Timeline)
Starbucks was founded in 1971 and opened their first location in Seattle’s Pike Place Market (“Company Information,” 2015). Although the company’s website did not give any information on the founders, further research provided the names of three young businessmen. Jerry Baldwin, Zev Siegl and Gordon Bowker opened the store where they only sold coffee beans and coffee making machines (“History of Starbucks,” 2014). In 1981, Howard Schultz became the director of operations. Howard was fascinated by the coffee industry, and a year later took a trip to Italy to gain further insight on the operations of coffee shops. When Howard returned he had acquired new ideas and wanted to serve drinks, not just make the beans. When he could not convince the owners to agree with his ideas, he set out on his own in 1985 and founded Il Giornale. Just two short years later in 1987, Howard Schultz acquired Starbucks with the help of local investors and took over the business (“Starbucks Company Timeline,” 2014). From there, Howard expanded the company and made it into what it is today. The biggest factor overall that has contributed to the company’s growth was when Howard Schultz first started working for the company. From the beginning, he wanted to make the company into so much more than what it was. A specific way that Howard contributed to the growth was when he traveled to Italy. This experience gave him insight on the operations of coffee
Starbucks got its start in 1971 by three academic teaching professionals. English teacher Jerry Baldwin, history teacher Zev Siegel, and writer Gordon Bowker, all three love coffee and decided to open Starbucks Coffee, Tea, and Spice in Pikes Place Market, Seattle Washington. The three partners shared a common love for fine coffees and exotic teas. They believed they could build a clientele in Seattle that would appreciate the best coffees. With this being the case, they borrowed the money and Starbucks’ was born.
Starbucks is the largest coffeehouse company in the world. Starbucks first started its operation in Seattle, Washington on 30th March 1971, by three partners who were students at the University of San Francisco. English teacher Jerry Baldwin, history teacher Zev Siegl and writer Gordon Bowker. Starbucks Corporation has been one of the most successful coffee franchises in the past decade. Boosting the revenues through its marketing strategy and contributing towards the environment (CSR).
The background of the Starbucks is very interesting. “The first Starbucks opened in Seattle, Washington, on March 30, 1971, by three partners who met while they were students at the University of San Francisco. The three were inspired to sell high-quality coffee beans and equipment by coffee roasting entrepreneur Alfred Peet after he taught them his style of roasting beans. The company took the name of the chief mate in the book Moby-Dick: Starbuck, after considering “Cargo House” and “Pequod” Nowadays, the company has been in North America, Latin America, Europe, and the other 37 countries, with more than 12,000 coffee shop and more than 117,000 employees.