Howard Schultz

1736 Words7 Pages
I. Introduction
Starbucks today is widely recognized as the megabrand for coffee, and there clearly are no close competitors that have its international recognition and scope. Starbucks has grown to employ over “160,000 people and generates about 13.6 billion dollars annually” (Forbes). Much of Starbuck’s success is attributed to a man with a clear vision and drive: Howard Schultz. Howard Schultz’s passion for delivering quality coffee along with a positive café experience has given him the motivational determination to demonstrate exceptional leadership traits. This paper will give a brief overview of the history of Starbucks, and will then investigate the changes that were made after Schultz stepped in. Furthermore, problems that
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He made sure to add “A players” to his team: roasters and café owners with decades of experience, a president of a profitable beverage company, and a CFO with eighteen years of management consulting experience at Deloitte and Touche. Schultz was able to see the need to recruit strong players with a lot of experience in the coffee and management industry. Early on, Schultz addressed the lack of organization management that was crucial for Starbucks to accelerate forward.
Employee Enthusiasm and Commitment Another problem that Schultz faced was the issue of building a strong core of employees throughout the company. Schultz found that as the company grew, it lacked strong dedication from its employees. Starbucks had a high turnover rate, just like many other entry-level service jobs at McDonalds or retail stores. Schultz saw this as a huge problem for not only the money Starbucks lost through losing an employee and having to pay more to hire and train new ones, but also losing team members. Schultz wanted to create an environment for Starbucks employees in which they would want to stay in. Schultz had difficulties convincing Starbuck’s Board of Directors to invest in constant training, higher salaries, and rewards based on merit. He even went far enough for wanting baristas to become invested in building Starbucks into a great company, and thus offered them stock options. The biggest action step
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