HOWARD SCHULTZ:

BUILDING Amit Kumar Biswal

STARBUCKS DM21213
Hrithik Jajodia DM21229

COMMUNITY Nanditha K R
Paras Mittal
DM21247
DM21252
M Shaalini DM21266
M Siva DM21270
SECTION 2 GROUP 4
INTRODUCTION
Who is Howard Schultz?
•Born in 1953 in Brooklyn, New York to a Jewish family
•Father was a blue collar worker
•Worked as a sales trainee in Xerox – dissatisfied due to
the rigidness
•Worked at Hammerplast selling coffee filters – Got
introduced to Starbucks
•In 1982, became director of operations and marketing
for Starbucks
•Started Il Giornale in 1985 - chain of espresso cafés in
Seattle
•1987 – 3 new cafes opened – still no profit
•1985- Acquires Starbucks – Renames it Starbucks
Corporation
Timeline
•1971 - Starbucks opens first store in 1971 Seattle’s Pike
Place Market
•1982 - Howard Schultz joins Starbucks as Director of Retail
Operations and Marketing
•1983 - Howard travels to Italy, inspired by popularity of
espresso bars in Milan
•1992 - Completes IPO, traded on the Nasdaq using “SBUX”
•1996 - Opens first stores outside of North America in Japan
and Singapore
•1998 - Acquires Tazo, a tea company based in Oregon.
•2000 - Schultz transitions from chairman and CEO to
chairman and chief global strategist
•2008 - Schultz returns as CEO
CORE IDEOLOGY
CORE VALUES CORE PURPOSE
•Coffee: Quality, quality, and quality “to inspire and nurture the human spirit
•Partner: It’s not just about work, it’s passion – one person, one cup and one
neighborhood at a time.”
•Store: Sense of belonging
•Customer: Connect with, laugh with, and
uplift the lives of our customers
•Neighborhood: Every store is part of a
community
•Shareholders: Our success rewards the
shareholders
STARBUCK’S SUCCESS
Drivers of Starbuck’s Success: Differentiation focus:

•Right person in the right place

•Serve niche buyer than rivals
•Tolerance of diversity of culture
•Has unique capabilities to serve needs of
•Visionary leader
target buyers segment
•Employee satisfaction
•Be profitable and offer good growth
•Built on great global partnership potential
•Respect for local culture
•Resources and capabilities to serve an
•Use of IT attractive niche
•Innovations
STARBUCK’S SUCCESS
•Having well developed values, culture and charter
•Willingness to move out of comfort zone – Introduces flavours of milk
•Ensuring that the organisational culture is adhered to globally
•Making changes and customising according to local culture
•Providing employee benefits and making them feel a part of the family – ESOPs,
Training
•Knowledgeable supply-chain relationships
•Excellent quality control
KEY TAKEAWAY
•Howard Schultz’s vision has ensured that Starbucks has been a market leader
•He revolutionized the coffee experience – From a regular to commodity to a third
place experience
•Its continued success depends critically on their consistent ability to interest,
understand, and empathize with consumers around the world.
THANK
YOU