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Howard Schultz Case Study (Howard Schultz (dissatisfied with Xerox because…
Howard Schultz Case Study
Starbucks
built by Schultz & other investors to become leading retailer
more than 11500 stores
more than 140000 employees
in 2006, made revenues in excess of $5 billion
In founding it, Schultz wanted to created company that could
value & respect employees
build trust
provide healthcare
link cultural values to shareholder value
founded in 1971
In 2006, faced challenge from competitors
McDonalds
Dunkin Donuts
Howard Schultz
purchased Starbucks in 1987
at 7 years, his family struggled financially
Starbucks inspiration drawn from seeing his father suffering in blue-collar jobs
was an aggressive competitor
driven by relentless growth
Born in Brooklyn in 1953
mother was a home-maker
neighborhood provided him with experience needed for dealing with all kinds of people
In high school, worked as skin stretcher
leadership skills evident in schoolyard
offered scholarship to play at Northern Michigan University
Graduated in 1975
Returned to New York as Xerox sales trainee after graduating
dissatisfied with Xerox because it was
too strict
too bureucratic
too rigid for him
faced various challenges
loss of his father in 1988
finances
struggled to build a unique Starbucks culture
Starbucks Idea
Encountered Star
Starbucks Idea
Encountered Starbucks Coffee during sales in Seattle
Married Sheri & moved to Seattle
Became Director of Operations & marketing
Opened first II Giornale in 1985 in Seattle
Dave Olsen partner, helped him to run the cafe operations
was originally Schultz's idea
Starbucks Strategies
stealth marketing
unique culture
word of mouth marketing
early adoption by Hollywood taste-makers
codification of values in mission & value statement
offered generous employee benefits
offered training programs
offered employee stock ownership programs
openness & customer service
customer experience
Starbucks guiding principle
great work environment, respect & dignity
embracing diversity
applying high standards of excellence
customer satisfaction
positive contribution o the environment & community
Appreciates value of profitability for success
Starbucks environmental mission statement
understand environmental issues and share information
develop innovative sales for change
use of environmentally friendly products
project evaluation and monitoring
encourage partners to share in their mission