Preview

Howard Shultz

Powerful Essays
Open Document
Open Document
1157 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Howard Shultz
The success of Starbucks Cafes is attributed to the adept management of smart ideas instituted by Howard Shultz and played out through his leadership style. According to Kim Fellner in the book Wrestling with Starbucks: Conscience, Capital, Cappuccino, Howard Schultz, the founder and CEOof Starbucks cafes is the reason why the company had “a very good year in 2003...with a net sales of $ 4.1 billion (almost twice what it had earned in 2000 when it yielded $265 million” (16). The reason for the successful longevity of Starbucks Cafes is due to Howard Schultz’s leadership that is an example of the collaborative style that incorporates a social view. Schultz’s leadership is a sign of the times and displays what is needed in the modern business environment. The modern business environment is much more competitive and complex; plus, the pace that an organization has to maintain to stay competitive is at a much higher speed than many years ago. In order for organizations to be enormously effective, they need move from the old style of senior management that maintained direction and control. The collaborative style of leadership is not any less stringent than the senior management style; it is just less-centralized; it has less top-down control. The collaborative style of leadership promotes an autonomous self-governing workforce that is more flexible. The collaborative leadership style institutes empowerment in the workforce. Page 1 Leaders gain quality from their employees by motivating them to be self-motivated in the As Cameron et al contend, Schultz took Starbucks and changed it from “a mature commodity business...into a lucrative, fast-growing business where the market share was stolen from the big three wholesale competitors” (154). Under the collaborative leadership of Schultz, the Starbucks organization empowers the people who work in the cafes. Employees are provided continuous encouragement, feedback, and recognition for their achievements.


Cited: Cameron, Kim, Robert Quinn, Jeff Degraff, and Anjan Thakor. Competing Values Fellner, Kim. Wrestling with Starbucks: Conscience, Capital, Cappuccino. Piscataway: Rutgers U P, 2008. Fowler Koehn, Nancy. Brand New: How Entrepreneurs Earned Consumers’ Trust from Hughes, Richard, and Katherin Colarelli Beatty. Becoming a Strategic Leader: Your Role Quirk, Michael. The 2nd Language of Leadership. Philadelphia: Lawrence Erlbaum Associates, 2000. Schultz, Howard, and Dori Jones Yang. Pour Your Heart into It: How Starbucks Built Woolfe, Lorin. The Bible on Leadership: Management Lessons for Contemporary Leaders. New York: John Wiley and Sons, 2002.

You May Also Find These Documents Helpful

  • Better Essays

    Org 581

    • 1304 Words
    • 6 Pages

    Starbucks current structure is categorized as a mechanistic organization, which is comprised of highly vertical and horizontal complexities, highly formalizations, highly centralizations, tapered lengths of control, and highly standardizations. The CEO of Starbucks, Howard Shultz, has worked to create a more efficient and streamlined structure where information can flow freely from customer and low-tier employee to the corporate level. To facilitate this process has allowed Starbucks to expand to locations like China.…

    • 1304 Words
    • 6 Pages
    Better Essays
  • Good Essays

    BA 440 Starbucks SWOT

    • 870 Words
    • 3 Pages

    Starbucks employs over 149,000 workers and brought in a profit of $1.38 billion in 2012 (www.strategicmanagementinsight.com). The company is a household name that has been featured in television and movies and a brand that is sought after by countless celebrities. Although the company is the top retailer of coffee in the United States, Starbucks has shown a trend in sales since early 2009 that allude to the fall of the “great coffeehouse empire”. Because of this troubling news, executives at Starbucks have began to look deeper into the strengths and weakness of the organization and have tried to build courses of action that will help propel the chain back to the top of their market.…

    • 870 Words
    • 3 Pages
    Good Essays
  • Better Essays

    I do not believe that Howard Shultz was a leader who found a means to lead, I believe that he found a passion and desire so strong that he knew the only way he would ever see his vision is if he led the charge. Although many of the ideas that were used to make Starbucks what it is today came from one man and his vision, without Shultz’s unique style of leadership, it is safe to say Starbucks would no longer exist.…

    • 2090 Words
    • 9 Pages
    Better Essays
  • Better Essays

    starbucks case

    • 1362 Words
    • 5 Pages

    The return of Starbucks’ CEO was a clear success. In fact, the company has witnessed a great financial performance, since the return of its visionary CEO, Howard Schultz, who not only possesses efficient management skills but also, a great sense of leadership flair. For instance, Shultz proceeded to launch a series of actions to reorganize Starbucks into the company he envisioned it ought to be, push the company into new plateaus of differentiation and innovation, while preparing for renewed global expansion. Those transformational efforts were indeed the centerpiece of his return.…

    • 1362 Words
    • 5 Pages
    Better Essays
  • Powerful Essays

    Schultz is a very hands on leader. In his book Onward: How Starbucks Fought for Its Life without Losing Its Soul (2011), he demonstrates his leadership abilities and the trial and tribulations Starbucks went through after he…

    • 1269 Words
    • 6 Pages
    Powerful Essays
  • Good Essays

    Starbucks: Expansion

    • 431 Words
    • 2 Pages

    The expansion of a company takes not only takes leadership, but dedication and passion. QSR magazine’s article Over the Hill: 40 Years of SBUX highlights how a small company from Seattle expanded to the international company it is today. The writing discusses the journey of Starbucks’ early ages and the company’s current Chairman and CEO, Howard Schultz. The company was founded in 1971 by Gerald Baldwin, Gordon Bowker, and Zev Siegl with an initial investment of only $9000, with Schultz joining Starbucks in 1982 as its marketing chief. Despite being disencouraged by the initial founders of the company at first, Schultz was able to translate his ideas and thoughts into profit and mold Starbucks into the coffee bar with an atmosphere that he had envisioned. Throughout the 1990s, Starbucks blossomed into an American giant, growing from a local retail business into a national name with more than 1300 units.…

    • 431 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    In the book, Lessons From the Top: The Search for America's Best Business Leaders, Howard Schultz, the CEO of Starbucks, made the following observation:…

    • 2548 Words
    • 11 Pages
    Powerful Essays
  • Good Essays

    Starbucks Case Study

    • 809 Words
    • 4 Pages

    In his years with Starbucks, CEO Howard Schultz has come to be very inspirational. Schultz stepped out of the CEO…

    • 809 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    The Starbucks Corporation is well known for its strong positive culture and a willingness to adapt and change. “Starbucks has rearranged their organizational structure to better accommodate customer satisfaction. The CEO of Starbucks announced expansion of their matrix organizational structure last month, They will operate under four U.S. divisions including Western/Pacific, Northwest/Mountain, Southeast/Plains and Northeast/Atlantic” (Starbucks Corporation, 2008). This decision was made when Howard Schultz, founder of Starbucks, returned to the helm as President, CEO, and Chairman. His enthusiasm to bring Starbucks back to its core – all things coffee – and a renewed focus on the customer experience was the driving force behind this reorganization. In one of many e-mails sent to all Starbucks partners, Schultz said, “I pledge to communicate with you about our efforts to improve the currents state of our U.S. Business, reignite the emotional attachment with our customers and make foundational changes to our business; and I have done so in six previous emails” (Schultz, 2008).…

    • 2461 Words
    • 10 Pages
    Powerful Essays
  • Powerful Essays

    Essay on Starbucks Coffee

    • 2052 Words
    • 9 Pages

    In 1982, entrepreneur and current chairman, Howard Schultz, joined the company. When Schultz joined the company, he wanted to change the company’s focus away from in home coffee production and coffee bean retailing, to also include selling coffee drinks. Schultz wanted to create an Italian espresso bar atmosphere to the Starbucks Company. Siegel, Baldwin, and Bowker didn’t like the idea, but in 1984 Schultz convinced the “founders of Starbucks to test the coffee bar concept in a new location in downtown Seattle”. In 1985, Schultz decided to leave the company and start his own Italian espresso inspired company called Il Giornale. In 1987, Schultz got backing from local investors and purchased Starbucks. Shultz then changed the name Starbucks to Starbucks Corporation.…

    • 2052 Words
    • 9 Pages
    Powerful Essays
  • Good Essays

    Howard Schultz Essay

    • 556 Words
    • 3 Pages

    The success of Howard Schultz as a transformational and ethical leader has much to do with his charisma. Not only does he have a likeable personality, but he encompasses the type of ethical values that the company was founded on. House (2010) maintains that a charismatic leader serves as a role model for employees by embodying the types of behaviors that they would like to elicit from others. Howard Schultz is someone who acts ethically and responsibly in his role as a CEO and employees are able to model themselves off of the type of behavior that he exhibits. Employees are not only able to look at the decisions that he has made as a leader, but are also able to identify with his story.…

    • 556 Words
    • 3 Pages
    Good Essays
  • Better Essays

    Starbucks Corporations’ overall goal and main agenda for profit and growth in the industry is by keeping a competitive edge and constant reinventing itself through its value principles. There are many strategies that can allow any company to change for the better. Starbucks focuses on rapid global expansion and its executive management team is leveraging the strength of the company. Operational resources are maximized through the experience and strength of the management team along with the realignment of executives. The current president of Starbucks Coffee International, Martin Coles, was promoted to Chief Operating Officer (COO). Coles understands that Starbucks is adept and knowledgeable in the area of increasing profits and its market share while continuously building a close relationship with its customers and their needs.…

    • 1205 Words
    • 5 Pages
    Better Essays
  • Satisfactory Essays

    Starbucks Corporation has more than 10000 shops and coffee kiosks around the world and is leading “roaster, retailer and marketer of specialty coffee in the world”. Its biggest competitors are Caribou Coffee Company, Diedrich Coffee, Dunkin’ Brands and Peet’s Coffee & Tea. In Poland there are Coffee Heaven and Tchibo. There is a chairman statement which is close to me philosophy: “hire people smarter then you are and get out of their way” . It tells me a lot about his management style and his business approach.…

    • 654 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    Howard Schultz

    • 518 Words
    • 2 Pages

    In 1998 Howard Schultz had ample reason to be proud of what Starbucks had accomplished during his past 11 years as the company's CEO. The company had enjoyed phenomenal growth and become one of the great retailing stories of recent history by making exceptional coffee drinks and selling…

    • 518 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    Thirty years ago Starbucks was a single store in Seattle 's Pike Place Market selling premium roasted coffee. Today it is a global roaster and retailer of coffee with over 7,000 stores in U.S. and outside U.S. Starbucks Co. set out on its current course in the 1980s when the company 's director of marketing came back from a trip to Italy enchanted with the Italian coffeehouse experience. Schultz persuaded the company 's owner to experiment with the coffeehouse format-and the Starbucks ' experience was born. The basic strategy was to sell the company 's own premium roasted coffee, along with freshly brewed espresso-style coffee beverages, a variety of pastries, coffee accessories, teas, and other products, in a tastefully designed coffeehouse setting. The company also stressed providing superior customer service. Reasoning that motivated employees provide the best customer service, Starbucks ' executives devoted a lot of attention to employee hiring and training programs and progressive compensation policies that gave even part-time employees stock option grants and medical benefits. The formula met with spectacular success in the United States, where Starbucks went from obscurity to one of the best known brands in the country in a decade. (Hill, 2003)…

    • 2423 Words
    • 10 Pages
    Powerful Essays