Starbucks Case
Howard Schultz: Building a Community
Leadership and Its Role in Starbucks’ Success
April 28, 2014
Alida Bernhart
Helen Bone
Sicheng Jiang
Alyssa Wagstaff
EXECUTIVE SUMMARY
LEADING STARBUCKS TO BECOME A SUCCESSFUL COMPANY
Howard Schultz, the chief executive officer of Starbucks, has proven his ability to turn Starbucks into a successful coffee and tea company. Though he stepped down in 2000, he returned once again to his position as CEO to revamp the company as it was experiencing several problems during a time of economic hardship. Schultz pushed Starbucks to regain its strength and to remember the company’s commitment to quality. In 2011, Howard Schultz restructured the Starbucks leadership team to execute a multi-brand, multi-national strategy that would further the company’s success.
APPLYING LEADERSHIP THEORIES TO HOWARD SCHULTZ
Several leadership theories explain why Schultz and Starbucks continue to be successful, but the most important of these theories are trait theory and transformational leadership theory. Common leadership traits based on trait theory include drive, motivation, integrity, self-confidence, cognitive ability, knowledge of domain, openness to new experiences, and extraversion, all of which Schultz and other successful leaders exhibit. In addition to trait theory, Schultz’s leadership skills also support the transformational leadership theory, which involves motivating followers to do more than expected, to continuously develop and grow, to increase their level of self-confidence, and to place the interest of the organization before their own.
EXPLAINING OTHER FACTORS THAT CONTRIBUTE TO STARBUCKS’ SUCCESS
Many situational factors are also responsible for part of Starbucks’ success in addition to Schultz’s leadership abilities. Some of these situational factors include higher demand for quality, increase in fast food businesses, and convenient locations. Although many situational factors contributed to Starbucks’
Leadership and Its Role in Starbucks’ Success
April 28, 2014
Alida Bernhart
Helen Bone
Sicheng Jiang
Alyssa Wagstaff
EXECUTIVE SUMMARY
LEADING STARBUCKS TO BECOME A SUCCESSFUL COMPANY
Howard Schultz, the chief executive officer of Starbucks, has proven his ability to turn Starbucks into a successful coffee and tea company. Though he stepped down in 2000, he returned once again to his position as CEO to revamp the company as it was experiencing several problems during a time of economic hardship. Schultz pushed Starbucks to regain its strength and to remember the company’s commitment to quality. In 2011, Howard Schultz restructured the Starbucks leadership team to execute a multi-brand, multi-national strategy that would further the company’s success.
APPLYING LEADERSHIP THEORIES TO HOWARD SCHULTZ
Several leadership theories explain why Schultz and Starbucks continue to be successful, but the most important of these theories are trait theory and transformational leadership theory. Common leadership traits based on trait theory include drive, motivation, integrity, self-confidence, cognitive ability, knowledge of domain, openness to new experiences, and extraversion, all of which Schultz and other successful leaders exhibit. In addition to trait theory, Schultz’s leadership skills also support the transformational leadership theory, which involves motivating followers to do more than expected, to continuously develop and grow, to increase their level of self-confidence, and to place the interest of the organization before their own.
EXPLAINING OTHER FACTORS THAT CONTRIBUTE TO STARBUCKS’ SUCCESS
Many situational factors are also responsible for part of Starbucks’ success in addition to Schultz’s leadership abilities. Some of these situational factors include higher demand for quality, increase in fast food businesses, and convenient locations. Although many situational factors contributed to Starbucks’
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