Starbucks Leadership Analysis

753 Words 4 Pages
For eight consecutive years, Howard Schultz was Starbucks’ Chairman and Chief Global Strategist, but in 2008 he returned to the position of Chief Executive Officer. Schultz had the responsibility to grow Starbucks to the successful enterprise it is today with such positive leadership. In 2006, Schultz attended a legacy event for his mentor, Warren Bennis, sponsored by Harvard University’s Center for Public Leadership, where Schultz reflected on Starbucks’ impressive growth since Schultz and a team of investors purchased the company in 1987. Schultz endured a rough and troubled childhood, but he credits his leadership style to his experiences and to what he learned from his father’s career failures and struggles. He stated, “I wanted to build …show more content…
He stated, “By being curious, asking questions, and not ignoring difficult situations, you become smarter” (Case). Other than having top quality control, knowledgeable supply chain relationships, and efficient retail execution, Schultz believed that for Starbucks to grow successfully, the stores had to retain a distinct atmosphere through the relationships between the baristas and customers. To accomplish this goal, Starbucks gave generous employee benefits, implemented training programs and employee stock ownership programs to show how committed Starbucks was to its employees. Schultz’s goal in implementing these programs was to “ensure that the culture of the company is embraced in Starbucks stores wherever they are located and that the culture is linked to our history” (CASE). The entire structure of Starbucks mirrored Schultz’s vision of dedication to his employees and the premier customer …show more content…
Starbucks Corporation (NASDAQ: SBUX) stock dropped 42 percent in 2007, which was the start of Starbucks’ brief decline(citation). Starbucks needed to change its focus from expanding the brand to enhancing the brand, so Schultz created initiatives to help Starbucks rise again. Schultz created a national advertising campaign, which received 70 million media impressions. He also appointed a Chief Technology Officer to improve Starbucks’ social media presence. Through social media marketing, Starbucks executives created the “My Starbucks Idea” as a forum to allow customers to directly share their opinions and ideas on Starbucks to the company’s headquarters. Starbucks implemented over 100 of these customer shared ideas and initiatives to drive satisfaction and brand trust (Business Today). Also, Schultz reorganized supply chain operations, which increased the efficiency of transporting products to stores and boosted their inventory. Because of this reorganization, stores now receive its inventory orders as planned nine out of ten times whereas during the recession in 2008, stores received inventory deliveries perfectly only three out of ten times. Lastly, one of Schultz’s most successful decisions to help Starbucks was the creation of the “My Starbucks Rewards” program. By July 2008, customers had added $150 million onto the card (Business Insider).

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