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Howard Schultz & Starbucks Coffee Company: Team: Members

The document discusses Howard Schultz and the history and success of Starbucks Coffee Company, highlighting Schultz's leadership and vision in transforming Starbucks into a global brand by focusing on superior coffee quality, customized drinks, and a customized customer experience in each store that emphasizes excellent customer service in a welcoming neighborhood environment. The success of Starbucks is attributed to Schultz's emphasis on generous employee benefits and training programs that foster a positive company culture, along with innovation and customization that keep the customer experience fresh.

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Venkataramanan Vaidyanathan
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72 views

Howard Schultz & Starbucks Coffee Company: Team: Members

The document discusses Howard Schultz and the history and success of Starbucks Coffee Company, highlighting Schultz's leadership and vision in transforming Starbucks into a global brand by focusing on superior coffee quality, customized drinks, and a customized customer experience in each store that emphasizes excellent customer service in a welcoming neighborhood environment. The success of Starbucks is attributed to Schultz's emphasis on generous employee benefits and training programs that foster a positive company culture, along with innovation and customization that keep the customer experience fresh.

Uploaded by

Venkataramanan Vaidyanathan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Howard Schultz

&
Starbucks Coffee Company
Team: N.R. Narayanamurthy

Members: Ranjani
Venkataramanan
Mohan
Berny
Menu

Who is Howard Schultz?


History of Starbucks
Success Ingredients
Competitive Advantage
Conclusions
Recommendation
Who is Howard Schultz?

Born in Brooklyn, NY, on July 19, 1953


Worked as appliance salesman for Hammarplast, which sold
European coffeemakers in the US
Director of Retail Operations and Marketing for the Starbucks
Coffee Company in 1982
Founded a coffee company, Il Giornale
Purchased Starbucks in 1987 and became Chairman and CEO
In 2000, Schultz transitions from Starbucks CEO to Cheif Global
Strategist
Returned as CEO in 2008 amidst global downturn, managed to
bring back the companys profitability. Focus on customer
experience and innovation.
History Of Starbucks

1971- Starbucks opens first store in Seattles Pike Place Market


1982- Howard Schultz joins the Starbucks team as Director of Retail Operations
& Marketing
1983- He travels to Italy, inspired by Coffee bars in Milan
1985- Schultz leaves Starbucks to open II Giornale, a company serving
espresso drinks using Starbucks coffee beans
1987- Schultz purchases Starbucks from the founders and begins to expand
throughout the US
1992- Starbucks Company goes public. Total stores 165
1996- Opens first stores outside of NA in Japan & Singapore. Total stores 1015
1998- Acquires Tazo (Tea company in Oregon). Launches startbucks.com. Total
stores 1886
2012- Starbucks has more than 17600 stores and is valued at $35.6 billion
Success Ingredients
= Generous blend of Value, Culture & Coffee

Employees:
Generous employee benefits
Training programs
Stock ownership
Open forums between management & employees
Customers:
Every store is part of a Neighborhood, positioning as a third place in
customers lives between their home & office.
Starbucks Experience:
location, ambience, music, service, etc.
Make it your own: Customize the experience.
Surprise & Delight: Doing the unexpected to make buying a cup of coffee
enjoyable.
Success Ingredients
= Generous blend of Value, Culture & Coffee

Offer high quality products


Superior
Coffee Control value chain

Innovative environment
Customize
d Drink Customers as idea generators

Great working environment


Customer
Service Employee training systems

Customer Provide best social ambience at best locations


Service
Competitive Advantage
No secret sauce or product but has the edge over values
to customers and best work culture to employees which
are not easily replicable by the competitors

Broad

Narrow

Cost Differentiation
Conclusions

Howard Schultzs vision has led Starbucks as the


leading global player in the young, growing market for
specialty coffee
Starbucks has altered the rules of the game in the US
coffee industry from strictly commodity to a third
place experience
Its continued success depends critically on their
consistent ability to interest and understand consumers
around the world
Recommendations

Starbucks must retain their inventiveness in order to


stay relevant
Maintain their philosophy to Get big but stay small
To stay competitive,
Expand geographically, by adding new cafes in
underserved areas like China
Expand its reach beyond coffee
Expand its consumer packaged goods business, leveraging
its global brand awareness

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