1. Study the biography of Howard Schultz, CEO of Starbucks.

Include his childhood, if

there is something significant, his interests, his educational attainment, professional and

career orientation, and other facts that might have contributed to the success he is enjoying

now.

Answer:

Early years of the future billionaire were spent in a low-income housing community.

It goes without saying that youngsters from this neighborhood were considered to be quite

typical as the majority of the inhabitants there lived in extreme poverty. Because of this,

Howard was aware of how difficult it would be for him to escape his poverty. But his

determination to succeed was stronger than any obstacle. When Howard was a young child,

he frequently observed his father attempting to locate a career that satisfied his standards.

While at work, Howard's father fractured his leg when he was seven years old. The

subsequent financial hardships for his family as a result of his lack of health insurance are

forever etched in Howard's memory. Howard obtained his first job when he was 12 years

old. He began by selling newspapers and later began working in a nearby cafe. Howard

experienced some challenging conditions around the time he reached 16. He had to cope

with stretching the leather while he was working at the fur store. The challenging task just

made Howard more determined to succeed in the future. As a result of his physical prowess

and success in athletics, Howard was given an athletic scholarship to Northern Michigan

University, where he earned his bachelor's degree in communication in 1975. Howard

worked as a sales manager for Xerox for three years after receiving his degree. He then

began working for the Swedish company Hamamaplast, where he sold home appliances,
including coffee grinders to companies like Starbucks. Once Howard found out that this

small business orders far more of his coffee makers than some well-known retailers.

Howard relocates to Seattle to meet the Starbucks proprietors and begins his journey with

Starbucks.

2. Study the beginning of Starbucks, the challenges it encountered through the years, and

its journey towards success.

Answer:

The store opened at a quiet unfavorable moment; Americans had stopped drinking

instant coffee entirely by the end of the 1960s.Furthermore, the majority of them were

unaware that there were coffee varieties available other than instant. As a result, there

weren't many customers visiting. Howard believed that the company had a lot of potential

and that he wanted to have a relationship with Starbucks. He consequently consented to

work there despite the uncomfortable circumstances. He relocated to Seattle in 1982 to

become Starbucks' director of retail operations and marketing. The latte and cappuccino

recipes that Howard brought back from Milan in 1983 increased Starbucks' sales the

following year. However, what really surprised Howard was the idea of an Italian café: It

was not just a store but a place for social meetings and leisure. In the United States, the

numerous fast-food outlets mostly played the socializing role. Howard spent a lot of time

considering this brand-new idea, but in 1985 he suggested to Baldwin that they concentrate

on building a network of coffee shops. However, the CEO of Starbucks categorically

declined in response. The shop's founders thought that adopting such a strategy would rob
it of its unique identity. They were the conventional males who believed that making real

coffee at home was the norm. However, the notion of having coffee outside absolutely

thrilled Howard, and he left Starbucks to start his own company since he was so sure of his

business venture. Howard Schultz quoted, "Only those who go by unexplored roads,

creating new industries and new products, can build a strong, long-lasting company and

inspire others to achieve great results." He established Il Giornale in 1985 and in 1987 with

the help of investors, they bought Starbucks. The coffee shop network expanded from

having fewer than 20 locations to having more than 100 under Schultz's direction in just

four years. By the end of the decade, Starbucks had roughly 2,500 outlets spread across

nearly a dozen nations after he took the business public in 1992. In 2000, Schultz made the

decision to resign as CEO but keep his position as chairman. Although the business had

more than 15,000 outlets globally by 2007, it was faltering, and Schultz returned as CEO in

January 2008. In order to ensure fresh growth opportunities, he oversaw the closure of 900

outlets and put into place an ambitious strategy that included the introduction of an instant

coffee brand, the acquisition of a bakery chain, and the makers of a coffee brewing system.

He was also in charge of menu adjustments at Starbucks locations. These actions were

mainly successful, and by 2012 Starbucks' financial situation had improved. Schultz left his

position as CEO once more five years later, but he remained involved with the business and

served as executive chairman until 2018. But in 2022, he made a comeback to Starbucks as

its board member and acting CEO.

3. From the management, result-driven, practical and inspirational strategies implemented

by Schultz at Starbucks, which struck you as something worth imitating? Explain your

answer.

Answer:

Howard opted to emphasize quantity, quality, and publicity in order to influence the

minds of Americans. Starbucks' marketing team was continuously convincing Americans

that drinking genuine coffee at Starbucks is romantic. Advertising phrases were simple to

remember, eliciting a smile and the need for a cup of this flavored drink. The company's

CEO made certain that the advertising reflected reality. Howard proposed a democratic

coffee shop based on the notion of self-service. The consumer had complete control over the

type of drink (not just coffee, but latte, cappuccino, espresso, mocha, macchiato, and other

options), the size of the cup, and the type of milk (normal or fat-free). This method has

allowed their clients to order a truly unique drink. It also resulted in the formation of a

new lingo, the order may sound quite floridly, such as 'double tall skinny decaf latte'. The

fact that the coffee shop operates on a self-service basis did not frighten the consumers. At

Starbucks, one employee takes the order, and another prepares the drink. It speeds up the

system, especially when compared to certain fast-food stores. Howard devised a set of

Starbucks standards that subsequently grew into corporate code. It emphasized the

advantages of well-organized collaboration as well as the importance of continual coffee

quality improvement. According to Howard Schultz's biography, while growing Starbucks

on a national scale, Howard paid an inordinate amount of attention to the human

component. However, Howard himself describes it as the most intelligent and foresighted
action model. He remarked that when people are associated with a company, they establish

an emotional bond with it, dream with it, and invest their hearts in its success.