HOWARD SCHULTZ
A Transformational Leader
Starbucks: beginnings
In 1971, Jerry Baldwin, Zev Siegel, and Gordon Bowker
opened the first store in Seattle.
Inspired and mentored by Alfred Peet.
First store opened in Pikes Place, a touristy area in
Seattle.
Customers were encouraged to learn how to grind the
beans and make their own freshly brewed coffee at
home.
The store did not offer fresh-brewed coffee sold by the
cup like today, they sold beans and coffee makers.
The store was an immediate success, with sales
exceeding expectations.
Howard Schultz
business man from New York visited Starbucks in
1981.
Pursued a job at Starbucks, and finally after much
deliberations he was offered a job in September of
1982.
Schultz had a vision for Starbucks:
1. Wanted to expand the company
2. Visited Italy and loved the concept of the Italian Bar
Starbucks owner did not have the same vision for
Starbucks
Schultz left Starbucks to open Il Giornale, a coffee
bar based on what he saw in Italy.
Starbucks
In 1987, Schultz bought Starbucks and
turned the company operations around.
By October 1987, Starbucks expanded
outside the pacific northwest into
Chicago.
In 1993, the company went public.
Schultz wanted Starbucks to be a great
place to work so he did everything in his
power to do that.
Great pay
Great benefit plan
Stock Purchase Plan for employees
Starbucks Today:
Mission Statement
“Establish Starbucks as the premier
purveyor of the finest coffee in the
world while maintaining our
uncompromising principles while we
grow.”
IDEALIZED INFLUENCE
Howard Schultz influences others to get involved in his
organization through:
Localized volunteer initiatives and work
Contributing capitol to numerous nonprofit
organizations that Starbucks is affiliated with
Followers who are Starbucks employees (partners) want
to emulate the philanthropic deeds of Schultz because
they touch so many lives around the world. In this sense,
he is a role model for his company and loyal customers.
INSPIRATIONAL
MOTIVATION
Howard Schultz communicates high
expectations to Starbucks partners by
promoting a shared vision and rallying
for team spirit.
During an interview, Schultz said:
“I believe life is a series of near misses. A
lot of what we ascribe to luck is not luck at
all. It's seizing the day and accepting
responsibility for your future. It's seeing
what other people don't see And pursuing
that vision.”
Schultz also motivates Starbucks
partners to provide world-class service
by offering competitive wages, benefits
to part-time employees including:
medical, dental, vision, 401k, and
‘Bean Stock’ at an employee rate.
INTELLECTUAL
STIMULATION
By fostering a sense of creativity and
innovation, Howard Schultz has led
Starbucks to be the top specialty
coffee company in the world.
As part of continuous training,
Starbucks partners are required to
take part in taste tests of food and
beverage offerings, and are afforded
the opportunity to learn about the
process of coffee roasting and where
the products originate from. Schultz
even takes it to the next level by
offering baristas the ability to become
certified coffee masters, who are
distinguished by wearing a black
instead of green apron.
INDIVIDUALIZED CONSIDERATION
Howard Schultz has been about pleasing Starbucks
partners since the birth of the company by offering
unique and comprehensive benefits plans.
Furthermore, he provides support to his company
by conducting site visits and interacting with a
(small) portion of the over 175,000 partners.
He acts as a coach by pleasing his partners, so
that then they will please the guests. (service
profit chain)
