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Leaders and Leadership The last century was significantly marked with consumerism in various areas of human existence. Consequently it affected many different things including coffee and tea. From the very appearance coffee was associated with pleasant smell, warm atmosphere, and other attributes. However, in contemporary context such words as coffee and business are standing in the same row. The example set by Starbucks Company proves that coffee business multiplied with retail emphasis can become extremely successful. Moreover, Starbucks management has invented new business schemes and strategic standards, while company itself evolution ized from local chain of 17 coffee shops to 5, 689 outlets in 28 countries.
Today, companys green-and-white emblem is beckoning to consumers on three continents. In 1971, Jerry Baldwin, Zev Sign and Gordon Bowher founded a store named Starbucks that sold whole-bean coffee in Seattle's Pike Place Market. Ten years later they operated five stores, a roasting facility and a wholesale business that distributed coffee to retail stores. Starbucks was working with a Marketing company called Hammarplast. Hammarplast and its Vice President, Howard Schultz, were helping Starbucks to promote their product. Neither initial owners of small company nor Schultz thought about the fact that names of Schultz and Starbucks would become part and parcel.
In the spring of 1982, Jerry Baldwin and Gordon Bowher invited Schultz to meet Board member Steve Donovan. Schultz explained his vision regarding the future of the company. The partners were inspired by his arguments; however, Schultz was not hired. In his book Schultz explains that later he contacted Baldwin and protested that it was not merely selfish interest in a job; on the contrary it was more about the company and business (Schultz 109). Finally, he was hired. After working at Starbucks for a year, Schultz traveled to Milan, Italy to attend an international warehouse show.
While, traveling he noticed a little espresso bar. The espresso bar brought to his attention the romance and ritual of a coffee bar. He realized that his companys connection to coffee lovers did not have to be limited to their homes, where they ground and brewed the coffee. Instead, he imagined that, coffee should be sold by the cup, in coffee bars (Schultz 109).
Upon the return to Seattle, however, managing partners argued that Starbucks was a retailer, not a restaurant, or a bar, therefore Schultz's idea was rejected. Schultz felt torn between loyalty to Starbucks and confidence in his vision for coffee bars. In 1985 he left Starbucks and started his own company, Il Giornale. Within 6 months they were serving more than a thousands customers a day in their Seattle store (Schultz 110). In March 1987 Jerry Baldwin and Gordon Bowher decided to sell their Starbucks stores. Schultz knew immediately he had to buy the company.
Finally supported by his Il Giornale investors, Schultz bought Starbucks out (Schultz 111). Small synopsis of Howard Shultz's encounter with coffee business explains several important aspects. From the very beginning while working with Starbucks Shultz was acting like entrepreneur, not like usual though talented manager. He foresaw perspective in coffee restaurant business as well as certain limitation within retailing business. Right after visiting Italy, Shultz obtained adequate vision for future enterprise. Therefore, in contemporarily context, successful entrepreneur should possess two important qualities, namely a clear vision and sense of perspective.
In order to accomplish his own vision of company business Schultz carefully developed Starbucks mission statement, which enabled company to become the premier purveyor of the finest coffee in the world while maintaining uncompromising principles. According to Schultz there were five guiding principles to measure the appropriateness of managerial decisions: Provide a great work environment and treat each other with respect and dignity; Embrace diversity as an essential component in the way we do business; Apply the highest standards of excellence to the purchasing, roasting and fresh delivery of coffee; Develop enthusiastically satisfied customers all the time; Contribute positively to communities and environment; Recognize that profitability is essential to future success (Schultz, 117). Strategic goal of Starbucks Company has always been to become the most recognized and respected coffee seller in the world. To achieve this goal Schultz emphasized the importance of employee standards. However, according to company CEO setting of standards required mutual obligations both of regular employees and top management (Schultz 129). During many years company was faithfully devoted to traditions set in the very beginning.
Even now when it comes to welcoming new employees Schultz makes sure he tells all new employees how delighted his is to have them aboard, even though he has to do so by video, since the coffee giant recruits roughly 600 people a month for its approximately 31, 000 person staff. Even part time workers called partners repeatedly hear how much they are valued during the 24 hours of training they undertake in their first 80 hours of employment (Reese 1). The company puts much emphasis on the rules employees must follow, including a focus on employee self esteem (Reese, 2). Partners are encouraged to share their feelings: about selling, about coffee, about working for Starbucks. Starbucks is a company with lots of rules and partners must memorize them (Rice, 192).
Companys compulsory Star Skills initially originated from Howard Shultz entrepreneurial character and leadership style: to maintain and enhance self- esteem, to listen and acknowledge, and to ask for help (Rice 194). Bibliography Howard Schultz. Pour Your Heart into It: How Starbucks Built a Company One Cup at a Time. Hyperion Press, 1999 Reese, E.
Coffee with a cause. Natural Foods Merchandiser, 2000. Rice, R. and Ward J.
Coffee, Conservation and Commerce in the Western Hemisphere. Smithsonian Center, 2003
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