Howard Schultz and Starbucks

3782 words 16 pages
Leadership and Management – Will Howard Schultz succeed in revitalizing the culture of coffee giant Starbucks?

In this research paper I will do an analytical background on the coffee industry Starbucks and how Howard Schultz hopes to inspire the employees as well as customers. His primary vision and goal as a CEO of the biggest chain of coffee industries is to make people realise that buying a cup of coffee in Starbucks is a lifestyle experience, unlike any other café. This research paper will look at how Schultz will go about bringing back Starbucks from a decline and pay special attention to restructuring the coffee market, employee and customer satisfaction and the Starbucks culture. Along with this there will be important leadership
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and this training could possibly be carried on overseas as a further improvement on global sales. Its mergence with McDonalds and other such companies has increased diversification potential of an already global brand. Starbucks is known for its Internationalization however there are still a few countries that do not have Starbucks outlets. In Beijing, China, there have been cultural clashes as people ther have yet to become accustomed to the type of brand (Beijing Review, [Online] Accessed: http://www.bjreview.com.cn/eye/txt/2007-05/08/content_63380.htm [2 Mar 2008].

Starbucks is termed as “The Third Place”, a home away from home. It was labelled with this marketing technique because people viewed the place as somewhere they could turn to apart from home and work. The café revealed intensity, authenticity and created a sense of belonging. So has Starbucks steered away from its roots? It seems so, because once upon a time the coffee sold there adhered to the lifestyle of the mainly upper middle class. Its in later years, now however, it has become a highly commercialised coffee outlet that serves everyone, so one doesn’t have to be rich to buy a rich man’s coffee! There has been a decline in the US growth and so consumers are willing to spend a little less than usual on consumer products. Starbucks merger with McDonald at the time seemed like a positive investment to both companies. However now McDonald’s seems more of a rival than a good investment. It has

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