Howard Schultz - A Changed Starbucks. A Changed C.E.O

Perfect timing for all A2 Business students (and an essential addition to any self-respecting scheme of work) - this New York Times article takes an in-depth look at the roll CEO Howard Schultz has played in the business strategy at Starbucks.

Here is the link to the article. We’ve used Starbucks and Howard Schultz several times at our A2 business revision workshops - and with good reason. The Starbucks story in recent years is packed full with A2 business gold dust, and this article provides us with another sprinkling.

I jotted down a few points of interest from the article (your students will pick up many more):

Starbucks had lost strategic focus (over-extended) by the time Schultz returned as CEO in 2008
Retrenchment was his intial response - at the same time as recession was starting to bite globally. The experience of closing 900+ shops changed his leadership style
Growth is back on the agenda; focusing on emerging markets and product development
Turnaround strategy has been successful (share price at highest level since 2006) - but why?
Starbucks brand now competes on value
Friendship between Schultz & Michael Dell - encouraged him to adopt a substantial transformation plan
Schultz the early-riser: awake at 4am and in the office by 630am
Great attention to detail - from the top!
Rapid and successful development of Starbucks Via (trying to match Apple’s speed of NPD) - compare with the failure of the Sorbetto in 2008
Schultz now more of a manager than an entrepreneur