Entrepreneurship is defined as, “The capacity and willingness to develop, organize and manage a business venture along with any of its risks in order to make a profit.” Although this may seem to be a common business strategy, it is incredibly difficult for an individual to have the strength and perseverance to not only create; but support and foster their idea from scrutiny and destruction. That kind of personal resilience is something that I personally am awestruck by, and it is my hope one day to possess the same qualities when pursuing my own entrepreneurial venture. I can only dream of achieving the same level of achievement as Howard Schultz, but I aspire to be an even greater businessman and innovator during my career. In order for …show more content…
The book begins with a thorough description of Schultz’ upbringing, and he reveals that, “As the oldest of three children, I had to grow up quickly and started earning money at an early age” (P15). He also tells readers that his widowed mother encouraged him, “To challenge myself, to place myself in situations that weren’t comfortable, so that I could learn to overcome adversity” (P 16). Clearly, by the time Schultz had reached his teenage years he had experienced incredibly unfortunate circumstances, and yet had emerged as a hardworking and driven individual, determined to do bigger and better things. By 1982, Howard Schultz had quickly attained a respectable position at Hammarplast, a division of Perstorp; however he left and moved to Seattle quickly, because he “Saw Starbucks not for what it was, but for what it could be” (P 5). Schultz absolutely fell in love with Starbucks, and understood how incredibly marketable high-quality coffee could be; before other retailers and individuals caught on. His entrepreneurial spirit found a perfect application when he was introduced to Starbucks, and upon tasting the product and seeing the company in Seattle he told his wife, “I know where I want to live: Seattle Washington. It was my Mecca. I had arrived” (P 28). Schultz found what he had always …show more content…
Coming from a poor family and seeing his father’s daily struggle, Schultz witnessed first-hand the problems and impactions that low-pay and terrible benefits have on a family, and he made it his mission to be the “Employer of choice” (P125). Schultz advocated for even part-time employees, and offered full health-benefits starting in 1988, something unheard of in the industry at that time. Also, in 1991 Starbucks introduced the “Bean Stock Plan” (134) to all employees, and “Everyone is eligible for stock options as soon as he or she has been with Starbucks for six months” (P135). Howard Schultz and the rest of the Starbucks management understood the value of keeping employees happy and literally invested in the company, and followed the mantra that “If you treat your employees as interchangeable cogs in a wheel, they will view you with the same affection” (P138). Starbucks did things outside the norms of a typical business model, and Howard Schultz tried to develop a company he wished his “Dad had worked for” (P 138). Although it wasn’t easy, or the cheapest strategy, it was the right thing to do, and due to these measures and innumerable others implemented over the years; Starbucks has established itself as a world-class and respectable
The most valuable lesson I have learned so far from Ben Horowitz’s book is that there is always a solution. Really, I am amazed by how much resilience Ben had when his personal and professional life were shitty. Twenty-five years ago, my father left 3M to create his own company, he left a really good position in a global company to follow his dream and also because he couldn’t stand having a boss breathing over his neck anymore. I was less than one-year-old and he “gambled” everything over an idea. That is one of the thing I admire the most about him. My dad’s story and Ben’s book made me realize even more that to be successful the hardest part is to actually start. Having a lot of ambition but never taking to risk to fulfill it or loose some price is the worst that can happened to me.
When the 1980’s rolled around, it was a thriving company, in the Seattle area. However, the co-founders began to have other interests and were involved in other careers simultaneously. Despite that, the company was about to undergo a major turnaround. A man by the name of Howard Schultz started to pursue an interest in the company. He noticed that the coffee shop had a wonderful environment.
Schultz, H. (2011). Onward: How Starbucks fought for its life without losing its soul. New York: Rodale.
In addition to being best-known supplier of the finest coffee and promising only the highest quality products, Starbucks emphasizes firm values, provides guidelines to enhance employee self-esteem. This is to ensure continued customer satisfaction. Moreover, diversity has become a priority to providing an inviting environment to all consumers. Starbucks continues to abide by a strict, slow growth policy in which they set out to dominate a market before moving on to expand, thus history has shown this strategy to be successful for Starbucks, making them one the fastest growing companies nationwide.
Howard Shultz and the senior management at Starbucks have to decide how to react to the opportunities that are being made available because of their rapid growth. The decision for a strategic growth plan has to be made in the near future. This will prove to be key for Starbucks reaching their long-term goal of becoming the most recognized and respected brand of coffee in the world.
I believe that Howard Schultz was successful in creating the company. I believe Schultz was successful because according to the article, Starbucks' Howard Schultz on how he became coffee king by Mirror.co.uk, Howard Schultz was interviewed regarding how he was able to make Starbucks into very successful company. Howard Schultz said how “at first we
Starbucks began its retention plan by analyzing their employees’ needs. The analysis drew variables of importance, such as positive culture, employee development, and benefits. As a result of the analysis, Starbucks CEO, Howard Schultz, came up with a plan to start a long-term retention program in his company. Mr. Schultz made sure that “he made it a point to put himself at the top of a respect pyramid in which he would be sure to be kind to everyone in the company with whom he interacted, with them passing on the respectful treatment, right down to the pyramid’s base”(“How Starbucks retains its employees”). The company also set up an online portal for employee development. Starbucks also launched a program to help its employees to achieve a college education. This educational program sends employees to Arizona State’s online program, providing juniors with free tuition and sophomores with financial aid. As a result of this initiative, Forbes (2015) has named Starbucks as one of “America’s Best
Founded in 1971 at Seattle’s Pike Place Market, Starbucks Coffee, Tea and Spices, as it was originally called, has been “brewing-up” its famous blends in over 43 countries, including the United States. Now called Starbucks Coffee Company, business isn’t just about the coffee and tea anymore. Starbucks has its own line of bottled water, handcrafted beverages, fresh food, entertainment, merchandise and a Starbucks Card. The company has received numerous awards for their outstanding business practices. Fortune Magazine has ranked them as one of “The Best 100 Companies to Work For” in 1998, 2000, 2002, and 2008 (Starbucks, 2008). The Starbucks Experience provides consumers and the general public a direct line a of business communication. From friendly baristas to press releases from CEO Howard Schultz, Starbucks keeps its “partners” informed.
“Starbucks was named after Starbuck, first mate of the whaleship Pequod in Herman Melville’s Moby Dick…Starbuck was pluralized for ease of use” (Burks, 2009, p. 1). Now President, Chairman, and Chief Executive Officer, Howard Schultz formed Starbucks Corporation in 1987 after purchasing the name Starbucks, six stores and a roasting plant from previous owners, Jerry Baldwin and Gordon Bowker (Burks, 2009). Starbucks operates under a successful value chain management strategy. Their value chain encompasses a systematic approach to the way business is done. Robbins and Coulter (2012) point out, “A good value chain involves a sequence of participants working together as a team, each adding some component of value” (p. 520). Starbucks continually reviews every aspect of their business; from the organizational culture to values and ethics to strategy, planning and operations, management control and finally human resources and performance management, searching for those items that don’t contribute to the “Starbucks experience” which is what makes the Starbucks Corporation a successful business model.
Everything centers on the organizational culture within Starbucks. While being a customer service-based company and understanding that the customer satisfaction and loyalty are what will make the company profitable, Starbucks takes a different approach to customer service than other companies. By hiring employees that fit in the organizational culture (ICFAI, 2005) and treating their employees well (Lefevere, n.d.), Starbucks brings in and retains customers through their happy employees. The qualities that Starbucks hires for are "adaptability, dependability and the ability to work in a team" (ICFAI, 2005). The culture is supportive and laid back (Montana, 2005). Howard Shultz, Starbucks president and CEO, has the theory "that if you treat your employees well, they will treat your customers well" (Starbucks, 1997).
Schultz continually sees opportunity and the ability for growth, with an increase in locations across the globe every year and the ability to keep up with the latest in technology (websites, online shopping, a Starbucks application with the ability to pay and reload loyalty cards on your smart phone), etc. It is pretty safe to say that Schultz exhibits numerous leadership traits and skills that Gary Yukl, Professor of Management and Psychology at the University at Albany (State University of New York) believes are associated with effective leaders. Schultz has been adaptable throughout the years that he has been with Starbucks, you can see this in the way he has changed Starbucks’ food items to create better quality items, his ability to keep up with technology with the Starbucks application for smart phone users, and his expansion with taking Starbucks locations globally. Starbucks takes their partners very seriously, as well as their well-being.
Schultz conveyed that by keeping to their core custom, improvement, and connection to customers, they will rekindle the loyalty and fidelity of customers to the franchise (Starbucks Coffee Company, 2015). Schultz take charge attitude and a series of actions to improve the standing of his company is itself a quality initiative that sets the precedent for his employees to take responsibility for quality in every detail of their job. The Schultz initiative plan included new brewing equipment, coffee blending, precision shots of espresso, rewards card, ethical practices, brew time, online community, and
Conclusion: In conclusion, as Steve said "I’m convinced that about half of what separates the successful entrepreneurs from the non-successful ones is pure perseverance" that the secret of success. The person who wishes to success, he should recognize his weakness and formulates a plan to overcome them and he must have a clear goal for life. What's need is an idea put into action followed with proper planning and persistency.
Driven by an intense commitment and determined perseverance, entrepreneurs work very hard at what they do. They excel and want to win. Entrepreneurs are amazing people with a high respect of character. They use their mistakes as something to learn from rather than a failure. No matter the outcome, they believe in themselves and have an extreme confidence not only in themselves, but also in what they do.