Starbucks Lecture Notes

Introduction

• No company is immune from the recession, including Starbucks.
• After 37 years of growth, Starbucks is facing challenges.
• Howard Schultz, CEO, acknowledges dilution of experience and competition.

Key Issues

• Cultural Concerns: Schultz admits recent changes have fractured company culture.
• Commitment to Excellence: Need to restore the authentic Starbucks experience and regain customer pride.
• Schultz believes Starbucks' best days are ahead.

Company Context

• Starbucks is 40 years old, with nearly 17,000 stores and 200,000 employees.
• 60 million customers visit Starbucks weekly, generating over $10 billion in annual revenue.
• Recent fiscal results show positive trends in sales and customer traffic.

Howard Schultz’s Background

• Grew up in subsidized housing in Brooklyn; shaped his view of the American dream.
• Father's struggles influenced his passion for success and education.
• Encourages young people not to diminish their dreams, drawing on his own success.

Business Philosophy

• Business is a team sport; success is best when shared.
• Balance profitability with social conscience; prioritize employee expectations.
• Love for Starbucks: Schultz expresses deep commitment to the brand and its values.
• Humanity in business: Companies should be responsible for community engagement beyond just profit.

Personal Insights

• Describes himself as curious with a desire for continuous improvement.
• Discusses daily routines: early workouts and coffee consumption.
• Reflects on his decision to step down as CEO in 2000; acknowledges past mistakes and growth covered by success.

Transformation Agenda

• The need for a transformational agenda to realign company focus.
• Importance of retraining employees and improving customer experience.
• Made tough decisions, like closing stores for retraining at significant cost.

Core Mission

• Starbucks mission: "To inspire and nurture the human spirit, one person, one cup, and one neighborhood at a time."
• Emphasis on being in the people business, not just coffee.
• The mission guides and rallies employees around shared values and community service.

Community Engagement

• Celebrated 40th anniversary with extensive community service projects.
• Commitment to improving local communities and engaging in social responsibility.

Conclusion

• Howard Schultz remains committed to Starbucks' future and community responsibility.
• Ends with a positive outlook, reiterating that Starbucks' best days are ahead.
• Acknowledges the fragility of the economic environment and the need for continued effort.