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Book reporting of Onward
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Book ReportC-Suite Perspectives
Leadership & Integrated Marketing
Chiawei ChangYunqing Gu
Background Howard SchultzChairman, President, CEOBorn in Brooklyn, NY
1981 Moved to Seattle Worked in the Starbuck (Marketing Director)1985 Left Starbuck Opened ll Giornale1988 Starbucks was sold to ll Giornale > Starbucks 2008 Returned as CEO
------------LOVE-------------------CONFIDENCE------ ------------PAIN------------------------HOPE---------------------COURAGE---------
How Starbucks fought for its live without losing its soul
------------LOVE-------------------CONFIDENCE------ ------------PAIN------------------------HOPE---------------------COURAGE---------
PART1-LOVE
• Love what you do- Passion
• Love your product - Perfect shot of Espresso
• Love your customer– Community – Understand the need – Extend the brand beyond coffee into entertainment
• Love your employees– Memo, Walk to talk – Full health care benefit and equity
• Love environment– Global Green USA– Educate customer – Renewable energy
2007Traffic slow down tremendously, stock dropped by 42 percent
• Growing too fast• Deviate from its heritage • Out-dated digital platform
How to make it right ?
------------LOVE-------------------CONFIDENCE------ ------------PAIN------------------------HOPE---------------------COURAGE---------
CONFIDENCE
To instill confidence.
why? • Sense of safety• Competitor: McCafe
SEVEN BIG MOVES
1. Be the undisputed coffee authority.2. Engage and inspire our partners.3. Ignite the emotional attachment. 4. Expand our global presence and make each
store the heart of the local neighborhood.5. Be a leader in ethical sourcing and
environmental impact.6. Create innovative growth platforms worthy of
our coffee.7. Deliver a sustainable economic model.
• Be the undisputed coffee authority.– Quality
• Expand our global presence and make each store the heart of the local neighborhood.– Increase local relevancy by redesigning products
and stores.
• Create innovative growth platforms worthy of our coffee.– Products expanding and complementing.
------------LOVE-------------------CONFIDENCE------ ------------PAIN------------------------HOPE---------------------COURAGE---------
• Sales fall down• Close 600 stores• Fire 550 employees• Products failure
PART.3 PAIN
“Starbucks is a people company service coffee.”
-Howard Schultz
PART.3 PAIN
Reason:• Economy downfall• Low services ratio• High Investment
PART.3 PAIN
Solution1. Customer- value proposition
– increase service speed – meet seasonal needs – Loyalty program value
2. Employees- clarify– Barista buy-in required – cut low efficiency products– find believing people
------------LOVE-------------------CONFIDENCE------ ------------PAIN------------------------HOPE---------------------COURAGE---------
• Supply chain problems • Social responsibility event
(New Orleans annual conference)
• Digital marketing campaign(presidential elect day)
• Making friends of boards
PART.4 HOPE
“People want to do business with companies they respect and trust, especially in the current climate.”
-Bono(U2)
HOPE
Because • company- supply chain problems– northeast services speed slowdown– short of provision– some fund in the bankruptcy bank
• Consumer-economic crisis – customer become frugal– Look upon respect and trust
HOPEDon’t blame for the past, find future confidently
1. cut operating costs - New laptops and POS system
2. close to partners - $30 M New Orleans conference
3. social responsibility - Homeless volunteer with SYP
4. emotional connect - Partnership with Bono(U2)5. Interactive online - Digital campaign
with BBDO
------------LOVE-------------------CONFIDENCE------ ------------PAIN------------------------HOPE---------------------COURAGE---------
Part 5: COURAGE
• Reinvented by scientists• Engagement online • Met merchant in Italy• Rwanda trip for charity• Trip to Shenzhen-globalize
“If this was your store, what would you do differently?”
-Howard Schultz
COURAGE
• category innovation - Via instant coffee– team work as a science– relevant to public interests (blizzard partnership reject)
– emotional connection (Unique local culture stores in Seattle)
– Employees’ care (how to improve their works) (Health care plan)
– Commitment supplier (helping Rwanda famer by Charity)
COURAGE• Globe strategy
– challenged or fighting for survival– globally stabilization refocus on growth– opportunities and risks implied.
• China– 1.3 billion population– 700 stores in 2009– locally relevant culture
Take-away
Authentic
Customer
Employee
Passionate
Idea
Execution
Encouraging
Business
Management
Partner
Valuable
Internal
External
Loyalty
Strategic
Globally
Locally
Exquisite
Expertise
Technology
Take-away
• Authenticity
– Customer
– Employee
Take-away
• Passionate
– Idea
– Execution
Take-away
• Courage
– Risks
– Changes
Take-away
• valuable- Internal - External -Loyalty
Take-away
• Strategic– globally– Socially
Take-away
• Exquisite- Expertise -Technology
About Books
• More like a marketing plan than actual story• Dramatic tone (likes more and haters worse)• the story of Howard Schultz other himself
– (who has the help of a ghostwriter, Joanne Gordon).
• skeptical about the some parts
For Me
• Choosing a career that I am passionate about.
• Choosing a career wheremy employer appreciated what I bring to the firm
• Choosing a career that has great benefits is a big plus.
Thank You&
Questions?