Compiled by: Keshia Chithray

STARBUCKS

COMPANY HISTORY

A) ENGRAVING OF A TWIN-TAILED SIREN (15TH CENTURY);

B) FIRST STARBUCKS LOGO (1971 - 1987);

C) IL GIORNALE LOGO;

D) MERGING OF STARBUCKS AND IL GIORNALE (1987 - 1992);

E) REDESIGNED STARBUCKS LOGO (1992 - TODAY);

F) CURRENT STARBUCKS LOGO, A REVIVAL OF THE ORIGINAL

SEATTLE, 1971 - FIRST STARBUCKS

COMPANY HISTORY• BEGAN IN 1971• FIRST STORE - SEATTLE• SEVERAL BRANCHES OF

STARBUCKS ALL OVER THE WORLD

• FRESH BREWED COFFEE• ITALIAN - STYLE ESPRESSO BEVERAGES• TEA• COFFEE RELATED ACCESSORIES &

EQUIPMENT• FOOD

PRODUCTS

HOWARD SCHULTZ - A TRANSFORMATIONAL

LEADER

HOWARD SCHULTZ - CEO OF STARBUCKS

• TRANSFORMATIONAL LEADERSHIP ARE SIMILAR TO CHARISMATIC LEADERS, BUT ARE DISTINGUISHED BY THEIR SPECIAL ABILITY TO BRING ABOUT INNOVATION AND CHANGE.

• TRANSFORMATIONAL LEADERS EMERGE TO TAKE AN ORGANISATION THROUGH MAJOR STRATEGIC CHANGE.

• HOWARD SCHULTZ STYLE REVOLVES AROUND INSPIRATION FROM OTHER COUNTRIES AND PLACES THAT HE CAN IMPLEMENT IN HIS BUSINESS.

• HE FINDS PLACES OF CONVENIENCE WHERE HIS PRODUCTS ARE SUITABLE AND CAN BE ENJOYED.

• HE HAS MADE THE EMPLOYEES SHAREHOLDERS IN THE BUSINESS SO THEY CAN GO BEYOND THEIR EXPECTATIONS AND HE HAD IMPLEMENTED COMMUNITY INITIATIVES.

LEADERSHIP POWERS THAT HOWARD SCHULTZ

POSSESSESTHE POWER OF REWARD• EMPLOYEES ARE MADE SHAREHOLDERS OF THE ORGANISATION

HENCE THEY ARE REWARDED FOR GOING THE EXTRA MILE WHEN PERFORMING THEIR DUTIES

EXPERT POWER• HOWARD SCHULTZ POSSESSES KNOWLEDGE ABOUT THE

DIFFERENT TYPES OF COFFEE. DUE TO HIS EXPERT KNOWLEDGE WITH TOURING THE WORLD TO FIND OUT HOW COFFEE IS SERVED THEREFORE HE HAS EXPERT POWER.

HOWARD SCHULTZ LEADERSHIP ETHICS

• PROVIDE A GREAT WORKING ENVIRONMENT AND TREAT EACH OTHER WITH RESPECT AND DIGNITY.

• EMBRACE DIVERSITY AS AN ESSENTIAL COMPONENT IN THE WAY WE DO BUSINESS.

• APPLY THE HIGHEST STANDARDS OF EXCELLENCE TO PURCHASING, ROASTING , AND FRESH DELIVERY OF STARBUCKS COFFEES

• DEVELOP ENTHUSIASTICALLY SATISFIED CUSTOMERS ALL THE TIME.• CONTRIBUTE POSITIVELY TO OUR COMMUNITIES AND OUR

ENVIRONMENT.• RECOGNISE THAT PROFITABILITY IS ESSENTIAL TO OUR FUTURE

SUCCESS.• THE CORNERSTONE VALUE OF STARBUCKS IS “TO BUILD A COMPANY

WITH SOUL” • NEVER STOP PURSUING THE PERFECT CUP OF COFFEE, BUYING THE

BEST BEANS AND ROASTING THEM TO PERFECTION.• CONSISTENTLY PLEASING CUSTOMER SERVICES, PROVIDED BY

KNOWLEDGEABLE AND ENTHUSIASTIC EMPLOYEES WHO KNOW THE COMPANIES PRODUCTS, PAY ATTENTION TO DETAIL WHEN PREPARING DRINKS, AND COMMUNICATE THE COMPANY’S PASSION FOR COFFEE

CORPORATE SOCIAL RESPONSIBILITY

• BROAD-BASED INITIATIVES TO CONTRIBUTE POSITIVELY TO THE COMMUNITIES IN WHICH IT’S STORES ARE LOCATED AND TO THE ENVIRONMENT.

• ALSO CONTRIBUTING TO CARE FOR THE WORLD WIDE RELIEF EFFORT THAT SPONSORED HEALTH, EDUCATION, AND HUMANITARIAN AID PROGRAMS, IN ALL THIRD WORLD COUNTRIES WHERE THEY PURCHASED COFFEE SUPPLIES

TRAITS OF A LEADER• TRAIT LEADERSHIP: INDIVIDUAL WHO LEADS THE COMPANY WITH

A SET OF TRAITS IS A GOOD LEADER• GREAT LEADERS: CRITERIA ARE INTELLIGENCE, ASSERTIVENESS,

GOOD VOCABULARY, ATTRACTIVENESS, SELF-ASSURANCE AND AN EXTROVERT PERSONALITY.

• HOWARD SCHULTZ: A SELF-DRIVEN EXTROVERT. HIS “IDEA” WAS BOUGHT TO THE FOUNDERS OF STARBUCKS.

BEHAVIOURAL LEADERSHIP

• CHARACTERISTICS INFLUENCED BY THEIR BEHAVIOUR, DELEGATION, COMMUNICATION AND MOTIVATION OF SUBORDINATES

2 TYPES OF BEHAVIOURAL LEADERS: • AUTOCRATIC BEHAVIOUR: TASK

ORIENTATED, SUPERVISION AND CONTROL OVER SUBORDINATES TO ENSURE THAT THE WORK IS DONE.

• DEMOCRATIC: EMPLOYEE ORIENTATED, THE LEADER IS FOCUSED ON MOTIVATING EMPLOYEES, LESS CONTROL, CREATING MOTIVATED GROUPS

• HOWARD SCHULTZ: FOCUSES ON EMPLOYEES, TRUSTING STAFF TO KEEP THE FRANCHISES UNDER CONTROL

SITUATIONAL LEADERSHIP

• LEADER OR MANAGER OF AN ORGANISATION MUST ADJUST HIS STYLE TO FIT THE DEVELOPMENT LEVEL OF THE FOLLOWERS HE IS TRYING TO INFLUENCE (SMALL BUSINESS)

• HOWARD ADAPTED TO THE RELEVANT SPECIALTY OF COFFEE SALES AT GIORNALE THAT WERE POPULAR IN MILAN.

• USING THE SITUATION AT HAND TO DEVELOP GIORNALE TRANSFORMED THE BRAND INTO BECOMING STARBUCKS.

CONTEMPORARY LEADERSHIP

• LEADER WHO USES HIS PERSONAL INFLUENCE TO MOTIVATE HIS EMPLOYEES.

• HOWARD USED HIS VISION OF CREATING A COMPANY THAT CARES FOR ITS PATRONS AND THE COMMUNITY AT LARGE.

• TO INFLUENCE HIS EMPLOYEES TO BE FOCUSED AND MOTIVATED IN THE DIRECTION OF HIS VISION AND MISSION. 

COMPETITION

MACDONALDS ADVERT IN SEATTLE

HOW CAN STARBUCKS GAIN A COMPETITIVE

ADVANTAGE

HOW CAN STARBUCKS GAIN A COMPETITIVE

ADVANTAGE• EXPAND FOOD SELECTION TO

SALADS, SOUPS AND SANDWICHES.• EXPAND TO MORE COUNTRIES

AROUND THE GLOBE.• TYING WEBSITE TO THE STORE BY

ORDERING ONLINE AND PICKING IT UP AT THE STORE.

• OPENING MORE STARBUCKS WITH DRIVE-THRUS.

• WIDENING MORE INTERNATIONAL EXPANSION OF STARBUCKS AND ADAPTING TO THE DIFFERENT CULTURES’ AND TASTES

• CREATE PARTICULAR FLAVOURS ASSOCIATED WITH BIG EVENTS OR PERIODS OF THE YEAR OR DIFFERENT CULTURES TO ATTRACT CURIOUS PEOPLE

• FORMING PARTNERSHIPS WITH CELEBRITIES TO PROMOTE THE BRAND

REFERENCESBOOKS:SMIT, P.J., CRONJE, G.J., BREVIS, T., AND VRBA, M.J. 2013. MANAGEMENT PRINCIPLES: A CONTEMPORARY EDITION FOR AFRICA. 5TH ED. SOUTH AFRICA: JUTA & COMPANY LTD.

INTERNET SOURCES:HOGG, B. 2015.10 CHARACTERISTICS OF TRANSFORMATIONAL LEADERS. AVAILABLE: HTTP://WWW.BILLHOGG.CA/2015/11/10-CHARACTERISTICS-OF-TRANSFORMATIONAL-LEADERS/ (ACCESSED 9TH JULY 2016)

MINDTOOLS. 2016. TRANSFORMATIONAL LEADERSHIP. AVAILABLE: HTTPS://WWW.MINDTOOLS.COM/PAGES/ARTICLE/TRANSFORMATIONAL-LEADERSHIP.HTM (ACCESSED 8TH JULY 2016)

THANK YOU FOR YOUR ATTENTION!

ANY QUESTIONS?