MILLS- Starbucks

7/30/2019 MILLS- Starbucks

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STARBUCKS COFFEE COMPANY 1

STARBUCKS COFFE COMPANYMILLS; ABBY

PROFESSOR JACKSON

THE GEORGE WASHINGTON UNIVERSITY


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Abigail MillsSection 15

September 27, 2012

Starbucks in American culture today is so prevalent that it is common to find a

nearby store location, access their online site, and purchase various Starbucks brand

products in supermarkets throughout most of fifty states. But the Starbucks craze is not

restricted to North America; instead it has expanded internationally reaching the far ends

of the globe. So needless to say, in a world with so much Starbucks brand power I felt I

knew Starbucks, its origins, and what the company was about. Howard Schultz, in his

bookPour Your Heart Into It drastically changed my thinking about Starbucks and

businesses in general. With keen insight as Chairman and CEO of Starbucks, Schultz

provides many lessons for young entrepreneurs and small businesses while laying the

grounds for young professionals to start thinking with business practicality.

Firstly, Starbucks quaint start as a Seattle based coffeehouse to its transformation

into a global powerhouse has remained focused on innovation and change. From its

creation, quality coffee was to be of main importance. With over thirty- two varieties of

quality coffee from around the world the company was just beginning to offer its unique

place in the coffee retailer market. Pre Starbucks era, Americans were drinking

commercialized cheap roast coffee. Starbucks thought world-class coffee, dark roasted

for its full flavor, was meant to be appreciated and made available for consumers. This

bold and unique approach earned Starbucks its niche in the small elite of gourmet coffee

drinkers. Schultz, in effort to expand Starbucks customer base, created the distinct

personal atmosphere present in every Starbucks today, specifically what he describes as

the romance of Starbucks in an environment that strikes an emotional chord with


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people (Schultz, 5). Additional successful business lessons can be seen from Starbucks

start up, in the brand strategy. For example, they set up stores in major cities with each

store reflecting the character of the neighborhood while maintaining its well recognized

personal feel, cleanliness, and efficiency. Lastly, Schultz claims to have brought back

with him from Italy to the United States the first caffe latte. This demonstrates that

introducing new products to the market can have a tremendous effect on profits.

However, with new products, companies should revisit their values. When Starbucks

questioned some of their founding principles they effectively saw this lead to change. By

adapting to consumer preferences instead of their original stringent principles based on

the use of whole milk, Starbucks further developed the Frappuccino and expanded into

supermarkets with their brand of ice cream. Being able to innovate as well as adapt still

remain at the forefront for Starbucks and can been taken as a lesson in positive growth.

In Schultzs account of his years prior to Starbucks and then of the years after his

admission into the Seattle company, one critical lesson I learned was the importance of

passion. Schultz was extremely passionate about Starbucks, therefore, his success teaches

me that passion and creative work motivate people to work harder, and think differently

ultimately leading to achievement.

Lastly, Starbucks is not a company that came to power without a struggle. Nor

does any company exist without issues. Schultz, for one, sacrificed his company

Giornales for the bigger picture in its acquisition of Starbucks. Even today, as Starbucks

globalizes coffee markets, with great power comes the responsibility of managing and

maintaining its place as a business leader. History shows that no company lasts forever,

but Schultzs lesson teach us that you persevere because it is worth it. By following your


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passion and constantly looking to innovate, you can stay ahead of the curve and possible

problems. But most of the time, companies are presented with issues, and it will be your

will to carry on and wits that determine your companys outcome.

In the lessons Ive learned from Schultzs broad philosophy, I can see myself in

the future applying specific strategies based from Starbucks business strategy. As a

young entrepreneur the coffee market fascinates me. And while the coffee market in the

United States may seem saturated, nonetheless, there is still a demand. Globally, as well,

there is an ever-increasing demand for coffee and opportunity in parts of the world where

still large proportions of people do not drink coffee. Schultz provides the basic

groundwork to start thinking about new ways to transform coffee. Starbucks, as one of

the largest coffee retailers in the United States, proves innovation and ingenuity can lead

to success. In following some of Schultzs basic principles, as outlined above, I would

grow my coffee venture sustainably, treating each actor in the coffee supply chain with

respect. I would organize research and development to find new consumer needs and

create new products as Starbucks did in their dedication to innovation and self-renewal.

My aim, in final, would be to create exceptional value for customers through quality

coffee and customer service. Schultz left me with the message that the choices I may

make one day could change the world.

Schultzs perception and values of cultures, as well as his economic philosophy

has transformed how many businesses run their day to day operations. Starbucks and

Schultz educate and impact people around the world and principally prove the civilized

existence of an ethical corporation in modern America. And while companies do not


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always stand the test of time, I have no doubt Schultzs guiding ideologies and lessons

will continue to teach future generations.


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WORK CITED

Schultz, Howard, and Dori Yang. Pour Your Heart Into It: How Starbucks Built a

Company One Cup at a Time. First Edition ed. New York City: Hyperion, 1997.

5. Print.

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