Rags to Riches: Starbucks Billionaire Howard Schultz’s inspiring story will change thinksing

The startup industry has witnessed unbelievable transformations. The stories of Nike’s rise in the sporting goods segment and KFC’s dominance as a fast food behemoth have shown that nothing is predictable in this era of cutthroat competition.

One name is synonymous with global influence when we talk about the beverage industry. It’s none other than Starbucks. The evolution from a shop that sold coffee beans into a multi-billion company is inspirational. But as they say, achieving success is impossible without struggle, pain, and hard work. Starbucks is where it is today because of Howard Schultz’s strategies and leadership.

Starbucks’ meteoric rise under Howard Schultz’s leadership and his time on the board of Square have made him a well-known figure. Discover more about Howard Schultz and how he set up Starbucks.

Curating the Business Mindset: Schultz began his career as a salesman for Xerox Corporation.   The turning point came in 1979, when he was appointed general manager of Hammarplast, a Swedish drip coffee maker.

In 1981, when he went to see a client of Hammarplast, he saw that Starbucks was ordering plastic cone filters. The company’s knowledge of coffee impressed him, and he joined Starbucks. Howard Schultz joined as the director of marketing.

His trip to Italy changed Starbucks’ operational approach. He noticed that coffee shops existed on every street in Italy and served a wide variety of coffee. These places acted as meeting points for people. Schultz proposed a new marketing strategy, which wasn’t welcomed. Schultz left the company as a result.

How did it all start? Schultz needed around 400,000 USD after leaving Starbucks, which was difficult at the time. Jerry Baldwin and the company’s co-founder, Gordon Bowker, offered to help him set up the first store. In 1986, Schultz founded ‘II Giornale,’ named after the Milanese newspaper.

The store had a vivid menu, ranging from coffee to ice cream. Schultz was determined to implement the inspiration he received from his Italy trip. The store had seating facilities and opera music.

Starbucks Revamped:— After years, Starbucks’ control committee offered its complete retail unit to Schultz. The team’s net worth increased to approximately $3.8 million USD. Later on, Schultz renamed II Giornale to Starbucks. There was no going back to Starbucks after this. Under Schultz’s leadership, the company grew rapidly and expanded throughout the United States.

Schultz’s understanding of real estate was critical in Starbucks’ transformation into a household name in the country.Schultz stepped down as CEO of the corporation in 2000 and has become the Chief Global Strategist to assist in expanding the corporation globally. A new technology for Starbucks began.

Expansion of the Coffee Chain: Starbucks Although the company was successful in the food and beverage industry, it was primarily due to home profits. International income wasn’t satisfactory, and Schultz stepped back as CEO of Starbucks after a hiatus of eight years. He fired numerous executives and ordered the shutdown of non-acting shops throughout the globe. Howard additionally employed a Chief Technology Officer, and he brought the Starbucks Reward Card.

Salary and Presidential Aspirations: Schultz earned around $9 million USD while radicalizing Starbucks. In 2016, he stepped down as the CEO of Starbucks and acquired the post of executive chairman. After two years, he announced he was quitting Starbucks to have a shot at the presidential campaign.

Tenure with the Seattle SuperSonics: In 2001, Schultz and nine different traders bought the National Basketball Association’s Seattle SuperSonics and the women’s crew, the Seattle Storm, for two hundred million USD.

But his time with the team didn’t go well because the fans wanted to run the club like a business instead of a sports team, which was a bad idea. Schultz got mad at the crew captain after he criticized him for not showing up to the crew’s first practice session.

Later, he sold the crew to Clay Bennet, the chairman of the Professional Basketball Club, for 350 million USD. This flow was taken in response to his need for more ability to accumulate a public budget for constructing a stadium. Schultz is still unpopular in some parts of Seattle, according to a collection of proceedings.

The Author:— Apart from being a successful entrepreneur, Schultz has penned several books. In 1997, the book ‘Pour Your Heart Into It: How Starbucks Built a Company One Cup at a Time’ was released.

He co-authored ‘How Starbucks Fought for Its Life Without Losing Its Soul’ with Joanne Gordon. ‘For Love of Country,’ his third book, was co-written with Rajiv Chandrasekaran and published within the first year of 2014.

An Inspiration:—  Howard Schultz has seen crests and troughs, an unpleasant tenure with the Seattle Supersonics, and a successful stint with Starbucks. He didn’t back off when it came to making the harshest of decisions.

His marketing strategies transformed Starbucks from a coffee bean store into an $80 billion USD organization. It is a no-brainer that Schultz is an inspiration for budding entrepreneurs.

Courtesy:– StartupTalky

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