Howard Schultz, Starbucks owner, who come from United
States. I choose him as successful entrepreneur in my blog because he born in
poor family background. He is passion toward the coffee and he can see the future of Starbucks. At that time Starbucks is a shop sell the coffee seed only, no any coffee drink. He was never give up to develop the coffee business as he willing to use one year to persuade the manager to employ him as Director of marketing before he join Starbucks. Finally, the Starbucks developed into global business.
Early life and education
Howard D. Schultz was born to a Jewish family on July 19,
1953 in Brooklyn, New York, the son of ex-US Army trooper and then truck driver
Fred Schultz, and his wife Elaine. With his younger sister, Ronnie, and
brother, Michael, he grew up in the Canarsie Bayview Houses of the New York
City Housing Authority. As Schultz's family was poor, he saw an escape in
sports such as baseball, football, and basketball. He went to Canarsie High
School, from which he graduated in 1971. In high school, Schultz excelled at
sports and was awarded an athletic scholarship to Northern Michigan University
– the first person in his family to go to college. A member of Tau Kappa
Epsilon, Schultz received his bachelor's degree in Communications in 1975.
Career
After
graduated his bachelor's degree in Communication in 1975, he worked as a
salesman for Xerox Corporation and quickly promoted to a full sales
representative. In 1979 he became a general manager for Swedish drip coffee
maker manufacturer, Hammarplas. In 1981, Schultz visited a client of
Hammarplast, a fledgling coffee-bean shop called Starbucks Coffee Company in
Seattle, curious as to why it ordered so many plastic cone filters. He was
impressed with the company's knowledge of coffee and kept in contact over the
next year, expressing interest in working with them. A year later, he joined
Starbucks as the Director of Marketing. On a buying trip to Milan, Italy for
Starbucks, Schultz noted that coffee bars existed on practically every street.
He learned that they not only served excellent espresso, they also served as
meeting places or public squares; they were a big part of Italy's societal
glue, and there were 200,000 of them in the country.
On his return,
he tried to persuade the owners (including Jerry Baldwin) to offer traditional
espresso beverages in addition to the whole bean coffee, leaf teas and spices
they had long offered. After a successful pilot of the cafe concept, the owners
refused to roll it out company-wide, saying they didn't want to get into the
restaurant business. Frustrated, Schultz decided to leave Starbucks in 1985. He
needed $400,000 to open the first store and started the business. He simply did
not have the money and his wife was pregnant with the first baby. Jerry Baldwin
and Gordon Bowker offered to help. Schultz also received $100.000 from a doctor
who was impressed by Schultz’s energy to “take a gamble”. By 1986, he raised
all the money he needed to open the first store 'Il Giornale' after the
Milanese newspaper. Two years later, the original Starbucks management decided
to focus on Peet’s Coffee & Tea and sold its Starbucks retail unit to
Schultz and Il Giornale for $3.8 million.
Schultz
renamed Il Giornale with the Starbucks name, and aggressively expanded its
reach across the United States. Schultz's keen insight in real estate and his
hard-line focus on growth drove him to expand the company rapidly. Schultz did
not believe in franchising, and made a point of having Starbucks retain
ownership of every domestic outlet.
Schultz authored the book Pour Your Heart Into It: How
Starbucks Built a Company One Cup at a Time with Dori Jones Yang in 1997. His
second book Onward: How Starbucks Fought for Its Life Without Losing Its Soul
with Joanne Gordon, was published in 2011.
On January 8,
2008 Schultz returned as CEO of Starbucks after an eight-year hiatus. At this
time, Schultz was earning a total compensation of $9,740,471, which included a
base salary of $1,190,000, and options granted of $7,786,105. Schultz is a
significant stakeholder in Jamba Juice.
On the first of November 2013, it was announced that
Schultz had stepped down from the board of Square, to be replaced by former
Goldman Sachs executive David Viniar.
Starbucks' success was largerly through word of mouth advertising , and this turned its name into a household word. In fiscal 2004, Starbucks reached a record 1344 stores worldwide. The history of Starbucks shows how the once small regional roaster, selling coffee beans, became an international corporation with more than 9000 location in 34 countries serving 20 million customers or a week.
Background of Howard Schultz:
Article about development of Starbucks business:
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