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Starbucks Success Story

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Starbucks Success Story

Coming from a poor working class family- Howard D. Schultz, the CEO of Starbucks transformed his life by establishing his company into the world’s biggest coffeehouse company.

Schultz was born on July 19, 1953, in Brooklyn, New York, in a poor family. His father was a former US Army trooper and then a truck driver.

His childhood was spent around poverty, Schultz lived in a neighbourhood with low-income families. Schultz witnessed his father struggling for money. At the age of seven, his father injured his leg at work and had no medical insurance, so the financial strain on the family left Howard scarred with terrible memories of his childhood.  “I saw my father losing his sense of dignity and self-respect. I am sure that this was caused mostly by the fact that he has been treated as an ordinary working man.” – Howard Schultz recalls.

In high school, Howard played football that earned him an athletic scholarship for Northern Michigan University.

Upon starting college, Schultz realised he did not want to play football and chose to major in communications. To pay for school he took out student loans, worked as a bartender and also sold his blood for money a couple of times.

After graduation, the future entrepreneur spent three years working as a sales manager at Xerox, then joined Hamamaplast a Swedish company.

The company sold various home appliances that included selling coffee machines to Starbucks.

Starbucks caught Howard’s attention when it placed an order for a large number of coffee machines, this led him to fly to Seattle to meet the owners, Gerald Baldwin and Gordon Bowker.

After a year of constant persuasion, the Starbucks owners hired Howard as the director of retail operations and marketing. At the time there were only three Starbucks stores.

The trip that changed Starbucks and Schultz’s career was his trip to Milan to attend an international housewares show. While exploring the place he came across small coffee shops, where the owners developed personal relationships with their customers, even calling them by their given names while serving them cappuccinos and cafe lattes.

 

In 1985, Howard quit Starbucks as his Italian based coffee experience idea was rejected by the two founders. He then went on to create his own coffee company called ‘Il Giornale’ Italian for ‘The Daily.’

Howard Schultz remarks, “Only those who go by unexplored roads, creating new industries and new products, can build a strong, long-lasting company and inspire others to achieve great results.”

Over $1.6 million was required to get Il Giornale up and running. Schultz describes his struggle “In the course of the year I spent trying to raise money, I spoke to 242 people, and 217 of them said no,” he wrote. “Try to imagine how disheartening it can be to hear that many times why your idea is not worth investing in. … It was a very humbling time.”

He spent two years replicating the coffee culture he had experienced in Italy, at Il Giornale. In August 1987, Starbucks was purchased by Il Giornale for $ 3.8 million.

Starbucks became a public company in the year 1992. In June of the same year Starbucks sold its shares on the New York Stock Exchange for $ 14 a share, the price rose up to $ 33 in just one day.

To retain the quality and to give customers perfect coffee, in 2008, Schultz closed over 7,100 Starbucks stores to retrain the baristas on how to make the perfect espresso. The next two years the company did a massive turnaround, in 2010 the profits tripled from $ 315 million to $ 945 million.

Starbucks now has an annual sales of over $16 billion. Schultz net worth also rose to $ 3 billion. Once Schultz said, “I cannot offer you any specific secret recipe for success, the perfect plan, how to reach the pinnacle of success in the business. But my own experience suggests that starting from scratch and achieving much more than what I dream about is quite possible”.Starbucks now has an annual sales of over $ 16 billion. Schultz’s net worth also rose to $ 3 billion.  

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7 Books That Could Change Your Life

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A book always opens up the doors to new possibilities and ideas. You just need to be open to new suggestions. The right books will make you invincible, by providing you with gems you can not find anywhere else. Here we have a list of books which will change your life, only if you let them.

Big Magic by Elizabeth Gilbert

Big Magic by Elizabeth Gilbert is about preaching the message, we are all are inherently creative. Big Magic is a motivational and inspirational read, it makes the reader want to create something spectacular.

The Secret by Rhonda Byrne

“You are the masterpiece of your own life. You are the Michelangelo of your own life.” This is the message this book conveys. If you are ever in a slump pick this up, it is a light and easy read, The Secret will leave you with a new energy and a new perspective on life.

The Power of Habit by Charles Duhigg

Charles Duhigg takes us on a journey with this book, he includes real life examples and success stories. Duhigg employs scientific discoveries to provide us with a logical explanation about why we do, what we do in life and how to change it.

Crushing It! by Gary Vaynerchuk

The author of this book Gary Vaynerchuk writes “Are you going to be part of the revolution? My hope is that Crushing It! will be the inspiration and strategy for you to understand how it’s not only possible, but practical to do the same.” It is a self help book for entrepreneurs to build their businesses.

Startupland:How Three Guys Risked Everything to Turn an Idea into a Global Business By Mikkel Svane

Startup Land is a realistic account of how three guys dove into the startup industry. They documented their struggles and successes in this book. The story effortlessly conveys the message you just need to be you to succeed at your passion.

Four Thousand Days: My Journey from Prison to Business Success By Duane Jackson

An entertaining an inspiring story of a young man, who turned his life over after being arrested for possession of drugs. The author tells his story about building and selling his business and how he became a millionaire.

Rework By Jason Fried

A New York Times bestseller, Rework, is a business book, that is unlike the rest. Rework does not give you the same old advice, it provides you with realistic, better, faster and easier ways to succeed in your business.

Have you read any of these books? If so let us know how you liked it in the comments below!

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How Steve Jobs Convinced Tim Cook To Work For Apple

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Timothy Donald Cook, also known as Tim Cook, is the Chief Executive Officer of Apple. Cook is a well known American business executive and an engineer. Tim is behind the company which runs the most profitable business in America. Last year, Apple brought in more than $ 48 billion in net income.

Steve Jobs, the co founder of Apple, introduced Tim Cook to the company. In an interview with Bloomberg, Tim was quoted saying working for Steve Jobs was “liberating.” He added, if he had a “really big” idea, he would just simply bring it to Steve Jobs, if Jobs liked it he would just say “OK” and let Tim work on it.

“It was like a total revelation for me that a company could run like this, because I was used to these layers and bureaucracies and studies the sort of paralysis that companies could get into and Apple was totally different,” said Cook.

Tim Cook celebrates his seventh anniversary as Apple’s CEO after being with Apple for 14 years. He took over the company in 2011 after the passing of Steve Jobs. Jobs died after a long battle with cancer at the age of 56.

Steve Jobs’ desire to move into the consumer space for Apple and his lack of interest in growing financially convinced Cook to join Apple. In his first  interview in 1998 for the position, Cook wanted to join Apple within five minutes of meeting Steve Jobs. Cook was so mesmerized with Jobs charm and the way he ran the company, he resigned from his job at Compaq the next day, he did not look back from Apple ever since.

Cook adapted the role as the CEO seamlessly, he calls the job “his oxygen.” He built a reputation as a demanding boss, he holds marathon meetings, questions everything and is constantly emailing employees.

Talking about how Cook’s Apple is going to be different he said, “I love museums, but I don’t want to live in one. Steve taught us to not focus on the past. Be future focused.”

 

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How To Structure Your Priorities

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At work, everything is at a high priority, how do you then structure your list of priorities with everything you need to accomplish. Knowing how to structure your priorities, is a key skill to have. To hit deadlines, you need to follow these steps and make your life easier, for you and your colleagues.

Write a to do list

Even though, you know everything you need to get done, it is best if you jot down everything with the deadline date. Do not worry about the order, just brain dump, small tasks as well as big tasks on to the list. From walking the dogs to finishing up a work related document that is due in two hours.

Identify what is urgent

After writing everything down, look at the things needed to be done the quickest, the work, if not done as soon as possible can have negative consequences. That work related document which is now due in an hour and fifty minutes.

Assess value

Look at the leftover tasks, and identify tasks adding the most value to the company upon completion. You should be able to recognize what tasks provide you or your organisation with the most value. If there is cooking food on your list, it would be helpful to do that before embarking to do everything else on an empty stomach.

Rearrange the tasks

After identifying the work needed to be done first and the work garnering the most value when completed. It is time to rearrange the tasks requiring the most effort. The easiest way to do this is by employing a prioritisation method by Brian Tracy. It focuses on your feelings towards the task.

In the words of Mark Twain, if the first thing you do each morning is to eat a live frog, you can go through the day with the satisfaction of knowing it is probably the worst thing going to happen to you all day long. With this ideology in mind, get the worst task done first.

  1. Things you do not want to do and you do not need to do.
  2. Things you do not want to do but actually, need to do.
  3. Things you want to do and actually need to do.
  4. Things you want to do and do not need to do.

Remember you only have twenty four hours in a day, make sure you do not bite off more than you can chew.

 

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