Onward: How Starbucks Fought for Its Life without Losing Its Soul Essay Example
Onward: How Starbucks Fought for Its Life without Losing Its Soul Essay Example

Onward: How Starbucks Fought for Its Life without Losing Its Soul Essay Example

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  • Pages: 5 (1259 words)
  • Published: June 5, 2018
  • Type: Essay
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Onward, authored by Howard Schultz, the CEO of Starbucks, explores the process of self-evaluation that Starbucks went through after experiencing rapid growth. Although I am not a huge fan of Starbucks because their coffee is expensive and overly dramatic, being a coffee addict myself, I decided to read and review this book. The captivating ambiance of their stores has always fascinated me.

While visiting various stores with friends to enjoy coffee and catch up, I couldn't help but notice the inviting and cozy atmosphere. This made me wonder how this particular company was able to create such a welcoming feeling for its customers, similar to what Schultz describes as a "third place" in his book. According to Schultz, a coffeehouse like Starbucks serves as a public space where people can connect, becoming their "third place" after home and work. Onward tells the story of a CEO's mission

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to rejuvenate and reimagine a company while maintaining its original essence. Growing up in Brooklyn's impoverished neighborhoods, Schultz later joined Starbucks in Seattle as the head of marketing after completing college. At that time, Starbucks solely focused on selling coffee beans rather than offering any beverages.

During a business trip to Italy, Howard's true love for coffee was revealed. In a quaint coffee shop in Milan, he witnessed the artistry of a barista pouring espresso into delicate porcelain cups and forming personal connections with customers. Howard likened this experience to theater, emphasizing the blend of skillful craftsmanship and human interaction. The enticing scent and invigorating taste of the coffee enhanced this emotional connection. This encounter sparked Howard's vision for the future of Starbucks. (10)

Howard's idea to replicate the Italian coffe

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bar experience was initially rejected by Starbucks' founders in Seattle. In response, he decided to establish his own store called Il Giornale, where he could bring his vision to life. After a year and a half, Howard purchased the very company he used to work for, Starbucks, without altering its name. As time went on, Starbucks expanded beyond being just a coffee shop and became an enticing investment opportunity for shareholders. The number of stores grew rapidly, resulting in significant profits and eliminating the need for any alterations. In 2000, Howard stepped down as CEO and appointed Jim Donald as his successor responsible for day-to-day operations while continuing to serve as chairman with an increased focus on global strategies.

Despite its financial success, Starbucks was losing its essence. Just like other successful companies, Starbucks failed to notice the fractures that were beginning to appear. However, everything changed during the economic downturn when Starbucks started facing financial losses. Stocks plummeted and fell far below investor expectations, causing embarrassment. As a result of this setback, Howard Schultz made an intuitive decision to resume the CEO role in 2008.

Onward is a reflection on the last four years of Starbucks history, with a brief history of the company and a particular focus on the stumble it faced in 2008 and Howard's subsequent decision to return as CEO after serving as chairman for eight years. It is not a typical memoir that delves into Howard's childhood or extensively discusses how he turned Starbucks from a small Italian-influenced coffeehouse into a global brand with 16,000 stores. However, it does encompass all the elements of a captivating story: a man's journey in transforming

a small coffee company into a formidable global retail powerhouse, taking on the role of chairman, witnessing continued growth and expansion, only to face a sudden setback eight years later.

Man returns as CEO to save his company. In great detail, Schultz shares the reasons behind his decision-making. Schultz states that he closed down 600 underperforming stores and restructured the leadership in 2008 to protect the brand's authenticity and value. He expresses his disappointment that the previous CEO, Jim Donald, had prioritized growth at the expense of lower-performing stores and a decrease in loyalty among Starbucks partners.

In his book, I greatly admire Schultz's reference to partners, encompassing individuals of all levels, from CEOs to baristas. His impactful return as CEO resulted in swift and decisive changes throughout the company hierarchy. This included the simultaneous closure of 7,100 stores for three hours to re-train baristas in the art of crafting perfect espresso. Furthermore, embracing the power of the internet allowed Starbucks to reconnect with consumers. Alongside these transformations, Schultz implemented various revenue-increasing initiatives, such as the Starbucks Reward card, the Pike Place blend, enhanced food options, advanced technology equipment, and a more robust social media presence. Schultz's belief that Starbucks' true value proposition lies in fostering an emotional connection serves as the driving force behind his strategic choices.

The book demonstrates Schultz's commitment and integrity in every instance, evident when he agonizes over the company's breakfast sandwiches and feels personally defeated upon seeing someone with a Dunkin Donuts or McDonalds coffee cup. The storytelling captures everyday conflicts, offering a glimpse into Schultz's mindset as he confronts challenges and evolves his leadership approach. While on a family vacation, Schultz

turned to Michael Dell, an old friend and CEO of Dell, for guidance. Their regular meetings focused on addressing work-related problems and concerns. It was during one of these conversations that Dell imparted two crucial words to Schultz: "Transformation Agenda," which greatly aided his smooth transition back into the role of CEO.

The plan to regain the company's soul is outlined here. The Agenda's goal is to become a well-known and respected brand worldwide, inspiring and nurturing the human spirit. This vision includes seven goals: being the leading authority in coffee, engaging and inspiring partners, creating emotional connections with customers, expanding globally, leading in ethical sourcing and environmental impact, fostering innovation, and delivering a sustainable economic model. This business plan provides Starbucks with a clear direction and purpose to follow.

Throughout the book, Schultz repeatedly emphasizes the company's core values. These values, which are discussed in almost every chapter of the 32-chapter book, encompass various aspects such as offering outstanding benefits to employees, using only top-notch coffee beans, placing importance on customer service and efficiency, and maintaining an authentic coffee shop experience from storefront to torefront. Schultz comes across as likeable and exhibits effective leadership style. The book is written sincerely and contains valuable business lessons for entrepreneurs, conveyed through anecdotes and personal experiences.

The book teaches a valuable lesson about innovation: according to Schultz, the best innovations are those that anticipate and fulfill a need even before it is recognized. Schultz had faith in and implemented various new ideas, including launching Starbucks instant coffee, partnering with Target to create a store within a store concept, using modern technology to improve efficiency, and expanding globally into China. These

ideas, which Schultz followed through with, eventually led to the company's profits growing in the United States. Schultz's return brought about the necessary change for Starbucks to rediscover its soul, focusing on one cup, one customer, one partner, and one experience at a time.

"Despite sometimes being unsure of the story's timelines and thinking it could have been condensed into 200 pages, Onward encompasses all the essential elements of a captivating narrative: intense stakes, suspense, and internal struggles. Schultz may come across as excessively dramatic and self-congratulatory, yet his genuine sincerity, passion, and dedication towards the company shine through. Furthermore, he successfully prioritizes the welfare of employees, producers, and vendors, while also remaining environmentally conscious. Ultimately, his good intentions, relentless efforts, and Starbucks' current position as a company align seamlessly with his storytelling in the book."

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