book report of onward

Book ReportC-Suite Perspectives

Leadership & Integrated Marketing

Chiawei ChangYunqing Gu

Background Howard SchultzChairman, President, CEOBorn in Brooklyn, NY

1981 Moved to Seattle Worked in the Starbuck (Marketing Director)1985 Left Starbuck Opened ll Giornale1988 Starbucks was sold to ll Giornale > Starbucks 2008 Returned as CEO

------------LOVE-------------------CONFIDENCE------ ------------PAIN------------------------HOPE---------------------COURAGE---------

How Starbucks fought for its live without losing its soul

------------LOVE-------------------CONFIDENCE------ ------------PAIN------------------------HOPE---------------------COURAGE---------

PART1-LOVE

• Love what you do- Passion

• Love your product - Perfect shot of Espresso

• Love your customer– Community – Understand the need – Extend the brand beyond coffee into entertainment

• Love your employees– Memo, Walk to talk – Full health care benefit and equity

• Love environment– Global Green USA– Educate customer – Renewable energy

2007Traffic slow down tremendously, stock dropped by 42 percent

• Growing too fast• Deviate from its heritage • Out-dated digital platform

How to make it right ?

------------LOVE-------------------CONFIDENCE------ ------------PAIN------------------------HOPE---------------------COURAGE---------

CONFIDENCE

To instill confidence.

why? • Sense of safety• Competitor: McCafe

SEVEN BIG MOVES

1. Be the undisputed coffee authority.2. Engage and inspire our partners.3. Ignite the emotional attachment. 4. Expand our global presence and make each

store the heart of the local neighborhood.5. Be a leader in ethical sourcing and

environmental impact.6. Create innovative growth platforms worthy of

our coffee.7. Deliver a sustainable economic model.

• Be the undisputed coffee authority.– Quality

• Expand our global presence and make each store the heart of the local neighborhood.– Increase local relevancy by redesigning products

and stores.

• Create innovative growth platforms worthy of our coffee.– Products expanding and complementing.

------------LOVE-------------------CONFIDENCE------ ------------PAIN------------------------HOPE---------------------COURAGE---------

• Sales fall down• Close 600 stores• Fire 550 employees• Products failure

PART.3 PAIN

“Starbucks is a people company service coffee.”

-Howard Schultz

PART.3 PAIN

Reason:• Economy downfall• Low services ratio• High Investment

PART.3 PAIN

Solution1. Customer- value proposition

– increase service speed – meet seasonal needs – Loyalty program value

2. Employees- clarify– Barista buy-in required – cut low efficiency products– find believing people

------------LOVE-------------------CONFIDENCE------ ------------PAIN------------------------HOPE---------------------COURAGE---------

• Supply chain problems • Social responsibility event

(New Orleans annual conference)

• Digital marketing campaign(presidential elect day)

• Making friends of boards

PART.4 HOPE

“People want to do business with companies they respect and trust, especially in the current climate.”

-Bono(U2)

HOPE

Because • company- supply chain problems– northeast services speed slowdown– short of provision– some fund in the bankruptcy bank

• Consumer-economic crisis – customer become frugal– Look upon respect and trust

HOPEDon’t blame for the past, find future confidently

1. cut operating costs - New laptops and POS system

2. close to partners - $30 M New Orleans conference

3. social responsibility - Homeless volunteer with SYP

4. emotional connect - Partnership with Bono(U2)5. Interactive online - Digital campaign

with BBDO

------------LOVE-------------------CONFIDENCE------ ------------PAIN------------------------HOPE---------------------COURAGE---------

Part 5: COURAGE

• Reinvented by scientists• Engagement online • Met merchant in Italy• Rwanda trip for charity• Trip to Shenzhen-globalize

“If this was your store, what would you do differently?”

-Howard Schultz

COURAGE

• category innovation - Via instant coffee– team work as a science– relevant to public interests (blizzard partnership reject)

– emotional connection (Unique local culture stores in Seattle)

– Employees’ care (how to improve their works) (Health care plan)

– Commitment supplier (helping Rwanda famer by Charity)

COURAGE• Globe strategy

– challenged or fighting for survival– globally stabilization refocus on growth– opportunities and risks implied.

• China– 1.3 billion population– 700 stores in 2009– locally relevant culture

Take-away

Authentic

Customer

Employee

Passionate

Idea

Execution

Encouraging

Business

Management

Partner

Valuable

Internal

External

Loyalty

Strategic

Globally

Locally

Exquisite

Expertise

Technology

Take-away

• Authenticity

– Customer

– Employee

Take-away

• Passionate

– Idea

– Execution

Take-away

• Courage

– Risks

– Changes

Take-away

• valuable- Internal - External -Loyalty

Take-away

• Strategic– globally– Socially

Take-away

• Exquisite- Expertise -Technology

About Books

• More like a marketing plan than actual story• Dramatic tone (likes more and haters worse)• the story of Howard Schultz other himself

– (who has the help of a ghostwriter, Joanne Gordon).

• skeptical about the some parts

For Me

• Choosing a career that I am passionate about.

• Choosing a career wheremy employer appreciated what I bring to the firm

• Choosing a career that has great benefits is a big plus.

Thank You&

Questions?