Everyone knows Starbuck Coffee, the largest coffee company in the world with almost 17,000 stores around the world. Believe that few peoples know Howard Schultz, who is the CEO and chairperson of Starbuck Company. His legacy started when he became curious when many of coffee roasting equipment being purchase by a shop in Seattle. He found that was a big opportunity business when he visited to Seattle. Schultz was asking to join Starbuck by the three owners Jerry Baldwin, Zev Siegel, and Gordon Bowker because of Schultz marketing skill. Firstly, the question discussed about personality.
Personality can be defining as how the ways of the individual react and interact with others and the measurable trait a person exhibit. The big five personality traits are extraversion, agreeableness, conscientiousness, emotional stability, and openness to experience. Beside of personality, we found that there are some other skills and abilities possess by Schultz such as social skill and observation skill. Based on the case, is discuss about the way he operates the company and how he interact with his subordinates so successful. Question 1
Starbucks Coffee Essay Example
As a chairman and CEO of Starbuck Coffee, Howard Schultz, also well known as a good and most successful leader. Openness to experience is one of the factors that can found in Schultz. Based on the case, he becomes curious when he realized many coffee equipment bought by the shop in Seattle and he quickly went to Seattle to find out what is happen. When he reached in Seattle, he noticed that four coffee house named Starbucks was bought in many coffee machines. At the time, his knew this is a potential business. He pushed and convinced them to join the company.
Finally, the three owners recruited him because of his marketing skill. The other factor is extraversion, to describe an individual who is sociable, gregarious, and assertive. Nowadays, a lot of people are very hard to get a good relationship with their employer because lack of communication. Schultz have good communication skill that as he know how to communicate with his lower level management and subordinates. For instance, he is using our, us, and we in his communication instead of mine, me or I. (Robbins, S. P. and Judge, T. A. , 2011) Thus, employees are satisfied to work with him because peoples are willing to work.
For example, a manager is using the word “us” for presenting a project to CEO instead of using “me. ” When a project work is successful, parts of his members were feel very proud or happy because they are involved. As you imagine a manager does not like to listen to their employees or does not care about them, the business is hard to go further. In this new era, to become a successful leader and manager must hold this type of personality, which is agreeableness. Agreeableness can be simply define as how an individual getting along with others.
People who possess with this personality are usually friendly and willing to share with others. (Robbins, S. P. and Judge, T. A. , 2011). Schultz wanted to create a working environment that is full with care, love, kindness, passion, and share instead of working. (Michael Lee Stallard, 2011) Starbucks is one of the less turnover rates in the industry because he understands what the employees’ needs and wants. For example, Schultz always told his subordinates always listen to customer because it is the way to understand their needs and wants.
Beside, Schultz always gathers all the idea from subordinates so the subordinates are getting happy to share their idea. When understanding the needs and wants of the employees and customers, the company can be able to build a good relationship with customers and providing an excellent service and benefit. There are able to make the customers coming back again. (Michael Lee Stallard, 2011) On the other hand, to become a world largest coffee shop is not such an easy way. As a CEO of Starbucks have a responsible to look into every single outlet. Schultz must be composedness and self-confident when solving problem.
It is not only requiring for starting a business it also require when managing business because problem solving and decision making is important for a manager. Although the big five personality can determine and describe a person’s personality. Some other personality trait is core self-evaluation. Core self-evaluation defined as how an individual like or dislike himself or herself and how the other peoples see himself or herself that are whether capable enough. (Robbins, S. P. and Judge, T. A. , 2011) This type of positive personality trait helps Howard Schultz create a top coffee shop.
With his knowledge and observation, he realized that is a good opportunity of adding some food, such as sandwiches and cake instead of just offering coffee to their customers. Thus, the entire Starbucks outlet is offering their coffee and food even snack. Question 2 Motivation can be define as the process to describe an individual who have intensity, direction, and persistence to achieve their goal. Based on the McClelland theory of motivational needs, it is classify to three types, which are needs of achievement, affiliation, and power.
The needs of achievement known as the people who are like to challenge something that they perceive the probability of success are 50/50 chance of success. They usually dislike the chance, which is high, or low probability. (Robbins, S. P. and Judge, T. A. , 2011)For example, Schultz does not realized the result whether it is success or failure of this coffee business. However, he dared to take challenge of buying the franchise from the three owners and expanded it to 150 stores from 1987 to 1992. After he bought over Starbucks, the company was going to making profit in 1990.
In addition, the Starbucks store is keep increasing in many locations around the world. On the other hand, Schultz is classifying in the need of power. The need of power will exist when the achievement need is reach. This is usually happening in the higher-level management. (Robbins, S. P. and Judge, T. A. , 2011) For instance, his employees have the passion for serving their customer because the influence power from Schultz. Through his influence to employees, Starbucks is not only a coffee store even provide a five star service.
For providing a good service, the customer guarantee will come back again it is because they are dealing with human being. Furthermore, the needs of affiliation define the people usually prefer work in a group rather than alone and even a desire close interpersonal relationship. (Robbins, S. P. and Judge, T. A. , 2011) Based on the case study, Howard Schultz has close interpersonal relationship with his employees. All the Starbucks employees are enjoying the good benefit that created by Schultz because he realized that the needs and wants of his employees through the communication with them.
Beside, Schultz was using we and our instead of I and me. Beside, Schultz told his employees to provide an outstanding customer service is to listen to the customer. Through all these three McClelland theories, Schultz has the easier way to keeping his company to the higher standard of service and become the less employees turnover rate company in the industry. Question 3 Based on the case, we learn that social skill is one of the important issues that can make someone successful in his or her life.
Howard Schultz has a very strong social skill that can lead him to interact with his employees and the three owners. Example, he communicated with his employees every time even thought is a small problem. This is to ensure everything done well and in operation. Moreover, Schultz can be able to convince the three owners to hire him. It shown that, he uses his social skill to convince the three owners and his employees. According to Schultz, he said Starbucks does not sell coffee it sell human connection. This is the reason make Schultz become a successful leader.
Schultz is more concern about people, customer service, employees, human interaction, and the experience that customer gain in the shop. Howard Schultz is a very good communicator. (Carmine Gallo, 2011) He communicates with different peoples to observe every desire need from different peoples. Schultz mentioned that his father was a blue- collar working and his company does not offer him a health insurance or any benefit. Therefore, he understands the need of the employees and his company offers an outstanding benefit and great working environment for their employees.
Hence, he successful created a company that he father never work before. Moreover, Schultz has the observation skill as expanded his business. Based on the case, through the observation by Schultz, he discovered many customers are visiting the store in the evening such as businesspeople use as a meeting place and some of the college students are likely to do their homework because of the environment. Through his observation skill, to attract more customers he was providing Wi-Fi service to give people a convenient and comfortable environment.
This is one of factor that leads the sales keep growing and more and more customer visiting Starbucks. Besides, focusing is one of the important skill to him. To expand the company to 150 stores from 1987 to 1992 is not an easy way. He had to focus onto his business all the time and even now. There are many of other coffee store been setting up years ago, thus, he has to focus onto the quality, customer service, and the environment. (Unknown author, 2012) Conclusion Howard Schultz is a very successful CEO and a good communicator.
Through this case study, we are able to get a deep understanding of Schultz. The personality he had, and the skill and ability he possess, and the motivation in his career. As a manager is about not only control and managing, a manager has to communicate with their subordinates to understand what they actual need and try to motivate them frequently by giving a training programme and promoting them to next level. Nowadays, more and more people are looking a well standard of service. Therefore, training needed to teach them the service standard because we are trading with human being.
From the case study, we learn that personality, skill, and ability of a person, and motivation are playing an important role. Without any of these skills, it is very hard to success in your career. Social skill is playing an important role in the service industry. Schultz had a strong communication skill therefore; he was able to interact with his subordinates. Although these skill are important to become a successful person but not all of the people are possess in a same skill and personality. As we have our own personality, skill and ability therefore we have to explore it and try to use these for our entire life.