Onward: How Starbucks Fought for Its Life Without Losing Its Soul

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Onward: How Starbucks Fought for Its Life Without Losing Its Soul Page 40

by Howard Schultz


  media reaction to, 70–71

  overall objective for the transition, 51

  partner e-mail supporting, 67–68

  stock price jump after, 70

  Revenue. See Financial reports; Same-store sales data (comps)

  Rewards program

  presentation at annual shareholders’

  meeting, 2008, 133–34

  relaunch of, June 2008, 165

  relevance during recession, 263

  Rewards Card benefits, 134

  Starbucks Gold Card, 232–33, 263, 320

  successful relaunch of, 232–33

  success of, 320

  value delivered by, 232–33

  Ritt, Steve, 129

  Roasting coffee beans

  demonstration at leadership conference, 197

  Full City roast, 84

  refinements in process of, 84

  roasting plant in Kent, WA, 326–28

  Starbucks philosophy of, 84

  Robinson, Urano “Uri” (partner), 245–47

  Robusta coffee beans, 83, 242

  Rocky Mountain Chocolate Factory, 110

  Rodgers, Jack, 129

  Rolan, Clara (partner), 190–91

  Roy Street Coffee & Tea, Seattle,* 279–80

  Rubinfeld, Arthur (senior leadership team),* 145, 152–54, 161, 178, 275–79

  Russell, Craig (partner), 187, 194–95, 198, 206–7

  Rwanda*

  author's speech in, 290–91

  author's trip to, 287–93

  cows given to communities, 292–93, 323

  farmer support center in, 289, 323

  tragic history of, 288

  S

  Salesforce.com, 124–25, 127

  Sales reports. See Financial reports; Same-store sales data (comps)

  Sales-to-investment ratio for stores, 152–53

  Same-store sales data (comps). See also Financial reports

  continuing fall of, 2008, 104

  disappointments in 2007, 42

  discontinuation of reporting announced, 90–91

  first-quarter, 2008, 89

  fourth-quarter, 2008, 218

  improvement in 2009, 270, 286, 297–98

  negative, financial modeling requested for, 218

  negative comps in December, 2007, 49

  overemphasis on, 90

  second-quarter, 2008, 144

  Sandberg, Sheryl (board member),* 266

  Sanfang Qixiang store, Fuzhou, China*

  San Francisco Chronicle, 159

  Saturday Night Live ad spot, 213–14

  SBC. See Seattle's Best Coffee

  Schultz, Howard*

  analyst conference speeches, 2008, 229–30, 235–36

  annual shareholders’ meeting, 2008, 130–36

  analyst conference, 2009, 227–28

  change from ceo to chairman, 2000, 16

  childhood and early years of, x–xi, 13, 33–32, 51, 82

  China trip, 303–11

  CNBC interview by, 262–64

  Coltelleria G. Lorenzi visited by, 271–73

  Espresso Excellence Training video speech of, 7

  founder's perspective of, 38

  friends providing support for, 222

  global leadership summit opening speech, 2008, 103–5

  Hangzhou, China speech, 309–10

  Il Giornale founded by, 10–11

  innovation encouraged by, 240–42

  Italy trip, 1982, 9–10

  leadership conference speeches, 2008, 201–2, 205–6

  leadership style and philosophy of, 32, 177, 222, 252, 254, 260, 299, 308, 309

  memos of, 9, 23–32

  merchant philosophy of, 4, 12, 15–16, 24, 34, 110, 273, 272–74

  return as ceo, 41, 42–52, 55–68

  role as chairman, 16–17

  Rwanda trip, 287–93

  Shenzhen, China open forum speech, 304

  Schultz, Sheri, x, 9, 16, 46, 92, 142, 194, 214, 253, 289, 329

  Schuman, Susan, 73

  Schwab, Charles, 71

  SCO. See supply chain organization

  Seattle Post-Intelligencer, 159

  Seattle's Best Coffee (SBC)

  acquisition by Starbucks, 234

  Michelle Gass appointed president of, 308

  rebranding and expansion of, 2010,* 316

  Securities and Exchange Commission, 50, 137

  SeekingAlpha.com, 141

  Seligman, Peter, 120, 132–33

  Senior Leadership Team, 2010* Serrano, Tina (partner), 187

  Seven Big Moves, 106–8, 129–30, 318–26

  Shanahan, Sean (partner), 176

  Shareholders. See also Financial reports

  announcement of return as ceo to, 63–66

  annual meeting, 2008, 76

  doubts about Starbucks’ future, 102

  in mission statement, 113

  Shell, Jules, 289

  Shennan, Jamie (board member),* 153, 221

  Sinegal, Jim, 133, 165, 232, 257

  SmartMoney.com, 260

  Smith, Orin C.,* 16–20, 22, 40–41

  Social media. See also specific media

  customer connections aided by, 265–66

  decision to explore opportunities in, 124–25

  election-themed ad campaign using, 214–15

  overview of Starbucks’ use of, 320

  Starbucks ranked number-one most engaging, 286, 298

  Social responsibility. See also Environmental concerns; Health-care benefits; Sourcing

  Ben Packard appointed as head of, 119, 125

  Bono's speech on, 203–4

  C.A.F.E Practices program, 20, 120, 291, 323

  donations to local communities, 19

  election-themed ad, 208–11

  Ethos Water donations, 119

  Fairtrade certification, 19–20, 119, 204, 323

  Heifer International relationship, 293–94

  New Orleans aid,* 194, 196, 198–200, 324

  partners’ generosity of spirit, 116–17

  (RED) partnership, 203, 205, 266, 294–95

  Starbucks’ commitment to, 18–20

  Starbucks Shared Planet, 204–5, 278

  volunteer service by partners, 323–24

  Sonnenfeld, Jeffrey, 71

  Sorbetto, 140–41, 164–65, 167–69

  Sorkin, Andrew Ross, 184

  Sourcing

  C.A.F.E Practices program, 20, 120, 291, 323

  coffee farmers, 288–89

  ethical, Starbucks’ commitment to,* 19–20, 72

  Fairtrade certification for, 19–20, 119, 204, 323

  farmer support centers, 289, 323

  gallery at leadership conference, October 2008, 197

  loans to coffee farmers, 289

  overview of initiatives, 323

  presentation at annual shareholders’ meeting, 2008, 132–33

  in Seven Big Moves, 107

  Starbucks Cards. See also Rewards program

  popularity of, 165

  as Rewards Cards, 134

  value delivered by, 232–33

  Starbucks Coffee Company

  author hired as marketing director for, 9

  author's love for, 105, 207, 311

  capitalization, 1992 and 2007, 29

  community within, 13

  expansion in early 2000s, 17, 18, 20

  growth model unique to, 317–18

  origin of name, 11

  purchased by author, 11–12

  Starbucks Coffee International. See also China

  accelerating growth of, 16, 48, 75

  acceptance of, 305–6

  announcement of return as ceo to leaders, 62

  challenges of, 306

  expansion in early 2000s, 16, 17

  growth in China, 302–11

  expansion slowed by recession, 218

  John Culver appointed president of, 322

  joint-venture partners of, 234, 330

  as largest potential market,
234, 322

  number of countries in 2000, 5, 16, 51, 234

  number of stores in 2000, 16

  in Seven Big Moves, 107, 321–22

  status in December 2009, 234

  vetting of local business partners, 234

  Starbucks Digital Network,* 320–21

  Starbucks Experience.* See also Third place 9, 12–13, 23–25, 44, 56, 120–21, 134, 147–49, 233–34

  Starbucks Gossip blog, 158, 30

  (STARBUCKS) RED, 266

  Starbucks Reserve coffee,* 319, 327

  Starbucks Shared Planet, 204–5, 278

  Starbucks stores. See also Closing of stores, July 2008

  Budapest, Hungary*

  in China,* 17, 103, 305

  closed for training,* 3–6, 78, 104

  closings of, 152–54, 263

  Commerce Center store, Vancouver, WA, 281

  design of, 18, 25, 107, 145, 273–80, 283, 322

  Disney Village, 276

  economic model of, 152–53

  Edinburgh, Scotland*

  15th Avenue Coffee & Tea, Seattle,* 278–80

  First and Pike, Seattle,* 275–76

  gallery at leadership conference, October 2008, 198

  sustainability of, 276, 324

  mercantile stores, 278–80, 322–23

  in mission statement, 113

  number in 2000, 16

  number in 2005, 20

  operations of, 149–51

  Olive Way, Seattle,* 323

  in Paris, France,* 17, 276

  Pike Place Market, Seattle,* 44, 55–57, 86

  Roy Street Coffee & Tea, Seattle,* 279–80

  technology in, 150–51, 205

  University Village, Seattle,*

  Stardust project, 248, 249. See also JAWS (just add water and stir)

  Steiner, Domenic, 121, 132

  Steiner, Esther, 121

  Stilin, Robert, 222

  Stock options

  as benefit for all partners, xiii, 13

  as core Starbucks element, 72

  Japanese gratitude for, 17

  known as Bean Stock, 72

  Stock prices. See also Financial reports

  after VIA announcement, 260

  during biennial analyst conference, 2008, 233, 235

  continuing fall of, 2008, 104

  drop after store closings, July 2008, 158

  drop by 42 percent in 2007, 22

  drop during annual shareholders’ meeting, 2008, 135

  drop on September 15, 2008, 184

  earnings per share, 2007, 41

  earnings per share, 2009, 297

  increase by December, 2010, 326

  increase from 1992 to 2007, 29

  increase in 2009, 286, 309–10

  jump after return as ceo, 70

  Wall Street pressure about, 21

  when Jim Donald became ceo, 21

  Store designs*

  Arthur Rubinfeld hired to renew, 276–77

  author's vision for, 273–74

  in China, 310

  continuing progress in, 322

  Disney Village store, Paris, France, 276

  15th Avenue Coffee & Tea, Seattle, 278–80

  First and Pike, Seattle,* 275–76

  Roy Street Coffee & Tea, Seattle, 279–80

  sustainable construction for, 277–78

  Store managers

  Amy Bernash, 281

  Chad Moore, xii

  Clara Rolan, 190

  challenges for, 40, 57, 77, 121, 130–51, 185–86

  empowering of, 205–6, 284, 325

  leadership conference for, 78, 192–207

  Helen Fei, 303–5

  Janine Simmons, 143

  Josh Howell, 283

  Li Yan, 304

  Mayumi Kitamura, 116

  role and importance of, 18, 77, 148–49, 161, 193, 299

  Storytelling

  by galleries at leadership conference, October 2008, 198

  at heart of being a merchant, 273

  merchant success dependent on, 34

  by Starbucks stores, 273–74

  Stowe, Harriet Beecher, 301

  Strickland, Bill, 110

  Stroum, Cynthia, 129

  Su, Hannah (partner), 245

  Success

  of Clover coffee machine, 319

  of Frappuccino, 76, 240

  of leadership conference, New Orleans, October 2008, 207

  of MyStarbucksIdea.com, 135, 142, 320

  of Pike Place Roast, 319

  of rewards program, 232–33

  small failures covered by, 40

  Starbucks status in 2000, 15–16

  storytelling as key to, 34

  of VIA, 316

  Sullivan, Todd, 141

  Supply chain organization (SCO)

  author's responsibility for, 188–89

  challenges unique to, 173, 186, 188–90, 219

  importance of, 186

  Peter Gibbons as head of, 105, 178, 185, 187, 189, 254

  role in transformation, 219

  strategy for transformation of, 189

  transformation of, 325

  Support center, Seattle*

  Sustainability

  overview of initiatives, 324–26

  in Seven Big Moves, 108, 323–26

  in store construction, 277–78

  SymphonyIRI Group, 316

  SYPartners, 72–74, 106, 114, 197, 326

  T

  Tad Gormley Stadium, New Orleans, 199

  Tait, Richard, 241

  Target, 89

  Taste tests and coffee tasting

  Consistent Brew, 86

  Consumer Reports, 2007, 85

  at leadership conference, October 2008, 197

  Pike Place Roast development, 135

  Pike Place Roast launch, 142–44

  Tribute Blend, 313–14, 327–28

  VIA, 258–59

  Zagat ratings, 286

  Technology

  in and for stores, 67, 150–51, 205–6

  laptops presented at leadership

  conference, 2008, 205–6

  overview of progress, 325

  point of sale (POS) system, 150–51, 325

  Teruel, Javier (board member),* 221

  That Shop in Via Montenapoleone, 273, 275, 280–81

  Theo Chocolate, 78

  Thermoplan espresso machine manufacturer

  La Marzocco machines from, 121

  Mastrena machines from, 121–22, 131–32, 309, 319

  Verismo 811 machines from, 121

  Third place. See also Community; Starbucks Experience

  as part of Starbucks Experience*

  providing as goal of Starbucks, 13

  universal relevance of, 305–6

  Third-quarter earnings conference call, 2009

  author's comments during, 297–99

  comp improvements, 297–98

  operating margin increase, 298

  performance exceeding expectations, 297

  question-and-answer session, 299–300

  reasons for improved performance, 298–99

  response to, 300–1, 303

  Time.com, 159

  Tokyo store, 16

  Top Pot Doughnuts, 79

  Torgovnik, Jonathan, 289

  Torrado, Alberto, 222

  Torrebiarte, Peter (partner), 289, 291

  Torrente, Sandi (partner), 67–68

  Touch Worldwide, 197

  Transformation Agenda

  balance needed in, 72

  benefit of, 49

  drafting of, 72

  evolution of, 49, 123–24, 105–6

 

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