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Is Howard Schultz an effective strategic leader? Why or why not? Buttress your arguments. please do...

Is Howard Schultz an effective strategic leader? Why or why not? Buttress your arguments. please do not copy from google

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Expert Solution

Starbucks CEO Howard Schultz turned the coffee company around in one of the greatest business comeback stories. Schultz founded the company, and left before coming back as CEO in 2008.

Working from the heart, he created a business with a winning strategy. He demonstrated an ability to execute; his business treats even part-time employees fairly in ways that help to provide for their future at the same time that it builds a business.

For the first time, the company had been experiencing negative annual sales and plunging profits. With his stellar leadership, communication, business and marketing skills, Schultz used these three steps to grow Starbucks:

Communicate a vision while listening to others

Early in his tenure as CEO, Schultz demonstrated he was listening to others. He asked for emailed feedback from the staff, quickly receiving 5,000 responses. He also made personal phone calls to check in with the stores. He was vocal about how team feedback would help him form great vision, and his vision focused on creating community.

By articulating this vision, he transformed employees’ experience from selling coffee to a higher calling of creating communities. As a result, employees were excited about the vision and proud to be part of the organization.

Hold conversations, gather input and consider other perspectives.

Schultz met with Michael Dell, CEO of computer company Dell Inc., in late 2007 to learn what Dell had done to turn his own company around. Schultz also hired consultants and added new board members. He gathered input, ideas and perspectives from the best in the business as he started forming a growth strategy.

Develop a strong voice; control the discussion.

Schultz is a skilled communicator who can convey a vision. When he had to close stores in 2008 due to slumping sales, he apologized to the staff, saying leadership had let them down.


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