Howard Schucks Case Study

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Despite Howard Schultz having the innovative attitude and good leadership, Starbucks could not be this successful unless the right strategies and tactics were applied. In the case of Starbucks, Howard Schultz acted as stickler to twist Starbucks back to his original vision and mission, brand differentiation, and mobile marketing.
Schultz is a stickler for doing things his own way. When he took over the faltering firm in 2008, he was faced with tumbling stock prices and a corporate culture that had vastly changed from his original vision for the brand. Almost immediately, he closed 80 U.S. stores, laid off 4,000 employees and fired nearly every one of the executives who had led the firm astray. Then he spent $30 million rallying the troops, treating 10,000 managers to a pep talk in New Orleans and closing every store in the country for half a day to retrain baristas in the art of making espresso the Starbucks way (McElhatton, 2010).
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As of 2014, Starbucks had expanded to over 21,000 stores in 63 countries (Starbucks Annual Report, 2014) and was serving over 60 million customers per week. The firm has also grown a social conscience, promoting a “Create Jobs in USA,” initiative which helps some troubled companies to obtain small businesses loans. Many competitors have since followed suit, proving again that Schultz is one of the most formidable influencers of retail market trends.
Nor is Schultz content to sit on his laurels. At 60, he continues to be a market-maker, pushing his brand further in new directions, including a head-first jump into the digital age. Today’s Starbucks will boast a mobile payment platform, a mobile app, a loyalty program and an ever-expanding group of retail products available

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