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INSPIRATION: Dreams are to be realized
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Dreams are to be realized
霍华德·舒尔茨的故事 从贫民男孩儿成长为亿万富翁
By Nikita Jaeger

BT 202005 INSPIRATION 01Until you become a successful person, nobody will pay attention to your words. It is only relentless effort with a focus on the target that can bring you success. You must be clear about your objective and continue knocking at the door for success. This was exactly what happened to the billionaire entrepreneur who was born without a silver spoon in his mouth.

Nowadays, this entrepreneur’s net worth is $4.1 billion. It is hard to believe that he was brought up in a poor working-class family.


Miserable childhood


BT 202005 INSPIRATION 06His childhood was a mess, as there was not enough money in the family for a healthy life and providing basic amenities. After leaving the US Army, his father started working as a truck driver on daily wages, and his income was not enough to cover daily expenses. They literally lived in poverty and sheltered in a low-income community colony.

In 1961, when he was only seven years old, his father met with an accident at the worksite. They didn’t have the money for the treatment, nor the medical insurance to cover the medical expenses, nor even workmen’s compensation. His father could not go to work, which means no work and no pay. At that time, his mom was seven months pregnant, so she, too, was unable to take up a job.

It was one of the most challenging situations in this man’s life. His father's precarious situation moulded his mindset, and during those days, he made himself a promise that he would not leave people behind, or treat them the way the employer had treated his father.


Door-to-door salesman


BT 202005 INSPIRATION 08This determined man paid his college fees through an athletics scholarship, took part-time jobs, and on many occasions even donated blood to earn some money. After graduating from Northern Michigan University, he started working for Xerox as a door-to-door salesman.

After three years with Xerox, working in sales and marketing, he moved to a Swedish company, Hamamaplast, dealing with home appliances and coffee machine sales. Starbucks was one of its regular customers. His association with Starbucks was excellent, and he got many orders from the coffee brewery outlet.

His regular business relationship with Starbucks prompted him to meet the investors of the company, and he visited Seattle to meet Gordon Bowker and Gerald Baldwin, the promoters. Starbucks was in the initial stage of its operation, with three outlets. After a year-long discussion, Starbucks hired him as the Director of Retail Operations and Marketing.

The beginning of the change


BT 202005 INSPIRATION 07The new job opened up many travel opportunities, and required him to attend various exhibitions. One such trip was to Milan, Italy, to attend the International Houseware Exhibition. It was a new experience for him. He saw many small coffee shops almost all across Milan, where owners happily engaged with customers, creating excellent interpersonal rapport while serving café lattes and cappuccinos.

After returning from Milan, he presented a new business model to the promoters of Starbucks, and the pilot project was encouraging and attracted a lot of business. Apart from the traditional bean coffee, they added traditional expresso, spiced coffee, and leaf tea. The new outlet also offered enough space for people to meet and chat. However, Starbucks' owners declined to invest money in the project, saying that it was not worth the investment. They had an argument with him on the subject, and he left Starbucks.

1982年,霍华德•舒尔茨加入星巴克,担任营销总监。舒尔茨是意大利咖啡文化的狂热粉丝,他建议在门店里提供现做的意大利浓咖啡,试图向星巴克引入这种文化。尽管现做咖啡已在一个门店取得了成功,但创始人拒绝扩展到其他门店。舒尔茨的挫折感开始发酵,最终在1985年,他离开了星巴克,创办了自己的咖啡连锁店Il Giornale。

The journey starts


BT 202005 INSPIRATION 09The dejected Schultz decided that he would open a coffee shop that would follow the new business model. The project’s initial cost was about $400,000, and he started hunting for investors. He had approached 242 investors, 217 of whom rejected the idea outright. Then, in an unbelievable turn of events, the Starbucks owners came forward to support the project. He was able to arrange an investment of $100,000, who was a doctor apart from the investment from Starbucks.

By 1986, he was ready with the investment and opened a coffee shop which he called Il Giornale. He continued running the show for two years, reproducing the Italian coffee culture with live Italian opera music. It was a promising enterprise, and business started to develop.

Meanwhile, the Starbuck promoters were busy with Peet's Coffee & Tea, and in 1987, they sold the stakes in Starbucks to Howard Schultz for $3.8 million. Schultz re-christened Il Giornale as Starbucks and started aggressive expansion all over the USA. He did not engage in franchising, but instead focused on opening direct outlets.

1988年,星巴克管理层决定出售星巴克的零售部门,舒尔茨抓住了这个机会,以380万美元的价格收购了星巴克。舒尔茨将所有的Il Giornale门店改名为星巴克咖啡,并开始在所有原来的星巴克商店提供现做的浓缩咖啡饮料。

Starbucks goes public


BT 202005 INSPIRATION 05Starbucks went public on June 26, 1992, listing IPO on the New York Stock Market with a preface value of $14 per share, and within a day it had appreciated to $33 per share.


Surprise move

BT 202005 INSPIRATION 10In 2000, Schultz resigned as the CEO of Starbucks and became the Chief Global Strategist with a focus on international expansion. After eight years of hiatus, he returned as the CEO of Starbucks. Like any other store, Starbucks had faced many ups and downs. After resuming as the CEO, Schultz closed down many underperforming coffee shops, fired many executives, opened new shops, and hired new talents.

Temporary shut down and training

BT 202005 INSPIRATION 11In 2008, Howard Schultz shut down all the outlets and retrained the staff on how to make the perfect espresso. It was another successful experiment, and the result was astounding. By 2010, the company was able to triple its profit to $945 million, as against $315 million in previous years.

Chairman Emeritus


BT 202005 INSPIRATION 12Howard D. Schultz resigned as CEO of Starbucks in June 2018, and is currently the Chairman Emeritus of the company. Today, Starbucks has a presence in 77 countries; all operations are directly under the control of Starbucks with a staff strength of more than 350,000.

This US coffee giant lives in Seattle, Washington, with two sons, Jordan and Addison, and his wife, Sheri. Regarding Schultz, the adage is apt: Where there’s a will, there’s a way!


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