Running Head: LEADING:

STARBUCKS

Leading: STARBUCKS - Executive Profiles Trident University International Kevin S. Varner Principles of Management BHS 312 Session Long Project Module Number 4 Coordinator Professor: Dr. Mickey Shachar Core Faculty: Monica Vargas June 6, 2011

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Starbucks Corporation has become one of the most successful brands on the planet. The logo itself is recognized world-wide and brings to mind high quality coffee, tea and beverages in everyone that sees it. This success can be directly attributed to the corporate leadership. How this organization is run, its ability to adapt and grow, the means by which it motivates its workforce, and how it communicates its vision should be attributed to the overall corporate mindset brought about by its founder, and realized in each of its employees. "Over our 40-year history, we have built the Starbucks brand with a goal of staying true to our values and our guiding principles with a deep sense of humanity. Going forward, we will continue to focus on what made us a different kind of company, one that balances profitability and social conscience while providing exceptional shareholder value." Howard Schultz. Starbucks Leaders The Starbucks Corporation is run by a Board of Directors. The Board is chaired by the founder, president, and CEO, Howard Schultz. The Board consists of William W. Bradley, Mellody Hobson, Kevin R. Johnson, Olden Lee, Joshua C. Ramo, Sheryl Sandberg, James G Shennan Jr., Javier G Teruel, Myron E Ullman, and Craig E Weatherup. Each of these members have years of business leadership experience and bring a wealth of corporate knowledge to their positions as Director. Other Executives include Cliff Burros; president of Starbucks Coffee U.S., John Culver; president of Starbucks Coffee International, Michelle Gass; president of Seattles Best Coffee (a brand within the Starbucks Corporation), Annie Young-Scrivner; Chief Marketing Officer, and Troy Alstead; CFO and Chief Administrative Officer.

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Exploring further into some of the leaderships biographies shows where their experience comes from and how their individual leadership philosophy and experience affects the corporation as a whole. Board of Directors: Howard Schultz Chairman, President, CEO and founder of Starbucks Corporation, Schultz started the corporation after working through the first Starbucks Store at Pike Place Market at Seattle, Washington in 1982 then, founding his own coffee house Il Giornale coffee, eventually buying out his former employers, and combining the two fledgling businesses into the Starbucks Corporation in August of '87. One of the first things Schultz did was to create comprehensive health coverage, as well as offering stock options, for all employees whether full or part-time. In 2000 he stepped down from the role of CEO into the position of Chairman. Then, in 2008, amidst the apparent decline of his company, Schultz once again took the reigns and moved Starbucks Corporation back into the lane he believed it should have stayed in (Starbucks 2011). Since his re-taking office as CEO Starbucks has achieved unprecedented success, including a record setting Second Quarter for FY2011 (Business Wire 2011). Sheryl Sandberg Director since March 2009 (Starbucks 2011), Sandberg was made famous while serving as Chief Operating Officer of Facebook, Inc. and being named one of the 50 Most Powerful Women in Business by Fortune Magazine, (Hessel 2009) as well as one of the 50 Women to Watch by the Wall Street Journal (Starbucks 2011). Using her experience as an executive at Google, Sandberg became the COO of Facebook working hand in hand with its founder where, among other things, she revolutionized the organizations advertising thereby increasing revenue exponentially (Hessel 2009).

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Sandberg currently serves on the Board of Directors of The Walt Disney Company in addition to her position with Starbucks. Clearly a powerhouse in business, Sandberg showed her success in the past with these numerous accolades and continued success in her new position. Being brought in during Schultz's reorganization shows she was handselected to help initiate change and the refocus of the corporate goals and mindset. Joshua C. Ramo Director since May 3rd of this year (SIR 2011), Ramo is a best selling author, award-winning journalist, former editor at Time Magazine, and China analyst at CNN and later for NBC where he won an Emmy Award. A member of the Worlds Economics Forum Global Leaders of Tomorrow, Ramo brings a wealth of knowledge and experience in the newest market for the corporation; China. His placement on the board, at a time when record profits are coupled with this push into the China market by the organization, again illustrates the forward thinking of the corporation and CEO. Executive Leadership: John Culver President, Starbucks Coffee International was appointed in December 2009 (Starbucks 2011). Prior to assuming this role Culver was president of Starbucks Coffee Asia Pacific, after coming from various management positions in Nestle including Vice President of Sales. While at Nestle he was responsible for foodservice sales and development for over 30 brands (Bloomberg 2011). He brings a wealth of knowledge from his experience in the Asia Pacific region, as well as a great track record at in the business from his time at Nestle and working his way up in Starbucks Corporation. Annie Young Scrivner Chief Marketing Officer, she joined in September 2009 to this newly created position (Forbes 2009). Prior to Starbucks Corporation, Scrivner worked as Vice President of Sales and CMO for Quaker Foods and Snacks (a division of PepsiCO)

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after a stint as Region President of PepsiCo Foods for Greater China. Her in-depth experience in marketing to China gives her the best reference for this new position within Starbucks at this crucial time in their growth. This collection of new Executives since Schultz regained the CEO position shows his leadership ability and forward thinking. With a goal of tripling the number of locations in China by 2015 (Trefis Team 2011), assembling this group of people illustrates the Corporate leadership ability of prioritizing and planning for the future. "People are not 'assets', they are human beings." - Howard Behar The Starbucks Leadership Style The first thing an employee of Starbucks Corporation learns about the leaderships style of the organization is illustrated by their title within Starbucks. Everyone that works there is a partner (Starbucks 2011). The way the Corporation empowers their employees can be seen in that moniker alone, however they do not end there. In Howard Behars book Its Not About the Coffee: Lesson on Putting People First from a Life at Starbucks (Portfolio Publishing 2007) he states by engaging your staff as partners they will go beyond what many believe is possible. It allows Starbucks to function as a people-centered organization. The Corporate Vision; establish Starbucks as the most recognized and respected brand in the world; shows how they aim this approach toward customers as well. Not a Vision of most sales, highest grossing product, or largest business instead most recognized and respected.

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Looking at one of his first acts after founding the Corporation; healthcare and stock options for even part-time employees; it is easy to see where his workforce motivation begins.

We have to lead with our hearts. In business, as in life, we each should have an internal compass that guides our decisions, an instinctive understanding of what matters most in this world. For me, its not profits, or sales, or number of stores, but the passion, commitment, and enthusiasm of a dedicated group of people. - Howard Schultz Conclusion

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References Bloomberg Businessweek (2011) Starbucks Corp (SBUX: NASDAQ GS) Executive Profile: John Culver President of Starbucks Coffee International. Retrieved from: http://investing.businessweek.com/research/stocks/people/person.asp?personId=3534623 3&ticker=SBUX:US&previousCapId=34745&previousTitle=STARBUCKS%20CORP Behar, Howard (2007) It's Not About the Coffee: Lesson on Putting People First from a Life at Starbucks. Portfolio Publishing Dec 27, 2007. Excerpts retrieved from: http://www.howardbehar.com/book.shtml Business Wire (2011) Starbucks Reports Record Second Quarter 2011 Results. Retrieved from: http://www.thestreet.com/story/11096711/1/starbucks-reports-record-second-quarter2011-results.html. Citrin, Jim (2006) Leadership: Nice Guys Finish First. Yahoo! Finance. Retrieved from: http://finance.yahoo.com/expert/article/leadership/2513 Forbes Business (2009) Annie Young-Scrivner. Forbes.com Business section Sept 2009. Retrieved from: http://people.forbes.com/profile/annie-young-scrivner/136314

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Hessel, Evan (2009) The World's Most Powerful Women: Facebook's Sheryl Sandberg. Forbes Magazine, Sept 07, 2009. Retrieved from: http://www.forbes.com/forbes/2009/0907/power-women-09-facebook-sherylsandberg.html Starbucks Investor Relations (SIR) (2011) Starbucks Appoints Joshua Cooper Ramo to Board of Directors. May 05, 2011. Retrieved from: http://investor.starbucks.com/phoenix.zhtml?c=99518&p=irolnewsArticle&ID=1560464&highlight= Starbucks Newsroom (2011) Executive Biogrraphies. Retrieved from: http://news.starbucks.com/executive+biographies/ Trefis Team (2011) China Takes Starbucks to Next Level. .Forbes online May 13 2011 Retrieved from: http://blogs.forbes.com/greatspeculations/2011/05/13/china-takesstarbucks-to-next-level/