MBA401 - People, Culture and Leadership: Howard Schultz's Leadership

This presentation analyzes the effective leadership of Howard Schultz, CEO of Starbucks, focusing on his transformational leadership style and its impact on the company's success. The presentation identifies key factors contributing to Schultz's success, such as his passion and innovative measures, including the introduction of a research and development department. It also explores methods to measure his effectiveness, including internal and external systems approaches, considering employee engagement and stakeholder perceptions. Furthermore, the presentation examines how Schultz's leadership has contributed to organizational success, emphasizing his focus on employee well-being, fostering a culture of respect, and promoting transparent communication with stakeholders. The analysis highlights how Schultz's vision and leadership style have significantly improved Starbucks' performance in international markets, resulting in increased revenue and a competitive edge.

Running head: EFFECTIVE LEADERSHIP – HOWARD SCHULTZ
EFFECTIVE LEADERSHIP – HOWARD SCHULTZ
Name of the Student
Name of the University
Author Note

1EFFECTIVE LEADERSHIP – HOWARD SCHULTZ
Transcript of presentation
Introduction
Good morning respected teachers and fellow peers. The following presentation highlights
the various reasons that have led to the success of the CEO of Starbucks, Howard Schultz. The
presentation also focusses on the measures of the effectiveness of the success of the business
leader. The presentation finally concludes with a discussion on the ways in which the
performance of Schultz has helped in the developing of the success of the organization,
Starbucks.
Reasons for success
The CEO of Starbucks, Howard Schultz, is known to have implemented various factors
in order to deal in the matters that are related to the increase in the performance of the café chain
in the international markets. The leader is majorly known for the various innovative measures
that have been implemented within the organization since Schultz had undertaken the role of the
CEO. The CEO had been known to have introduced a separate department for the research and
development within the company. This in turn had helped the concerned company to have a
proper progress in the international markets with the help of the innovative measures that include
the addition of newer beverage items to the menu that is offered to the clients at Starbucks
(Mishra 2016). This in turn helped the company to widen the client base of the company thereby
resulting in the conditions wherein the company has faced an increase in the revenue that it has
been earning in the international markets.
The other factor that has majorly been contributing to the overwhelming success of the
company refers to the high amount of passion that is observed to have been demonstrated by the

2EFFECTIVE LEADERSHIP – HOWARD SCHULTZ
CEO. The CEO is observed to have been extremely passionate about the work that he had been
accomplishing. The CEO was capable of passing on the passionate nature to his employees
(Eisner 2016). This helped the employees to attain a pleasure in dealing with the issues that
might arise within the organization and resolving them in a faster manner. The high passion of
the CEO as well as the employees of the organization has helped the organization to attain the
position that it has been enjoying in the present market scenario (Biraghi, Gambetti and Quigley
2017). The passion of the employees at Starbucks were heightened with the help of the increase
in the devotion that is demonstrated by the employees.
Measuring effectiveness
The effectiveness of the measures undertaken by the CEO of Starbucks, Howard Schultz
can be measured with the help of the proper understanding of internal systems approach and the
external systems approach within the firm.
The internal systems approach helps the organization in having a proper overview of the
employee engagement and satisfaction as have been highlighted by the employees of the
organization. The internal systems approach is known to have been dealing in the internal
operations within the organization (Le Ng, Choi and Soehod 2016). The internal systems
approach majorly focusses on the capability of the managers to deal in the matters that involve
motivating the employees as well as helping them maintain a proper atmosphere at the given
workplace. The culture of the workplace is known to have a greater impact on the productivity of
the employees as well. In case of Starbucks, the proper discussion on the work experience of the
employees helps in the proper understanding of the satisfaction levels of the concerned
employee.

3EFFECTIVE LEADERSHIP – HOWARD SCHULTZ
In order to understand the proper implication of the passion that is highlighted in the
international market operations of Starbucks, the experts should make an observation of the
experiences as have been shared by the concerned clients of the café chain. The external systems
approach to the development of the organizations are highlighted in the reviews as are offered
by the concerned external stakeholders of the organization (Renko 2017). The management of
the perceptions of the clients as well as the investors of the company is reflected in the financial
gain of revenue that the company has been facing. The increase in the gain of revenue highlights
the fact that the company has been serving the clients in a better manner (Tyre 2018). In case of
Starbucks, the revenue of the company has experienced a huge hike after the inclusion of the
research and the development department within the company.
Contribution to organizational success
The business leader in discussion, Howard Schultz is known to have been maintaining a
proper leadership style within the company. The leader has been implementing the
transformational leadership style within the company. The leader was known to have been
developing a culture of respect within the company. This included the depiction of the respect
towards the employees of the organization which in turn led to the overall development of the
performance of the employees in the given market (Mason, Cole and Goza 2017). The leader
was majorly focused on the well-being and the proper maintenance of the employee engagement
within the company which in turn led to the proper performance of the employees in the given
international markets. The leader has been known to have introduced a separate department for
the research and development within the company. This in turn had helped the concerned
company to have a proper progress in the international markets with the help of the innovative
measures that include the addition of newer beverage items to the menu that is offered to the

4EFFECTIVE LEADERSHIP – HOWARD SCHULTZ
clients at Starbucks. The leader is further known to have been focusing on the issues that are
related to the intellectual factors that are required in order to build a proper workplace culture
and promote the engagement of the employees in the given scenario (Mishra 2017). The overall
performance of the company is known to have been affected by the employee engagement and
the behavior of the employees since the main activity of the company includes serving the
concerned clients of the organization. Thus, the inclusion of the proper and transparent
communication with all the stakeholders of the company helps the company to face an increase
in the revenue as is earned by Starbucks.
In conclusion it can safely be stated that the leadership style and the vision that has been
adopted by Howard Schultz is known to have been helpful in the matters that are related to the
overall development and improvement in the performance of the company in the international
markets. The maintenance of the transformational leadership within the company has helped the
company demonstrate a significant improvement in the international markets.
Summary of presentation
The topic of the presentation in this case is effective leadership. The presentation
explores the leadership style that is highlighted by Howard Schultz in the achieving the present-
day success of the famous international café chain, Starbucks.
The leader is known to have been implementing the transformational leadership style in
order to deal in the development of the company in the international markets. The effective
nature of the leadership as have been implemented within the company is known to have been
helpful in the proper functioning of the company in the given markets as well assist in the
increment of the engagement of the employees within the organization (Hassan et al. 2018). This

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in turn might affect the overall development of the company in the given markets. The leadership
of Howard Schultz helped the employees to develop a proper understanding of the mission and
the vision of the company and thereafter helped them in taking actions to reach the proper goal
of the company. The CEO was capable of passing on the passionate nature to his employees
(Rosenbach 2018). This helped the employees to attain a pleasure in dealing with the issues that
might arise within the organization and resolving them in a faster manner.
The high passion of the CEO as well as the employees of the organization has helped the
organization to attain the position that it has been enjoying in the present market scenario. This
in turn further helped Starbucks to attain a competitive edge in the international markets.

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References
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Hassan, S., Prussia, G., Mahsud, R. and Yukl, G., 2018. How leader networking, external
monitoring, and representing are relevant for effective leadership. Leadership & Organization
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Le Ng, X., Choi, S.L. and Soehod, K., 2016. The effects of servant leadership on employee’s job
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Mason, A., Cole, T. and Goza, N., 2017. Starbucks: A case study of effective management in the
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Mishra, A.S., 2016. The Role of Corporate Leadership in Business Growth. Effective
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Mishra, A.S., 2017. Interpersonal Skills for Effective Leadership. Effective Executive, 20(1), p.5.
Renko, M., 2017. Entrepreneurial leadership. Forthcoming in" Nature of Leadership", 3rd
edition. Edited by David V. Day and John Antonakis. SAGE Publications.
Rosenbach, W.E., 2018. Contemporary issues in leadership. Routledge.
Tyre, T.A., 2018. Ethical Leadership in the Global Marketplace. Global Education
Journal, 2018(4).