PROFILE PRESENTATION

HOWARD SCHULTZ

By,K J SUDHANVA HEBBAR

HOWARD SCHULTZCHAIRMAN AND CEO OF STARBUCKSCORPORATION

NAME: HOWARD SCHULTZ

BORN: JULY 19, 1953

PLACE: BROOKLYN, NEW YORK, US

OCCUPATION: CHAIRMAN AND CEO

OF STARBUCKS

EDUCATION: NORTHERN MICHIGAN

UNIVERSITY.

NET WORTH: US$ 2 billion (Sep 2013)

SALARY: US$ 21,775,000

OVERVIEW

Born in Brooklyn, New York, on July 19, 1953, Howard Schultz graduated from Northern Michigan University with a bachelor's degree in communications before becoming director of retail operations and marketing for the Starbucks Coffee Company in 1982. After founding the coffee company Il Giornale, in 1987, he purchased Starbucks and became CEO and chairman of the company. He is best known as the chairman and CEO of Starbucks and a former owner of the Seattle SuperSonics. Schultz co-founded Maveron, an investment group, in 1998 with Dan Levitan. In 2000, Schultz publicly announced that he was resigning as Starbucks's CEO. Eight years later, however, he returned to head the company. In 2012, Starbucks included more than 17,600 stores and its market cap was valued at $35.6 billion.

EARLY LIFE AND EDUCATION

Howard Mark Schultz was born to a Jewish family on July 19, 1953 in Brooklyn, New York, the son of ex-US Army trooper and then truck driver Fred Schultz, and his wife Elaine. With his younger sister, Ronnie, and brother, Michael, he grew up in the Canarsie Bayview Houses of the New York City Housing Authority. As Schultz's family was poor, he saw an escape in sports such as baseball, football, and basketball. He went to Canarsie High School, from which he graduated in 1971. In high school, Schultz excelled at sports and was awarded an athletic scholarship to Northern Michigan University the first person in his family to go to college. He received his bachelor's degree in Communications in 1975.

CAREERAfter graduating, he worked as a salesperson for Xerox Corporation and was quickly promoted to a full sales representative.

● In 1979 he became a general manager for Swedish drip coffee maker manufacturer, Hammarplast where he became responsible for their U.S. operations with a staff of twenty. In 1981, Schultz visited a client of Hammarplast, a fledgling coffee-bean shop called Starbucks Coffee Company in Seattle, curious as to why it ordered so many plastic cone filters. He was impressed with the company's knowledge of coffee and kept in contact over the next year, expressing interest in working with them. ● A year later, he joined Starbucks as the Director of Marketing. On a buying trip to Milan, Italy for Starbucks, Schultz noted that coffee bars existed on practically every street. He learned that they not only served excellent espresso, they also served as meeting places or public squares.

● Schultz and his newly hired finance and accounting drew up a set of financial projections for the combined operations and a financing package that included a stock offering to II Giornale’s

original investors and a line of credit with local banks. While a rival plan to acquire Starbucks was put together by another Il Giornale investor, Schultz's proposal prevailed and within weeks Schultz had raised the $3.8 million needed to buy Starbucks.

● The acquisition was completed in August 1987. After the papers were signed, Schultz and Scott Greenberg walked across the street to the first Il Giornale store, ordered themselves espresso drinks, and sat at a table near the window. Greenberg placed the hundred-page business plan that had been used to raise the $3.8 million between them and lifted his cup in a toast—"We did it," they said together.8 The new name of the combined companies was Starbucks Corporation. Howard Schultz, at the age of 34, became Starbucks' president and CEO.

AWARDS

● In 1998, Schultz was awarded the "Israel 50th Anniversary Tribute Award" from the Jerusalem Fund of Aish Ha-Torah for "playing a key role in promoting a close alliance between the United States and Israel“.● In 1999, Schultz was awarded the "National Leadership Award" for philanthropic and educational efforts to battle AIDS. The recipient of the 2004 International Distinguished Entrepreneur Award, presented to him from the University of Manitoba for his outstanding success and commendable conduct of Starbucks.● In 2007 he received the FIRST Responsible Capitalism Award.● On March 29, 2007, Schultz accepted the Rev. Theodore M. Hesburgh, C.S.C., Award for Ethics in Business at the Mendoza College of Business at the University of Notre Dame. ● Schultz became Fortune Magazine's "2011 Business person of the Year" for his initiatives in the economy and job market.

CONTINUED SUCCESS

• In 2006, Howard Schultz was ranked No. 359 on Forbes magazine's "Forbes 400" list, which presents the 400 richest individuals in the United States. In 2013, he was ranked No. 311 on the same list, as well as No. 931 on Forbes's list of billionaires around the globe.

• Today, no one company sells more coffee drinks to more people in more places than Starbucks.

Howard Schultz is connected to 22 board members in 4 different organizations across 11 different industries.

Former Director: drugstore.com, inc.

Former Director: eBay Inc.

Former Chairman: NeuroMetrix Inc.

Former Director: Potbelly Corporation

Board Director: Pinkberry, Inc.

1985-Present

Founder, Chairman, Chief Executive Officer and President

Starbucks Corporation

2004-2008

Former Director and Member of Compensation Committee

DreamWorks Animation SKG Inc.

2011-2012

Former Director and Member of Audit Committee

Groupon, Inc.

2012-Present

Director

Square, Inc.

BOOKS

● Pour Your Heart into It: How Starbucks Built a Company One Cup at a Time. (1997)● ONWARD: How Starbucks Fought for Its Life without Losing Its Soul. (2011)

QUOTES● I believe life is a series of near misses. A lot of what we ascribe to luck is not luck at all. It's seizing the day and accepting responsibility for your future. It's seeing what other people don't see and pursuing that vision.● China traditionally has been a tea-drinking country but we turned them into coffee drinkers.

● We're not in the business of filling bellies, we’re in the business of filling souls."

● “Follow your heart;

Follow your conscience……… The only thing separating you from your dreams is desire.● Success in the United States is not an entitlement in China. You have to go there and earn it, and earn it the right way.

● "Not every decision is an economic one.“● “Care more than others think wise.Dream more than others think practical.Risk more than others think safe.Expect more than others think possible”.

STARBUCKS

OVERVIEW• Starbucks Corporation is an American global coffee company and

coffeehouse chain based in Seattle, Washington. Starbucks is the largest coffeehouse company in the world, with 20,891 stores in 62 countries employing around 151000. In addition, Starbucks is an active member of the World Cocoa Foundation.

• Starbucks locations serve hot and cold beverages, whole-bean coffee, micro ground instant coffee, full-leaf teas, pastries, and snacks. Most stores also sell packaged food items, hot and cold sandwiches, and items such as mugs and tumblers. Starbucks Evenings locations also offer a variety of beers, wines, and appetizers after 4pm.[3] Through the Starbucks Entertainment division and Hear Music brand, the company also markets books, music, and film. Many of the company's products are seasonal or specific to the locality of the store. Starbucks-brand ice cream and coffee are also offered at grocery stores.

MILESTONES

HISTORY• The first Starbucks opened in Seattle, Washington, on March

30, 1971 by three partners who met while students at the University of San Francisco: English teacher Jerry Baldwin, history teacher Zev Siegl, and writer Gordon Bowker. The three were inspired to sell high-quality coffee beans and equipment by coffee roasting entrepreneur Alfred Peet after he taught them his style of roasting beans. Originally the company was to be called Pequod, after a whaling ship from Moby-Dick, but this name was rejected by some of the co-founders. The company was instead named after the chief mate on the Pequod, Starbuck.

• The first Starbucks cafe was located at 2000 Western Avenue from 1971–1976. This cafe was later moved to 1912 Pike Place Market; never to be relocated again. During this time, the company only sold roasted whole bean coffees and did not yet brew coffee to sell. During their first year of operation, they purchased green coffee beans from Peet's, then began buying directly from growers.

BIRTH OF MODERN STARBUCKS● A year after meeting with Starbucks' founders, in 1982, Howard Schultz was hired as director of retail operations and marketing for the growing coffee company, which, at the time, only sold coffee beans, not coffee drinks.

● Early on, Schultz set about making his mark on the company while making Starbucks' mission his own. In 1983, while traveling in Milan, Italy, he was struck by the number of coffee bars he encountered. An idea then occurred to him: Starbucks should sell not just coffee beans, but coffee drinks. "I saw something. Not only the romance of coffee, but ... a sense of community. And the connection that people had to coffee—the place and one another," Schultz recalled. "And after a week in Italy, I was so convinced with such unbridled enthusiasm that I couldn't wait to get back to Seattle to talk about the fact that I had seen the future.“

● Schultz knew immediately that he had to buy Starbucks; his board of directors agreed.

● On his return, he tried to persuade the owners (including Jerry Baldwin) to offer traditional espresso beverages in addition to the whole bean coffee, leaf teas and spices they had long offered.

● On his return, he tried to persuade the owners (including Jerry Baldwin) to offer traditional espresso beverages in addition to the whole bean coffee, leaf teas and spices they had long offered. After a successful pilot of the cafe concept, the owners refused to roll it out company-wide, saying they didn't want to get into the restaurant business. Frustrated, Schultz started his own coffee shop in 1985, named 'Il Giornale' after the Milanese newspaper. Two years later, the original Starbucks management decided to focus on Peet's Coffee & Tea and sold its Starbucks retail unit to Schultz and Il Giornale for $3.8 million.● Schultz renamed Il Giornale with the Starbucks name, and aggressively expanded its reach across the United States. Schultz's keen insight in real estate and his hard-line focus on growth drove him to expand the company rapidly. Schultz did not believe in franchising, and made a point of having Starbucks retain ownership of every domestic outlet.

FINANCIAL INFORAMATION

• The current stock prize per share is $ 77.16.• Revenue: US$ 13.29 billion (2012)• Products: Coffee, Tea, Pastries, Frappuccino

beverages Smoothies.• Net Income: US$ 1.38 billion (2012)• Employees: 151000 (2013)• No of Locations: 20,891 in 62 countries (Mar 22,

2013)• Total Assets: US$ 8.21 billion (2012)• Operating Income: US$ 1.99 billion (2012)

FACTS OF STARBUCKS

• The brand is so well recognized all over the world it doesn't even put its name on its cups anymore.

• The average Starbucks customer visits the store 6 times per month while a loyal 20% of customers go to the stores 16 times per month.

• A Starbucks grande coffee has 320 milligrams of caffeine, over four times the amount of caffeine in a Red Bull.

• The Starbucks cinnamon chip Scone has more calories than a McDonald‘s quarter pounder with 480 calories.

• Starbucks uses over 93 million gallons of milk per year, enough to fill 155 Olympic sized swimming pools.

• Starbucks uses 2.3 billion paper cups per year.

AWARDS

2005: Received National Recycling Coalition Recycling works award.2007: Fiscal 2007 first International award for CSR.2008: Global Design awards for Innovative store designs and commitment to sustainability.2009: Most ethical company in Europe award.2010: Luxist awards readers choice awards for Best Coffee House and mobile marketer of the year.2011: Greener Package award winner.2012 : Named Gowling Lafleur Henderson LLP of its International Excellence in Diversity award.

TATA STARBUCKS

OVERVIEW

• Tata Starbucks Ltd is a 50:50 joint venture company, owned by Starbucks Corporation and Tata Global Beverages, that owns and operates Starbucks outlets in India. The outlets are branded Starbucks "A Tata Alliance". Starbucks, through an agreement with Tata Coffee, serves coffee that is 100% locally sourced and roasted.

HISTORY• In January 2011, Starbucks Corporation and Tata Coffee, Asia's

largest coffee plantation company, announced plans for a strategic alliance to bring Starbucks to India and also to source and roast coffee beans at Tata Coffee's Kodagu facility. Despite a false start in 2007, in January 2012 Starbucks finally announced a 50:50 joint venture with Tata Global Beverages, called Tata Starbucks Ltd., which would own and operate outlets branded Starbucks "A Tata Alliance". Starbucks had previously attempted to enter the Indian market, in 2007, with a joint venture involving its Indonesian franchise and Kishore Biyani of the Future Group. However, the joint venture withdrew its foreign investment proposal with the Indian government. Starbucks did not cite any reason for the withdrawal.

PRODUCTS AND LOCATIONS

• Apart from the usual products offered internationally, Starbucks in India has some Indian style product offerings such as Tandoori Paneer Roll, Elaichi Mawa Croissant, Murg Tikka Panini and Chai Tea Latte to suit Indian customers.

• Free Wi-Fi is available at all Starbucks stores.• As of September 2013, Starbucks operates 22

outlets in 3 cities of India. The company plans to have 50 outlets in India by the end of 2013,[19] with an investment of 400 crore (US$61 million)

Thank you for your attention.