The Full Wiki

More info on Howard Schultz

Howard Schultz: Map

Advertisements
  
  

Wikipedia article:

Map showing all locations mentioned on Wikipedia article:



Howard Schultz (born July 19, 1953) is an Americanmarker businessman, and entrepreneur 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.

Early life

Schultz was born in 1952 and raised in a Brooklyn, N.Y., housing project. He received a football scholarship to Northern Michigan Universitymarker, where he was a member of Tau Kappa Epsilon, and after graduating he worked a variety of jobs until becoming manager of U.S. operations for Hammarplast.

Career

Schultz's adventure started in 1981 when he traveled from New York to Seattle to check out a popular coffee bean store called Starbucks that had been buying many of the Hammarplast Swedish drip coffeemakers he was selling.

It took Schultz a year to convince the Starbucks owners to hire him. In 1982, he joined Starbucks Coffee Company in Seattlemarker as the Director of Marketing .

When they finally made him director of marketing and operations in 1982, he had another epiphany. This one occurred in Milan, Italymarker, when Schultz took note of the coffee bars that existed on practically every block. He learned that they not only served excellent espresso, they also served as meeting places or public squares; they were a big part of Italy's societal glue, and there were 200,000 of them in the country.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 named Il Giornale in 1985. 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 Starbucks' reach across the United States. Schultz's keen insight in real estate and his insatiable appetite for coffee drinks drove him to grow the company rapidly. Schultz didn't believe in franchising, so made a point of having Starbucks own every domestic outlet with one exception. Schultz also went 50-50 with Magic Johnson on stores in minority communities.

While CEO of Starbucks in 2008, Schultz earned a total compensation of $9,740,471, which included a base salary of $1,190,000, and options granted of $7,786,105..

Schultz is also the former owner of the NBA's Seattle SuperSonics. On July 17, 2006, it was announced that Schultz sold the team to a group of businessmen from Oklahoma Citymarker for $350 million. It was speculated that the new owners would move the team to their city some time after the 2006-2007 NBA season. On July 3, 2008, the City of Seattle reached a settlement with the new ownership group and the Sonics did, in fact, move to Oklahoma City. The Sonics had a 41-year history in Seattle, and the sale of the established franchise to out-of-state owners considerably damaged Schultz' popularity in Seattle. In a local newspaper poll, Schultz was judged "most responsible" for the team leaving the city, winning 42% of the vote. Howard Schultz filed a lawsuit against Sonics chairman Clay Bennett, in April 2008, to rescind the July 2006 sale based on fraud and intentional misrepresentation. However, Schultz dropped the lawsuit in August 2008. When Bennett purchased the Sonics and its sister franchise in the WNBA, the Seattle Storm, for $350 million, he agreed to a stipulation that he would make a "good-faith best effort" for 1 year to keep both teams in Seattle. He has since sold the Storm to four Seattle women who will keep the team in Seattle.. It is most likely that Schultz brought the suit to try and save his name.

Schultz is also a significant stakeholder in Jamba Juice.

In 2006, Forbes Magazine ranked Schultz as the 354th richest person in the United Statesmarker, with a net worth of $1.1 billion dollars.

On January 8, 2008 Howard Schultz regained his status as CEO of Starbucks after a hiatus of 8 years.

As of November 13, 2009, Howard has plans to purchase the Carolina Hurricanes and move them back to Hartford.

Comments about the UK economy

Schultz said to a cable TV channel in February 2009 about his concerns on the economy that "the place that concerns us the most is western Europe, and specifically the UK. The UK is in a spiral." He added that his main concerns were "Unemployment, the sub-prime mortgage crisis, particularly in the UK, and I think consumer confidence, particularly in the UK, is very, very poor."

Lord Mandelson, the UK Business Secretary, responded saying Britain was "not spiralling, although I've noticed Starbucks is in a great deal of trouble - but that might be because of their over-expansion, given the state of the market." Mandelson was later overheard at a drinks reception, saying: "Why should I have this guy running down the country? Who the is he? How the hell are they [Starbucks] doing?"

An official comment from Starbucks read that "It is a difficult economic situation in the US and around the world. Please be assured that Starbucks has no intention of criticising the economic situation in the UK. We are all in this together and as a global business we are committed to each and every market we serve."

Awards

In 1998, Schultz was awarded the "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.

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 Businessmarker at the University of Notre Dame. The same night, he delivered the Frank Cahill Lecture in Business Ethics.

Criticism

In May 2009 Schultz's business practices came under criticism from Brave New Films. He is accused of illegally obstructing the unionization of Starbucks employees. Starbucks made the Frappucino in South Carolina.

References

  1. Franchisebusiness.com. URL last accessed August 16, 2007.
  2. 2008 CEO Compensation for Howard Schultz, Equilar.com Schultz co-authored a book called Pour Your Heart into It that expounds on his life journey with Starbucks . In his book Schultz admits that he was afraid that "Starbucks may become another soulless big chain."
  3. seattletimes.nwsource.com. URL last accessed July 18, 2006.
  4. [1] Sonics are Oklahoma City-bound, Seattle PI, July 3, 2008
  5. [2], Sonics Settlement, mynorthwest.com
  6. [3]URL last accessed July 3, 2008.
  7. http://seattletimes.nwsource.com/html/sonics/2004349361_schultz15.html
  8. http://www.starbucks.com/aboutus/pressdesc.asp?id=818
  9. ... n
  10. Howard D. Schultz Biography Businessweek Data is as current as the most recent Definitive Proxy
  11. Notre Dame Frank Cahill Lecture, March 29, 2007
  12. http://stopstarbucks.com/ Stop Starbucks


Schultz, Howard and Yang, Dori Jones. "Pour Your Heart Into It: How Starbucks Built a Company One Cup at a Time". Hyperion, 1999[72443].

Margolick, David. "Tall Order", Portfolio, July 2008 Tall Order


Embed code:
Advertisements






Got something to say? Make a comment.
Your name
Your email address
Message