During the 2008 recession, Starbucks, just like all the other companies, went through rough patches in their business. At that time, their stock prices kept plummeting and closed at its all time low at $3.92/share (currently worth $58.08 at the time of writing this). Despite the discouraging circumstances, Howard Schultz kept moving onward and innovated his way out of it and into greater success. Points I’ve taken away are:
1. A lot of those who are successful in life never went into their line of work for the money. They always chased after a vision/passion and the money followed. “As a business leader, my quest has never been just about winning or making money; it has also been about building a great, enduring company, which has always meant trying to strike a balance between profit and social conscience.“
2. By consistently fine tuning your product/service to be the best, a positive word of mouth will spread and so will your business. “Unlike other brands, Starbucks was not built through marketing and traditional advertising. We succeed by creating an experience that comes to life, in large part, because of how we treat our people, how we treat our farmers, our customers, and how we give back to communities.” He later states, “Starbucks is in the business of exceeding expectations. That means we have to admit it when we are not as good as we think we should be.“
3. Just like Sam Walton, stay humble and keep learning from others. There seems to be a pattern with those who are at the top. Warren Buffett, Bill Gates, Charlie Munger, Michael Jordan, and Sam Walton all seem to be humble and continue a life of learning and development despite being so successful. “Whenever I see someone carrying a cup of coffee from a Starbucks competitor, whether it’s an independent coffee shop or a fast-food chain, I take their decision not to come to Starbucks personally. I wonder what I, as Starbucks’ chairman and coo, might have done to keep them away and what I might do to encourage them to come back or to try us for the first time. I ask myself what I can do today to win someone’s business and earn his or her loyalty.“
By Ryan Lee
Check out the book here:
Thank you for reading! If you like what you’ve read, please join my Facebook group here, like the post, share it, or leave a comment below.