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Starbucks 2.0? A New Orange Challenge

March 9th, 2010    

High Orange Howard Schultz is the founder and CEO of Starbucks. Since his first six stores in 1987, Schultz has relied on instinct, and his marketing and sales abilities. His focus was on the experience and authenticity, rather than the details and numbers stuff, and he constantly talked about the soul of the coffee house, making the world a better place, and controlling your own destiny.

But with the recession, 800 store closings, and 4,000 layoffs, even a great Orange entrepreneur had to change. Yet Schultz wonders if his company will become just another soulless corporation, which he hates. “I’ve had to change my own mentality and thinking,” says Schultz. “It’s always a fragile balance between creativity and discipline.” But that doesn’t mean he has to like it, or fully embrace it, according to a feature article in Business Week.

Schultz detests abstract customer surveys, and would rather visit a store and ask his customers directly. “I despise research. I think it’s a crutch. (But) I’ve gone along,” says a reluctant Schultz. He still visits 25 stores a week. What? You thought an Orange CEO would just be sitting in his or her office? Advertising was never going to happen. Today, there’s a lot of it, along with analytical reports and real-time data from stores. These days, it’s about efficiencies, information, reports, cost-cutting, and standard practices from the world of Greens and Golds.

At the same time, however, could Orange Schultz be working on a Starbucks 2.0? He recently asked some employees to re-invent a coffee house from scratch. He gave them the money and left them alone to go build it. This past summer, it opened in Seattle as 15th Ave. Coffee & Tea, and Schultz was blown away by the creativity and feel. To Schultz it felt like the first days of Starbucks, and his excitement was noticeable. Two more are on the way, and you have to believe that this Orange CEO is just as excited about the new concept store, than his existing 16,000 Starbucks.

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