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THE BIZNOB – Global Business & Financial News – A Business Journal – Focus On Business Leaders, Technology – Enterpeneurship – Finance – Economy – Politics & LifestyleTHE BIZNOB – Global Business & Financial News – A Business Journal – Focus On Business Leaders, Technology – Enterpeneurship – Finance – Economy – Politics & Lifestyle

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Business

Howard Schultz – The man behind Starbucks

Howard Schutlz
Howard Schutlz - Image from CNBC Howard Schutlz - Image from CNBC
Howard Schutlz
Howard Schutlz - Image from CNBC Howard Schutlz - Image from CNBC

Howard Schultz is a business magnate, best known as the former CEO of Starbucks. He is currently the executive chairman of the company.

In December 2018, Schultz announced that he was “seriously considering” running for president in 2020 as a centrist independent. In January 2019, he announced that he was officially entering the race.

Schultz has come under fire from the left for his stances on healthcare and taxes. He has proposed giving all Americans a $2,000 tax credit, which would be paid for by repealing the Trump tax cuts. He also supports expanding Medicare to all Americans.

On healthcare, Schultz has said that he does not support a single-payer system, but does support increasing access to healthcare through measures like providing coverage for pre-existing conditions.

Howard Schultz’s Early Life

Howard Schultz was born in Brooklyn, New York, in 1953. He grew up in the Canarsie neighborhood and attended public schools. In school, he was a good student and a varsity basketball player.

After high school, Schultz attended Northern Michigan University on a basketball scholarship. He dropped out after two years to start a coffee company with his friend, Jerry Baldwin.

The Beginning of Starbucks

In the 1970s, Starbucks was still a relatively small company based in Seattle. The original store was at 2000 Western Avenue. It operated as a coffee bean retailer and artisanal roaster. Schultz joined the company after he had left college. He began working there part-time while living in California. After about two years, he moved back to Seattle to work for the company full-time.

Schultz rose through the ranks of Starbucks quickly, holding various positions including director of retail operations and marketing manager. In 1982 he became director of marketing at the age of 29, which is when Schultz discovered his true passion: selling coffee drinks.

He spent time observing customers at stores around Seattle, trying to understand their habits and preferences better so he could create a better product.

In 1987, Schultz became president of Starbucks and pushed for the company to start selling espresso drinks. At the time, most coffee shops only served drip coffee.

Schultz’s efforts paid off and by 1989 Starbucks had opened its 100th store.

The 1990s were a period of intense growth for Starbucks. The company expanded rapidly across the U.S., and in 1992 Schultz became the CEO.

Starbucks Goes International

One of Schultz’s primary goals as CEO was to make Starbucks a global brand. In 1995, he opened the first international Starbucks in Tokyo. By 2000, there were over 1,000 stores outside of the U.S.

As Starbucks grew, it began to face more competition. The company grew so quickly that it struggled with quality control issues and keeping up with standards. This led to Starbucks’ expansion efforts slowing down in the early 2000s.

Starbucks also had some trouble adapting its business model to different markets around the world, including Europe and China. These challenges made Schultz’s global vision difficult to achieve in practice.

The Great Recession

Schultz stepped down as CEO in 2000 but remained involved at Starbucks as chairman of the board. He was succeeded by Jim Donald, who served until 2008.

During this time, Starbucks experienced tough economic times as many other U.S. companies did start in late 2007. As a result, Schultz returned to serve as the company’s CEO again from January 2008 until June 2018.

During the 2008 financial crisis, Starbucks closed hundreds of stores and cut its workforce by 18 percent to save money.

Starbucks also had to deal with some safety issues related to products it sold during this time. A number of customers reported finding mold on coffee beans or in drinks at Starbucks, which led Schultz to launch a massive product recall in 2008.

Schultz was succeeded as CEO again by Kevin Johnson in 2017. He stayed active at the company but took on less responsibility than he had before, focusing mainly on his longtime personal goal of growing Starbucks internationally.

Comeback As Company Chairman & Potential 2020 Run

In December 2018, Schultz announced that he would be stepping down as chairman of the board for Starbucks after 43 years at the company.

He told The New York Times that he was planning to take some time off in 2019 to explore a potential 2020 presidential run. He said that his duties would be split between current senior Starbucks executives, including President Rosalind Brewer and Vice-Chairman Mellody Hobson Schultz.

Schultz has hinted at left-leaning political proposals in the past, but he hasn’t revealed much about how he learned about economic policy or foreign affairs beyond what’s publicly known. His job will be basically CEO of Starbucks Corp., not the head of state.”

Howard’s Controversies

Howard Schultz has faced several controversies during his time as CEO. For example, in 2008, Starbucks recalled over 2.5 million glass mugs because they were breaking and causing lacerations. Also in 2008, a California woman claimed that she found a dead mouse at the bottom of her cup of Starbucks coffee, leading to a $100 million lawsuit against the company.

In 2012, Schultz led an effort to try to get Congressional leaders from both parties to work together on debt reduction and other economic issues. Some critics said that the campaign was distracting Congress from its primary responsibilities.

In 2013, after President Barack Obama called for higher taxes on wealthier Americans, Schultz announced plans to voluntarily pay more income taxes. He also advocated for immigration reform but stopped short of supporting President Obama’s push for the DREAM Act, which would provide a path to citizenship for some undocumented immigrants.

In 2015, Starbucks announced its plan to hire 10,000 refugees around the world in response to the European migrant crisis. This announcement led some people to boycott Starbucks. Critics said that Schultz was going against American interests by hiring refugees instead of veterans.

In January 2018, Schultz launched a campaign called “Race Together” with plans to distribute coffee cups across U.S. stores bearing phrases like “Blacks Lives Matter” and “The Truth Matters.” The goal was to spark conversations about race-related issues among customers at Starbucks stores. Many people criticized this effort as misguided or poorly executed.

In March 2018, Schultz announced that he was stepping down as CEO of Starbucks, but he would remain with the company as its executive chairman. At the time, he said that the decision was made because of the new tax law passed by the Trump administration. The law lowered the corporate tax rate from 35 percent to 21 percent.

Schultz said that he was concerned about what the new tax law would mean for Starbucks’ employees and customers. He also said that he wanted to spend more time exploring a potential 2020 presidential run.

In December 2018, Schultz announced that he was stepping down from his role as executive chairman at Starbucks. He said that he planned to take some time off in 2019 to explore a potential 2020 presidential run.

Howard Schultz has been a part of Starbucks for over 40 years and he is stepping down as the company’s executive chairman. He is planning to take some time off in 2019 to explore a potential 2020 presidential run.

Schultz has hinted at left-leaning political proposals in the past, but he hasn’t revealed much about how he learned about economic policy or foreign affairs beyond what’s publicly known. His job will be basically the CEO of Starbucks Corp., not the head of state. Howard Schultz has faced several controversies during his time as CEO, such as recalls, lawsuits, and protests. In January 2018, Schultz announced plans to step down as CEO of Starbucks, but he would remain with the company as its executive chairman.

Howard Schultz’s Wealth

Howard Schultz’s net worth is about $3.4 billion, according to Forbes.

Read more on: REMEMBERING STEVE PAUL JOBS


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