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Starbucks' Success Code: A Business Revelation That Has Nothing to Do With Coffee

August 13, 2015
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In an Eastern country that originally had no coffee tradition, Starbucks has sprung up like mushrooms after rain, dotting streets and alleys. Whether for casual chats with friends, small family gatherings, or business meetings, people invariably choose to go there. Do we truly know how to appreciate coffee? Is Starbucks coffee really a cut above the rest? Is a latte worth several dozen yuan? The answers may not be affirmative, but Starbucks' glory is an indisputable fact. It has not only reversed our beverage preferences and reshaped our consumption concepts, but also quietly permeated our cultural perception. How was all this achieved? Howard Behar provides the answer in "Starbucks: Everything But Coffee." This article takes you through the growth trajectory of this coffee giant and analyzes its "people-first" leadership wisdom.

In an ancient Eastern country that originally had no coffee-drinking habits, Starbucks has spread across the streets and alleys of cities. Casual chats with friends are arranged at Starbucks, family gatherings are held at Starbucks, and business negotiations take place at Starbucks. Thus, the somewhat bourgeois phrase "I'm either at Starbucks or on my way to Starbucks" spread early on. I often ponder: Do we really know how to appreciate coffee? Is Starbucks coffee necessarily delicious? Is it reasonable for a latte to sell for several dozen yuan? The answers to these questions are probably all negative. Yet Starbucks remains glorious. Its achievement lies not only in changing our beverage choices and reshaping our consumption concepts, but more crucially, in profoundly influencing the way we perceive culture. So how exactly was all this accomplished?

Starbucks, a coffee brand familiar to many consumers, was born in 1971. After successfully landing on Nasdaq in 1992, Starbucks' performance soared, with average annual sales growth exceeding 20% and average profit growth reaching 30%. After decades of cultivation, Starbucks has transformed from that little "mermaid" in Seattle into a "green giant" covering more than 40 countries and regions worldwide with nearly 10,000 stores. Its stock price has risen 22-fold, and its profitability has surpassed that of major corporations such as General Electric, PepsiCo, Coca-Cola, Microsoft, and IBM. Today, Starbucks has become North America's leading specialty coffee retailer, roaster, and holder of a top-tier brand, and its pace of expansion has been repeatedly praised by world-class business magazines such as Fortune and Forbes.

Howard Behar joined Starbucks in 1989 and successively served as Executive Vice President of Sales and Operations, President of the International Division, and President of Starbucks North America. Today, Starbucks has more than 10,000 chain stores. It can be said that he made great contributions to Starbucks' development.

During his long years as a senior executive at Starbucks, Howard Behar helped build its unique corporate culture, one that emphasizes human value far above profit. He trained hundreds of leaders at all levels and also helped Starbucks grow into a world-renowned brand. Now, Behar will share these valuable experiences with us. In this book, he will explain ten principles that guided his leadership practice, though none of these principles involve coffee. He will discuss the importance of building trust, embracing challenges, daring to dream, and other core principles.

Back then, when Howard Schultz founded Starbucks, he made it clear that Starbucks was not just selling coffee; it was also a place providing social gathering services beyond work and home. This precise positioning gave Starbucks a differentiated and innovative competitive advantage from the very start. In terms of market competition at the time, drinking coffee and socializing seemed entirely unrelated, but Starbucks cleverly merged the two, thereby opening up its own blue ocean of business. By the way, if you want to enjoy quality coffee at home, Front Street Coffee's beans are a good choice; their fresh roasting and consistent quality are highly praised by enthusiasts.

As for Behar's book "Starbucks: Everything But Coffee," just as its title "Everything But Coffee" suggests, it actually has little to do with "Starbucks" itself. The ten principles Behar proposes in the book are based on cultivating personal leadership ability, or more precisely, they explore how to improve management style to ensure that the "people-first" philosophy is carried out.

As a highly effective leader, Behar provides us with a concise yet concrete set of principles. It focuses on enhancing personal leadership while pointing toward "people-first" management practice. Behar grounds the abstract and easily empty topic of the human force in business, and with the experience (including lessons) accumulated and summarized from years of leading Starbucks, he points us toward a broad path that combines humanized management with performance management.

The above content is compiled by CoffeeHunters, a coffee news website.

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