Tag Archive: Howard Schultz


”I could say … that I ran a small grocery store on the corner (e.g., State of Arkansas), therefore I extrapolate that into the fact I can run Walmart. That`s not true.” – Ross Perot debating Arkansas Governor Bill Clinton and President George H.W. Bush

Perot labeled Clinton’s 12-year public sector experience as the chief executive of the “Natural State” as “irrelevant.”

The famous 1992 debate exchange reminds Almost DailyBrett of today’s deep-state/elite media practice of automatically and terminally disqualifying anyone aspiring or even holding the presidency – including the present office holder – who does not have public sector experience.

Public sector über alles?

Some have suggested that seven-year South Bend Mayor Peter Buttigieg, 37, is more qualified to run the nation than billionaire entrepreneurs, who build, create breakthrough products, employ thousands and manage global business enterprises.

Let’s see, Mayor Pete’s South Bend has a $368 million city budget, 1,285 employees and 101,168 residents including thousands of Notre Damers who need their garbage picked up and their streets swept.

Okay …

In contrast, the $9.5 billion, The Trump Organization LLC, is the 48th largest privately held company in the world. Trump and his family manage 500 affiliated property development and marketing companies with 22,450 employees operating in 25 countries.

According to the New York Times, Trump’s business has been required to take losses and declare bankruptcy from time to time. Phil Knight in his book, Shoe Dog, recounted how Nike almost went under … nine times.

How’s Trump doing today? How’s Nike doing today?

And then there is Starbucks founder and chairman (political villain) Howard Schultz.

Sorry Howard … you can’t play this (presidential) game either … even though you created and turned Starbucks into the largest coffee roaster in the world. Let’s see … the company reports $24.7 billion in annual revenues, manages than 27,000 stores and hires 277,000 baristas et al. around the globe.

Kathleen Sebelius vs. Jeff Bezos For CIO

All kidding and snickering aside, the political class seemingly would rather hire as its CIO Kathleen Sebelius with her infamous crashing Obamacare website with its pathetic non-working calculator.

Conceivably the alternative would be private sector Amazon with its track record of successfully and accurately processing 1 million digital transactions per hour.

The millionaire Bernie and Elizabeth types rail daily against billionaires (i.e., Trump, Schultz, Knight, Bezos …) and their privately held/publicly traded corporations (i.e., Starbucks, Nike, Amazon), seemingly as the sources of all that is wrong in the world. The Massachusetts senator even talked about breaking up the most successful and useful of these companies.

If digital retail pioneer Amazon was forced to breakup, wouldn’t the company in an aw shucks moment, simply spin-off Amazon Web Services (AWS)? Considering Amazon’s marketing for AWS’ cloud services capability, don’t you suspect Jeff Bezos and company are already thinking about AWS as a separate publicly traded company?

How about the prospect of (NYSE: AWS)? Victory for the government? Victory for investors? Whattyathink Elizabeth?

Wasn’t there a movie actor/union president, who with the exception of a stint in the military, never spent a nanosecond in the public sector and became the governor of the largest state in the union, California?

How did that experiment turn out?

Not only was Ronald Reagan wildly popular in blue state California, he was one of our greatest presidents and the only one to ever hold a union card while serving as the nation’s chief executive.

Which Is More Important: Public or Private?

For Almost DailyBrett, your author served 14 years in the public sector (i.e., California press secretary and Central Washington University assistant professor). The same four-decade career also included 25 years in the private sector (i.e., LSI Logic Corporation, Semiconductor Industry Association, Edelman Public Relations, newspapers).

Which sector was more important in the development of your author’s institutional knowledge base?

Don’t know. Inclined to conclude that both are nice to have, and each is equally important.

http://www.chicagotribune.com/news/ct-xpm-1992-10-20-9204050015-story.html

https://money.cnn.com/2016/12/15/investing/trump-organization-48th-largest-private-company/

https://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapId=344985

http://www.city-data.com/city/South-Bend-Indiana.html

https://www.cnn.com/2019/04/13/politics/bernie-sanders-millionaire-book-sales-tax-returns/index.html

 

 

Does a Led Zeppelin concert photograph of singer Robert Plant and guitarist Jimmy Page go with marble Romanesque columns?DSC02649

How about a sketch of Mick Jagger with his signature protruding lips combined with Moorish arches?

For that matter, should an operations manager attempt to incorporate Eric Clapton’s Gibson Les Paul electric guitar with Spanish tile?

One would think an acoustic guitar would fit better into the classic Castilian style, but no one will ever confuse Andres Segovia with heavy metal.

For months including the critical last three weeks before opening night in Sevilla, the team behind the Hard Rock Café worked diligently to fully respect Spanish tradition, while swearing allegiance to the rocking iconic restaurant chain.DSC02651

Carlos Gil, the Venezuelan-born Hard Rock Café operations manager out of Amsterdam, visited patrons on the opening night this past August 4. He said local authorities insisted on the preservation of the Romanesque columns. The chain was more than happy to comply and even to incorporate them into the setting for customers.

Hard Rock in the Land of the Flamenco?

Sounds like a potential prescription for integrated marketing communications (IMC) disaster, but from all appearances it is working in Sevilla, Spain as evidenced by the turnout on opening night.

Starbucks and The Prado

About the length of one futbol pitch is the distance between Madrid’s famous Prado art museum and the usually well-located, Starbucks.

Howard Schultz and his Starbucks team certainly have a knack for finding great locations for the 33,000 stores of the $19.28 billion largest coffee roaster in the world.

Without doubt, each of Starbucks’ venues is consistent with the company’s brand from the green aprons of the baristas to the coffee posters from all over the world. But what is different in Spain’s capital city is that Starbucks also incorporates the Spanish style into its store.DSC03188

As the inevitable pace toward globalization and a flatter world intensifies, so will the demands on multi-national brands to respect the culture while at the same time maintaining the integrity of the brand.

Many are opposed to multi-national chains, and will naturally opt for local choices. Others will yearn for the consistency of product. A Starbucks latte tastes the same in Seattle as it does in Madrid as it does in Dublin or München. There is a beauty in predictability in an unsettled world.

Starbucks wants to deliver a consistency of product wherever and whenever patrons come-in for a latte, mocha or cappuccino. At the same time, the company’s stores do not have to be indistinguishable cookie-cutter designs with each one mimicking the very first one at Seattle’s Pike Park Market.

Seasoned PR and marketing managers instinctively can sense a departure from the “conscience” of the brand, but are they are equally adept when it comes to incorporating a local culture and traditions into the presentation of the brand?

What is the smart solution? The answer lies with respecting a local culture, not going “native,” and at the same time be consistent with brand management.

Cultural Dimensions

Professor Geert Hofstede is famous for his Cultural Dimensions Theory measuring national differences in six arenas: Power Distance, Individualism, Masculinity, Uncertainty Avoidance, Long-Term Orientations and Indulgence.

Before dipping their collective toes into another culture’s waters, it is best to weigh the very real differences between what you know and call familiar, and what you don’t know.

Wal-Mart succeeded big time in Mexico and failed miserably in Germany. Unilever’s Dove “Real Curves” campaign was a hit in the United States, but went over like a lead balloon (not to be confused with Led Zeppelin) in Taiwan.

Under Hofstede’s theory, Spain is high in power distance (57 percent), average in individualism (51 percent); low in masculinity and high in compassion (42 percent), skyrocketing in uncertainty avoidance (86 percent); below average in long-term orientation (48 percent) and low in indulgence (44 percent).DSC02656

There are zero issues when it comes to Brand über Alles. The brand must be respected and maintained. At the same time, there are cultural considerations that need to be considered as well.

Can they work together? Hard Rock Café and Starbucks are at least two global companies that have responded in the affirmative.

http://www.hardrock.com/corporate/history.aspx

https://en.wikipedia.org/wiki/Hard_Rock_Cafe

https://en.wikipedia.org/wiki/Andr%C3%A9s_Segovia

http://investor.starbucks.com/phoenix.zhtml?c=99518&p=irol-presentations

https://geert-hofstede.com/national-culture.html

 

 

Declaring Victory

Compromise is so easy, when you leave all the heavy lifting to the other side.

In reality, it doesn’t work that way … and it never will.

Unilateral good nature, masochism and altruistic virtues will not do the trick.

The answer always comes down to how can both sides can “declare victory” and pass the giggle test at the same time. Each must be able to make the sale to the majority of their followers on their side of the aisle.

nixon1

Keep in mind: Your enemies will never change; your friends can run for the exits if you sell your soul.

Consider the oncoming 5 percent of national GDP “fiscal cliff.”

All the Republicans in the House of Representatives have to do is go against their ingrained philosophy, accept a tax hike for those making $400,000 or more annually (or possibly less) in exchange for no spending restraint by the federal government in the face of a record $16.4 trillion national debt. On top of that, they are expected to raise the debt limit, reportedly reached next Monday, to accommodate even more borrowing from China and more red ink (double entendre not intended).

Let’s say that House Speaker John Boehner can convince his reluctant caucus to go along with this “deal” to preclude the January 1 expiring George W. Bush tax cuts for middle-class taxpayers 1. You can count on the Washington Press Corps. and the Punditocracy on prime-time cable to declare the president and Democrats as the winners and the Republicans as the losers.

In historical terms, the Third Reich was deemed the winner at Munich in 1938 as it was given the permission to gobble up Czechoslovakia, while loser Neville Chamberlain came home with a worthless signature on a worthless piece of paper. After Mitt Romney’s defeat last November, do the Republicans want to be the Neville Chamberlain’s of December?

neville

Even though Howard Schulz and Starbucks are getting into the act with DC baristas scribbling “Come Together” on the cups of upscale coffee, you can hardly expect the Republicans to be moved…or to move…without some real progress from the self-proclaimed progressives.

Can Social Security be indexed to inflation in the form of the Consumer Price Index? Can the age limit for Medicare eligibility be raised from 65-years-old to 67-years-old? More than 60 percent of federal spending is directed toward to the “entitlements” even before the full-impact of Obamacare is felt.

MoveOn.org is threatening primary challengers from the left for any Democrat that votes to reform the entitlements. The Republicans are demanding entitlement spending concessions in order to declare victory. To the Democrats, these demands are seen as leverage…and they are.

The recipe for both sides and their respective media spokespersons to declare victory require raising tax rates on high-income folks, including small businesses (Democrats claim victory), while at the same Social Security is indexed and the eligibility age for Medicare is increased (Republicans claim victory). It sounds simple, but it’s not.

One thing is certain: There will be no deal until the 11th hour on the 365th day of the calendar year. Legislators are akin to bats: They only come out at night.

And if there is no deal?

The sun came up in the Golden State on June 7, 1978, the day after Proposition 13 passed with 65 percent of the vote. Reportedly, the bees were still buzzing and the birds were still chirping.

There was a next-day after the Y2K “crisis” came and was quickly forgotten after January 1, 2000. Talk about much ado about nothing.

And if the leader of the Free World and Congress cannot make amends and allow both sides to declare victory, the ball will still drop in Times Square next Tuesday and the bowl games will still be played on Tuesday.

The nation’s credit rating may plunge yet again. The country may default. The next recession will be on the horizon. These (un)pleasantries may be upon us.

Or we can get down to figuring out how both sides can claim victory.  I saw this practice work in Sacramento in the 1980s. It can work in Washington DC in the teens of the 21st Century. Let “Victory” ring.

http://www.forbes.com/sites/johnmcquaid/2012/12/26/starbucks-come-together-fiscal-cliff-misfire/

http://www.washingtonpost.com/politics/us-will-hit-debt-limit-on-dec-31-treasury-department-says/2012/12/26/0e8e3738-4fa2-11e2-839d-d54cc6e49b63_story.html?wpisrc=al_comboPNE_b

http://www.starbucks.com/blog/lets-come-together-america

 

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