Page 20 - The Starbucks Experience

Introduction

vision. But doesn’t that describe the vast majority of suc-
cessful businesses? A vision and a plan executed to perfection
are what characterize great businesses. However, we are not
talking about most businesses. Starbucks is one of the truly
exceptional American success stories, a company that so
dominates its market that there isn’t even a close second.
What fuels its incredible growth engine?
Like many in the business community, I’ve long been mes-
merized by Starbucks. Time and again, I have found myself
asking: How does the company do that? What do its man-
agers know that managers in other industries could learn?
How can Starbucks have two successful stores literally across
the street from each other?
In contrast to McDonald’s—another great American suc-
cess story—Starbucks is not a franchise business. So how can
it continue to open so many stores from Seattle to Singapore 5
and not cannibalize its own sales? How does Starbucks con-
tinue to grow and innovate, while maintaining the consistency
and warmth of its first store in Seattle’s Pike Place Market?
And, most important, what are the lessons to be gleaned from
Starbucks that can be applied to other businesses and indus-
tries? What are the key success principles that will help any
manager take his or her business to the next level?
I decided to approach Starbucks senior management per-
sonnel to secure their cooperation on a book project and was
surprised when the managers agreed to let me look closely
into their organization. While at first I was amazed by the
grace, openness, and free rein they gave me, I later came to
learn how much their willingness to grant me access was at
the core of their success model.
As Jim Alling, president of Starbucks U.S. Business, notes
in the foreword to this book, the accomplishments of Star-