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The Inspiring Success of Laxman Narasimhan and the CEO Change at Starbucks

The Inspiring Success of Laxman Narasimhan and the CEO Change at Starbucks

Laxman Narasimhan is an Indian-American business magnate. He ascended to the position of Chief Executive Officer at Starbucks in 2023. He was replacing the temporarily reinstated Howard Schultz. Narasimhan’s ascent to the top of the renowned coffee company has been an incredible voyage filled with international adventures and leadership breakthroughs. His hiring came following an abrupt shift in the company’s leadership. It was a sudden move and everyone was wondering why the CEO of Starbucks was sacked after just a year in office.

The Ascent of Laxman Narasimhan to the Pinnacle

The Inspiring Success of Laxman Narasimhan and the CEO Change at Starbucks

Image Source: punekarnews.in

Narasimhan was raised in India’s Vijayawada. He benefited from both travel and study in having a well-rounded childhood. After earning a mechanical engineering degree from the University of Pune, he went on to the Wharton School of the University of Pennsylvania to get an MBA in finance. Narasimhan had international experience. He resided and worked on several continents. He also has greatly influenced the way he approaches leadership. He can speak six languages with ease that’s why he offers a distinct cultural perspective at work.

Narasimhan had prominent roles at PepsiCo, McKinsey & Company, as well as Reckitt Benckiser before to joining Starbucks. He demonstrated his ability to lead through change as well as turn around lagging firms in those firms. He led sustainability projects and handled strategic acquisitions at Reckitt, a global leader in health and hygiene products. In this particular company, his leadership was particularly remarkable.

Why was the CEO of Starbucks Fired?

The previous CEO of Starbucks resigned. Due to his resignation, a need for new leadership to handle emerging issues. The company needed someone who could combine strategic vision with operational competence. It should be the person who could also negotiate the shifting terrain of consumer preferences, labour challenges, as well as digital change, according to Howard Schultz. Howard Schultz returned to Starbucks in 2022 as an interim CEO. Laxman Narasimhan was thought to be the ideal candidate for these requirements. This was the conclusion because of his successful track record as well as  a varied background.

The appointment of Narasimhan signalled a change in Starbucks’ leadership approach. He was more than merely a replacement. His background working with large corporations and his aptitude for addressing issues like sustainability and unionisation made him the perfect choice to steer Starbucks into its next stage of expansion.

A Prospective Outlook for Starbucks

In his role as CEO of Starbucks, Narasimhan has stressed the value of digital innovation and developing customised customer experiences. He has the dedication to learn every aspect of the industry. It is evident in his six months of barista training. Starbucks intends to increase the amount of coffee it sources from India and promote social responsibility and sustainability throughout the company.

His priorities go beyond corporate expansion. he has been a steadfast supporter of diversity, inclusivity, and employee empowerment at Starbucks. In business planning, he incorporated his innovative ideas along with practical methods. laxmi Narasimhan has the ability to transform Starbucks from a mere coffee shop into a global force for good.

In summary

Laxman Narasimhan’s rise from lowly origins to the top of Starbucks is evidence of his strategic acumen. He has the capacity for effecting change. Starbucks is entering a new era under Laxmi Narasimhan’s leadership, one that is centred on innovation, sustainability, and employee participation. Narasimhan’s legacy as the head of the world’s largest coffee company will be one of revolutionary leadership that spurs constructive transformation in the business sector.

Howard Schultz

The success story of Howard Schultz: From Rags to Riches

Howard Schultz is the co-founder of the Schultz Family Foundation and former CEO/Chairman of Starbucks. He is most known for having penned the success tale of the American international network of coffee shops.

Howard Schultz
Image Source: forbes.com

Early Life

Howard Shultz was born in Brooklyn, New York. His great-grandfathers were tailors and barrel manufacturers, like many other Americans, and they were immigrants themselves. Both of his parents dropped out of high school, and after the war, his father took low-wage labor jobs. Initially, he considered playing football as a possible career, but his plans to attend Northern Michigan University on a sports scholarship were never realized.

Read More: A College Dropout who built a $20 billion Company Figma

Instead, he remained at NMU and used college debt and part-time jobs to support himself while he was a student. After getting his degree, Schultz stayed in Michigan and spent one year working at a ski resort. After working as a salesperson for Xerox in New York City, he was hired in 1979 as general manager of Swedish cookware company PAI Partners’ American subsidiary, Hammarplast.

Schultz oversaw the American business of the coffee maker manufacturer Hammarplast. In 1981 he went to the Starbucks Coffee Co. in Seattle, to fulfill their orders for plastic cone filters for the first time.

Success Story

Howard Schultz was hired by Starbucks to serve as the company’s director of marketing and sales operations. The company solely sold coffee beans at the time. He transformed Starbucks into his life’s work in just one year. Then he thought that Starbucks ought to sell coffee drinks in addition to coffee beans.

He had this notion while traveling to Milan, Italy. This idea did not interest the Starbucks owners. After that, he decided to establish his own coffee shop, despite the significant financial difficulty. Nevertheless, he was able to secure funding and established three Il Giornale espresso cafes. The business later merged with Starbucks. Under Schultz’s leadership, Starbucks, with its headquarters in Washington, has undergone a significant expansion from 11 locations to more than 30,000.

Originally a regional coffee company, Starbucks has become the world’s leading coffee brand. In 1992, Schultz floated the company on the stock market and used the $271 million value to increase the number of stores in a series of well-publicized coffee wars. Schultz led a roughly $100 billion increase in Starbucks’ market cap from 2008 to 2017.

After 37 years of active management at Starbucks, Schultz announced his retirement on June 4, 2018, saying that he was considering running for president of the United States among other things. In the 2008’s financial crisis, Schultz took back his position as CEO.

Howard Schultz published a book in 2004 named, “Power of Appreciation: How Positive Thinking Can Change Your Life,” The book quickly rose to fame worldwide. In it, he argues that cultivating an attitude of appreciation and optimism is essential for success in any endeavor.

Schultz has committed his time to assisting others in achieving their goals in recent years and has emerged as an outspoken supporter of social responsibility. He also established the Schultz Family Foundation, which aims to open doors for those experiencing obstacles to achievement.

Its concentration is on underprivileged groups, such as persons of color, and youth transitioning into adulthood. In 2020, with a $4.3 billion net worth, Schultz was ranked by Forbes as the 209th-richest American.

Starbucks’ success story is entirely due to Howard Schultz. After all, Schultz was the one who transformed a little Seattle coffee shop into the most well-known coffee franchise in the world. He became a great company leader by taking risks, trying novel ideas, and remaining consistent and unwavering in his efforts.