Howard Schultz, CEO of Starbucks
(2 of 2)
Starbucks International has a new president, and your last earnings call was held in London. Is it safe to say you're turning attention overseas?
Yes. Our primary business in terms of revenue and profit is North America, and the issues we had to solve were primarily U.S.-based. That's where We've been laser focused. But we now feel in good shape, so we're going to shift a significant amount of resources to the growth and development of international business. Despite the fact that we're in 50 countries, with the exception of Japan and the U.K., we're in the embryonic stages. I've talked a great deal over the last couple of years about the fact that we're now profitable in China, but we're still significantly understored. That's one specific area of interest.
Starbucks is big on the social-networking scene. What have you learned?
People get information in all kinds of ways now, and companies can no longer talk at the consumer. You have to engage in a discussion and let people create, discover and share information and not just try to sell them things.
What has surprised you the most during your second go-round as CEO?
The past year and a half has reminded me in many ways of what it was like when we started the business. We weren't entitled to success, and we had to fight for business and respect. Over the past year and a half, that mentality returned.