starbucks watch : mr. shultz goes to (the other) washington
Today’s Wall Street Journal profiles Starbucks’s tentative entry into the seedy world of Washington [D.C.] lobbying:
Mr. Schultz’s discomfort offers a glimpse at the uneasy transition a group of cutting-edge entrepreneurs of the 1990s face as they take their first steps into Capitol Hill lobbying. They saw explosive growth in recent years but now realize the road to future prosperity runs through Washington. . . . These newcomers to Washington are caught in a bind: They have the same desires as every other company — tax breaks and trade deals. But they find the horse-trading aspects of lobbying, including political donations and asking for favors, often conflict with their public image as idealists changing the way business is done. [wsj (reg req.)]
The article describes the main motivations for Starbucks to talk to Washington lawmakers — the ability to continue growth overseas (lowering trade barriers) and keeping the tax rate on coffee bean ‘manufacturing’ low (A ‘Starbucks Footnote’ in the 2004 tax bill). It also highlights the benefits of keeping a few Republicans around at Preston Gates: having Senator Gordon as a principal opened the door to many of the power players in the District, an especially nice advantage for a company whose founder tends contribute mostly to Democrats.
An interesting read if you’re passing a newsstand or if it ever goes online.
Related posts:
- starbucks watch: increasing sample size
- howard shultz worries that starbucks is losing its charm
- starbucks density watch
- Starbucks to cut 1,000 jobs
- starbucks watch: mermaid meets smithy edition

