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The Business of Popular Causes

January 22, 2025 By Nagesh Belludi Leave a Comment

Starbucks:Championing Progressive Causes, While Undermining Unionization Efforts Starbucks has long been celebrated for its progressive image and support of social justice causes. But when it comes to unionization and better benefits, the company’s actions tell a different story. Internal policies—like cracking down on union activities—raise doubts about how committed it truly is to the values it champions.

Starbucks is a prime example of a wider trend: companies quickly embrace progressive causes, but only when they don’t hurt the bottom line. This is Bandwagon Branding—when businesses latch onto the latest popular cause, whether it’s social justice, climate change, or equality, to align with dominant public values. They roll out hashtags, social media campaigns, and limited-edition products to show support. But once the spotlight fades, they quietly move on to the next issue. Remember when founder-CEO Howard Schultz launched the “Race Together” initiative, letting baristas at 12,000 locations write it on cups to spark conversations about race?

This cycle—big gestures, minimal change, quick pivots—reveals a harsh truth: corporations are profit-driven. Their true loyalty is to shareholders, not social causes. Corporate virtue-signaling often rings hollow.

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Filed Under: Business Stories, Leadership, MBA in a Nutshell Tagged With: Biases, Diversity, Entrepreneurs, Group Dynamics, Humility, Marketing, Persuasion, Starbucks

Starbucks’ Oily Brew: Lessons on Innovation Missing the Mark

January 20, 2025 By Nagesh Belludi Leave a Comment

Starbucks Olive Oil-infused Coffee: Lessons on Innovation Missing the Mark Last quarter, Starbucks pulled the plug on its olive oil-infused Oleato coffee line as part of a broader push to streamline the menu and impro1ve store operational efficiency.

Oleato was among Starbucks’ boldest and riskiest experiments in recent years. It was the brainchild of founder and then-CEO Howard Schultz, an assertive visionary. During a visit to the olive groves of Sicily, Schultz was inspired by the Mediterranean tradition of consuming a daily spoonful of olive oil. He envisioned merging this health practice with Starbucks’ coffee expertise, creating a unique fusion of wellness and indulgence.

Debuting in Italy in February 2023, Oleato expanded globally, offering lattes and cold brews infused with extra virgin olive oil, marketed as luxurious, innovative, and health-conscious. While some customers liked the smooth, velvety texture, many found the flavor odd or the concept hard to swallow. Scaling the product and educating consumers proved challenging, leaving many unsure of its benefits beyond novelty.

Oleato’s flop revealed the risks of niche innovation. Starbucks thrives on pushing boundaries, but not all bold ideas hit the mark. Smart innovation requires knowing when to nurture an idea and when to cut losses. Schultz’s vision of Oleato kept Starbucks daring, but disciplined decision-making is key to ensuring innovation remains a strength, not a liability.

The Oleato dud highlights the perils of leadership driven by unchecked conviction. Schultz’s love affair with Italian espresso bars during a visit to Milan sparked the creation of Starbucks. However, visionary leaders like Schultz often turn bold ideas into untouchable pet projects. Even a passing thought can rapidly evolve into a sweeping directive, leaving little room for dissent. In such environments, feedback is stifled, and ideas can quickly take on a life of their own.

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Not Every Customer is a Right Fit for You—and That’s Okay

December 19, 2024 By Nagesh Belludi Leave a Comment

Not Every Customer is a Right Fit for You---and That's Okay In business, every sale may feel like a win, but some sales can actually harm you more than help.

In Delivering Happiness: A Path to Profits, Passion, and Purpose (2010; my summary,) Zappos CEO Tony Hsieh illustrates the importance of parting ways with problematic customers. He recounts how, when it was a fledgling startup, Zappos identified a customer who exploited their generous return policy, ordering thousands of dollars in shoes only to return them frequently. Acknowledging the strain this put on their business and customer service team, Zappos chose to cut ties, issuing a full refund and politely refusing further business. This decision allowed them to maintain their high standards for customers who genuinely valued their service.

Not all money is good money. Certain clients can negatively impact your well-being—and your bottom line.

Filter out the wrong customers. Cut loose those who don’t fit. Over time, you’ll become adept at spotting clients you’ll regret accepting. Some customers simply aren’t worth your time and energy. Sometimes, it’s more cost-effective to refund their money and send them packing. Other times, it’s wise to discourage potential clients from buying in the first place. You might find yourself confidently saying, “Sorry, this just isn’t for you. Please don’t send any money my way.” It may seem a bit blunt, but it’s liberating. The payoff? You’ll build a fantastic group of clients who bring genuine joy to your work, significantly reducing negative stress for you, your team, and everyone involved.

Idea for Impact: Good business sometimes means letting go. Life’s too short to waste on the wrong customers. Filtering out those who aren’t a fit isn’t just smart; it’s vital for creating a fulfilling, enjoyable career. Work with those who inspire you.

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How to … Get into a Creative Mindset

October 3, 2024 By Nagesh Belludi Leave a Comment

Rangaswamy Srinivasan: Pioneering Advances in Laser Surgery Techniques In 1981, Rangaswamy Srinivasan, a chemist at IBM Research, and his colleagues embarked on a mission to identify an organic substance suitable for testing an ultraviolet excimer laser—an innovative tool capable of etching intricate designs into polymers for computer chips.

On November 27, in a moment of inspiration, Srinivasan brought some leftover Thanksgiving turkey into his laboratory for laser experimentation. After a series of trials and adjustments, he successfully produced clean, precise incisions in the turkey’s cartilage without causing any thermal damage to the surrounding tissue.

This serendipitous discovery of ablative photodecomposition paved the way for LASIK eye surgery, a procedure that requires precise alterations to the cornea’s shape to correct various vision problems. This groundbreaking technique has since transformed the lives of millions, providing a painless solution for myopia, hyperopia, and astigmatism.

Idea for Impact: The more you plunge into exploration and nurture that curious spark, the more you turn curiosity into a regular habit. To up your odds of those delightful “aha!” moments, don’t shy away from a bit of uncertainty and experimentation every now and then. Embrace the art of intelligent floundering—give new ideas a whirl and toss around a few “what if” questions. Frame your thoughts with a touch of experimentation by musing, “What if I tried it this way?” or “Why wouldn’t that work better?” You never know; your next big breakthrough might just be lurking in the leftovers, waiting for you to discover it!

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Get Started, Passion Comes Later: A Case Study of Chipotle’s Founder, Steve Ells

September 2, 2024 By Nagesh Belludi Leave a Comment

Get Started, Passion Comes Later The notion of directly pursuing your passion can seem daunting, particularly if you’re uncertain about identifying your true calling or how it could translate into a feasible career path. The tale of Chipotle and its founder Steve Ells serves as a fitting illustration of this dilemma.

After graduating from arts college, Ells headed to the Culinary Institute of America, where he fell in love with cooking. Initially, he dreamed of opening a fancy restaurant, but the funds weren’t there.

During the early 1990s, Ells embarked on a culinary journey, starting as a sous chef under renowned chef Jeremiah Towers at San Francisco’s upscale Stars restaurant. It was during this time that the idea for Chipotle began to take shape. Inspired by the delectable “mission-style” burritos he savored in San Francisco’s Mission District taquerias, Ells seized the opportunity. With an $85,000 loan from his father, he ventured to establish the inaugural Chipotle eatery in 1993, nestled in Denver, Colorado.

Ells’s father, crunching the numbers, estimated that his son would need to sell 107 burritos daily to break even. However, the response exceeded expectations. Within the inaugural month, Chipotle was churning out 1,000 burritos a day. This swift success unveiled Ells’s true calling. He realized his passion lay not in haute cuisine but in the realm of delivering delectable, freshly-prepared Mexican fare swiftly. Chipotle garnered a devoted following for its scrumptious offerings, rapid service, and unwavering commitment to sustainable sourcing.

Idea for Impact: Starting with an exploratory approach is often wiser than waiting for the perfect alignment with your passion. Dabble in different areas, adapt your goals over time, and stay open to new opportunities. Sometimes, passion emerges along the journey, leading to unexpected yet fulfilling paths.

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A Business Model Like No Other: Book Summary of ‘Becoming Trader Joe’

August 15, 2024 By Nagesh Belludi Leave a Comment

Why Trader Joe's is Anything but Your Typical Grocery Store!

Describing the cult-like allure of “America’s favorite grocery store” can be a challenge for those who haven’t experienced it firsthand. At Trader Joe’s, you’re greeted with an eclectic mix of top-notch, health-conscious products, each boasting funky labels and offered at seemingly fair prices. The cheerful crew, sporting those iconic Hawaiian shirts, adds to the welcoming vibe, making every visit feel like a unique and enjoyable adventure in shopping.

From Niche Market to American Icon: The Entrepreneurial Spirit of Trader Joe’s

Founder Joe Coulombe’s autobiography, Becoming Trader Joe: How I Did Business My Way and Still Beat the Big Guys (2021,) provides an engaging and insightful peek into the beginnings of the iconic store. Coulombe (1930–2020) sheds light on the distinctive procurement strategies and marketing anecdotes that have cemented Trader Joe’s status as a beloved American institution.

Trader Joe's: Cheerful Culture, Unique Offerings for Discerning, Healthy, Global Consumers. While serving as a management advisor at Rexall Drugstores in the 1950s, Coulombe, a Stanford Business School graduate, delved into opportunities within the grocery industry. He identified a market niche consisting of budget-conscious, well-educated, and well-traveled middle-class consumers. This led to the launch of the first Trader Joe’s store in Pasadena, California.

Trader Joe’s quickly captured the hearts of food enthusiasts who appreciated its unique product offerings, value, and shopping experience. Positive word of mouth played a pivotal role in attracting customers and driving the company’s expansion.

By the mid-1970s, Trader Joe’s had expanded to numerous locations across California, captivating customers with its diverse and exclusive offerings. Notable products like the famous “Two-Buck Chuck” wine and the perennial favorite frozen Mandarin Orange Chicken became staples. In 1977, Trader Joe introduced new private labels, including Trader Ming’s for Asian cuisine, Trader Jose for Mexican fare, Trader Giotto for Italian dishes, and Pilgrim Joe for New England-style food. (These product brands were phased out in the last few years as part of a shift in societal consciousness concerning racial equality and cultural sensitivity.)

Trader Joe’s Triumph: Practical Genius Shaped a Grocery Empire

Coulombe’s entrepreneurial triumphs were rooted in practical ingenuity rather than lofty visionary ideals. He placed importance on factors such as deep product knowledge, continual small-scale enhancements, and a keen understanding of shifting consumer preferences. Rather than seeking personal glory, Coulombe emphasized employee respect, a touch of luck, and a sharp legal mind.

'Becoming Trader Joe' by Joe Coulombe (ISBN 1400225434) One standout aspect of Trader Joe’s success was its early recognition of the growing demand for natural and organic products, reflecting Coulombe’s astuteness in identifying evolving consumer trends. His innovative initiatives further propelled Trader Joe’s into the limelight. He introduced the “Fearless Flyer” newsletter, providing customers with captivating updates, stories, and product recommendations. Additionally, his “Food and Wine Minute” radio segments, brimming with tales from global wine regions and snippets of food trivia, served as effective tools for customer engagement and brand promotion.

Even after the Albrecht family’s acquisition in 1979, integrating Trader Joe’s into their Aldi (Nord) empire, the essence of Coulombe’s leadership endured. Remaining at the helm as CEO for another decade, he steadfastly upheld the company’s founding principles, focusing on overarching goals, nurturing customer relationships, and ensuring positive experiences for frontline staff.

A Savvy Saga of Entrepreneurial Genius & Quirky Anecdotes

Read Becoming Trader Joe (2021) for the fun fact-laden business tales of small-scale savvy and ingenious approaches to business. Leaf through the entertaining, fact-filled stories of modest cunning. This book is a witty, vibrant, and pragmatic business guidebook that rejects the romanticization of entrepreneurship.

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Sony Personified Japan’s Postwar Technological Ascendancy // Summary of Akio Morita’s ‘Made in Japan’

August 12, 2024 By Nagesh Belludi Leave a Comment

'Made in Japan' by Akio Morita (ISBN 0452259878) Akio Morita’s autobiography, Made in Japan (1987,) offers a captivating narrative of Sony’s remarkable journey to success and sheds light on the mindset of one of the era’s most accomplished businessmen, as well as a vocal advocate for free trade.

As the co-founder and CEO of Sony Corporation alongside Masaru Ibuka, Morita symbolized Japan’s post-war resurgence and economic expansion. Under his guidance, Sony emerged as a symbol of Japan’s industrial prowess, reshaping the perception of Japanese products in the West.

Akio Morita’s Journey: From Saké Heir to Sony Trailblazer

Morita, born into privilege in Nagoya, was destined to inherit his family’s saké brewery. Yet, his interest in the family’s phonograph during high school diverted him toward electronics. Serving as a shore-based engineering officer for the Imperial Japanese Navy during WWII, Morita subsequently joined forces with Ibuka to found Tokyo Tsushin Kogyo Kabushiki Kaisha (Tokyo Telecommunications Engineering Corporation,) with an initial investment of 190,000 yen (some US$500 then.)

Sony: Pioneering Consumer Electronics Excellence, Echoing Apple's Innovation Ibuka concentrated on research and development, and Morita took charge of obtaining funding and managing sales, as well as overseeing marketing activities from an abandoned department store. Despite initial setbacks with inventions like an electronic rice cooker and the first tape recorder, Sony’s breakthrough came with the transistor, licensed from Bell Laboratories in 1953. This innovation led to the development of a portable transistor radio, which captivated consumers four years later.

A trailblazer in product development and marketing, Morita was determined to redefine the perception of Japanese goods globally. To establish Sony’s identity internationally, he rebranded the company as Sony Corporation, derived from the Latin word “sonus” meaning sound, reflecting its commitment to audio technology.

Akio Morita’s Vision: Transforming Sony into a Global Tech Powerhouse

Recognizing the negative connotations associated with “Made in Japan” among American consumers in the 1960s, Morita relocated to New York with his family to immerse himself in the language and culture of Sony’s largest market. His leadership ethos prioritized creativity, teamwork, and customer-centricity.

In the early 1990s, Sony emerged as the Apple of its time, establishing itself as a trailblazer in the world of consumer electronics. Under the visionary leadership of Akio Morita, Sony pioneered a series of groundbreaking products that not only captured the imagination of consumers but also reshaped entire industries. From the iconic Walkman that revolutionized personal audio to the introduction of the VCR, Diskman, and Trinitron color television, Sony consistently pushed the boundaries of innovation. Sony’s commitment to sleek design, cutting-edge technology, and user-friendly interfaces set it apart as a symbol of technological prowess.

Sony Walkman: Pioneering Portable Music and Cultural Revolution Morita’s strategic foresight, coupled with Sony’s dedication to quality and creativity, positioned the company as a trendsetter, influencing the global perception of Japanese goods and cementing its legacy as the trailblazer of the early technological era. Morita even went to lengths like designing special white shirts with oversized pockets for salesmen to showcase the Walkman’s portability during its American launch.

The Visionary Behind Sony’s Global Rise

Read Made in Japan for a captivating narrative of Morita’s journey, Sony’s evolution, and Japan’s rise to global prominence. Delve into Morita’s strategic decisions, leadership style, and commitment to quality and innovation, offering valuable insights into building a global brand, overcoming adversity, and transforming industries. Uncover the post-war Japanese commercial landscape, trade tensions with America, cultural dynamics, and management principles that propelled Sony’s success.

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Filed Under: Business Stories, Leadership Reading, The Great Innovators Tagged With: Books, Customer Service, Entrepreneurs, Japan, Leadership Lessons, Negotiation

HP’s “Next Bench” Innovation Mindset: Observe, Learn, Solve

April 29, 2024 By Nagesh Belludi Leave a Comment

HP's In the early days, founders William Hewlett and David Packard embedded a culture of innovation, customer focus, and respect for individuals at HP. Their philosophy, famously documented in Packard’s memoirs, The HP Way (1995; my summary,) emphasizes the founders’ unwavering dedication to their principles and values.

Following their humble ‘garage’ beginnings, HP’s team developed electronic test and measurement devices. At their workshops in Palo Alto, every worker was encouraged to observe their colleagues at the ‘next bench.’

They weren’t just being nosy; they were on a mission to check out how their experimental gadgets were performing, discuss any issues, and lend a hand where needed.

The underlying ethos was clear: if one technician’s idea resonated with a nearby colleague, it could likely resonate with customers too, potentially opening up new markets.

Initially conceived as a problem-solving exercise for new ideas, this practice heightened technicians’ awareness at HP. They became attuned to their colleagues’ challenges, which sensitized them to the potential needs of engineering customers.

Idea for Impact: Want killer feedback from your customers? Keep a close eye on them using your products. Figure out what they like and what bothers them. Identify those pain points, and you’re on your way to building a customer-focused culture that just clicks.

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Unpaid Gigs for ‘Exposure’—Is It Ever Worth It?

February 21, 2024 By Nagesh Belludi Leave a Comment

Unpaid Gigs for 'Exposure'---Is It Ever Worth It? As a freelancer, you’ll constantly receive requests to write blogs, help with videos, provide ‘expert’ advice, perform a show, or attend events—all without pay, but with promises of experience, prestige, or that ever-so-alluring “exposure.”

But should you say ‘yes’ to these unpaid gigs?

It’s utterly unfair for people to assume you’re desperate for attention just because you’re starting out. And it’s downright rude if these organizations have the budget to pay only some individuals while leaving you high and dry.

For many new freelancers, doing freebies feels like a rite of passage. But speak to the old-timers, and they’ll likely warn you that unpaid gigs often lead to more unpaid gigs with zero real payoff. Plus, those promising “exposure” might not even have much exposure themselves.

So, is it ever worth it to hustle for “exposure”? Maybe, but only if it’s for a cause, charity, or group you’re genuinely passionate about.

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Filed Under: Career Development, Sharpening Your Skills Tagged With: Career Planning, Entrepreneurs, Innovation, Marketing, Negotiation, Persuasion

The Problem with Hiring Ex-Entrepreneurs

January 25, 2024 By Nagesh Belludi Leave a Comment

The Problem with Hiring Ex-Entrepreneurs Former entrepreneurs often switch to corporate gigs, aiming for a better work-life balance and a touch of structure. While their creative mojo can jazz up your team, there’s a flip side: culture clashes. Entrepreneurs are used to doing things their way; so the corporate world, with its hierarchy and risk aversion, might feel like a straightjacket to them.

Expecting them to play by the ‘rules’? That’s where they’ll hit a snag. Their knack for juggling multiple roles clashes with the corporate call for slowing down and delegating—it’s a bit like expecting a cat to bark. Navigating the corporate landscape, with its politics, large teams, and strategy alignment, can be a real puzzle.

Moreover, there’s the risk that these ex-entrepreneurs might decide to pack their bags and return to startups or solo ventures if the corporate environment cramps their style too much.

Idea for Impact: If you’re considering hiring an ex-entrepreneur, watch for clashes. Set expectations and use their strengths without stepping on corporate toes.

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About: Nagesh Belludi [hire] is a St. Petersburg, Florida-based freethinker, investor, and leadership coach. He specializes in helping executives and companies ensure that the overall quality of their decision-making benefits isn’t compromised by a lack of a big-picture understanding.

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