Case Study 12.1: Leadership Perspective at Chobani
chobar ii s story tory is that of a fairy tale. What started as an iammSEigr: in/Usti:is): venture ti.ulr:e Leadership Perspective at Chobani CO-nsurning conglomerate worth billions of dollars. Hamdi Ulukaya, a Turkish immigrantmarket• imbemciogmraenta of Kurdish ethnicity, opened his own wholesale feta cheese plant in 2002 after tasting the inferior oca[Ar drerican cheese. Over the years, this small local plant expanded its operations and its visi°11 – as it took risks to deliver a product that was simply better. The company has also made headlines for its investment in its people.
Its management philosophy has proven successful, as the con v vany now owns over 50 percent of the market share in theyogurt space. This would not be possible without the man leading the operation. The chapter seeks to define what makes a great leader. It defines leadership as the process of providing general direction from a position of influence to individuals or groups toward the successful attainment ofgoals.
It asks the question, however, what part of the process separates an average leader from agreat leader. communication? Popularity? Achievement? Looking closely at Chobani’s leadership, it’s clear that a great eat leader cannot be defined by a set of specific attributes; rather, great leaders are defined what makes them different from everyone else.
Taking Risks and Defining Moments of Leadership
Starting a business of your own is a daunting task. To say that it takes hard work and commitment is an understatement. It takes blood, sweat, tears, and sometimes a little bit of luck to be a successful entrepreneur. In fact, 70 percent of businesses started in the United States fail after the first ten years of operation.
These are massive odds to go against for anyone. Now imagine that you’re an immigrant in a foreign country. Hamdi Ulukaya permanently immigrated to the United States in 1994 with the intention of studying English and taking business courses at a small college in upstate New York. He found work as a hand on a farm nearby.
In 2002, Ulukaya’s father visited him in the States and was disgusted with the quality of cheese he was served. He suggested that Ulukaya import cheese from Turkey to sell around town. Upon doing so, the cheese became popular and Ulukaya decided that he was going to produce it himself.
After two years of barely breaking even, an interesting opportunity presented itself to Ulukaya on a piece of junk mail advertising the sale of an old Kroger cheese manufacturing plant that had just been shut down. He toured the plant the following day, took out a loan from the US government, and bought it within five months. This was arguably the most risky move of his career, but it was necessary to expand the operations and improve efficiencies of his cheese business.