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Financial Analysis of Starbucks Essay

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Introduction
In the 21st century, many people have become part of using coffee in their lives. This is when it is compared to how it was used in the 1950s. This can be said to have changed a lot as Espresso, Cappuccinos, Macchiato, Café Lattes and Frapuccinos which are now being offered by many restaurants and coffee shops that are found in the main town across the world. Starbucks was created in the year 1971 in Washington. The establishment was done by three scholars who are namely Zev Siegel, Jerry Baldwin and Gordon Bowker. The chief executive officer joined the company in the year 1981 and became in charge of the marketing company (Pham-Gia, 2009).
After the CEO had visited Italy, he had realized the importance of putting up a coffee bar and therefore he put up one which was namely II Giornalle. The coffee bar concept was and proved to be very successful and he managed to buy Starbucks. This happened in the year 1987. The two coffee bars that he had formed were changed to feature the brand that Starbucks used was much bigger than that of the II Giornalle.
He later embarked on a mission that was to ensure that there was expansion, which main aim was to open many more outlets that were to belong to Starbucks and the mission was set to be done in the United States. The current has set a mission is based on the inspiring and nurturing of the human spirit through a cup of Starbucks coffee.
The performance of Starbucks financially is not good. This lack of good financial statements is amidst the company experiencing a lot of increased revenue over the years since establishment. There are various factors that have been in the front and caused the lack of good
revenue. The first major factor is competition that is increasing da...


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...the farmers directly which will lead to higher profit margins due to the fact that the agent fees will have to be done away with.


References
Ference, T. P., & Thurman, P. W. (2009). MBA fundamentals: Strategy. New York: Kaplan Pub.
Lussier, R. N. (2008). Management fundamentals: Concepts, applications, skill development. Mason, OH: South-Western/Cengage Learning.
Pahl, N. (2008). The idea behind the Starbucks experience: The main elements of Starbucks' strategic diamond. Munchen: GRIN Verlag.
Pham-Gia, K. (2009). Marketing strategy of 'Starbucks Coffee'. München: GRIN Verlag GmbH.
Starbucks Corporation. (2014). Starbucks Coffee Company. Retrieved on 30th April, 2014 from http://www.starbucks.com
Titman, S., Keown, A., & Martin, J.D. (2011). Financial management: Principles and applications. Upper Saddle River, NJ: Pearson/Prentice Hall.





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