Starbucks Financial Analysis

argumentative Essay

1484 words

Starbucks Financial Analysis Company Overview Starbucks is the world’s largest specialty coffee retailer, Starbucks has more than 16,000 retail outlets in more than 35 countries. Starbucks owns more than 8,500 of its outlets, while licensees and franchisees operate more than 6,500 units worldwide, primarily in shopping centers and airports. The outlets offer coffee drinks and food items such as pastries and confections, as well as roasted beans, coffee accessories, teas and a line of compact discs. The company also owns the Seattle's Best Coffee and Torrefazione Italia coffee brands. In addition, Starbucks markets its coffee through grocery stores and licenses its brand for other food and beverage products. Starbucks Corporation was founded in 1985 and is based in Seattle, Washington. (Bramhall) Company History The story of Starbucks coffee history begins in Seattle in 1971 when the first Starbucks opened at Pike Place Market, which is Seattle's and the Nation's oldest Farmer's Market. At this time the company was a local coffee roasting facility. That remained their core business until 1982 when Howard Schulz joined the company. He was the new marketing executive and began right away to convince more and more local cafes, upscale restaurants, and hotels to buy Starbucks coffee. The turning point for the company and the beginning of coffee history should be one year later when Schulz traveled through Italy. He got inspired by the Italian coffee bar tradition to serve fresh brewed Espresso and Cappuccino. He convinced the Starbucks founders to give his idea a chance and in 1985 he opened the first coffee bar in Seattle, named Il Giornale. (Wilson) The new concept worked out and Il Giornale was a success. But Schulz aimed higher. He found local investors and bought Starbucks in 1987 for $3.8 million. That gave way for expansion and in the same year he opened new cafes in Chicago and even Vancouver, Canada. The original 17 Starbucks Cafes were established. In 1992 the company went public and stocks were now publicly traded at the NASDAQ (SBUX). At this time Starbucks counts approx. 165 cafes. On March 7th, 2001 Starbucks eventually moved to Europe and opened their first cafe in the Old World: Zurich, Switzerland. Today the company has more than 16,000 cafes in more than 35 countries. (Wilson) Main Products and Services Starbucks Corporation engages in the purchase, roasting, and sale of whole bean coffees worldwide. It offers brewed coffees, Italian-style espresso beverages, cold blended beverages, various complementary food items, coffee-related accessories and equipment, a selection of premium teas, and a line of compact discs, through its retail stores.

In this essay, the author

Explains that starbucks is the world's largest specialty coffee retailer, with more than 16,000 retail outlets in 35 countries.
Explains starbucks has increased in both total revenue and net income by averages of over 20% each year in the past five years. there was a drop in income in 2006.
Explains that the cost of revenue, or goods sold, is 86.3% of the total expense distribution for starbucks.

Explains that starbucks is the world's largest specialty coffee retailer, with more than 16,000 retail outlets in 35 countries.
Explains starbucks has increased in both total revenue and net income by averages of over 20% each year in the past five years. there was a drop in income in 2006.
Explains that the cost of revenue, or goods sold, is 86.3% of the total expense distribution for starbucks.
Explains that current assets make up 31.75% of starbucks corporation's total assets, while property/plant/equipment totals add up to 54.1% of its assets.
Explains that starbucks' current liabilities make up 70.5% of its total liabilities. starbucks has never issued preferred stock.
Explains that starbucks' current ratio is almost half of the industry average, suggesting that they are not as solvent as the rest of restaurant industry to obtain short-term capital.
Explains that asset turnover measures a firm's efficiency at using its assets in generating sales or revenue. starbucks' much higher number than industry average indicates the company is efficient in how it utilizes their assets.
Explains that a debt-to-asset ratio of no more than 50 percent has been considered prudent. a higher ratio indicates an overuse of leverage, and it may indicate potential problems meeting the debt payments.
Explains that starbucks has less than half the industry average for profit margin, while starbucks' return on assets is slightly higher than industry averages.
Recommends buying starbucks at the current discounted price and holding it in the portfolio for the future.
Narrates the story of starbucks coffee history beginning in seattle in 1971 when the first starbucks opened at pike place market. howard schulz convinced local cafes, upscale restaurants, and hotels to buy starbucks.
Explains that starbucks corporation engages in the purchase, roasting, and sale of whole bean coffees worldwide.
Analyzes how howard schultz's memo to starbucks executives led to the watering down of the starbucks experience and commoditization of its brand. the tough economy is hurting retailers and restaurants.

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The SWOT Analysis Of Starbucks
explanatory essay
Starbucks Corporation was founded in Seattle, Washington in 1971 by Howard Schultz. It is internationally renowned for its premium coffee. It also provides other cafe delicacies such as tea, sandwiches, and snacks, as well as accessory products such as specialty mugs, coffee beans, and gift sets. These trademarked products can also be purchased in stores besides Starbucks.
In this essay, the author
- Explains that starbucks' mission is to inspire and nurture the human spirit—one person, one cup, and one neighborhood at a time.
- Explains that starbucks has a goal of 99% ethically sourced coffee to take on this political factor.
- Explains that the coffee and snack shop industry depends on consumer demand for luxury products, and the price of coffee beans.
- Explains that starbucks' mission is to inspire and nurture the human spirit—one person, one cup, and one neighborhood at a time.
- Explains that starbucks has a goal of 99% ethically sourced coffee to take on this political factor.
- Explains that the coffee and snack shop industry depends on consumer demand for luxury products, and the price of coffee beans.
- Explains that americans are paying more attention to their diet and lifestyle choices in an effort to be healthier. the consumption of coffee per country amounts to 146 billion cups per year in america.
- Explains that the coffee and snack shop industry can benefit from technological factors such as mobile apps/payments and internet. starbucks offers free wifi in stores, which invites customers to stay longer and make more purchases.
- Analyzes how starbucks has taken advantage of the recent trend in environmental responsibility by focusing on sustainable sourcing and partnering with conservation groups and farmer funds. climate change could affect the countries from which starbucks sources its coffee.
- Explains that companies in the coffee and snack shop industry must deal with legal guidelines when sourcing their products both nationally and internationally.
- Explains that starbucks represents the largest portion of the coffee shop market at 39.8%. there are currently 13,930 stores in the us and 13,409 stores globally.
- Explains that starbucks offers a wide variety of product options catering to all age groups, which has created an dedicated fan base. to attract even more customers, starbucks has implemented loyalty card with which customers start at base level and earn ranks as they make more purchases.
- Explains that starbucks strategically places stores in locations that will attract their target market. starbucks stores can be found in major cities, colleges, major retail stores, and shopping malls.
- Explains that starbucks' products can easily be imitated by other stores in the industry. barnes & noble cafe creates a similar environment while selling similar products.
- Explains that starbucks prides itself in offering high quality drinks, but they are overpriced in comparison to other similar sellers. the success of starbucks depends largely on the state of the economy.
- Explains the tradeoff of being a large corporation is the constant surveillance on every move. starbucks must make an extra effort to prove that its practices are ethical.
- Opines that the growing presence of technology in our lives has forced companies to adapt in order to be successful. starbucks has created a mobile app that allows customers to sync their loyalty/gift cards.
- Explains that starbucks is already an established brand in the us, so it has the opportunity to expand overseas.
- Explains that starbucks has recently introduced a wider variety of tea, juice, and snack options. this allows starbucks to reach broader consumers, such as lactose intolerant customers.
- Explains that starbucks must deal with a drop in sales during inevitable economic downturns when consumers become more careful about luxury expenditures. as starbucks expands globally, it must also pay attention to other states of economies.
- Explains that coffee bean prices fluctuate for the last decade until 2016, but since 2016 the price has gone down. starbucks will inevitably have to deal with another rise as the market continues to expand.
- Explains that starbucks represents 39.8% of the market, while dunkin' donuts comes close with a 21.9% share. starbucks must work to keep its brand at the top of this growing industry.
- Explains that starbucks corporation was founded in seattle, washington in 1971 by howard schultz. it is internationally renowned for its premium coffee and other cafe delicacies.
1720 words
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Strength, Weakness And Swot Analysis: A SWOT Analysis Of Starbucks
analytical essay
Starbucks has come a long ways since their first store opened in 1971 in Seattle. By 1988 Starbucks
In this essay, the author
- Explains that starbucks has become a household name and has been in business for over 40 years. they are constantly trying to get into new opportunities to reach more potential customers.
- Explains that one can't go anywhere today without seeing starbucks. there are coffee stores all over the world, starbucks inside target's and military installations, to frappuccino’s, and teas sold in grocery stores and gas stations.
- Explains that hawley, j. (2015), who are starbucks' main competitors? (sbux).
- Explains that starbucks has become a household name and has been in business for over 40 years. they are constantly trying to get into new opportunities to reach more potential customers.
- Explains that one can't go anywhere today without seeing starbucks. there are coffee stores all over the world, starbucks inside target's and military installations, to frappuccino’s, and teas sold in grocery stores and gas stations.
- Explains that hawley, j. (2015), who are starbucks' main competitors? (sbux).
- Opines that starbucks coffee is getting pricier today. it is available at http://web.b.ebscohost.com.
- Explains that starbucks has come a long way since their first store opened in 1971 in seattle. by 1988, they had grown to 33 stores and offered full health benefits to their eligible full- and part-time employees.
- Explains that starbucks has built strong customer connections through value-added services and leveraging technology to build a vigorous distribution channel strategy.
- Analyzes the commotion against starbucks and the rise in their prices of coffee, stating that they have been evaluating based on a product by product basis to balance out their needs while remaining to provide value to their faithful customers.
1941 words
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Starbucks SWOT Analysis
opinion essay
Inspired by the book and the movie about Moby Dick, Starbucks first opened as a storefront in Pike Place Market in 1971. It wasn’t until 1984 when Howard Schultz joined the operation as a chairman, president, and chief executive officer, and introduced to Starbucks the new Italian breed of coffee bean and Italian style of coffee drinking; a style that refreshed the idea of socializing and interacting among people of all walks in times that corporate life style was winning over the family and friendly style of living. Such goal was established by officially making it company’s mission statement; “to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time” (Starbucks, n.d). After 43 years of business, Starbucks currently operates in 18,000 locations in sixty-two countries (Starbucks, n.d). The annual report released by the company for the year 2013 indicates a total sales/revenue of 14.89 billion dollars, which was 1.5 billion dollars made in 2012 (MarketWatch, 2014).
In this essay, the author
- Explains how starbucks was inspired by the book and movie about moby dick. howard schultz introduced the new italian coffee bean and italian style of coffee drinking.
- Opines that starbucks is taking a route that is causing the brand to lose its well-known image of friendly coffee house.
- Explains that starbucks refocused its attention on coffee in 2009, and introduced via instant coffee to steal back the market that was once theirs from the competitors such as panera bread.
- Explains how starbucks was inspired by the book and movie about moby dick. howard schultz introduced the new italian coffee bean and italian style of coffee drinking.
- Opines that starbucks is taking a route that is causing the brand to lose its well-known image of friendly coffee house.
- Explains that starbucks refocused its attention on coffee in 2009, and introduced via instant coffee to steal back the market that was once theirs from the competitors such as panera bread.
- Explains that branding a new product is not as easy as placing it on the shelves and hope for the consumers to buy it. a strong marketing team is required for affective branding, as they understand the issues while doing so.
- Opines that starbucks has done a good job for packaging their instant coffee.
- Opines that starbucks must increase its advertising budget and increase the use of the media to counter the said problems.
- Explains that the key issue starbucks via faces is the negative image already engraved in consumer’s mind by other brands of instant coffee.
- Explains that there are many solutions to brand via now that the key issues have been identified. the company must try to lower the price by cutting unnecessary overheads such as excessive advertisements.
- Explains that starbucks has done a great job with the current packaging, but it's flawed. the most effective packaging is the one that advertises the product until the end of its consumption.
- Recommends a few starbucks via cups with each package sold to keep the overhead cost moderately low. they also recommend giving customers the option to purchase additional cups for $0.10.
- Explains that via brand will be starbucks minus the baristas-and the brewing.
- Explains starbucks' mission statement, which can be found at http://www.starbucks.com/about-us/company-information/mission-statement.
1431 words
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Starbucks Segment Analysis Essay
explanatory essay
Starbucks is a worldwide coffee house series founded in the United States. Starbucks is one of the biggest coffee house company in the world with more than thirteen thousand stores situated in the US and more than twenty thousand stores in 62 countries.
In this essay, the author
- Explains that starbucks is a worldwide coffee house series founded in the us and more than twenty thousand stores in 62 countries. the exclusive vending idea benefits starbucks distinguish their products and facilitate their spread.
- Opines that starbucks lost "some of its magic" in 2010, when it released numerous innovative stores, and the separate facility was not so individual anymore. starbucks must reappearance to their essential advertising strategy and attention to customer's separate requirements and needs.
- Explains that technology is universal and allows the presentation through all the tasks whether it is economics, advertising, stream chain. starbucks has completed very respectable use of information technology all over the company to ambition performance.
- Explains that starbucks is a worldwide coffee house series founded in the us and more than twenty thousand stores in 62 countries. the exclusive vending idea benefits starbucks distinguish their products and facilitate their spread.
- Opines that starbucks lost "some of its magic" in 2010, when it released numerous innovative stores, and the separate facility was not so individual anymore. starbucks must reappearance to their essential advertising strategy and attention to customer's separate requirements and needs.
- Explains that technology is universal and allows the presentation through all the tasks whether it is economics, advertising, stream chain. starbucks has completed very respectable use of information technology all over the company to ambition performance.
- Explains that starbucks' demographic segmentation is between 25 and 40 years of age with high incomes, the second target group is 18 to 24 years and belongs to wealthier relatives. starbucks is located between mass marketing and segment marketing.
- Opines that starbuck attracts them because of its policies and strategies how company handles technology factors and customer satisfaction, and digital creativities like the outline of a new faithfulness program.
979 words
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Mission & Strategy: Starbucks's Mission And Strategy
explanatory essay
Starbucks started out in a “single store in Seattle’s historic Pike Place Market” (Starbucks, 2017, p. 2). Starbucks only offered fresh roasted whole bean coffees and dark roasted in small bags. In 1981, Howard Schultz stepped into his first Starbucks and had his first drink (Starbucks, 2017). Howard ended up becoming the chairman and CEO for Starbucks. From the beginning you could tell that Starbucks was going to be different from the rest of the coffee shops in the world. From the one store they had open in 1981, now in 2017 Starbucks has expanded to 27,339 stores around the world (Statista, 2017, p. 2). The name of Starbucks came from coffee loving Herman Melville’s Moby Dick because they though the name “evoked the romance of the high seas and the seafaring tradition of early coffee” (Virginia’s Community College, 2017). This company has grown from a little coffee shop to a big
In this essay, the author
- Explains that starbucks started out as a single store in seattle's historic pike place market. howard schultz became the chairman and ceo of starbucks in 1981.
- Explains that starbucks' mission is to inspire and nurture the human spirit — one person, one cup, and one neighborhood at a time.
- Explains the importance of delivering our very best in all we do, holding ourselves accountable for results.
- Explains that starbucks started out as a single store in seattle's historic pike place market. howard schultz became the chairman and ceo of starbucks in 1981.
- Explains that starbucks' mission is to inspire and nurture the human spirit — one person, one cup, and one neighborhood at a time.
- Explains the importance of delivering our very best in all we do, holding ourselves accountable for results.
- Explains that corporate expects every one of their works to follow these 6 core principles and if they do, they think their customers will be happier.
- Explains the fixed-charge coverage ratio, debt/equity ratio and operating margin ratio.
- Explains that starbucks has many strengths, including a strong brand name and an extensive global supply chain.
- Explains that starbucks' products are sold at a higher price than other coffee chains. starbuck's major revenue comes from business in america.
- Opines that starbucks should expand its business into asia and africa to increase sales and increase the amount of consumer products available at local stores, such as coffee beans and keurig cups.
- Explains that one of the greatest threats to starbuck's business is the competition from other businesses that sell coffee for a more affordable price.
- Opines that starbucks needs to focus on expanding globally. africa has the most potential for growth and expansion.
- Opines that starbucks has a lot of success and is one of the world’s leading coffee makers and sellers, but there is room to grow with their industry and strive to be the best coffee maker.
- Cites baertlein, l., starbucks curbs 2017 revenue forecast after u.s. store visits drop.
1312 words
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Comparison of Wendy's International, Inc. and Starbucks Corporation Based on Finances
argumentative essay
Starbucks Corporation purchases and roasts whole bean coffees and sells them. As of September 28, 2003 (fiscal year-end 2003), Starbucks operated a total of 4,546 retail stores. Starbucks sells coffee and tea products through other channels, and, through certain of its equity investees. The Company has two operating segments, United States and International, each of which include Company-operated retail stores and Specialty Operations. Starbucks opened 602 new Company-operated stores during fiscal 2003. As of fiscal year-end, Starbucks had 3,779 Company-operated stores in the United States, 373 in the United Kingdom, 316 in Canada, 40 in Australia and 38 in Thailand. ¡]Smart money, 2004¡^
In this essay, the author
- Explains the du pont analysis, which focuses on expenses control, assets utilization, and debt utilization to determine the return for shareholders.
- Explains that starbucks and wendy's use the capital asset pricing model (capm) to calculate the return on equity for both companies.
- Explains that starbucks and wendy's did not have any bond and preferred share during 1999-2003. the federal reserve informed that the tax rate of baa bond grade was 6.16%.
- Explains the du pont analysis, which focuses on expenses control, assets utilization, and debt utilization to determine the return for shareholders.
- Explains that starbucks and wendy's use the capital asset pricing model (capm) to calculate the return on equity for both companies.
- Explains that starbucks and wendy's did not have any bond and preferred share during 1999-2003. the federal reserve informed that the tax rate of baa bond grade was 6.16%.
- Explains that investors use wacc as a tool to decide whether or not to invest.
- Analyzes how wendy's dividend policy was a strategy to maintain shareholders by giving them dividends from the earnings.
- Explains that starbucks did not pay dividends to their shareholders from 1999 to 2003. the company's dividend policy is to reserve earnings for future investment.
- Explains that wendy's international, inc. operates, develops, and franchises a system of quick-service and fast-casual restaurants in the united states and in 21 other countries and territories.
- Explains that starbucks and wendy's are excellent companies to earn a lot of profit in the retails-eating places industry. return on sales is the key profitability ratio.
- Compares starbucks' gross profit and wendy's' net sales. starbucks has a lower gross margin than wendy’s except the year 2003.
- Explains that ebit/sales is the ratio that implies how much a company spends on nonproduction-related expenses depending on the importance of new product development and the efficiency of corporate headquarters.
- Explains that most companies need assets to produce sales revenues and ultimately, profits. asset utilization ratios indicate how effectively or efficiently a company uses its assets.
- Explains that the payables payment period is related to the efficiency with which the company manages its short-term liabilities.
- Explains that capitalization or financial leverage ratios provide information about the sources the company has used to finance its investment in assets. long-term debt to equity is available in companies' annual balance sheets.
- Explains that wendy's roe was higher than starbucks every year. harrington says that the higher assets a company uses and the less debt it uses, the lower the return shareholders can earn.
- Analyzes the ratios analyzing the company's financial market performance to determine its market price. earnings per share shows how much money a common share earns. starbucks did not increase the debt to make more profit for their shareholders.
- Compares starbucks' and wendy's' pe ratios to evaluate the relative financial performance of the stock.
- Explains the market-to-book value ratio, which is calculated by dividing shareholders' equity on the statement of financial balance sheets by the number of shares outstanding.
- Explains that the weighted average cost of capital (wacc) is calculated by multiplying the after-tax costs of debt and equity by their respective portions in the company's expected capital structure.
- Explains that working capital refers to the cash that a business requires for everyday operations or finances the conversion of raw materials into finished goods.
- Cites ross, s.a, westerfield, r.w., jaffe, j.f, & roberts, g.s.
3667 words
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Starbucks Case
opinion essay
From its founding in Seattle, Washington, by Gordon Bowker, Jerry Baldwin, and Zev Siegl as a local coffee bean roaster and retailer, Starbucks has expanded rapidly. In the 1990s, the company was opening a new store every workday, a pace that continued into the 2000s. Domestic growth has since slowed down, though the company continues to expand in foreign markets and is opening 7 stores a day worldwide. The first location outside of the U.S. and Canada was established in 1996, and they now constitute almost one third of Starbucks' stores.
In this essay, the author
- Explains that starbucks corporation is a multinational coffee and coffeehouse chain company based in the united states.
- Describes how starbucks has expanded rapidly since its founding in seattle, washington, by gordon bowker, jerry baldwin, and zev siegl as a local coffee bean roaster.
- Explains that starbucks has 8,505 company-owned outlets worldwide, including 6,506 joint-venture and licensed outlets, 3,891 in the united states and 2,615 in other countries and u.s. territories.
- Explains that starbucks corporation is a multinational coffee and coffeehouse chain company based in the united states.
- Describes how starbucks has expanded rapidly since its founding in seattle, washington, by gordon bowker, jerry baldwin, and zev siegl as a local coffee bean roaster.
- Explains that starbucks has 8,505 company-owned outlets worldwide, including 6,506 joint-venture and licensed outlets, 3,891 in the united states and 2,615 in other countries and u.s. territories.
- Opines that starbucks understood the importance of building a brand, and that research is important in any business.
- Opines that starbucks understood that building the brand was more about the customer's experience inside the stores, which was one of the keys to customer attachment.
- Explains that when patronizing starbucks, they like to have a relationship with the staff or feel comfort inside the store. the company's reputation spread rapidly because of the brand value.
- Explains that howard schultz joined starbucks as director of retail operations and marketing in 1982. he returned to the u.s. determined to transplant the coffee bar culture to america.
- Opines that starbuck's growth strategy was to develop and cement a strong presence in terms of market entry, increase sales, expand brand awareness, and preempt potential competitors.
- Opines that leveraging the brand was essential to the growth of the company. they think that partnerships with companies like pepsi cola, dryer’s grand ice cream company, barnes & nobles, nordstrom, and united airlines was an excellent idea.
- Opines that to create a world class global brand such as starbucks, the organization would have to thoroughly research the global market.
- Opines that starbucks is a success story and has redefined the coffee shop experience.
1349 words
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Starbucks Supply Chain Analysis
explanatory essay
Starbucks is a premium coffee retailer, which started in 1971. It is established in 70 countries all over the world. Starbucks has revolutionized the coffee market by selling expensive and high quality coffee. It has marketed itself as a third place between home and work. They select the locations in such a way that Starbucks is on their way to work and while coming back home from work.
In this essay, the author
- Explains how gibbons, the starbucks vice president, simplified the complex structure so that every job fell into one of the four basic supply chain functions: plan, source, make, and deliver.
- Explains that raw materials are shipped to one of the six roasting facilities in the u.s. or to the european one in amsterdam. each facility ensures the same quality and packaging of beans for the supply chain.
- Explains that starbucks is a premium coffee retailer, which started in 1971 and is established in 70 countries all over the world.
- Explains how gibbons, the starbucks vice president, simplified the complex structure so that every job fell into one of the four basic supply chain functions: plan, source, make, and deliver.
- Explains that raw materials are shipped to one of the six roasting facilities in the u.s. or to the european one in amsterdam. each facility ensures the same quality and packaging of beans for the supply chain.
- Explains that starbucks is a premium coffee retailer, which started in 1971 and is established in 70 countries all over the world.
- Explains that starbucks' foray into supply chain costs in 2008 made them realize that, there is huge spike in supply chains hindering the profits.
- Explains that starbucks decided to reorganize its supply chain organization, simplify the structure, and define functional roles.
- Explains that starbucks supply chain's key initiatives are to manufacture environmentally sustainable products. the department focused on production planning, new launches, and replenishment.
- Explains that starbucks utilizes its preferred supplier programs (psp) which evaluates which supplier fits the company’s criteria. starbucks collaborated with conservation international to ensure quality standards.
- Explains that starbucks operates six regional distribution centers in the united states, seven in asia/pacific, five in canada, and three in europe.
1312 words
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Starbucks Case Study
opinion essay
Starbucks started its humble beginning at a small shop front down by Pike place market in Seattle,(http://www.starbucks.com.sg/our-heritage.html).The company prided itself for roasting high quality whole-bean coffee, and producing one of the best coffees in the neighbourhood. Today, more than forty years later, Starbucks had become one of the leading coffeehouse chains in the world with more than 18,000 storewide in 62 countries.
In this essay, the author
- Explains that companies must understand their internal position, but also their external environment and how it affects their potential growth.
- Describes starbucks' humble beginnings at a small shop front down by pike place market in seattle. the company prided itself on roasting high quality whole-bean coffee and producing one of the best coffees in the neighbourhood.
- Explains that starbucks' core operations include the sale of beverages, retail and franchise operations, while also providing the starbuck's experience to its customers.
- Explains that companies must understand their internal position, but also their external environment and how it affects their potential growth.
- Describes starbucks' humble beginnings at a small shop front down by pike place market in seattle. the company prided itself on roasting high quality whole-bean coffee and producing one of the best coffees in the neighbourhood.
- Explains that starbucks' core operations include the sale of beverages, retail and franchise operations, while also providing the starbuck's experience to its customers.
- Opines that starbucks should capitalise on their already strong market position to continue growing what would be their ‘star’ businesses.
- Explains that globalisation has resulted in a growing travel/hospitality sector that starbucks can expand into.
- Explains that starbucks's niche and most loyal customer is the educated and upper-scale member of society. this includes students and white-collar executives. starbucks offers customizability for their drinks, but it pales in comparison to a fruit/yogurt beverage.
- Opines that starbucks has a line of coffee products that are currently being sold in supermarkets and convenience stores, but there is still room for exploration in the creation of products such as instant coffee machines or satchels.
- Proposes three recommendations aimed at providing maximum utility to starbucks, tackling individual or multiple opportunities and threats at the same time.
- Argues that starbucks can tap on their international network to know what products attract customers and come up with new products bearing in mind health considerations.
- Argues that starbucks can provide a new experience in coffee experience by allowing the customers to choose their favourite latte art designs to be appeared on their drinks.
- Explains that every business activity carried out is interconnected, both within and across national boundaries. managers have to take both local and global external environmental conditions into consideration when planning their daily operations.
- Explains that starbucks has built its strong brand based on what they do best, roasting high quality whole bean coffee. this implies that the cost of coffee beans would fluctuate in the event of an economic downturn.
- Explains the starbucks experience is strongly associated with the design of their storefronts and built upon the word-of-mouth of loyal customers.
- Explains that technology is an inescapable aspect of any modern business. automation in the food and beverage section is growing increasingly popular and is just one of the many phenomenons made possible by technology.
- Explains that the u.s. was badly hit by the 2007 financial crisis, which led to stock markets becoming bearish, unemployment rates rising, and inflation. china is currently going through rapid economic stimulus plan.
- Explains that starbucks has set its pricing on the slightly higher side to differentiate themselves from the competitors based on their wide variety of drinks and high quality products.
- Explains that starbucks has a strong, consistent branding and image among the consumers where it does business. starbucks can capitalize on this trend to continue to release products that their loyal customers prefer.
- Explains that starbucks has a larger manpower base upon which it can tap and leverage on to drive the continuous creation of new products to meet changing consumer needs.
- Explains that coffee houses, big and small, continue to present competition as they offer similar types of products combined with different varieties of customer experience.
- Opines that starbucks could invest in equipment that would facilitate a novel experience and promote customer-driven digital marketing, taking advantage of social media while at the same time devising promotions which attract customers to take up their pre-paid card.
- Explains that the price for older technology drops drastically after each cycle of development, resulting in rapidly decreasing fixed costs in starting a new business. starbucks has always been known for its relaxing ambience, wooden and brown finishing.
- Opines that automation is an unacceptable way of doing business for starbucks, as it allows competitors to offer similar or superior products at much lower costs due to a lower recurring cost over time.
- Opines that starbucks should consider further diversifying its business in the hotel and air travel industry.
2842 words
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Schultz's Case Study: A Brief Background Of Starbucks
argumentative essay
Starbucks is a worldwide company, known for is delicious brews of coffee and seasonal varieties of tasty drinks for any occasion. Starbucks opened with two main goals, sharing great coffee with friends and to help make the world a little better. It originated in the historic Pike Place Market of Seattle, Washington in 1971 by Jerry Baldwin, Zev Siegl and Gordon Bowker. The creation of Starbucks’ name came from the seafaring tradition of early coffee traders and the romance evoked from Moby Dick. At the time, this individual shop specialized in the towering quality of coffee over competitors and other brewing services enabling its growth to becoming the largest coffee chain in Washington with numerous locations. In the early 1980s, the current CEO Schultz saw an opportunity for growth in the niche market. After a trip to Italy he brought back the idea of a café style environment of leisure and social meetings to the United States we now see in Starbucks locations today. Schultz ultimately left Starbucks to open his own coffee shop, Il Giornale which turned out to be a tremendous success. Fast forward a year later, Schultz got wind that Starbucks was going to sell all their components of Starbucks including their stores and factories, he immediately acquired the funds to buy Starbucks and linked both operations. Within five years he was able to open more than 125 stores starting in New England, Boston, Chicago, and gradually entered California. He wanted Starbucks to be a franchise system based on the mission of telling the truth and emphasize the quality,
In this essay, the author
- Explains that starbucks originated in the historic pike place market of seattle in 1971 by jerry baldwin, zev siegl, and gordon bowker.
- Explains that starbucks' success is due to their ability to address internal and external factors. the certs framework helps indicate the most important influential factors and characteristics in the macro-environment.
- Explains that starbucks has 26.48% of the total market share, making it the industry leader over mcdonalds, peets and other coffee beverage producers. there is a moderate threat of new entrants into the existing market place.
- Explains that starbucks originated in the historic pike place market of seattle in 1971 by jerry baldwin, zev siegl, and gordon bowker.
- Explains that starbucks' success is due to their ability to address internal and external factors. the certs framework helps indicate the most important influential factors and characteristics in the macro-environment.
- Explains that starbucks has 26.48% of the total market share, making it the industry leader over mcdonalds, peets and other coffee beverage producers. there is a moderate threat of new entrants into the existing market place.
- Explains that economic forces are extremely important in order to improve profitability, future business growth, and increase market place. starbucks has laid out the coffee-buying guidelines, while being social and environmentally responsible.
- Explains that starbucks faced declining sales due to economic downturn and consumers shifted their tastes towards cheaper, more affordable products.
- Analyzes how the increase in technology in today's generation has positively affected starbucks' customer satisfaction levels. the "starbucks app" allows customers to order specialized drinks, create new drinks or accumulate points towards a free drink.
- Explains that starbucks uses the marketing mix to develop business growth and consumer engagement. they offer a variety of products to capture more of the market and customer needs while attracting new customer base.
- Recommends that starbucks acknowledge the increase of home usage of coffee makers by creating more home brew products or lines such as roasting machines.
- Cites zacks investment research's starbucks corporation (sbux) forecast earnings growth.
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What Is Starbucks Supply Chain Strategy
analytical essay
Starbucks is an international coffee house and it was created in 1971 when they opened the first store in Seattle, Newcastle. Currently, they own 21,000 stores in 65 different countries of the world, and their passion for the great coffee, excellent service and community interaction exceeds cultures and languages (Starbucks, 2014). This company is the number 1 brand coffeehouse chain in the world due to the best roaster, marketer and seller of speciality coffee. Its main slogan: “Our mission: to inspire and nurture the human spirit – one person, one cup and one neighbourhood at a time” (Jurevicius, 2013).
In this essay, the author
- Explains that starbucks is an international coffee house with 21,000 stores in 65 different countries. it is the number 1 brand coffeehouse chain in the world due to the best roaster, marketer and seller of specialty coffee.
- Explains that the purpose of this report is to analyze the starbucks' supply chain strategy and then to make a literature review of the case.
- Analyzes the different aspects involved in the supply chain management of starbucks.
- Explains that starbucks is an international coffee house with 21,000 stores in 65 different countries. it is the number 1 brand coffeehouse chain in the world due to the best roaster, marketer and seller of specialty coffee.
- Explains that the purpose of this report is to analyze the starbucks' supply chain strategy and then to make a literature review of the case.
- Analyzes the different aspects involved in the supply chain management of starbucks.
- Explains starbuck's intention to create a more sophisticated supply chain through which the company can promote better collaboration between distribution, sourcing and planning.
- Analyzes the rapid store expansion strategy of al-mutair coffee, which grew rapidly from 11 stores to 500 stores in the first nine years. the company's culture follows strict principles for how the coffee must be prepared and delivered, combined with a friendly attitude towards employees.
- Explains that the company is opening 300 new stores around the united kingdom over the next five years. they also want to introduce their drinks in planes and trains.
- Explains that starbucks knows that china is going to be the largest international market in 2014 and they will try to stablish 1,500 stores in 70 cities in 2015.
- Explains that caffeine is one of the main points which attract people, and this makes coffee such a vast business. the first starbucks coffee shop was opened in 1971.
- Explains that starbucks' coffee purchasing strategy is an important factor in its strategy. purchasing needs to be strategic to facilitate an effective supply chain.
- Explains that in 2009 starbucks obtained two main coffee purchasing objectives: increase annual coffee purchases and achieve the double purchases of fair trade certified coffee. for 2015, starbucks is trying to assure that 100 percent of its glasses are recyclables.
- Explains that starbucks has recently developed a new type of coffee called green-coffee. these strategies are created with the objective of supporting starbucks’ commitment to buy coffee that has grown and processed by suppliers.
- Explains that the coffee purchasing strategy is quite important for the company's development due to they must do big efforts in factors such as marketing with the objective to attract new customers.
- Explains that customer service strategy is important in competitive markets like coffee shops. price is an important factor for customers when choosing a coffee shop.
- Opines that starbucks has created a great company due to some skills they have developed efficiently: employee motivation, excellent customer service and satisfaction, and an adequate environment.
- Explains that when a person is hired to work in starbucks, that person must pass two types of training: the first one is based on "hard skills" where the new employees must learn how to use the cash register and mix drinks. the second one focused on soft skills where managers teach employees to connect with customers.
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Starbucks Case Analysis
explanatory essay
Starbucks recognizes its employees for much of its success. This is due mostly to maintenance of a great and proven work environment for all employees. The company does not have a formal organizational chart; sot employees are permitted by management to make decisions without a management referral. Moreover, management trust and stands behind the decision of the employees and it is this that allows for employees to thinks for themselves as a part of the business, so as to make them feel as a true asset and not as just another employee.
In this essay, the author
- Describes how howard schultz bought starbucks from its original owners for $4 million after expanding by opening three coffee bars.
- Explains that starbucks recognizes its employees for much of its success due to maintenance of a great and proven work environment for all employees. starbucks emphasizes firm values and provides guidelines to enhance employee self-esteem.
- Explains that starbucks is one of the only companies to recognize that there is money to be made in making coffee beverages and selling coffee products.
- Describes how howard schultz bought starbucks from its original owners for $4 million after expanding by opening three coffee bars.
- Explains that starbucks recognizes its employees for much of its success due to maintenance of a great and proven work environment for all employees. starbucks emphasizes firm values and provides guidelines to enhance employee self-esteem.
- Explains that starbucks is one of the only companies to recognize that there is money to be made in making coffee beverages and selling coffee products.
- Explains that starbucks lacks competition on a national level and enjoys the lions share of the market. one of starbucks key strengths is its marketing strategy and the product and services that it offers.
- Explains that starbucks rely on countries located in remote areas of asia for its products, which have been experiencing a wave of natural disasters over the past year.
- Opines that starbucks is a domestic behemoth, there are partnerships opportunities for growth in the international markets, especially in europe, where the populace spend time in coffeehouses.
- Explains the rise in the popularity of the coffeehouse, and the health and fitness craze taking the country by storm.
- Explains that customers pay $3.60 for the ambience, feel, experience, and privilege of being a member of the elite coffee connoisseurs club.
- Opines that if starbucks is to remain a stellar success, they need to explore alternate sources for product procurement and find solid partners in the international marketplace.
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Case Study: Target Market For Starbucks
explanatory essay
Starbucks, a coffee bean sales company did not have much of a marketing plan in place at its inception. Based in Seattle Washington the company began to sell coffee beans to espresso bars and upscale restaurants back in 1982. It took 11 years to progress to that level of production, they originally were a local store vendor at Pike Place Market. The director of marketing brought back the espresso bar idea from his travels in Milan. (Company Profile, 2015) The Pacific Northwest was filled with working class men and women that were drawn to the coffeehouse tradition brought in from Italy.
In this essay, the author
- Describes a useful aid for organizing information utilizing its strengths, weaknesses, opportunities, and threats.
- Explains that product recalls have hurt the starbucks brand as recently as 2015. specialization is a strength, but diversification and marketing products are weakness.
- Explains that product diversification has allowed starbucks to repackage their products and distribute it as a home product. the opportunity for continued expansion is present.
- Describes a useful aid for organizing information utilizing its strengths, weaknesses, opportunities, and threats.
- Explains that product recalls have hurt the starbucks brand as recently as 2015. specialization is a strength, but diversification and marketing products are weakness.
- Explains that product diversification has allowed starbucks to repackage their products and distribute it as a home product. the opportunity for continued expansion is present.
- Explains miller, r. k., food and beverage market research handbook. coffee shops.
- Explains william d. perreault, j. j, essential of marketing, a marketing strategy planning approach.
- Explains that starbucks didn't have a marketing plan in place at its inception. the company began selling coffee beans to espresso bars and upscale restaurants in 1982.
- Explains that starbucks' primary business is that of selling high-premium coffee. specialization allows them to deliver great quality and maintain their customer base. involving technology with their market structure.
- Opines that a marketing team along with data and analytics is essential to comprising the new product.
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Starbucks Expansion in China
analytical essay
The first Starbucks was opened in Seattle, Washington in 1971 by three partnersEnglish teacher Jerry Baldwin, history teacher Zev Siegel, and wrier Gordon Bowker. The three were inspired by Alfred Peet, whom they knew personally, to open their first store in Pike Place Market to sell high-quality coffee beans and equipment.
In this essay, the author
- Analyzes how starbucks' aggressive expansion in china, a coffee frontier steeped in nearly 5,000 years of tea, location-scouting skills and marketing savvy will be put to the test.
- Explains that the first starbucks was opened in seattle, washington in 1971 by three partnersenglish teacher jerry baldwin, history teacher zev siegel, and wrier gordon bowker. howard schultz joined the company in 1982.
- Explains that the original owners of starbucks, led by baldwin, purchased peet's in 1984 and sold the chain to schultz' il giornale in 1987. starbucks opened its first locations outside seattle in vancouver, british columbia, canada, and chicago, illinois, in 1992.
- Analyzes how starbucks' aggressive expansion in china, a coffee frontier steeped in nearly 5,000 years of tea, location-scouting skills and marketing savvy will be put to the test.
- Explains that the first starbucks was opened in seattle, washington in 1971 by three partnersenglish teacher jerry baldwin, history teacher zev siegel, and wrier gordon bowker. howard schultz joined the company in 1982.
- Explains that the original owners of starbucks, led by baldwin, purchased peet's in 1984 and sold the chain to schultz' il giornale in 1987. starbucks opened its first locations outside seattle in vancouver, british columbia, canada, and chicago, illinois, in 1992.
- Explains that starbucks entered the uk market in 1998 with the acquisition of the then 60-outlet seattle coffee company, re-branding all its stores as starbucks.
- Explains that starbucks completed the purchase of seattle's best coffee and torrefazione italia from afc enterprises. diedrich coffee announced that it would sell most of its company-owned retail stores to starbucks.
- Explains that starbucks had 7,102 company-operated outlets worldwide, including 5,338 joint-venture and licensed outlets, 3,168 in the united states and 2,170 in other countries and u.s. territories.
- Explains that starbucks china doesn't plan any advertising, promotions, or other marketing strategies, aside from sponsoring an on-line coffee club and the occasional office-tower coffee tasting.
- Explains that starbucks is hoping to transform the chinese perception of coffee by marketing to its current customers to convert from tea to coffee and consume it at least 10 times a month.
- Explains that starbucks' strategy has been to sell other items such as coffee beans, mugs, music, sandwiches, and pastries, but in hong kong and china, that has yet to take off.
- Explains that starbucks has over 120 stores in the chinese mainland and over 300 across hong kong and taiwan.
- Explains that starbucks regards asia pacific as its major target markets and plans to expand to 15,000 locations beyond the united states.
- Explains that starbucks opened 2,199 new stores in 2006 and total net revenues exceeded $7.8 billion for the full fiscal year.
- Opines that fiscal 2007 targets include the opening of approximately 2,400 net new stores on a global basis, total net revenue growth of 20 percent, comparable store sales growth in the range of three percent to seven percent and earnings per share.
- Explains that starbucks' move to use new hot cups with 10 percent post-consumer recycled paper will achieve environmental improvements with an annual cost savings of $3.2m.
- Argues that finding locations that embody the right lifestyle is more like gambling than science. starbucks must continue to use joint ventures or license other companies to own and operate starbucks stores.
- Opines that starbucks must continue to carefully consider everything from the direction of commuter traffic zipping by a potential drive-thru site to how many people are pounding the pavement.
- Explains that starbucks insists that it sees very little cannibalization of its existing business when a new store opens.
- Explains that starbucks is getting ready to launch starbucks-branded vending machines, which will let people buy warm lattes and other drinks in a nine-ounce can for $2.50.
- Explains how the chinese economy and market is growing and starbucks is looking to convert 1.3 billion tea drinkers to coffee lovers.
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Analysis of the Starbucks Corporation
argumentative essay
Gordon Bowker, Jerry Baldwin and Ziv Siegl founded Starbucks in 1971. Their goal was to sell the finest quality whole beans and ground coffees (Starbucks timeline and history, 2004). In 1982, Starbucks had grown to five stores and started serving coffee to restaurants and espresso bars. Harold Schultz was employed as the director of retail operations and marketing. Harold Schultz convinced the founders of Starbucks to open a downtown Seattle coffee bar, which opened in 1984. With the success of Seattle coffee bar, Schultz left Starbucks to start his own company named Il Giornale. In 1987, Il Giornale acquired Starbucks retail operations for 4 million dollars. In addition, Il Giornale changed its name to Starbucks Corporation and opened locations in Chicago and Vancouver, B.C. (Starbucks timeline and history, 2004).
In this essay, the author
- Opines that starbucks will grow faster if they sell of most or all of their location because there will be less need in maintaining their stores.
- Recommends that starbucks implement the following suggestions to ensure future success. to improve customer satisfaction, starbucks should include a section where customers actually ask questions and/or leave comments.
- Wishes to thank you for giving us the opportunity to serve you better by taking a couple of minutes to tell us how we are doing.
- Opines that starbucks will grow faster if they sell of most or all of their location because there will be less need in maintaining their stores.
- Recommends that starbucks implement the following suggestions to ensure future success. to improve customer satisfaction, starbucks should include a section where customers actually ask questions and/or leave comments.
- Wishes to thank you for giving us the opportunity to serve you better by taking a couple of minutes to tell us how we are doing.
- Asks how satisfied are you with [product/service]? they answer using the rating scale where (5) means "extremely satisfied"
- Explains that starbucks' current mission statement is 'establish starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow.'
- Recommends keeping starbucks' mission statement and principles current.
- Explains that they apply the highest standards of excellence to the purchasing, roasting, and fresh delivery of their coffee.
- Defines customer satisfaction as the measure or determination that a product or service meets the customer's expectations, considering requirements of both quality and service.
- Explains that starbucks' success is based on their customers' trust in their people and environment over long periods of time.
- Explains that a sample survey could be used to get an idea of how our customers feel about our products and services.
- Explains that starbucks is taking a leadership role in addressing the environmental and social issues surrounding the global coffee industry.
- Describes how harold schultz convinced the founders of starbucks to open a downtown seattle coffee bar. in 1987, il giornale acquired starbucks retail operations for 4 million dollars.
- Explains that the united states consumes one-fifth of all the world's coffee, according to the national coffee association (nca).
- Explains that starbucks has a strong financial position, name recognition, and creative beverage innovators. starbucks is known for their creative innovations of beverages.
- Explains that starbucks faces international expansion problems and dependence on the united states markets and beverage innovations.
- Explains that starbucks uses clustering to ensure domination in selected geographical areas. the profitability of international operations and the expected growth of the specialty coffee market will give the company greater leverage into the world market and promote new market expansions.
- Explains that starbucks' expansion and limited quantity of superior coffee beans may result in a shortage of supply. other factors, which could affect the coffee industry, include weather, political and economic conditions.
- Explains that starbucks has a cult-like following, serving 25 million drinks every week at nearly 7,000 locations worldwide. starbucks customers are loyal to the company and will not accept substitutes.
- Explains that starbucks quality is dependent on trading companies and exporters for its supply of green coffee. the company's search for superior standard coffee is adversely affected by multiple factors in the producing countries.
- Explains that quality green arabica coffee produces the best cup of coffee. fresh roasted coffee is best consumed within five days after roasting, three hours of grinding, and fifteen minutes of brewing.
- Analyzes starbucks corporation's total net sales for 2001, 2002, and 2003. the company had a total sales increase of $639.9m between 2001 and 2002.
- Analyzes how starbucks' growth exceeds the typical s&p 500 index growth rate by as much as three times. starbucks has a strong balance sheet, no long-term debt, and $380.0m in cash.
- Explains that starbucks has a good strategic growth plan to enhance their business and gain market share over their competitors.
- Recommends starbucks not to change their business to be more like tim horton's and have their own identity.
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