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The Financial Function with Starbucks

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The year was 1971 when three partners opened the first Starbucks. The business started out as a local roaster and retailer of whole bean and ground coffee and as the business grew they took inspiration from the Italian coffeehouse tradition. The Italian coffeehouses are a place for conversation and a sense of community, a stop between home and work. This experience was something Starbucks wanted to bring to the United States. They had found their niche. Following this, Starbucks grew quickly and began opening several stores all over the country, and shortly thereafter the world.

Since the beginning of Starbucks in Seattle, the company has expanded exponentially. Starbucks is today the leading roaster and retailer of specialty coffee in the world, with more than 18,000 stores in 62 countries (Starbucks, 2014).

This essay aims to discuss the company that is Starbucks, with a focus on their financial business functions. The discussion will include the internal and external environment of Starbucks to reach a further understanding of the company as a whole. The company’s objective being very centred around expansion this essay will conclusively look to evaluate the financial functions and their importance to this cause, as well as the issues the functions might face.

External Environment
Starbucks primarily operates in the retail coffee shop market. The UK coffee shop market alone is estimated at over 16,000 outlets and showed a strong growth of 6.4% in sales during 2013 (FDIN, 2014). The branded coffee chain segment recorded a turnover of £2.6 billion, delivering a higher than market sales growth of 9.3% (FDIN, 2014). The coffee shop sector has seen a considerable growth the past 15 years and Allegra Strategies (as cited in FD...

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...most effective and beneficial manner.
• Technological advancements – The development in the technology involved in coffee making and the software used in the cash registers will allow the staff of Starbucks to work more efficiently. The average queuing time for each customer will be reduced as a result of this, allowing more customers to be served in a day. This will improve customer relations and cost-effectiveness.

Works Cited

Starbucks. 2014 Our Heritage [Online] Available: http://www.starbucks.com/about-us/our-heritage [24 March 2014]

The Food & Drink Innovation Network, FDIN, 2014. Uk Coffee Shop Market Demonstrates Strong Sales Growth [Online] Available: http://www.fdin.org.uk/2014/01/uk-coffee-shop-market-demonstrates-strong-sales-growth/ [25 March 2014]

Worthington & Britton, 2006. The Business Environment 5th ed. Harlow: Pearson Education Limited.
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