Essay about Starbucks Financial Analysis

Essay about Starbucks Financial Analysis

Length: 944 words (2.7 double-spaced pages)

Rating: Better Essays

Open Document

Essay Preview

Starbucks is known for their Frappuccino’s; unfortunately they are on a downward spiral in sales due to competitors such as McDonalds. In 2008 Starbucks admits to its losses due to their competitors. “Company executives now freely admit that such thinking is largely to blame for the woes that led to Tuesday’s announcement that Starbucks will close 600 U.S. stores and eliminate thousands of jobs. The coffee giant’s missteps have come at a spectacularly bad time, hitting as the economic slump deepens and consumers are seeing their discretionary spending eaten up by rising gas prices and grocery bills (Linn).”
Starbucks is going to continue losses unless they come up with a new marketing strategy to promote their products. There could be several reasons for why this is happening. However, the firm needs to take a step back and analyze the market. Starbucks must continue to research and produce new products to stay ahead in sales. Moreover, looking at today’s economy is should there should be a way to apply a different type and approach to their advertising.
Segmentation
When it comes to franchises such as Starbucks, one needs to evaluate the market. There are different brackets to which each is put in. For instance take McDonalds their marketing department is known to appeal to kids. Building play areas outside and inside with slides and play houses. Moreover, using a clown “Ronald McDonald” to attract youngsters is quite brilliant. This type of marketing is setting the bar for the next generation to keep customers for generations to come. Starbucks needs to take a step back and reevaluate their advertising market. There should be an analysis to see where the “Frappuccino” lost its appeal.
Target Marketing
Is the younger crowd th...


... middle of paper ...


...use. : Chapter 6: Consumer Decision Making. Retrieved April 30, 2014, from http://cacholajennifermar100.blogspot.com/2012/10/chapter-6-consumer-decision-making.html
Linn, A. (2008, July 2). Struggling Starbucks’ woes could get worse. msnbc.com. Retrieved May 1, 2014, from http://www.nbcnews.com/id/25498374/ns/business-us_business/t/struggling-starbucks-woes-could-get-worse/#.U2f-X1ehHlc
Farrell, R. O. (n.d.). Who Is Starbucks' Target Audience?. Small Business. Retrieved May 1, 2014, from http://smallbusiness.chron.com/starbucks-target-audience-10553.html
Starbucks. (n.d.). Forbes. Retrieved April 29, 2014, from http://www.forbes.com/companies/starbucks/
Wang, H. (2012, August 10). Five Things Starbucks Did to Get China Right. Forbes. Retrieved March 30, 2014, from http://www.forbes.com/sites/helenwang/2012/08/10/five-things-starbucks-did-to-get-china-right/







Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Essay about Starbucks Financial Analysis

- Starbucks is known for their Frappuccino’s; unfortunately they are on a downward spiral in sales due to competitors such as McDonalds. In 2008 Starbucks admits to its losses due to their competitors. “Company executives now freely admit that such thinking is largely to blame for the woes that led to Tuesday’s announcement that Starbucks will close 600 U.S. stores and eliminate thousands of jobs. The coffee giant’s missteps have come at a spectacularly bad time, hitting as the economic slump deepens and consumers are seeing their discretionary spending eaten up by rising gas prices and grocery bills (Linn).” Starbucks is going to continue losses unless they come up with a new marketing strat...   [tags: frappuccino, competitors, market]

Better Essays
944 words (2.7 pages)

Starbucks Financial Analysis Essay

- 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....   [tags: Business Finance Analysis]

Free Essays
1484 words (4.2 pages)

Financial Analysis of Starbucks Essay

- 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....   [tags: Marketing Strategy, Customer Groups]

Better Essays
2496 words (7.1 pages)

Starbucks: An Analysis with Focus on the Financial Function Essay example

- 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 in the past 15 years and Allegra Strategies (as cited in FDIN, 2014) forecasts that UK’s branded coffee shop market will grow at 10% compound over the next five years....   [tags: business analysis and strategies]

Better Essays
1903 words (5.4 pages)

Essay about Analysis Of The Depiction Of Starbucks Financial Position And Results

- Critical accounting policies are those that are believed to be most important to the depiction of Starbucks financial position and results. They require the most difficult, subjective and complex judgments. It is often as a result to make estimates about the effect of matters that are inherently uncertain. Starbucks considers financial reporting and disclosure practices and accounting policies quarterly to ensure that the documents provide accurate and transparent information relative to the current economic and business environment....   [tags: Generally Accepted Accounting Principles, Revenue]

Better Essays
2263 words (6.5 pages)

Starbucks 2008 Recession Analysis Essay

- Starbucks Overcoming the 2008 Recession Lana Jones Park University ABTRACT Many Americans suffered financially suffered from the 2008 recession, from the surge of gas prices to millions of Americans losing their jobs, and the foreclosure of homes. Many companies turned to the government for help to bail them out from going out of business and from further loses in revenue, while their expenses continued to pile up. Many Americans might wonder how a company like, Starbucks survived....   [tags: Starbucks, Coffee, Financial crisis]

Better Essays
1661 words (4.7 pages)

Swot Analysis For Starbucks Essay

- Opportunities and Threats SWOT Analysis Starbucks is known for the extraordinary coffee that they have provided over decades. Although the coffee is great and the business is successful, other aspects can put a treat on the company just as any other business. When it comes to the downfalls “higher commodity cost, intense competition, and legal proceedings can have an adverse impact over the business” (Lemus, E.). Per Lemus in the article “Starbucks Corporation: Leading Innovation in the 21st Century” Starbucks current SWOT analysis is as follows: Internal strengths include: • Established 40 years in the market • Adequate financial sustainability • Company’s culture contribution • Ethical...   [tags: Coffee, Starbucks, Coffeehouse, Espresso]

Better Essays
863 words (2.5 pages)

Comparison of Wendy's International, Inc. and Starbucks Corporation Based on Finances

- Comparison of Wendy's International, Inc. and Starbucks Corporation Based on Finances Wendy's International, Inc., incorporated in 1969, is primarily engaged in the business of operating, developing and franchising a system of quick-service and fast-casual restaurants. As of December 28, 2003, there were 6,481 Wendy's restaurants (Wendy's) in operation in the United States and in 21 other countries and territories. Of these restaurants, 1,465 were operated by the Company and 5,016 by its franchisees....   [tags: Financial Analysis Report Businesses Essays]

Better Essays
3667 words (10.5 pages)

Starbucks’ Three Year Strategic Plan Essay

- Section 1: Executive Summary Starbucks is the world’s largest coffee roaster and retailer of specialty coffee in the world. We have enjoyed great dividend returns over the past 5 years, and our growth has been on the rise. We are currently saturating the US market, while the emerging markets of developing countries offer many possibilities for growth and increased revenues. In our US market we should look at offering more items on the menu that complement our long-standing tradition of pleasing our customers....   [tags: Starbucks Analysis]

Better Essays
2697 words (7.7 pages)

Analysis of the Starbucks Corporation Essay

- Analysis of the Starbucks Corporation History Of Starbucks 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....   [tags: Business Management Starbucks Coffee Essays]

Better Essays
5208 words (14.9 pages)