Case Study : Starbucks Company 's Objectives

Have you seen the latest financial report that should have come out two months ago? Let‘s start with 2006 to the most recent 2007 report. Company History Sandra had already collected some basic company information about Starbucks. The Starbucks Company, Inc. sold coffees, teas, and other drinks; foods items; accessories and equipment through retail outlets. It also sold coffee beans, teas, and cold drinks wholesale. The company began in 1971 in the Pikes Place area of Seattle, WA. It had expanded its number of retail stores to over 15,000 located in both the US and internationally by 2005. In 2005

It’s hard to drive the street these days and not see a Starbuck’s coffee house sitting on a corner with cars lined up in the drive-thru or consumers gathering in their café to socialize. This has been the scene since the first Starbucks was opened in 1971. Since then, Howard Schultz, chairman and CEO, has embarked on a quest to bring Italian bistro traditions to the United States. Starbucks mission statement is simple, “to inspire and nurture the human spirit – one person, one cup, and one neighborhood at a time” (Starbucks, 2017, para. 7). Starbucks has built a global empire with a reported 22,519 stores spanning over 66 countries. The company’s diversity and purchase power of high quality whole coffee

In this paper, I will talk about Starbucks Company. I will define the influence of the vision, and mission of the company and primary stakeholders along with their overall success. An examination will be conducted to categorize five forces of struggle and their effect on the corporation. I will carry out a SWOT analysis to determine the opportunities, threats, strengths, and weaknesses. Founded on the SWOT analysis, a technique of opportunities and advantages will be exploited while threats and weaknesses will be diminished. Several types and levels of techniques will be talked over to operate the profitability and competitiveness. I will outline a plan of communication to make approaches known to all investors. Two corporate authorities will be designated to assess the efficiency of the regulating managers. I will also assess the effectiveness of management within the Company and come up with sanctions for upgrading.

Overall, Starbucks’ performance has been mixed over the past six months. On April 13, 2012, its stock price reached a high of $61.67 per share and closed at $57.37 per share. Since April, the price of Starbucks’ stock fell on average in the following closing months of May and June before reaching a low of $43.16 in the opening days of August. The fall was correlated with the release of Starbucks’ third quarter annual report, which showed a less-than-expected performance for that quarter; the earnings per share were $0.43 compared to a market expectation of $0.45 (Baertlein). Since then, the price of Starbucks’ stock has gradually increased. Although market risk factors like decreased consumer spending may have impacted

Since January 2008, Starbucks has taken steps to address the deterioration in the US retail environment revitalize its global support structure. These steps have been designed to structure the company’s business for long-term profitable growth. Because of the continued weak economy and decreased customer traffic, as well as the cost associated with the store closures and other actions in its transformation strategy, the company’s fiscal 2008 results were impacted negatively in the following ways:

In the period ending 2010, Starbucks revenues were 10,707,000,000. The revenues increased to 11,700,000,000 in 2011 and in 2012 increased again to 13,300,000,000. The income statement for the fiscal year ended February 26, 2010 shows that the net incomes attributable to Starbucks were 946,000,000. Net income increased to 1,246,000,000 in 2011. Revenue and net income increased indicating that the company is doing well even with the tough economic times. This would be an ideal financial situation thus making Starbucks ideal to invest in new technology.

Cognition gives the companies information on how consumers respond to different marketing stimuli they face for the products used. It has to do with customer’s thinking and how do they behave toward a particular product. To be more specific and also reading the book “cognition refers to the mental structures and processes involved in thinking, understanding, and interpreting stimuli and events.” (Peter & Olson, pg. 21)

The context change in form that Starbucks found itself competing with smaller chains that resembled its former pre-expansion model with competitors focusing in creating symbolic-expressive value and fast food restaurants that had started to offer specialty coffee with more aggressive advertisement at a lower cost. The competitive context changed for Starbucks because it’s focus in mass distribution channels and its retail footprint strategy stated its product within a standard performance product value; this affected the value perception of the product.

Starbucks consolidated global revenues reached a record $13.3 billion, a 14 percent increase, with revenue growth driven by a 7 percent rise in global comparable store sales and a 50 percent rise in revenue from Channel Development. Our operating income was $2 billion, a 16 percent increase, with our consolidated operating

Starbucks is one of the top contenders in the coffee industry and their income statement will provide potential investors with a strong perspective and understanding into the company’s earnings over time. According to Morningstar, Starbucks Corporation’s (SBUX) revenues have consistently grown from $10,707 million USD in 2010 to $16,448 million USD in 2014, while its competitor, Dunkin Doughnuts had a revenue of $577 million in 2010 and $749 million in 2014. These statistics definitely reveal that Starbucks generates a substantially larger volume of revenue than Dunkin Doughnuts. Starbucks’s revenue over the five-year period indicates the company has strong brand recognition with consumers for its high-quality products and attracts a high-income customer base. Additionally, Starbucks rapid pace of growth domestically and internationally has created a large target market, which positively influenced revenues. Furthermore, the introduction of Starbucks and Tazo brand single serve K-cup packs into grocery stores and other retail stores has significantly increased Starbucks revenue. Even during the economic financial crisis in the United States, Starbucks revenue continued on an upward trend. Starbucks gross profit showed a continuous rise between the years of 2010 to 2014 just like their competitor, Dunkin Doughnuts. Both companies had positive increases in profits over the last five years, however; Starbucks seems relatively more financially stable and a

The objective of this case study is to analyze why Starbucks was not meeting expectations in terms of customer satisfaction thereby losing customer loyalty. Whether or not to invest millions of dollars ($ 40 million) in each store to enhance the labor. How will it impact the sales and profitability if invested? Product mix and marketing approach will also be recommended in this paper.

a) The nature of Starbucks’ business is to generate income based on operating activities. When referencing the Statement of Cash Flows and looking at their operating activities, you can see that Starbucks generates $2,908.3M in net cash provided by operating activities. Investment is a significant item in this statement as well. The company spent $785.9M in investments in the year ending September 29th, 2013. Strong investment activities show that Starbucks is investing through buying and selling (Sales, maturities, and calls of investments $1,040.2M) and using their spare cash to invigorate future growth and fund future obligations.

Firstly, Starbucks’ net sales growth from 2006 to 2015 shows us that the company has been working well on its attractiveness through time. Indeed, except in 2009, sales have been constantly increasing from one year to another at a rate of 11% in average. Over the period, two specific year are to be highlighted. 2007 and 2015 experienced respectively an increase of 21% and 17% much higher than the 11% in average. While 21% was the normal sales growth rate in 2007, Starbucks has experiencing an amazing year sales wise since the beginning of 2015. According to the last estimations, this sales increase seem to be due to outstanding performances on the tea market as well as a great progression in terms of traffic in Asia and in the US.

Prior a company operates in a nation the market, trade cycles, disposable income, tax regulation and exchange rates must be addressed. Per Starbucks fiscal 2017 report the 72% percentage Starbucks revenue come from North American. However, a high percentage of Starbucks profit come unusual regions. This issue came present risk to Starbucks in the future when the generating revenue highly depended on the economic state of a country. Therefore, Starbucks has been more focus on expanding in Europe, Middle East, Africa and the central Asia Pacific markets to ease on the North American Market ( Starbucks

It is confident that, Starbucks will generate a Sales Revenue boom which is mainly attributed to its business expansion plan in CAP markets in upcoming years. Moreover, its new channel development strategy will produce approximately 7% of increase in sales volume. As a result, Total Sales is predicted to grow by 17% in fiscal year 2015 and by 14% in fiscal year 2016. Thereafter, the growth rate is assumed to be