Market Expansion. A Couple Years Ago Starbucks Found Themselves

1250 WordsApr 28, 20175 Pages
Market expansion. A couple years ago Starbucks found themselves almost reaching the maximum capacity of coffee shops in the United States. In this instance, it is time for companies like Starbucks to start look globally if they wish to keep continually expanding. “In 2012, the company set up its first store in India.” (Rajasekaran, 2015). Originally it was found that only upper class residents of India would purchase coffee and that many low income civilians considered coffee a luxury. Starbucks understood that they were advancing into a predominantly tea drinking country. However, it is believe that the coffee market will have a considerable increase in India in the years to come and that the coffee is slowly becoming a more predominant…show more content…
This has increased greatly at almost 8 billion dollars. The company has not had any apparent fluctuations and seems to only be on the upward route. From the table we can see that cost of goods and gross profit has also steadily increase all indicating the company is still drawing in new customers as well as keeping previous ones coming back. “Starbucks reported revenue of $21.3 billion for fiscal 2016. That was an increase of $2.15 billion (or 11%) compared to the $19.16 billion the company reported for revenue in fiscal 2015” (McLellan, 2017). From a financial perspective it does not appear that Starbucks has any concerns. At Starbucks they value an employee first outlook. This is portrayed in all aspects of the company from hiring, training, labor relations, etc. Schultz believes “employee experience matters at Starbucks because the company recognizes competitors can replicate the products Starbucks serves, but competitors can’t replicate the Starbucks people serving their products to customers” (The Starbucks, 2007). One of their main beliefs is that surely the customer will be treated well, if the employee is. Employees. As of 2016, Starbucks was currently employing a total of 254,000 employees at all of their sites combined. Starbucks is known for having excellent labor relations throughout their corporation. Starbucks is a corporation that not only takes their company seriously but also the well-being of their employees as well. They find

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