Starbucks Analysis

1. There are several sections to an annual report. The two main sections are the written section from management to shareholders, and the second section is the 10-K. The written section is entirely optional; some companies omit it while others prepare an extensive write-up. There is no set form for this section. Starbucks' 2011 Annual Report has a 4 page write-up with a letter from Howard Schultz and a brief description of the company's business for the past year. The 10-K does have a set form. It includes a five-part discussion of the business; the financial data, which is the largest part of the report; a five-part discussion of relating to governance and the executive and the last part is the exhibits.

The understanding of the goal to be envisioned at Seagram moving forward is to become, remain, and develop an outside reputation as the top beverage company with 15% growth each year (Jick & Peiperl, 2011). The vision must effectively be passed to the 200 senior managers to make it a shared goal to be given and embraced company wide. The hope is that the top managed beverage company will be efficient and customer-centered, recognizing employees, while not micro-managing. The old model, based on decades old vision, needs to be replaced with a quasi-tried vision that has helped Seagram remain as one of the top, well-known companies. The new vision has seen success and is moving the company alongvtowards being the top managed beverage company. There are yet and still steps that will provide some right now actions that may help Seagram reach this goal of being the top managed company in the near future.

Stealing is defined as: “Taking (another person's property) without permission or legal right and without intending to return it.” During my tenure of employment at Starbucks, I took the drinks that Starbucks had trusted me with as a steward of their money and I gave them away for free. This was detrimental to Starbucks as an organization so I could benefit. I learned many lessons through my decisions to give away Starbucks’ resources and Starbucks’ decision to terminate my employment.

Starbucks Corporation, generally known, as Starbucks Coffee is the leading retailer and a brand of world’s forte coffee in the world, with more than 15,000 retail locations in North America, Latin America, Europe, the Middle East and the Pacific Rim, wherever in this world where premium quality coffee is in demand. Starbucks is the largest coffeehouse company in the world ahead of UK rival Costa Coffee, with 20737 stores in 63 countries and territories, including 11910 in the United States, 1496 in China, 1442 in Canada, 1052 in Japan and 772 in the United Kingdom. The first Starbucks was open in 1970. The name was inspired from Herman Melville’s Moby Dick, a definitive American novel regarding the 19th century whaling industry. The nautical name matches seamlessly for a store that imports the world’s finest coffees to the cold thirsty people of Seattle. In May 1998, Starbucks have finally successfully entered the European market through its acquirement of 65 Coffee Company stores initially originated from Seattle in the UK. Both companies shared a common culture, focusing on a great commitment to customized coffee, similar company values and a mutual respect.

Starbucks financial statements were analyzed for the fiscal year ended September 27, 2015. Like all public companies, annual and quarterly financial statements are required to allow regulators and other interested parties to analyze the financial status and management decision making of the company. This analysis focuses on the results of Starbucks most recent published annual report containing their balance sheets, statement of earnings and cash flows. These statements will be analyzed against the results of one of its competitors, Dunkin Donuts, to investigate how the two companies compare to each other. It was noted that Starbucks and Dunkin Donuts do not have corresponding fiscal year ends. The data therefore is not directly comparable since the reports do not reflect the same time period of data but should provide additional insight. The paper will attempt to provide a brief analysis of Starbucks operations in terms of its liquidity, leverage, activity, profitability and growth ratios used by analysts in the industry.

In order to create change, reevaluating prior situations is absolutely necessary. Almost everyone has some sort of bias, yet that cannot get in the way of logical thinking. In the case of Starbucks, the situation was handled horribly by the manager and police. As someone currently working in retail, I have had many instances where someone has shown their ignorant bias. At my current (soon to be former) employer, I attended a loss prevention meeting. During the meeting, the spokesperson mentioned to keep an eye out for people who “do not look like” they shop at our store (which is a predominately southern-inspired, preppy brand). Said spokesperson was showing his bias toward the “non-conventional” customer (which, in actuality, does not exist,

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).”

In this assignment, a savvy financial analyst researching companies in which to invest a U.S. publically-traded company that would be a good investment was chosen. After a lengthy search, a company that my family is unduly familiar with, Starbucks, was chosen and in the following pages a financial analysis will be described.

Price earnings (P/E) ratio is considered to be the most valuable tool for investors in determining which stock investments from comparable industry will most likely yield higher growth earnings in the future. Price earnings ratio is calculated by dividing the company’s price per share by its earnings per share (Yahoo Finance, 2015). The higher the ratio, the better because investors can use this ratio as an indicator of how well a company will do in the future. The objective of this paper is to help analyze and assess the P/E ratio of Starbucks and its two major competitors, McDonalds and Dunkin’ Donuts. Below are the comparable data of Starbucks and its

Starbucks’ Total fixed assets increased from $3,200.5 billion in 2013 to $3,519 billion in 2014. This was a 9.95% increase. As a percentage of total assets on the balance sheet, fixed assets increased from 27.79% to 32.73% (Starbucks,

Starbucks believes that the compensation paid to executive officers should be closely aligned with the performance of the company on both a short-term and a long-term basis, and that such compensation will assist the company in attracting and retaining key executives, which is critical to long-term success.   Thus, compensation for executive officers consists of three components: annual base salary, annual incentive bonus, and long-term incentive compensation.

Starbucks has always taken exceptional care in keeping its brand value.  In fact, Starbucks prides itself in its brand, particularly the power it has to keep its customer base strong. Before analyzing this loyal customer base it is best to consider the particular characteristics of the brand that has led to Starbucks having such devoted patrons.

The company that I am writing about is Starbucks, the international coffee shop chain. The company's financial statements for this analysis are from the FY2011 Annual Report and 10-K. The company has 10787 stores in the United States, of which 38% are franchised and the remainder are company-owned. The franchise model is more common when the company operates internationally. There are 6216 Starbucks stores internationally and of these 63% are franchises, with just 37% company-owned. The franchise model for international expansion has been utilized to help Starbucks expand quickly in foreign countries and to mitigate foreign political risk and to ensure that the product/service offering is tailored to local tastes (Thompson, 2012). The company is now in the process of buying back some overseas franchise stores in order to retain more profits for itself (Franchise Press, 2011). This paper will take a look at the company's most recent annual report to analyze the financial statements.

1.Analyze the business-level strategies for the corporation you chose to determine the business-level strategy you think is most important to the long-term success of the firm and whether or not you judge this to be a good choice. Justify your opinion.

Starbucks does not only ensure its quality through its superior beans, but also through its employees or as they refer to them, their partners, the baristas. Baristas go through two weeks of training before they are allowed to handle the customer’s coffee or interact with the stores customers. This ensures a high knowledge set, unmet by competing coffee providers. It is not only the baristas that go through the two weeks