Table of Contents
1.0 Executive Summary 03
2.0 Company Overview 04
2.1 Company Structure 04
2.2 Mission Statement 05
2.3 Financial Analysis 06
3.0 Competitive Analysis 06
3.1 Second Cup 06
3.2 Timothy's 08
3.3 The Symposium Cafe 09
3.4 Tim Hortons 10
4.0 Competition in Canada 10
4.1 Direct Competition 10
4.2 Indirect Competition 11
5.0 Starbuck's Current Positioning 13
5.1 Retail Positioning Matrix 13
6.0 Strengths and Weaknesses 14
6.1 Strengths 14
6.2 Weaknesses 15
7.0 External Factors 16
7.1 Political / Legal 16
7.2 Socio - Cultural 16
7.3 Economic 16
7.4 Demographic 17
8.0 Internal Factors 17
9.0 Future Outlook 18
9.1 Financial Summary 18
9.2 Market Expansion 19
9.3 Product Diversification 19
10.0 Strategic Issues 19
10.1
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There are five major strategic issues that Starbucks has faced in the last year. These five issues include: consistency and quality in products and services, protection of suppliers and future supply, social responsibility in the public eye, remaining innovative, and identifying new and untapped markets.
2.0 Company Overview
Starbucks Coffee Company was founded in 1971, opening its first location in Seattle's Pike Place Market. Starbucks, named after the first mate in Herman Melville's Moby Dick, is the world's leading retailer, roaster and brand of specialty coffee with coffeehouses in North America, Europe, Middle East, Latin America and the Pacific Rim. Worldwide, approximately 33 million customers visit a Starbucks coffeehouse each week.
Starbucks purchases and roasts high-quality whole bean coffees and sells them along with fresh, rich-brewed, Italian style espresso beverages, a variety of pastries and confections, and coffee-related accessories and equipment. In addition to sales through our company-operated retail stores, Starbucks sells whole bean coffees through a specialty sales group and supermarkets. Additionally, Starbucks produces and sells bottled Frappuccino® coffee drink and a line of premium ice creams through its joint venture partnerships and offers a line of innovative premium teas produced by its wholly owned subsidiary, Tazo Tea Company. The Company's objective is to establish
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.
The first Starbucks coffee shop opened in 1971 in Seattle Washington. The coffee shop was founded by three partners. Jerry Baldwin and Zev Siegl were teachers and Gordon Bowker was a writer. The idea to have a coffee shop came about when a close friend was selling high quality coffee beans and equipment. After a matter of time, the partners decided to purchase the product from the grower. The coffee shop was named after the Nantucket Whaleship first mate from the novel Moby-Dick.
The cost of revenue, or goods sold, is 86.3% of the total expense distribution for Starbucks.
Starbucks is an American company that produces tea, coffee beverages, smoothies, baked goods and sandwiches. It was founded on March 30, 1971 in Seattle, Washington. The founders are Jerry Baldwin, Zev Siegi and Gordon Bowker. Starbucks locations serve hot and cold drinks, whole-bean coffee, micro ground instant coffee called as VIA, Espresso, Caffe Latte and other tea productsStarbucks has more than 22000 retail
Starbucks is a national coffee retail company that specializes in the selling, creating, and distrusting of many teas, creams, coffees, café style lunches, snacks, and flavor waters. Starbucks was founded in Seattle, Washington in 1971. Today, there are over 23,768 location worldwide. (Starbucks Corporation, 2016) Starbucks create a number of drinks available for purchase in store and power, beans, and cups available for purchase to create your own at home.
Starbucks Corporation is one of the world’s largest coffee roaster, marketer, and retailer of coffee. Some people call Starbucks as one the most success stories in the American history. In 1971, three entrepreneurs, Jordan Bowker, Zev Siegel, and Jerry Baldwin came together with $8000 and opened first Starbucks store in Seattle, WA. They were inspired by the style of roasting beans of Alfred Peet, founder of the Peet’s Coffee & Tea. They started the company with a dream of selling high-quality coffee beans and coffee machines. During their first year of operation, Starbucks used to buy the green coffee beans from Peet’s Coffee but later they started buying the coffee from coffee planters.
The first Starbucks opened in 1971 with a simple goal to sell good hot beverages, its original name was “Starbucks Coffee, Tea, and Spices”. Back then, the company was a single store in Seattle’s historic Pike Place Market. From just a narrow storefront, Starbucks offered some of the world’s fines fresh-roasted whole bean coffees. The name, inspired by Moby Dick, evoked the romance of high seas and the seafaring tradition of the early coffee traders.
Starbucks Coffee opened the doors to its first location in Seattle in 1971 and moved to its permanent home at Pikes Peak Market in 1976. The humble enterprise was the creation of three college friends; Jerry Baldwin, Zev Siegl, and Gordon Bowker. The original business model was to sell high-quality coffee beans and equipment. Between 1971 and 1986, the company expanded to 6 locations around Seattle. In the beginning, Starbucks did not sell one cup of coffee (Starbucks). The way that Starbucks evolved from its modest roots into the world’s leading coffeehouse company must be credited to the leadership and vision of Howard Schultz.
Starbucks is the one of the fastest growing companies in the US and in the world that started its business in 1971 as a small shop located in Seattle, Washington, by Jerry Baldwin, Gordon Bowker and Zev Siegl. The shop was selling mostly roasted Arabica coffee beans until they sold the company to employee Haward Schlutz in 1987. Since that day, Starbucks is able to stablish its own name and reputation in the market. Starbucks has now become a good place for the customers to relax and enjoy quality time beside home and work.
Starbucks is a major American company that was founded in 1971 by three college friends in Seattle, Washington. Jerry Baldwin, Zev Siegl, and Gordon Bowker at one time were all of different paths until they learned coffee roasting techniques from coffee entrepreneur, Alfred Peet (Starbucks Timeline, 2016). Alfred taught the three friends his particular style of roasting which ignited a spark in the trio and they were inspired to sell high quality coffee beans and roasting equipment. They soon started brainstorming names, and finally settled on Starbucks
The price has been rising, not simply due to the price of coffee itself, but because of the supply chain and the current economic situation around the world. Last year Starbucks had to raise prices globally, but especially in the United States and China, due to rising prices for coffee and other ingredients, but this year they are taking the hit from the rising coffee prices for the consumers (Baertlein, 2011). Although the prices of coffee had to be raised globally due to the high demand of the product and the cost of producing it, there is still a strong outlook for the coffee industry because of the large consumer base of the industry. The coffee industry is expected to continue growing through at least the year 2015 and even longer in other emerging markets around the world (Lingle, 2007). Even if the market in the United States begins to decline, there are other emerging markets for the specialty coffee industry. Due to Brazil’s rising economy, it is set to be the biggest coffee drinking country in the world with recent coffee consumer growth of 39% from 2000 to 2009 (Murphy, 2011). With Brazil’s upper and middle classes expanding, it has more money to spend on specialty coffee and other superfluous items. Brazil could be
Starbucks Corporation, an American coffeehouse and coffee company, was founded in Seattle, WA in 1971. Starbucks has become an industry leader in the roasting, marketing of specialty coffees, and retailing of their various coffee and tea products and accessories around world. Starbucks employs approximately 182,000 people of all walks of life across 21,366 company operated & licensed stores in 65 countries worldwide. Their unique product lines include high quality, hand roasted moderately priced coffees, teas, and numerous fresh food options throughout their stores and other retail outlets, such as grocery stores and specialty shops.
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.
The threats to the Starbucks Corporation are associated with competitive rivalries in the coffee market, rise in price of raw materials, cultural and political factors related international business.
Starbucks Corporation commenced operations in Seattle, WA, in 1971, as a specialty fresh-ground coffee retailer and coffee-shop operator. The company sells coffee, pastries, coffee accessories and, more recently, breakfast options and sandwiches (Starbucks). During 2013, the company was