Starbucks Coffee Company ( Sbux )

1563 WordsMar 20, 20177 Pages
“To inspire and nurture the human spirit one person, one cup and one neighborhood at a time” (Starbucks, 2017). In 1971, Starbucks Coffee Company (SBUX) was founded by three students; Jerry Baldwin, Zev Siegl, and Gordon Bowler in Seattle, Washington (Orta, Feigenblatt, Lemus and Rivero, 2015). The goal has been to serve the best coffee with delicious flavors of coffee beans, treating employees as partners, and serving an inviting atmosphere to their customers. The new owner, Howard Schultz generated a culture of high values where people are treated like family. He has worked to produce a modernized structure where employees can grow by working in a teamwork environment. The key to his success has been communication in which it…show more content…
Starbucks Coffee is a publicly traded company as of 1992 reaching about 100 stores in which the Red Group panel will analyze its strengths and weaknesses, and expound on discoveries using ratio analysis. The Weaknesses Product diversifying is beneficial to a fast-growing company; however, it brings many challenges and weakness to the organization’s economy. A top competitor of Starbucks is Costa Express, which only sells coffee. Costa Express innovated self-serve coffee bars are located in food courts, convenience stores, and leisure locations, cutting unwanted liabilities like payroll. Starbucks has stopped being innovated due to the loss of their focus on selling the best quality coffee. Their facilities are crowded with new merchandise and food, becoming the future convenient store. Moreover, the strategy of Starbucks is to have their locations in high-traffic areas, giving them great visibility for their customers. Starbucks is not a franchised business, due to their desire to keep high-end stores in well-known communities, like plazas, shopping centers, malls, and airports, oppose to being located in gas stations, such as Dunkin Donuts. The weakness of this popular company is that they do not own their facilities, the operating leases are about $5 billion each year (Blokhin, Andriy, 2015). Their long-term debt liabilities, starting in 2013 were about $1.3 billion in which it had increased by 42 percent every

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