Starbucks

2. Starbucks enjoyed strong financial performance in 2011. The company did not explicitly attribute this, but with an 8% rise in same store sales it seems that either the consumer market bounced back, or Starbucks made changes that attracted more consumers. The company feels that it offered better products and a better experience at its stores. The company also credited operating efficiencies and tight control of spending for improved profits. In addition, the company continued its global expansion, which improved the top line, and used the economies of scale it generated as part of its cost control program.

Thesis: While Starbucks has been an industry leader in the specialty coffee market, rapid overexpansion and current economic conditions have caused it to lose its market dominance. Is the company strong enough to recover?

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.

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).”

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:

Starbucks foundation is set on the belief that employees make the company what it is and by doing so Starbucks has created a unique situation where customers, employees all profit due to the decisive leadership of upper management. Howard Schultz and Howard Behar are the spearhead of Starbucks leadership and are therefore the key focus of this part of the paper.

PROBLEM-1 Prof. Hardtack gave four Friday quizzes last semester in his 10 student senior tax accounting class. Find the mean, standard deviation and coefficient of variation for each quiz. a) How do these data sets differ in terms of Central Tendency and Dispersion? b) Briefly describe and compare student performance on each quiz. Quiz 60 60 60 60 71 73 74 75 88 99 1 Quiz 65 65 65 65 70 74 79 79 79 79 2 Quiz 66 67 70 71 72 72 74 74 95 99 3 Quiz 10 49 70 80 85 88 90 93 97 98 4

Starbucks is one of the most recognized brands in the world. Since 1971 Starbucks has become synonymous with coffee which they used to embody the brand and create a lifestyle behind it. Starbucks wants the world to know they have more to offer than coffee and are committed to meeting the needs of society. “We’re not just passionate purveyors of coffee, but everything else that goes along with a full and rewarding coffeehouse experience. It’s not unusual to see people coming to Starbucks to chat, meet up or even work” (Starbucks). In addition to coffee Starbucks locations keep a customer base by offering free Wi-Fi, music, and partnerships with Barnes and Nobles throughout the country. Starbucks is aware that competition is gaining ground

In general the coffeehouse industry in the United States was experiencing an increase in coffee consumption per capita due to the “Starbucks effect”. At this time Starbucks was operating approximately 20,000 stores in the United States and was living a fast expansion strategy worldwide.

A standard economic impact assessment identifies three channels of impact that stem from an activity:

In a world where consumers value convenience, price, service and quality, Starbucks has become a major identifiable brand and competitor worldwide. Starbucks operates under the retail coffee and snack shop industry and relies heavily on consumer confidence, spending, preferences and overall economic climate, making the industry highly volatile. The hiring and use of employees to perform the daily operational tasks and duties to provide service and various industry products become an important element in this industry. Because the skill set of the individuals hired in this industry are relatively low, the cost in wages are minimal. The industry reportedly has generated over $30.2 billion in revenue, $1.8 billion in profit and has seen a growth of 2.7% from 2009-2014. Future projected annual growth in this industry is forecast to grow 3.8% over the next five years (IBISworld, 2014).

Starbucks Coffee Company has established as its own market and artistry in the Coffee gastronomy line for more than 30 years. Providing over 60 types of coffee, Starbucks has kept the name and brand alive since 1987 where a small and friendly workforce aim to create national brand – The Starbucks Experience.

The next part is to evaluate the current and future threats Starbucks is facing. In the event of another economic downturn, coffee may be something that some customers will not find it as a need. Though the current economy has somewhat improved but there are still people without jobs and incomes and may curb their

As she waited for her colleagues to join her, Day reflected on the company’s recent performance.

Starbucks adalah salah satu dari kedai kopi waralaba yang berasal dari Amerika Serikat. Starbucks sendiri bermarkas di Seattle, Washington. Starbucks pertama kali didirikan di Seattle’s Pike Place Market yang berlokasi di Seattle, Washington (Amerika Serikat) pada tahun 1971. Saat ini, Starbucks merupakan kedai kopi terbesar di dunia dengan 15.012 kedai di 44 negara. Salah satunya adalah Indonesia.