Starbucks Finance Report

1324 Words Nov 15th, 2011 6 Pages
STARBUCKS

Starbucks Coffee Company is the leading retailer, roaster, and brand of specialty coffee in the world, with more than 7,500 retail locations in North America, Latin America, Europe, the Middle East, and the Pacific Rim. It has long prided itself on offering an enriched customer experience as much as on great-tasting, high quality coffees. I chose to do my report on Starbucks because besides being a Starbucks addict, like many others I know, I am also interested in how the company might be able to maximize the value of its shares but first let me briefly explain how the business world works.
Today 's business world shows a huge diversification in the shareholders of one company. In most countries, each investor only holds a
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We are aggressively pursuing the opportunities beyond our more traditional store experience to offer consumers new coffee and other products in multiple forms, across new categories, and through diverse channels, leveraging our strong brand and established retail store base. Examples include the ongoing global expansion of our successful Starbucks VIA� Ready Brew product and the introduction of new products such as Starbucks� Natural Fusions line of premium flavored coffee.”

Just as explained above in the excerpt from the first quarterly report of 2011, Starbucks’ sales have grown approximately by 7%. The higher coffee costs that took effect in 2010 have resulted in a growth in revenues as well, which also resulted in higher market share value.
In September of 2010, Starbucks Corp. said it will raise prices on some of its drinks. The price of green Arabica coffee, which was close to a 13-year high, and price volatility for other raw materials it uses, such as dairy products sugar and cocoa, forced Starbucks to respond with increases in coffee prices.
The chain boosted prices of larger size and hard-to-make drinks, while maintaining or lowering the price of some of its most popular beverages, including certain espresso beverages; and, in most markets, its $1.50 12-ounce brewed coffee.
Arabica coffee beans, a high-quality variety grown mostly in Colombia and Central America, have faced two

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