Starbucks USA: Business Analysis

As the world’s number one specialty coffee retailer, Starbucks sells coffee drinks, food items, coffee beans, and coffee-related accessories and equipment. In addition, Starbucks sells whole-bean coffees through a specialty sales group and grocery stores. Starbucks has grown beyond coffee into related businesses such as coffee-flavoured ice cream and ready-to-drink coffee beverages. The purpose of this paper is to analyze Starbucks business strategy, customer value proposition, company’s operations and the risks to financial results and reporting in the short term.

* Employment law: the profitability of the company could be influenced by US governmental concerns regarding minimum wage that companies are required to pay their staff. In addition, reduction in licensing and permit costs in countries producing coffee beans for Starbucks would lower the production cost for farmers resulting in savings that would be passed on to the consumer.

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.

which is lower than the cost, dumping crop in the international market. These unbalanced market

The relationship between the quantity of a good buyer’s demand and its priced is defined as the law of demand (Dolan, 2013). Coffee beans being a primary input in the value chain, had had volatile prices determining market costs and profitability margins in recent years. The global price of coffee has drastically risen due to the growing demand in other countries and the resulting in a supply shortage. However, the price of coffee beans is projected to decrease, which will translate into a decrease in market costs and an increase in profitability (Geereddy, 2015). After the coffee crisis of 2004, Starbucks established a Farmers Support Center, where farmers in key regions of are provided resources and expertise to help lower the cost of production, reduce pesticides, improve quality and increase the yield of premium

Starbucks Corporation purchases and roasts high-quality coffees, along with beverages and fresh food items, throughout all company-operated stores. The consolidated financial statements reflect the financial position and operating results of Starbucks Corporation. Ratio Analysis was used to analyze the performance of Starbucks using the financial ratios of liquidity, solvency, and profitability. Calculations and amounts were provided in the excel spreadsheet labeled “Financial Ratios”. All data provided were conducted from the balance sheet and income statement accounts over the fiscal years 2015 and 2014. Starbucks Corporations ' fiscal years’ end on the Sunday closest to September 30 (sec.gov).

Employment law – A reduction in licensing and permit costs in those countries producing the coffee bean for Starbucks would lower production costs for farmers. This saving would in turn be passed on to the purchaser.

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 set out to inspire a better world by sharing a high-quality coffee with their friends (Starbucks, 2018). An in 1971, Starbucks opened their first coffee shop in Settle, Washington (Starbucks, 2018). Now, CEO Howard Schultz first visited the Starbucks coffee shop back in 1981 (Starbucks, 2018). In 1987, Schultz with some local investors purchased Starbucks and created the coffee shop known today (Starbucks, 2018). The following study is a situational analysis assessment of the external environment of Starbucks (Ferrell & Hartline, 2014). The external factors include competition, economic growth, political trends, technology advancements, and sociocultural trends (Ferrell & Hartline, 2014). Meeting the consumer's needs and wants is the goal for every company selling a product and with Starbucks, the goal is no different (Ferrell & Hartline, 2014). However, most

Financial viability, or being able to generate sufficient income to meet operating payments, debt commitments and, where applicable, to allow growth while maintaining service levels, is essential for Starbucks’ continual growth (Falconer, 2009). Generating cash flow, building strong relationships with shareholders and stakeholders, and accurately estimating expenses and sales are all vitally important for financial viability. In recent years, Starbucks has generated top market revenues resulting in sufficient cash flow (Hill, 2015).

Proper implementation and execution of a strategic marketing plan is essential to the success of any company.

Starbucks Corporation, founded in 1971 in Seattle, Washington, is the leading retailer of premier coffee beverages and related foods and merchandise, around the world. Its annual sales are over $6 billion, with a profit over $400 million. Starbucks had about 182,000 employees across 62 countries, with 19,767 locations. Many of their location are retail stores or located in airports and shopping centers. The average Starbucks consumer visits the store 18 times a month; 10% visit twice a day. Their products include high-quality/ premium priced coffees, teas, a variety of healthy food and beverages. By providing their customers with a relaxing atmosphere, creating signature drinks and providing environmental safe products, they

The purpose of this essay is to prepare a strategy formulation analysis required by the company. The company selected is Starbucks Corporation, commonly known as Starbucks, when they first started in Seattle, Washington in 1971, founded by Jerry Baldwin, Zev Siegl, and Gordon Bowker; and became an American multinational company which started from scratch (Garza, n.d.). It was then incorporated on November 4, 1985, and is a roaster, marketer, and retailer of coffee. Starbucks offers a range of exceptional products include coffee, handcrafted beverages, merchandise, and fresh food. The company 's mission is "to inspire and nurture the human spirit - one person, one cup, and one neighborhood at a time" (Starbucks, 2012).

Successful companies are companies that have a plan for where they are going, and where they want to be in the future. To successfully create this plan, companies need to examine themselves, along with their competitors, to see what areas need to be strengthened and what can be utilized to do so. Some of the main components of this analyzation are identifying what the major issues in the companies that are threats or are causing that weakness. They then need to create long term objectives, and quantify how to accomplish them-- whether they be financial or strategic. Starbucks as a company has three key issues: increased competition from new and/or expanding restaurants and coffee shops, they are less popular overseas, and there are many consumers who boycott Starbucks because it is such a mainstream prevalent brand.

30 and 59 purchase more specialty coffee than those customers between 20 and 29. The