Table of Contents:
1. Introduction 3
2. Industry Overview 3
3. Competitive Landscape 3
4. Industry Lifecycle 4
5. Industry Trends 5
6. Macro Environment Impact 6
7. Porter’s Five Forces 7
8. Starbucks Company Overview 9
9. Starbucks SWOT 11
10. Starbucks Balanced Scorecard 15
11. Dunkin Donuts Company Overview 15
12. Dunkin Donuts SWOT 16
13. Dunkin Donuts Balanced Scorecard 19
14. Conclusions 21
15. Reference 22
1. INTRODUCTION
This study gives a brief review of the U.S. and international coffee shop industry. The coffee industry includes 20,000 stores with combined revenue of $11 billion. Approximately 20
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Despite the recent downturn in revenue, the Coffee and Snack Shops industry is mature. For these reasons, industry research firm IBIS World has updated a report on the Coffee & Snack Shops industry in its growing industry report collection. According to IBIS World Industry Report, in the five years to 2014, industry revenue is expected to increase an annualized 2.7% to $30.2 billion. This trend is expected to continue into 2014, with an expected growth of 1.4%. Major operators like Starbucks and Dunkin ' Donuts are expected to expand their menus in the five years to 2019 in order to increase sales and access higher profit margins. Both Starbucks and Dunkin ' Donuts plan on rolling out hundreds of new stores over the next five years, making up for lost ground they experienced during the recession. Dunkin ', which is highly concentrated in the east, is aiming to expand westward to steal market share from local competitors. The major chains are also expected to invest more in international growth as part of a long-term strategy, because many larger players view emerging economies as markets with huge potential for growth and long-term profitability. (Lauren Robi, An Analysis of Starbucks as a Company and an International Business, 2011)
5. INDUSTRY TRENDS
According to Brian Bixler and his coffee franchise industry report, there are some trends in the industry that seem to point out some major concepts.
• A number of mergers and acquisitions in recent years
The specialty coffee industry had seen steady growth for years and the trend was expected to continue until at least 2015. Of the various segments within the specialty coffee industry, most of the growth was attributable to beverage retailers “Coffee and kiosks”. In 1979 there were approximately 250 specialty coffee retailers. The number quadrupled by 1989 to approx 1000 outlets, and it exploded to roughly 15000 by 2002. Nationally, specialty coffee sales totaled over $ 10 billion in 2005.
In the US, specialty coffee is a $5-billion industry with a 20% growth rate (House, 2013)
Starbucks is a “premier roaster, marketer and retailer of specialty coffee” (Marketline 2012). This company is globally recognized because of their vast amount of stores, consisting of more than 17,000 retail stores in over 55 countries. Most retail stores are in highly populated areas, like “downtown and suburban centers, office buildings, university campuses and in select rural and off-highway locations” (Marketline 2012).
With 11,000 plus coffeehouses worldwide, it is evident that their strategy of being passionate about their customer relation and their devotion to delivering a quality product goes beyond culture and language.
Nowadays, high schoolers, especially students at Stony Brook school, have coffee very often. Because the Dunkin shop is right outside the school, we tend to have more coffee from there instead of Starbucks. But in my opinion, Starbucks’ coffee is much healthier and going there is a much better choice for us.
With most of the world basically running on coffee, you have more and more different places to buy your coffee every day. Trying to narrow down your options to find the best coffee can seem like a nightmare. The two main and most popular coffee corporations to choose from would be Dunkin’ Donuts and Starbucks. When choosing a specific location from the two places for your coffee needs there are things to consider such as: price, quality and convenience. I, a 4-6 cups of coffee a day drinker,have had coffee from both places, and have become what you could call, a coffee expert.
Figuring out what topic to write about for an essay can be difficult. There are a few topics one should stay away from when writing a college level essay. Opinion based topics like, which has better coffee Dunkin donuts or Starbucks, should not be used as a topic for an essay. There is no possible way to prove if either Dunkin donuts or Starbucks has the best coffee because everyone will have their own opinion, and opinions are not facts. Even someone who is respected as the master coffee taster cannot chose the best coffee because it is still opinion based. Also deciding who has the better coffee is trivial compared to what is currently going on the world.
As a part of the South, sweet tea is a staple here. My nana's sweet tea, however, will always be near and dear to my heart. Sure, it's just a tea bag, water, and sugar, but it's so much more than that. It's like comfort. After a long day of hard work, it's so sweet to come in a have a glass of nan's sweet tea. Now, don't get me wrong, store-bought sweet tea is just fine as well. If I am away from home then I'll buy some. Although, it just couldn't compare to my grandma's. If I ever have the choice it will always be nans just because of pure comfort.
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.
2) Garthwiate, Craig; Busse, Meghan; Brown, Jennifer; Merkley, Greg “Starbucks: A Story of Growth” Harvard Business Publishing, July 2012.
1.From the annual reports you previewed, what is the company's corporate strategy? What are their company goals and were they successful in achieving those goals? Please list the company of the annual report you previewed.
Starbucks Corporation is an American company that was founded in 1971 in Seattle, Washington (Starbucks Company Profile, 2014). It operates in 62 countries around the world, serving its specialty coffee products, teas, food items, and other beverages (Starbucks Company Profile, 2014). Additionally, Starbucks Corporation has a multitude of license agreements with other locations where they sell their products, such as grocery stores and national foodservice accounts (Starbucks 2013 10-K Form for FY ended on September 29, 2013). In 2013, Starbucks reported a revenue of over 14 billion dollars (Starbucks 2013 10-K Form for FY ended on September 29, 2013). The success of Starbucks Corporation, however, comes from a carefully planned and well-executed business model. A thorough understanding of the competitive environment for Starbucks Corporation has allowed the company to flourish in an age where the intersection of convenience and quality are of utmost importance. This report will apply the 5-forces model in order to evaluate Starbucks Corporation’s competitive environment and assess its competitiveness in the near term.
Starbucks Corporation is an American global coffee company and coffeehouse chain based in Seattle, Washington. Starbucks is the largest coffeehouse company in the world, with 20,366 stores in 61 countries, including 13,123 in the United States, 1,299 in Canada, 977 in Japan, 793 in the United Kingdom, 732 in China, 473 in South Korea, 363 in Mexico, 282 in Taiwan, 204 in the Philippines, and 164 in Thailand.
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.
Starbucks, Dunkin Donuts Battle for Valentine’s Day Hearts by Daniel B. Kline Feb 8 2017