Strategy Analysis : Starbucks Corporation

Therefore, the imposition of tariffs by the governments of any of the engaged countries would affect the company’s price for their product.

As previously identified, there are also “non-legal/extra-governmental” political risks which could bring unexpected upheaval to foreign firms. Macro political risks such as the threat of violence, corruption, war or military coup, political instability and terrorism are all direct threats to foreign investors.

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.

Political Risk- the unanticipated likelihood that a business’s foreign investment will be constrained by host government’s policy.

All countries in the world have various political environment and regimes. Political systems differ in terms of the governance, power and the rule of law. A political regime can be defined as structures, activities and processes by which given countries in the world govern themselves. Political systems can be based on either collectivism or individualism. It is essential for business to look at a country’s political environment as a vital criterion in venturing or expanding the business or company to that country. This is because political systems differ and each has its own form of governance that impacts a business in terms of its growth. International companies carry out international manufacture and activity in that they

Price earnings (P/E) ratio is considered to be the most valuable tool for investors in determining which stock investments from comparable industry will most likely yield higher growth earnings in the future. Price earnings ratio is calculated by dividing the company’s price per share by its earnings per share (Yahoo Finance, 2015). The higher the ratio, the better because investors can use this ratio as an indicator of how well a company will do in the future. The objective of this paper is to help analyze and assess the P/E ratio of Starbucks and its two major competitors, McDonalds and Dunkin’ Donuts. Below are the comparable data of Starbucks and its

The company that I am writing about is Starbucks, the international coffee shop chain. The company's financial statements for this analysis are from the FY2011 Annual Report and 10-K. The company has 10787 stores in the United States, of which 38% are franchised and the remainder are company-owned. The franchise model is more common when the company operates internationally. There are 6216 Starbucks stores internationally and of these 63% are franchises, with just 37% company-owned. The franchise model for international expansion has been utilized to help Starbucks expand quickly in foreign countries and to mitigate foreign political risk and to ensure that the product/service offering is tailored to local tastes (Thompson, 2012). The company is now in the process of buying back some overseas franchise stores in order to retain more profits for itself (Franchise Press, 2011). This paper will take a look at the company's most recent annual report to analyze the financial statements.

U.S firms need to understand certain types of the Asian market such as employment relationships and the different kinds of cultures. The host country factors included the government’s restrictions on foreign direct investment (FDI), lower protections of intellectual property and the cost of land. The barriers for internationalization may impact a

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 is concentrated on providing its customers with a relaxing and attractive social atmosphere. It offers high quality coffees, teas and other products that benefit their targeted market as well as creating a great working environment for its employees. The Starbucks Company has specific visions and goals, missions and values that they want to reach through being a responsible organization. It is their vision for the future to uphold their customers, partners, and suppliers to create a positive change. By doing this they see themselves as innovators and leaders in the industry by becoming contributors to society as a whole and by creating a sustainable and healthy environment so that the company and the people they affect can grow

One company that has been particularly successful in creating an overall company image in my option has been Starbucks. They have been able to maintain a dominant position in today’s market. Where in the morning most of our society needs a good cup of coffee in order to start their day. At one point, we looked at Starbucks as a high-end marketer. A sort of club to belong to. However, things managed to change in the recent years where a 4.00 cup of coffee was becoming a luxury items. This became known as the Coffee Wars. Starbuck had to now face competition from the fast food world. Which was McDonald’s and Dunkin’ Donuts. They started to look at this market as an opening to gain more customers. They started to offer their

The nation of Myanmar, also known as Burma, is currently under the rule of a ruthless totalitarian regime, guilty of numerous human rights violations and target of intense international criticism. Located in Southeast Asia, on the western border of Thailand and Laos, it has been under military rule since World War II. Burma is mired in socioeconomic crisis stemming from the rule of the military junta, and the citizens are suffering. The environment of Burma is being destroyed, the people are treated inhumanely, and the country is notorious for its contribution to global narcotics. The paragraphs below detail the current situations facing the country, why they came about, and the parties that are to blame for

Corporate Strategy fundamentally is concerned with the selection of businesses in which the company should compete and with the development and coordination of that portfolio of business.[1] In the case of Starbucks the corporate strategy they have implemented is unique to their industry which has allowed them to differentiate from their competitors and is summarized best by Howard Schultz CEO of Starbucks, “We’re in the people business serving coffee,[2]” high quality specialty coffee and related products in a European café environment. It is clear Starbucks is in a growth strategy utilizing three key techniques that support its Mission, “to inspire and nurture the human spirit – one person, one cup and

The legal risks associated with a decision to invest abroad refer to the climate provided by the government of the relevant to operate.

THE POLITICAL ENVIRONMENT: The critical concern Political environment has a very important impact on every business operation no matter what its size, its area of operation. Whether the company is domestic, national, international, large or small political factors of the country it is located in will have an impact on it. And the most crucial & unavoidable realities of international business are that both host and home governments are integral partners. Reflected in its policies and attitudes toward business are a governments idea of how best to promote the national interest, considering its own resources and political philosophy. A government control's and restricts a company's