This website uses cookies to ensure you have the best experience. Learn more

Starbucks Essay

2114 words - 9 pages

|Accounting |
| |
|Starbucks Annual Report 2012-13 Assignment |
| |
|6/7/2013 |
| |


Executive Summary

What was once a small coffee shop opened by Gerald Baldwin, Gordon Bowker, and Ziev Siegl in 1971, Starbucks ...view middle of the document...

Currently, Starbucks is replying on retail expansion, product innovation, and service innovation to achieve a long term goal once set by current chairman Howard Schultz:
“The idea was to create a chain of coffee houses that would become America’s “third place.” At the time, most Americans had two places in their lives – home and work. But I believed that people needed another place, a place where they could go to relax and enjoy others, or just be by themselves. I envisioned a place that would mean different things to different people.”

By working toward this goal, Starbucks wants to open new stores in both new and existing markets, expand their product development process, and cater to customers’ needs to eventually improve their financial position and dominate market share.
Target Markets
← In the early stages of development for Starbucks, Schultz identified their target market as “affluent, well-educated, white-collar patrons (skewed female) between the ages of 25 and 44.”

← Over time, market research teams have recognized the new target market as “younger, less well-educated, and in a lower income bracket than their more established customer.”

← Nonetheless, the original target market has not disappeared, but has expanded into the demographic of the store location. For example, southern California stores cater to a growing number of Hispanic customers.

Market Demographics

← Data from 2002 showed that in the Southeast there was only one store for every 110,000 people. Whereas in the Pacific Northwest, there was only one store for every 20,000 people. Hence, the company was far from reaching existing markets.

← International plans showed Starbucks was operating in over 300 company-owned stores in the United Kingdom, Australia and Europe, the Middle East, Africa and Latin America.
← Selection
■ Starbucks menu contains brewed coffee, espresso traditions and favourites, cold beverages, coffee alternatives, Frappuccino’s and the sale of whole beans.

← Accessibility
■ Starbucks operates over 10,000 retail stores. Most of the 4,200 franchised stores are located in shopping malls and airports. Starbucks coffee brands are also marketed through grocery stores in the form of beans and even ice cream flavours.

← Competitive pricing
■ For North American stores in the 2012 fiscal year, the average price of an order was $3.85. The drink comes in three sizes: Tall, Grande, and Venti (Italian for small, medium and large). The least expensive price for a tall drink is $2.40 for brewed Coffee of the day. The most expensive price for a Venti is $4.85 for Frappuccino. Whole beans are sold in half and whole pound bags ranging from $5.20 to $17.95 (Sumatra Dark)

Market forecast

← Over the next few years, an estimate for the U.S. retail coffee market expects specialty coffee to have a compound annual growth rate (CAGR) within 9% to...

Other assignments on Starbucks

Starbucks Tradeoffs Essay

479 words - 2 pages Andrew Juliano (Starbucks) Starbucks has always been recognized as the top company in the premium coffee market. However, over the last 5 years, the company has experienced less sustainable growth. I believe that one of the most influential factors of this recent decline have been their identity crisis and their direct competition. Starbucks has always been associated with an experience. Due to their global success, there have been constant

Starbucks-Going Global Fast Essay

1007 words - 5 pages Case- Starbucks : Going global Fast 1. Identify the controllable and uncontrollable elements that Starbucks has encountered in entering global markets. There are controllable and uncontrollable elements that Starbucks has encountered global markets , where controllable elements refers to the ability of strabucks to overcome the problem and solve it , whereas uncontrollable elements refers to current situation in the market and how they

Starbucks Case Study

815 words - 4 pages In my opinion, Starbucks would be a perfect fit in the Indian coffee market. India has the youngest population in the world and will stay young for the foreseeable future. Starbucks gears itself to the younger generation. It’s a perfect marriage. There is some competition in India but, with the success Starbuck’s has had in the past and the discipline in which the company is run, I think they will easily meld into the Indian

Starbucks Special Bend

1223 words - 5 pages Starbucks’ Special Blend Tiffany A Noble Columbia College Abstract Upholding a mission statement that aims to inspire and nurture the human spirit- one person, one cup, and one neighborhood at a time, it’s no wonder that Starbucks is the number one coffee business in the world. Although the success can be attributed to Starbucks’ CEO Howard Shultz’s accurate premonition of the company’s direction and future expansion; a vast portion of

Environment Analysis Of Starbucks

379 words - 2 pages SWOT Analysis Starbucks Strengths. • Starbucks Corporation is a very profitable organization, earning in excess of $600 million in 2004.The company generated revenue of more than $5000 million in the same year. • It is a global coffee brand built upon a reputation for fine products and services. It has almost 9000 cafes in almost 40 countries. • Starbucks was one of the Fortune Top 100 Companies to Work For in 2005. The company is a

Financial Analysis Of Starbucks

4799 words - 20 pages Starbucks Financial Analysis Table of Contents History 3 Overview 3 Strategy 3 S.W.O.T. 4 Starbucks Ratios 5 Balance Sheet Analysis 5 Profitability Ratios 8 Activity Ratios 9 Investment Returns 9 Comparative Analysis 10 Profitability 10 Management Effectiveness 10 Valuation Measures 10 Share statistics 10 Stock Price History 11 Dividends & Splits 11 Balance Sheet Ratios 11 Conclusion 11 References 12

Starbucks Behavior And Communication Paper

821 words - 4 pages Starbucks Behavior and Communication Paper Christine Prince BCOM 230 July 4, 2011 John Robinson Starbucks Behavior and Communication Paper The mission of Starbucks is to "to inspire and nurture the human spirit - one person, one cup and one neighborhood at a time." Further, it shows concern about the environment and has an environmental Mission Statement: "Starbucks is committed to a role of environmental leadership in all facets of our

Starbucks - Delivering Customer Service (Q&A)

1375 words - 6 pages Starbucks – Delivering Customer Service 1) What factors accounted for the extraordinary success of Starbucks in the early 1990s? What brand image did Starbucks develop during this period? A: One of the most important sources for Starbucks success was its brand strategy and the elements that composed it. The brand strategy of Starbucks was best captured by its “live coffee” mantra. This phrase reflected the importance of the

Pestel Analysis For Starbucks Coffee Company

4800 words - 20 pages ................................................................................ 11 3. Internal Analysis .................................................................................................. 11 3.1 Starbucks‟s Strengths & Weaknesses ............................................................ 11 3.2 Evaluation of Starbucks‟ Main Capabilities .................................................. 12 3.3 Value Chain Analysis


1560 words - 7 pages Introduction This report will present a financial analysis of Starbucks Corporation (SBUX). A full breakdown of the companies’ profile and ratio analysis will be provided and methods for improvements will also be provided. A full stock analysis will be included to anticipate Starbucks risks versus their returns on common stock and an estimation of the companies’ fundamental value. This report will also delve into the corporate governance

Organizational Resources Paper

1175 words - 5 pages Organizational Resources Paper Randall Maurer MGT/330 Donald Driscoll Sep 23, 2013 Coffee retail production is a multi-billion dollar industry. America leads the world in coffee-consumption, consuming over 2 million pounds of coffee per year. Companies have come and gone but power houses like Folgers and Maxwell House have maintained the top shelf with American consumers, until the 1990’s. Starbucks, founded by Jerry Baldwin, Gordon

Similar Documents

Starbucks Essay

2646 words - 11 pages Emma Klein Kelly Dunbar Senior Project 19 March 2013 Starbucks Starbucks could be called one of the largest success stories in American history. The company started from humble beginnings and worked its way to the top. Starting from a small building in Pike Place market in Seattle Washington, there are now more than 20,000 locations worldwide. The company’s mission and goals have allowed it to succeed in a fast pace world, and Starbuck’s

Starbucks Essay

2717 words - 11 pages STARBUCKS IS COMING TO INDIA INTRODUCTION As we all may know, behind any successful achievement, there is a long story of withstanding hardship and endeavouring persistently behind any success. The Starbucks’ case of successfully bringing the brand into the Indian market is one example. This paper is to study the (3) reasons why Starbucks International decided to expand its market scale internationally and to figure out the initial criteria

Starbucks Essay

387 words - 2 pages . Each one had its own unique character, but they all had a barista who performed with flair and exhibited a camaraderie with the customers. So Going to Starbucks should be an experience, a special treat; the stores should be a place to meet friends and visit Nb:Baldwin believed that espresso drinks were a distraction from the core business of selling fine arabica coffees at retail and rebelled at the thought that people would see Starbucks as a

Starbucks Strategy Essay

1503 words - 7 pages Starbucks’ Strategy 1. Suggest the key elements of Starbucks’ Organizational Culture that contribute to its success in a global economy. Indicate management’s role with creating and sustaining the organizational culture. Organizational culture has a significant impact on the overall performance of a company. Organizational culture is “the set of shared, taken-for-granted implicit assumptions that a group holds and that determines how it