...Starbucks Corporation Debt Tiffany A. White Intermediate Accounting I June 9, 2008 Professor Glen J. DeSalvo Introduction Starbucks, a household name that makes you think of coffee. Starbucks Corporation was founded in 1971. It eventually evolved into what I would call an Empire of Coffee and Espressos. They have achieved in making a variety of food items, roasted beans, coffee accessories, and teas that are so satisfying and refreshing. Starbucks is known for its great taste as one of the leading coffee shops throughout the beverage industry. Its goal is to become the leading retailer and brand of coffee in each of its targeted markets. Starbucks is committed to demonstrating excellence in their customer service. They have created such a warm and friendly environment so that if you walk into any star bucks in the world you feel it. Starbucks is well known throughout the world, and their standard of satisfaction does exist even on foreign soil. They are typically located in high traffic and visibility locations, because they can vary in their size and format. They are also embracing the need to buy, sell, and use environmentally friendly products as they seek to satisfy customers all of the time. Starbucks has directed their guidance to their stakeholders, by trying to effectively address issues that are important to them. Statistically it was stated in the annual report that Starbucks Corporation has over 130,000 shops in 35 countries...
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...The Starbucks Corporation: A Global Community Glenn Wilson Boerstler, II MGT/521 October 28, 2013 Jason Miller The Starbucks Corporation: A Global Community According to CNN Money, Starbucks Corporation, headquartered in Seattle, Washington, is currently ranked at number 208 on the Fortune 500 rankings. This is a significant improvement to their ranking by advancing 19 positions from the previous list. The Starbucks Corporation was previously ranked at 227 ("CNN Money", 2013). The Starbucks Corporation is currently led by Chairperson and Chief Executive Officer Howard Mark Schultz who has been with the organization since 1982. He started with the organization as the Director of Marketing. During a buying trip to Milan, Italy, Schultz became inspired by the popularity and quantity of the community coffee houses. He developed this vision for the future of Starbucks, but it was not well received. Eventually, after a few frustrating years, Starbucks sold their retail division to him and Il Giornale in 1987 for $3.8 million. In early 2008, Mr. Schultz was reappointed as CEO after an eight year hiatus ("Wikipedia", 2013). The Starbucks Corporation is a global presence. Their unique brand is instantly recognizable through their use of bold graphics in cities, towns and major transportation centers throughout the world. The Starbucks name holds the promise of quality beverages and foods, well designed retail stores bound together through a strong sense of community. A visit...
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...Financial Ratio Analysis: Starbucks Corporation December 11, 2013 Financial Ratio Analysis: Starbucks Corporation Starbucks Corporation has created a crazed coffee culture around the globe. This paper will act as a financial and stock recommendation based of the financial ratio analysis. Starbucks opened its first location in Seattle’s Pike Place Market in 1971, selling quality ground beans over a small counter in an open-air market. Eleven years later, Howard Schultz joined Starbucks as a director of retail operations and marketing. After a trip to Italy to find new products, Schultz fell in love with the cafe environment he found there. His dream then began to bring that environment to the United States and the brand we know today began to take form. With the backing of local investors, Shultz acquired six Starbucks locations in 1987 (Starbucks) and began building his global empire. At the time of its initial public offering on the stock market in June 1992, Starbucks had grown to 140 outlets and had revenue of $73.5M. They opened that morning at $17 a share, and closed at $21.50. (Starbucks) By September 1992, the share price had risen 70% to over 100 times the earnings per share of the previous year. (Globe) After going public, the company took steps to grow the business, expanding the brand by negotiating partnerships with established companies. * Offering Starbucks coffee on United Airlines fights. * Licensing Stores to Barnes & Noble,...
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...Assignment 1: Starbucks Corporation Case ECO 550 March 12, 2010 Starbucks was founded in Seattle, Washington by Gordon Bowker, Jerry Baldwin, and Zev Siegl. Seattle was known for its coffee but the quality was not so well liked. Bowker and his two friends, has made Starbucks the leading coffee retailer in North America. The company produces a variety of coffees, teas, pastries and other assorted items in over 2,400 shops and kiosks in the United States and Canada. Starbucks also has a mail order service where consumers can purchase items via mail or online. The company has also expanded in to the foreign market with more than 100 locations in the United Kingdom and over 200 in other countries such as China, Japan, Thailand, and South Korea. Starbucks wholesales their coffee to business such as hotels, hospitals, and airlines. They are also working with the Pepsi-Cola Company to sell frappuccino beverages in local supermarkets and convenience stores. Kraft Foods, Inc., has a partnership with Starbucks to sell their coffee beans in grocery stores. Starbucks even has a partnership with Grand Ice cream to distribute their coffee ice cream in local supermarket. Over the years Starbuck has become quite successfully for a coffee company. The company has become very popular with in the United States as well as international. Effects on the Economy Many businesses have been affected by the economy. Companies are forced to make cut backs which in many incidences...
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...Starbucks Corporation: Competing in a Global Market There are multiple factors that Starbucks should consider in deciding where and when to expand into international markets. In determining where to expand it’s important that Starbuck’s considers the local demographics of each region they may expand into. When determining which countries or regions to expand into, they need to consider where consumer’s tastes and preferences align with their product offerings. In Starbucks case, they offer a product that is used by people worldwide but they sell it at a price premium so it’s important that they choose locations in more affluent areas. While their goal seems to be to eventually expand into markets throughout the entire world, including emerging markets, their focus at this point should mainly be on more established countries where the demand will be much greater due to the larger percentage of consumers who can afford their product. They should also look to densely populated areas where they can be sure to see large amounts of traffic on a daily basis. They must also consider differences in host government demands when determining where to expand. Some markets may be more difficult to enter due to local rules and regulations that may not be in place in other countries. Since Starbucks has chosen to operate with local partners in their international markets it’s important that they choose locations where they feel comfortable and confident in the abilities of their...
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...Case Study Report Starbucks’ Corporation: Case Study in Motivation Submitted to: ----------------------------- Faculty, MBA Program, BRAC University Submitted by: SNS MBA, BRACU Course Title: Organization Behavior and Leadership Course Code: HRM 501, Section: 03 Semester: MBA, Fall-2013 Date of Submission: 8 November 2013 Introduction: This report is a part of Masters of Business Administration (MBA) program, Organization Behavior and Leadership (HRM 501) course of BRAC Business School. My respected faculty Mr. KMK assigned me to solve some questions related to the case named “Starbucks Corporation: Case Study in Motivation”. I am thankful to my faculty as solving this case helped me to get knowledge about motivation and teamwork. Data Sources: Two types of data are used to prepare the report, which are primary and secondary data. Primary Sources: • Case: “Starbucks Corporation: Case Study in Motivation” http://www.freeonlineresearchpapers.com/starbucks-case-study Secondary Sources: • Lecture notes on Motivation by Mr. Kazi Monirul Kabir • Published Documents related to Motivation Question-1: Starbucks’ employees can be seen as a formal team as opposed to an informal team. Differentiate between ‘formal’ and ‘informal’ teams. Answer: There are two types of teams: formal and informal teams. Starbucks’ employees can be seen as a formal team as they have managers and employees; a set of challenging plus specific...
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...There are multiple factors that Starbucks should consider in deciding where and when to expand into international markets. In determining where to expand it’s important that Starbuck’s considers the local demographics of each region they may expand into. When determining which countries or regions to expand into, they need to consider where consumer’s tastes and preferences align with their product offerings. In Starbucks case, they offer a product that is used by people worldwide but they sell it at a price premium so it’s important that they choose locations in more affluent areas. While their goal seems to be to eventually expand into markets throughout the entire world, including emerging markets, their focus at this point should mainly be on more established countries where the demand will be much greater due to the larger percentage of consumers who can afford their product. They should also look to densely populated areas where they can be sure to see large amounts of traffic on a daily basis. They must also consider differences in host government demands when determining where to expand. Some markets may be more difficult to enter due to local rules and regulations that may not be in place in other countries. Since Starbucks has chosen to operate with local partners in their international markets it’s important that they choose locations where they feel comfortable and confident in the abilities of their partners. They may find a market that seems very profitable...
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...Data Collection and Analysis of Starbucks Coffee Corporation Keller Graduate School of Management HRM 592: Training and Development February 10, 2013 Data Collection Analysis of Starbuck Coffee Corporation Starbucks, as we know, is the largest global coffee company and coffeehouse chain in the world. Employees, otherwise known as “partners”, serve hot and cold beverages, whole-bean coffee, instant coffee, tea and food to its customers or target market. As a former employee, or “partner”, this paper will show primarily the overall assessment of the partner morale and assessment of the skills appropriate for the levels of both Barista (entry) and Shift-Supervisor. The data collected provides insight on the entry level perspective of what the morale, skill level, and peer performance as well as the communication on the clock in order to meet the goals and objectives set by the mission. The overall determinant for this assessment is to establish the training and development needs of the Northridge, CA store of the Starbucks Coffee Corporation and to measure the effectiveness of the original training. Organizational Analysis Organizations name their objectives strategically in their mission statement, as well as in their initial training process. Strong and successful companies realize that in order to thrive, organizational analysis is imperative to continue growth and ever-changing modification of employee-applied strategies to continue within the market in alignment with...
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...Report to: Starbucks Corporation Abstract In this essay, an analysis will be provided to show the relative importance of each of the Porter’s Five Forces for the strategic position of Starbucks - an American global coffee company, in its coffee house industry compared to that of Costa Coffee and Café Nero Introduction Starbucks as a global coffee company has strong position in its industry, there are however variable external factors like environment, technical and economic changes which affect the strategic position of Starbucks. Data is collected and presented in the following paragraphs based on the model of Porter’s Five Forces. 1. Intensity of competitive rivalry Table 1 Company 2011 Sales (million) Starbucks £398 Costa £377 Café Nero £436 BBC News (2011) The intensity of competitive rivalry is high in the coffeehouse market. In the UK, Costa and Café Nero not only suit better the tastes of local UK people, but also have the financial resources and position to leverage their strengths to threaten Starbucks. From the Allegra Strategies Project Cafe UK report, Nero is the dominant player in the UK market among the top coffee shops in UK and enjoys the highest sales volume. (see table 1) Despite Starbucks’ as an iconic global brand, there is a slowdown in its expansion. (Bakery Info, 2009) There is also little scope for product differentiation of coffee, retailers focus on boosting spending of customers by offering food alongside drinks. Starbucks targets...
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...the corporate culture and values that the Starbucks Corporation has developed as an international company. Corporate culture is the shared values, traditions, customs, philosophy, and policies of a corporation. This influences the professional atmosphere that grows from this and affects employee behaviour and performance, it determines how employees think, act and feel. Every organisation has a different concept about the kind of culture that it should have, Howard Shultz CEO of Starbucks worked to instil key values and guiding principles into the Starbucks culture. The fundamental value was “to build a company with a soul,” to achieve this Shultz came up with a philosophy for Starbucks to “never stop pursuing the perfect cup of coffee.” This meant Starbucks had to control the quality of its products across all stores with Shultz strongly opposed to franchising in order to achieve this. Using high quality beans with no chemicals or additives was also central to the core values; this is even true in today’s Starbucks coffee. Following on from Shultz’s keystone value and it is the staff who are central to the soul of the company. The employee’s were selected for their character, personality and skills “to deliver consistent pleasing customer service.” Employee’s adopted Shultz’s core values to provide not just a perfect coffee but to provide an experience to Starbucks customers which led to the success of Starbucks and making customers want to come back....
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...Back Ground: Starbucks Corporation is the sector called Specialty eateries. It largest competitors are, PANERA BREAD, DIEDRICH COFFEE, and FLANIGAN'S ENTERPRSE INC. With Starbucks having more than 10 times the sales of its nearest competitor. An overview perspective shows that Starbucks is just slightly below the industry average in most categories. This is a negative aspect in some ratios such as current ratio but could be considered a positive in other ratios such as the Debt ratio. Analysis: The purpose of this report is to compare the market value of the securities for the Starbucks Corporation and compare this with the calculated financial figures from the financial statements, taking into consideration, the different types of debt the company owes, the preferred stock and common stock rights to the company. Evaluate your company debt, preferred stock and common stock as follows: a. Find the value (how much it is worth) of each issue separately (debt, if it has more than one kind of debt make sure to do each separately, etc).. b. Obtain the market value of these securities (that is how much they sell for) use sources such as the Wall Street Journal. LONG TERM DEBT: Given: Starbucks does not issues bonds; however for purposes of illustration we will assume that off it’s long term debt is issued as a bond that matures in 2011 Yield to Maturity Y= Annual interest payment+ (Principal payment – Price of Bond) Number of years to...
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...Starbucks Coffee Company Linda Estes American InterContinental University Principles of Accounting I Dr. Felicia Olagbemi November 30, 2012 Abstract Many companies have to follows the regulation of GAAP that are set by FASB. Starbucks as adapts and agree to do what the GAAP principles and standards which can affect Starbuck dignity. I will introduce what Starbucks is all about where it started from, GAAP and description of the account principles, cost, revenue and matching for Starbucks Company. Show the application of GAAP in cost recording, revenue recognition, and the matching expenses and revenues. Basically show how Starbucks became a million dollar company. Give a description of their recent accounting standards and pronouncement of the company. Describes how the assertion of internal controls of the company financial statements. Starbucks Coffee Company Introduction/Background Information The founder and CEO of Starbucks Corporation is Howard Schultz. Howard Schultz is a man of vision who turned and unknown coffee company in Seattle Pike Place Market into a large global coffee and the most want and best respected brands to have. (Moe, m 2006) The first store open was in 1971. Starbucks got a new name in 1987 when Schultz Company, II Giornale brought Starbucks and change the name to Starbucks Corporation, at that time it was only 17 stores open. Today, with more than 17 thousands stores in 50 nations, Starbucks has the best roaster coffee and retailer of all...
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...Stakeholder Analysis 3.1 Ethical theory Section 2 4.0 Dilemmas 4.1 Starbucks Cup Recycling 4.2 Starbucks Coffee Bean 4.3 The Dorosin Issue 4.4 Breastfeeding in Starbucks 4.5 Financial Loss 4.6 Starbucks Water Waste Section 3 5.0 Best practice 5.1 Official Website / information 5.2 Stakeholders 5.3 Environment 5.4 CSR – Corporate Social Responsibility Section 4 6.0 Recommendations 1.0 Methodology In this report will show that the ethical issues facing by Starbucks and the solution which can help Starbucks overcome the issues of Starbucks facing. Except researched the official website of Starbucks, but also viewing external agencies and individuals, journals and text books. Based on these sources, so author will be able provide an overview with objectivity of Starbucks organization. Besides, author appoints a stakeholder analysis, appropriate theory for state the better ways for Starbucks organization. In the beginning, it will show the company history, background and principles of the Starbucks organization. Based on these information can be enhance reader more understanding the Starbucks organization and find out what has been done or done in future and why Starbucks make these decisions. 2.0 Introduction Business Ethics can be define as the examination of the variety of problems that can arise from the business environment, and how employees, management, and the corporation can deal with them ethically. Problems such as fiduciary responsibility...
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...Starbucks - Segmentation and Target Market Paper MKT 571 March 11, 2014 Starbucks - Segmentation and Target Market Paper Company History Starbucks Corporation is the largest coffeehouse company in the world. Offering the world’s finest fresh-roasted whole bean coffees, this global American company’s history began with the opening of a single store in Seattle Washington’s Historic Pike Place Market in 1971 (Starbucks Corporation, 2014). Inspired by a roasting entrepreneur Alfred Peet, the founders, English teacher Jerry Baldwin, history teacher Zev Siegl, and writer Gordon Bowker created the current Starbucks name and green and white Siern Greek Mythology logo (Madison, 2011). Inspired from early traditions in coffee trade and the first mate from the novel Moby Dick, the unusual company and logo emerged. In 1981, Howard Schultz (Starbucks chairman, president and chief executive officer) first experienced coffee and was drawn to join Starbucks a year later. In 1983, after travels to Italy and becoming captivated by Italian coffee bars, Schultz brought back the Italian coffeehouse traditions to the United States (U.S.) (Starbucks Corporation, 2014). Schultz’s romance with the coffee experience had begun and within a few years he sought local investors and purchased Starbucks. Since Schultz’s purchase, Starbucks has partnered and dissolved its partnership with Kraft, added free Wi-Fi to their stores, placed product on supermarket shelves, partnered with Apple for an iTunes...
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...benchmark economic conditions that contribute to improve profitability, business growth and market size. Starbucks strategy is also expanding market in globally to provide high quality coffee in convenient and visibility locations. They are continuing to innovate and extend the business with imaginative new ready-to-drink beverages and expanded packaged coffee offerings (Starbucks Financial release, 2007). Starbucks Corporation has established by purchasing high quality coffee beans and sells the customers along with a variety a specialty drinks and food that has met with an ever-increasing amount of success. Starbucks have succeeded several economic factors as well as price elasticity of demand. Price elasticity of demand can be determined by the percentage change in the quantity demanded with the percentage change in price. They should consider household income that people are willing to spend more on food and beverages when household income increases. Starbucks innovation in joint ventures has opened new markets and opportunities increasing product use among different demographics. Starbucks has proven to be highly innovative in business culture that offers prepaid cards, priced from $5 to $500. Joint ventures with Pepsi Company, Dreyer's Grand Ice Cream Inc and inspiring entertainment with the launch of "Hear Music" have developed Starbucks with great success. Starbucks has shown their values, leveraging market power, resources, and capabilities to achieve returns higher than...
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