...Starbucks is considers the one of the most famous coffee store brand in the world, based on the case we can find that it is on the leading position of coffee market, it has a significant sales growth compare other brand in the market. But in recent year it seems start to facing more challenges from different aspect and these challenges had became a resistance of its business expansion. 1. Financial Analysis Income statement: Based on the case we can find that there is a huge net income increase from 1994 to 1999. It is more than 10 times different within 6 years. On the other hand, the retail and specialty sales has sharply growth in these years. Net Earning |Year |1994 |1995 |1996 |1997E |1998E |1999E | |Net Earnings (US$ Thousands) |10206 |26102 |42128 |57700 |84900 |113000 | [pic] Total Sales | |1997E |1998E |1999E |2000E | |Year | | | | | |Total Sales (US$ Millions) |9 |30 |73 |150 | [pic] Balance Sheet: a. Working Capital = Total Current Assets – Total Current Liabilities | | | | | | ...
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...Introduction | 2 | 2.0 | Introduction of Starbucks | 3 | 3.0 | Introduction of PEST analysis | 4 – 6 | | 3.1 Political-legal forces | | | 3.2 Economic forces | | | 3.3 Socio-cultural forces | | | 3.4 Technological forces | | 4.0 | PEST components of Starbucks | 7 – 8 | | 4.1 Political-legal component | | | 4.2 Economic component | | | 4.3 Socio-cultural component | | | 4.4 Technological component | | 5.0 | Conclusion | 9 | 6.0 | References | 10 – 11 | 7.0 | Appendixes | 12 | 1.0 Introduction First of all, I would like to thank my lecturer, Miss Kanchini who is providing adequate information about the task which given in this Business Management assignment. For a business to be succeed in the market, each of the business need to analyze their surrounding environment for the purpose of increasing their revenue and to be stayed longer in that particular market. There having two types of environment to be analyzed which are internal and external environment. Internal environment of a business is indicating the strengths and weaknesses of a business that must be identified to do some changes on weaknesses and strengthen the strengths owned. For the external environments which influence the long run decisions of an organization also needed to be analyzed especially for the bigger company so that the business will last longer in the market. There are several types of external environment such as PEST, PESTLE, and STEEPLE analysis...
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...| Starbucks the Coffee House of Choice Due to the fact that Starbucks is completely different than any other coffee shop in the world we must recognize that there is something vitally important and “American” about it. Although it is an American company Starbucks is very well known and can be recognized by people around the world. The CEO of Starbucks Howard Schultz was known to have said that their culture denotes the values of their company. Starbucks has revolutionized making coffee the “old fashion way with a twist. They have found a way to make coffee which is authentically delicious without making it too expensive or time consuming. They have done this so that they can attract new customers while keeping the old one’s coming back for more. General environment factors The Macro environment is factors that are associated with the economy of the country that business is taking place. Starbucks has been known to lower their prices in countries were the economy is on a down slope. For example when China was in a recession Starbucks lowered the price of their coffees so that they could remain in Business. They also found a way to lower the cost of the actual production. This enabled them to receive the loyalty of the Chinese Market while remaining afloat. Whenever a company does business in foreign land they have to make sure that they are appealing to the consumers in that land. Due to the fact that Starbucks is technologically savvy they made sure come up...
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...Economic Sciences, Communication and IT Business Administration Starbucks with Corporate Social Responsibility (CSR) “How Starbucks succeeds in a business world with CSR” 15 Credits Master Thesis (FEAD 01) Thesis Advisor: Bo Enquist Co-reviewer Lars Haglund The Authors: Sornchai Harnrungchalotorn Yaowalak Phayonlerd Karlstads universitet 651 88 Karlstad Tfn 054-700 10 00 Fax 054-700 14 60 Information@kau.se www.kau.se ACKNOWLEDGEMENT Acknowledgements Our thanks go first and foremost to our supervisor, Bo Enquist for his insight support and constructive criticisms during our writing of this thesis. Moreover, we would like to thank Samuel Petros S. for recommending the books and the way to conduct this thesis. We also want to thank the librarian at university for helping us to find the books to run this thesis. Page 2 of 41 ABSTRACT In the today‟s business world, there are many strategies being used to run businesses. In the recent past, the topic of Corporate Social Responsibility (CSR) has grown rapidly. People are starting to demand that companies take their social responsibility seriously. Many companies have started to engage in CSR as a strategy in order to gain benefits that can give them an added advantage over their competitors. There have been increasing numbers of companies engaged in CSR to run their businesses. Nowadays corporate social responsibility (CSR) can drive companies to succeed in business by increasing sales volume and brand...
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...INTRODUCTION: Starbucks Corporation started its business in March, 1971. It was a single store that provided the best quality coffee made from the fresh roasted coffee beans. In 1981 Howard Schultz joined the company and he travelled to Italy and visited many Coffee Bars there and brought new ideas with him. He wanted to introduce the Italian coffee tradition in the America. The idea was to create a third place for the people other than the office and workplace where they can socialize with each other. With this vision, in August 1987 he purchased Starbuck with the help of a local investor and launched an outlet outside Seattle. (Starbuck, 2013). By the time, the store kept on growing and today it has more than 17,000 stores in 55 countries. It is the largest retail coffee retailer of the world that claims to work on the original vision of its Chairman Schultz. More than 100 million of American takes 3 to four cups of coffee daily on average basis and it is interesting to know that 25 million of the coffee drinker are the Starbucks customers. Starbucks Coffee price is significantly high than of its competitors but that does not affect the profitability of the company because customers are willing to pay that price as the brand provides them the best quality coffee. The company’s mission for being socially responsible has also earned a lot of respect and the positive image for the company. (Starbuck, 2013). The Starbucks Corporation has employed more than 100,000 employees...
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...| HND Business | | Marketing Principles | | LCC20146213 | | Taslim Ahammad | | 20/03/2015 | Hyasmin Hyasmin Unit 4: Marketing Principles Task 1 1.1: Elements of the marketing process Marketing is the action of a business endorsing, promoting and selling products or services, including that of market research, surveys and advertising. It’s the method of which goods and services move from concept to the consumer. “Marketing is a human activity directed at satisfying human wants and needs” (Phillip Kotler). The marketing process involves four steps. These four steps are all accomplished with the goal of creating value for your target consumers. Some elements of the steps are performed continuously, such as monitoring the marketing environment this can be done by market research. A SWOT analysis is an organized planning method used to evaluate the strengths, weaknesses, opportunities and threats involved in a project or in a business. The four elements that Starbucks marketing consist of are; product or service, place, price, promotion. When marketing a product or services there should be an established price that balances the other elements of the marketing mix. When setting a price, Starbucks must be aware of the customer supposed value for the product or service. There are various features of the marketing method for example: scanning the marketing environment, targeting strategy, segmentation and positioning. ...
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...Managing Diverse Employee at Starbucks: Focusing on the ethic and Inclusion Abstract Workforce diversity is a reality of the modern times for every organization and managing it effectively can lead to a sustainable competitive advantage. The purpose of this paper is to discuss how managers lead diverse employees in a global environment and what makes this company so unique. Effective management of diversity is not only employing diverse employees, but learning to appreciate, respect and respond to the needs, value, and beliefs of diverse employee and provide a positive work environment. Therefore, we will analyze the general environment and task forces that affect the diversity, as well as the challenges faced by Starbuck managers when managing diverse employees. Besides, the impact of diversity on the company performance will be subject of analysis through a value driven perspective. Lastly, we will identify some of the best practices for effectively managing diversity and propose some recommendations. Introduction One of the greatest challenges for managers today is managing the increase of diversity in the workplace. Diversity is defined as” dissimilarities or differences among people due to age, gender, race, ethically, religion, sexual orientation, education any characteristic that are used to distinguish between people. According to the Thompson (2005), organization who limits the kinds of people they are willing to hire, are limiting also the talent pool from...
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...CSR Within Starbucks [pic] Written By: Ashley Benton Charles Yeung Karin Sigl Krishna Oedjaghir Virginie Laroque Hong Kong Baptist University Cross-cultural and Comparative Management BUS 3690 Prof. Anne Marie Francesco 1 Introduction "The future belongs to those who understand that doing more with less is compassionate, prosperous, and enduring, and thus more intelligent, even competitive." Paul Hawken In a world, where more and more interest in performance in sustainability, in moral defensibleness, in the operational activities of companies is developed, there takes place a change from the only profit-oriented firm to a more environmentally oriented, pro bono targeted firm. This change can be seen all over the world and it has generated the term Corporate Social Responsibility (CSR). CSR is the activity of companies in matter of the environmental, the social and operational responsibilities. While achieving high profits might have been the only interest some years ago, the demand by share- and stakeholders for a good CSR-performance is now gradually increasing. In that matter, stakeholders could be (Ballou et al., 2006): ● Financial stakeholders as shareholders, banking institutions, employees, ● · Supply chain stakeholders as customers, direct suppliers, alliance partners, ● · Regulatory stakeholders as the FDA, Environmental Protection Agency, accounting standard setters, ● · Political stakeholders as federal, state and...
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...Internet at Starbucks Starbucks is now offering free, one-click, unlimited Wi-Fi to all of its company-owned stores in the United States. That means Wi-Fi at Starbucks is now: * Free – no Starbucks Card required * One-Click – no username or password needed * Unlimited – no 2-hour restriction What keeps this business moving? Work environment – greatest assets to the company. 401k for part-time employees. Question 5 Community service goals Proactive with tornadoes Question 6 Current debt ratings Include the growth charts Moddy’s rating for bonds. Question 4 What keeps the customers coming coffee or free stuff? Wireless Internet at Starbucks Starbucks is now offering free, one-click, unlimited Wi-Fi to all of its company-owned stores in the United States. That means Wi-Fi at Starbucks is now: * Free – no Starbucks Card required * One-Click – no username or password needed * Unlimited – no 2-hour restriction What keeps this business moving? Work environment – greatest assets to the company. 401k for part-time employees. Question 5 Community service goals Proactive with tornadoes Question 6 Current debt ratings Include the growth charts Moddy’s rating for bonds. Question 4 What keeps the customers coming coffee or free stuff? Wireless Internet at Starbucks Starbucks is now offering free, one-click, unlimited Wi-Fi to all of its company-owned stores in the United States. That means Wi-Fi at Starbucks is now: ...
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...Introduction Starbucks, known as one of the most popular coffee franchises in the world with over 17,000 stores in 49 different countries in present days was founded in year 1971. Starbucks Company has been loved by people for revolutionizing people’s leisure time with the quality of services and the quality of the products they provide, but the real key points to its success were different aspects they cared about including employee aspect, customer aspect, and even society aspect. When the company started to grow, they started to be responsible for such aspects other than just caring about the profit they can earn by increasing awareness of ethics in its business and launching Shared Planet website with three different goals in order to involve the company’s commitment to ethics and sustainability. Starbucks is a company which trying to stay close to us, hears us, and respond to the customers, employees, the public, and us. Why do you think Starbucks has been so concerned with social responsibility in its overall corporate strategy? There are many different reasons why Starbucks has been so concerned with social responsibility. Firstly, human resources, teamwork and involvement can let the current employees and potential employees know that they are working in Starbucks for a good cause can encourage and motivate them to work better or wants to work for the company. Secondly, brand differentiation. Stating the company’s futuristic goals on either their official website...
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...Study: Starbucks and Conservational International Tutorial 104 Yifan Wang 20408850 1. Discuss the rationale for, as well as the benefits and risk of the collaboration between Starbucks and Conservation International (CI) from each party's perspective. The collaboration between Starbucks and Conservation International is actually win-win strategy. They both would like to develop a partnership to leverage their expertise. The rationale for the collaboration is that they need to find common ground. There is space for both of them to improve each other. Starbucks: Benefits: * Sourcing stable and high-quality products from farmers, * Enhanced social reputation in terms of its contributions to environment and society, * Become more competitive with the support of NGOs Risk: * Farmer lack information about market’s expectation, * Guarantee loans to farmers * Lack of support from the whole industry CI: Benefits: * realizing CI’s mission to preserve the environment and biodiversity in the buffer zone * Farmers get financial supporting and gain more earnings, * Great experience with Starbucks, and enhanced social reputation Risk: * Shift attention from field-based projects to advocacy policy and scientific research, * Farmers are lack of business and commercialization skills and the geographic isolation of the coffee communities, 2. Contrast the relationship between Starbucks and CI with that of Starbucks and the...
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...and Principle 3.0 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...
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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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...satisfaction and fidelity, which led to much lower turnover comparing to other rivals. Finally, the firm differentiates itself from other major competitors by focusing on customers who are knowledgeable about their sports and outdoor activities (niche market of dirtbags) and willing to pay additional amount for superior quality. It is true that Patagonia's environmental position contributed to company's competitive advantage in positive ways, such as strengthen the company's uniqueness against rivals. Also we could believe that business and sustainability seems to be compatible when we se how the positive and improved image of Patagonia helped it to gain legitimacy with stakeholders; or when its competitors are making some changes based on shared broad sustainability practices initiated by Patagonia. But balancing commitment to business with commitment to environment is a much more complicated issue for Patagonia, because the idea of running a for-profit business implies operating at the lowest cost, growing as rapidly as financially feasible, and maximizing returns to financial stockholders. Whereas a...
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...on business Starbucks Corporation, based on Seattle, is the world’s largest coffeehouse with 20891 stores in 62 countries. (Starbucks- Annual report, 2012). From the very beginning, till 1971, Starbucks has been relentlessly trying to satiate customers thirst for high quality coffee with the touch of friendliness in its environment. Starbucks mission statement “To inspire and nurture the human spirit- one person, one cup, and one neighborhood at a time” also shows its commitment towards total customer experience rather than only a material taste of the coffee (Starbucks 2013). Throughout this whole report I tried to find out influence of consumers behavior over the activities of Starbucks. As the normal process of expansion Starbucks has expanded towards the South Asian region. On the basis of this initiative I assumed Starbucks would go further and invest in Bangladesh. And tried to analyze consumers’ behavior of Bangladesh and show its macro and micro factors’ influences over Starbucks present marketing practices. Starbucks SWOT analysis “SWOT analysis pursues and integrated approach that includes key variables from company and environment. The objective is the confrontation of the company’s internal strengths and its weaknesses, as well as, company-external business opportunities and threats in order to generate possible strategic options.” (Bohm, 2009, p.1) The SWOT analysis of Starbucks can...
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