1 Introduction 2
2 Starbucks Vision, Mission and Objectives 3
2.1 Vision statement 3
2.2 Mission Statement 3
2.3 Environmental Mission Statement 3
2.4 Objectives of Starbucks 3
3 Financial Analysis 3
3.1 Profitability and Revenue 3
3.2 Efficiency and Debt ratio 4
3.3 Product Mix Revenue 4
3.4 Global stores growth 4
3.5 Starbucks SWOT Analysis 5
3.5.1 Strengths 5
3.5.2 Weaknesses 5
3.5.3 Opportunities 5
3.5.4 Threats 6
3.6 Ansoff’s matrix analysis for Starbucks 6
4 Specialty Coffee Market Competition 7
4.1 Overview of Starbucks competitors 7
4.2 Financial analysis between Starbucks and Dunkin Donuts 7
4.3 Starbucks versus Dunkin Donuts strategies 8
5 Analysis of ...view middle of the document...
S. city of Seattle. In 1975, the company was transferred to the Pike Place Market in Seattle, where Starbucks eventually became part of the local folklore. In 1982, Howard Schultz was hired to develop the company's retail operations and marketing. In 1987, Howard Schultz bought Starbucks with the support of local investors and became the company's Chief Executive Officer (CEO).
Starbucks went public in 1992, and in 1996, it undertook significant international expansion, adding openings in Japan and Singapore to its 1,000 stores. Starbucks ended 1999 with 2,500 stores. In 2000, Howard Schultz forfeited his executive functions and named Orin Smith president and CEO, and Schulz became the company's chairman and chief global strategist.
2 Starbucks Vision, Mission and Objectives
2.1 Vision statement
To establish Starbucks as the most recognized and respected brand in the world and become a national company with values and guiding principles that employee could be proud.
2.2 Mission Statement
To inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.
2.3 Environmental Mission Statement
“Starbucks is committed to a role of environmental leadership in all facets of our business.”
2.4 Objectives of Starbucks
To grow by making employees feel valued
To recognize that every dollar earned passes through employees’ hands
Use the pays, benefits and opportunities for personal development to help gain employee loyalty and become difficult to imitate.
3 Financial Analysis
3.1 Profitability and Revenue
Looking at a 15 year period ratio and growth analysis of Starbucks’s financials from 1998 to 2013 annual reports, we can see that the revenue growth of the company has experience a drop of -6% during the 2008/09 recession but from then on, Starbucks posted a healthy revenue growth from FY2010 to FY2013 posting good growth of 14% in FY2012 and revenues of $14.9 billion for FY2013.
The operating income margins have increase substantially from USD504 million in FY2008 to a high of USD1.97 billion in FY2012. Starbucks posted an operating loss in FY2013 and this resulted in an operating margin of -2.2% for that year (annual report, 2013).
The main reason for that is due to the litigation charge of $2.75 billion to Kraft Foods for terminating the agreement with them. This charge is treated as extraordinary event and therefore should be discounted from the overall healthy operational performance of Starbucks (annual report, 2013). Starbucks ROE and ROA have been impressive with 29.2% and 17.8% respectively for FY2012 (annual report, 2012).
3.2 Efficiency and Debt ratio
Looking at Starbucks efficiency ratios, Starbucks has gained significant operational efficiency with impressive asset and inventory turnover ratios with a low of 1.29 and 6 respectively for FY2013.
Starbucks boasts good financial health with low debt/asset ratio of 0.61 for FY2013 and maintains good current ratios of 1.9 for FY2012 which...