Starbucks - 2621 Words

Starbucks Josh Thomas LCSC October 18, 2012 Abstract This paper looks at Starbucks history and evaluates its current financial situation. Their sense of community, responsibility and social awareness has made Starbucks the company that it is today. Starbucks has adopted a unique culture that is hard to duplicate by other organizations. As stated on their website, the company’s vision is to establish Starbucks as the most recognized and respected brand in the world. The ideals, along with the leadership of Howard Schultz, Starbucks CEO, has helped position the company where it is today, which in turn has positively affected the financials of the organization. This paper examines the financials and makes recommendations for new†¦show more content†¦In the period ending 2010, Starbucks revenues were 10,707,000,000. The revenues increased to 11,700,000,000 in 2011 and in 2012 increased again to 13,300,000,000. The income statement for the fiscal year ended February 26, 2010 shows that the net incomes attributable to Starbucks were 946,000,000. Net income increased to 1,246,000,000 in 2011. Revenue and net income increased indicating that the company is doing well even with the tough economic times. This would be an ideal financial situation thus making Starbucks ideal to invest in new technology. Starbucks balance sheet shows the financial position of the company. Investors and analysts use the balance sheet for information on the company’s assets and capital. In 2010, Starbucks current assets were 2,756,000,000. In 2011 the current assets increased to 3,795,000,000 and then increased again to 4,200,000,000 in 2012. With the increase in assets, it is an indication that Starbucks may be doing well or at least making enough money to acquire new assets. The current liabilities in the years 2010 and 2011 for Starbucks were 1,450,000,000 and 2,051,000,000 respectively. From 2010 to 2011 common equity increased from 3,675,000,000 to 4,385,000,000. This indicates that people are investing in Starbucks and the company is making money. The liquidity ratio of Starbucks measures its ability to meet its obligations that are short term. Cash, quick and current ratios are used to assess the short termShow MoreRelatedStarbucks And Starbucks : Starbucks1047 Words   |  5 PagesIntroduction: Rumors have fluttered about a widely known company that specializes in coffee called Starbucks. The rumor accused Starbucks in 2004 over an email. A Sargent in the Marines helped make the email go viral. A friend of his informed him about the email and it then began to spread like wildfire. According to the Sargent, he actually contacted the disgruntled sender and got a â€Å"real story† from him, but this was never actually verified as to whether or not it’s true. The whole situation upsetRead MoreStarbucks : The Success Of Starbucks1080 Words   |  5 Pages What factors accounted for the extraordinary success of Starbucks in the early 1990s? What was so compelling about the Starbucks value proposition? What brand image did Starbucks develop during this period? The factors for the extraordinary success of Starbucks is all due to the vision of Howard Schultz. Schultz wanted to change the coffee drinking experience by establishing benefits to create value in the coffee drinking experience. One of his vision was to recreate the coffee culture in ItalyRead MoreStarbucks : The Entry Of Starbucks923 Words   |  4 PagesThe entry of Starbucks in Australia began in July 2000. The Starbucks Australia is a wholly owned subsidiary as a joint venture between Markus Hofer and Starbucks Coffee International, subsequently licensed its local chain to the Withers Group, which operates 7-Eleven in Australia. 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Starbucks continues to come up with more and more innovations and ways to market their products. Last year Starbucks started bottling their iced coffee and selling them as a new product lines in their stores, as well as many new sandwich choices. The ability to provide fresh new ideas year after year provides Starbucks with a growing customer base and a growing net gain. Starbucks will continue to come up with new ideas and products that will continue to bring inRead MoreStarbucks Case Analysis : Starbucks1580 Words   |  7 Pages7/25/15 Starbucks Case Study I chose to do a case analysis on Starbucks because I am a huge fan, as a college student I am addicted to caffeine and Starbucks is how I get my caffeine fix! I am a gold card member with Starbucks meaning, I drink so much of their coffee they rewarded me as a valuable customer. Some perks include a free food or beverage after twelve purchases, a free food or beverage on my birthday, as well as discount coupons and exclusive member deals. The first Starbucks locationRead MoreStarbucks1117 Words   |  5 Pagesï » ¿Starbucks started in 1971 and by creating a cozy third place to customers beyond home and work and offering a slightly higher price yet fine quality coffee, within 25 years, it had opened just over 1000 stores. In order to maintain its leadership position, Starbucks had continued pursuing growth opportunities by selling Starbucks products through mass distribution channels and expanding its retail footprint. Along with the rapid expansion and success, Starbucks has encountered financial downturn