Weebly



00StarbucksCompany PortfolioLauren ZaffinoPrinciples of Management00StarbucksCompany PortfolioLauren ZaffinoPrinciples of Management178117512636500HistoryStarbucks opened in 1971 in the Seattle’s historic Pike Place Market. Their name was inspired by the novel, Moby Dick. In 1981, Howard Schultz who is Starbucks chairman, president and chief executive officer found Starbucks and invested in the company. He was inspired because of time he spent in Italy and wanted to take the traditional Italian coffee house to the United States. Starbucks wanted to be different from the start and wanted to make an impact, not only with great coffee but by being community leaders as well. ()Starbucks sells a wide variety of products. Some of their popular items are coffee, tea, and specialty drinks. Available in store are coffee cups, thermoses and other products anyone who enjoys coffee would enjoy. Anyone can buy a bag of Starbucks coffee in store or at a local grocery store. Also, available in most stores, is a selection of pastries and small snack items. Strategic Management ProcessStarbucks mission statement is as follows, “Our mission: to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time”. Below their mission statement they also acknowledge particular groups such as, Our coffee, Our partners, Our customers and so on. I believe they do this because there are so many facets of Starbucks. () “As we have grown to now more than 20,000 stores in over 60 countries, so too has our commitment to use our scale for good. So it is our vision that together we will elevate our partners, customers, suppliers and neighbors to create positive change. To be innovators, leaders and contributors to an inclusive society and a healthy environment so that Starbucks and everyone we touch can endure and thrive.” This statement from includes their objectives and strategies. Starbucks understands what the world is looking for in a company. They also realize their target market is a young generation that cares deeply about the environment and people. NAIC NumbersStarbucks NAIC number.NAIC Number?Index Entries722515?Bagel shops, on premise baking and carryout service722515?Beverage (e.g., coffee, juice, soft drink) bars, nonalcoholic, fixed location722515?Canteens, fixed location722515?Coffee shops, on premise brewing722515?Confectionery snack shops, made on premises with carryout services722515?Cookie shops, on premise baking and carryout service722515?Doughnut shops, on premise baking and carryout service722515?Fixed location refreshment stands722515?Frozen custard stands, fixed location722515?Ice cream parlors722515?Pretzel shops, on premise baking and carryout service722515?Snack bars (e.g., cookies, popcorn, pretzels), fixed location722515?Soft drink beverage bars, nonalcoholic, fixed locationCompetitive Arena3905256350014287543815000Market Share cont...The market share charts for Starbucks and its competitors show growth for Starbucks from 2011 to 2012. You can clearly see that the only competitor who did not improve from 2011 to 2012 was Kraft Foods. Starbucks gained 3% of the market share from 2011-2012. According to the data collected it would be safe to assume that this market is growing and Starbucks is actively growing with it. Unfortunately, these pie charts will have different companies then the competitive tables further on in this presentation. This is because the other four companies own the companies that Starbucks actively competes against in the market place. (Dunkin Donuts, Folders, Millstone etc.)Operations25717532448500You cannot get more than 170 miles away from a Starbucks in the U.S.A. () Starbucks operates in 62 countries with more than 18,000 stores today. Starbucks headquarters is in Seattle, Washington. Starbucks employees number over 200,000. () Three Comparative Charts of Starbucks Revenue and Income8572528638500-567626531496000The above charts are showing revenue versus net income. It appears that Starbucks net income has fallen dramatically in the past three years; while their revenue has been steadily rising. This is not unusual in anyway. The revenue should be higher than the net income. Perhaps the decrease in net income was because of new stores or new products. Starbucks could have been funding more humanitarian projects; more info would be needed to verify the decline in net Income. Organizational Chart-8572530289500There are many different executives in Starbuck’s hierarchy chart. Starbucks has many different departments and operates on a global scale. If you look closely you will see that people are heads of regions. This helps Starbucks preform very well all around the world. Stock Performance952501968500-583882554229000The first stock price line graph listed above show during the month of January 2014 the stock price has fallen. However, if we look at the five year stock graph it is shown that Starbucks has been steadily growing. The five year stock graph shows on 1/2/2009 the stock price was around $10.00 and now it is up to $80.00, which is a significant hike. While during the month of January the prices started at just above $78.00 and fell to around $71.00. Book Value to Market ValueAssets-Liabilities=Book Value$11,516,000,000-$7,034,400,000=$4,481,600,000.00Price of a Share X number of Shares Outstanding = Market Value72.8*755900000= $55,029,520,000.00Market Value= $55,029,520,000.00Book Value =$4,481,600,000.00This scenario presented above is actually a very good situation for Starbucks, or any company to be in. A company wants their market value to be more than the book value. This shows that the public thinks your company is worth a lot. The difference between these two is $50,547,920,000.00 (Market Value-Book Value) Human Capital Employment?StarbucksJ.M. SmuckerKraft?2/21/20142/21/20142/21/2014Number ofEmployees182,0004,87523,000Average Salary$88,044 $46,250 $72,838Gross Revenue$15,340,000,000$5,897,700,000.00$18,220,000,000Gross Revenue perEmployee$84,285.71$1,209,785.00$792,174.00Net Income$8,300,000.00$544,200,000.00$1,642,000,000.00Net Income perEmployee$45.60$111.630.77$71,391.30This chart has been filled in with the best available data. Finding the numbers of employees was difficult. Yahoo Finance said that Kraft only had 23,000 employees; Kraft is a huge company that sells many different brands, 23,000 employees seems very low. For Starbucks and J.M. Smucker I found the same problem, Yahoo Finance, IBIS and the company’s websites offered very little information on employees. I have listed in the source page where I found this data. With the information that is presented in the chart you can see that Starbucks gross revenue per employee and their net income per employee is very low compared to their competitors. Consumer Brands76200019685000Data TableItemCompany Annual StatementYahoo FinanceIBIS Company ReportIBIS Industry ReportRevenue 2013 $ 14,982,200,000.00 $ 14,892,200,000.00 $ 1,705,300,000.00 $ 11,316,500,000.00 Revenue 2012 $ 13,299,500,000.00 $ 13,299,500,000.00 $ 1,536,300,000.00 $ 10,529,800,000.00 Revenue 2011 $ 11,700,400,000.00 $ 11,700,400,000.00 $ 1,075,500,000.00 $ 9,163,200,000.00 Net Income 2013$ 8,300,000.00 $ 8,300,000.00 $ 393,900,000.00 N/A Net Income 2012$ 1,383,800,000.00 $ 1,383,800,000.00 $ 336,300,000.00 N/A Net Income 2011 $ 1,217,700,000.00 $ 1,245,700,000.00 $ 201,200,000.00 N/A Assets-Latest Financial Statement $ 11,516,700,000.00 $ 11,516,700,000.00 N/A N/A Liabilities-Latest Financial Statement $ 7,034,400,000.00 $ 7,036,500,000.00 N/A N/A Owners' Equity-latest Financial Statement $ 11,516,700,000.00 $ 4,480,200,000.00 N/A N/A ?????The DecisionAfter researching a vast amount of information on Starbucks I would like to think if I had a substantial amount of money that I would invest. Most of my reasoning lies in the fact that they try to do as much good as possible. They have many programs that help children around the world. They try to get ethically grown coffee beans and supply their labor force with good wages and benefits. On the business side of my decision I think Starbucks has proved itself to be a great brand. They started very small and have grown so much in the past 40 years. Unlike their competitors Starbucks has held its own and has not been bought out (like Dunkin Donuts) by a huge company. Their success lies within themselves. I think that is important to consider. Their stock has dropped, but they are still beating Dunkin Donuts and Kraft by over $20.00 in stock price. After reviewing their finical documents; their cash dividends per share have been rising. I believe that Starbucks will start making more money and their net income will increase to what it was in 2011 and 2012. ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download