INTRODUCTION Starbucks coffee is a growing company. This year it has gained a spot on the fortune 500 with being number 456. Starbucks goal is to become the leading retailer and brand of coffee in each of its target markets by selling the finest quality coffee and by providing superior customer service by building a high degree of customer loyalty. It will increase its market share in existing markets and to open stores in new markets where the opportunity exists to become the leading specialty coffee retailer. “Establish Starbucks as the most recognized and respected brand in the world.
To achieve this goal, the Company plans to continue rapid expansion of its retail operations, grow its Specialty Operations and selectively pursue other opportunities to leverage the Starbucks brand through the introduction of new products and the development of new distribution channels” (Annual Report 15).
History The first Starbucks was opened in Seattle at Seattle’s Pike Place Market in 1971. By 1990 Starbucks had expanded their headquarters in Seattle and built a new roasting plant, a total of 84 locations were reported in 1990. In 1992 Starbucks offers the new common stock that was traded on the NASDAQ National Market under the trading symbol “S BUX.” Starbucks begins the Barnes and Noble Inc.
relationship in 1993 and has a total of 272 Starbuck stores. Starbucks goes overseas in 1995 into Canada and starts to develop Starbucks Coffee International in Japan by forming a joint venture with SA ZABY Inc. By 1996, Starbucks has locations in Japan, Hawaii, and Singapore. North American Coffee Partnership (Starbucks and Pepsi-Cola Company business venture and begin selling bottled versions of Frappuccino. In 1997, Starbucks forms alliances with eight companies to enable the gift of more than 320, 000 new books for children through the All Books for Children first annual book drive, and Starbucks also benefits local literacy programs in different communities where Starbucks coffeehouses are found. The first starbucks.
The Business plan on Starbucks Coffee Market Customer
... target. Starbucks looks to enhance their brand image in the US market to increase their product sales from the stores that carry Starbucks coffee drinks, ... income increased to $53. 2 M in 2003. The coffee giant acquired Seattle Coffee Company from AFC Enterprises for $72. 0 M in 2003, ...
com launches in 1998. Starbucks start a licensing agreement with Kraft Foods to extend the Starbucks brand into grocery channels across the U. S. and by 2000 there are over 100 locations in the Albertson’s supermarkets and over 2, 135 locations worldwide. FLO, Fair-trade Labeling Organizations International, signs with Starbucks enabling to enter with national Fair-Trade organizations to sell Fair-Trade certified coffee in the countries where Starbucks does business. By the end of September 2002, 5, 886 Starbucks locations were total with more locations on the way.
Major Products Starbucks has many products and to this day are still inventing and bringing up new products. The main product Starbucks produces is high quality whole bean coffees along with fresh rich-brewed coffees, Italian-style espresso beverages, cold blended beverages, a variety of pastries and confections, coffee-related accessories and equipment, a selection of premium teas and a line of compact discs primarily through Company-operated retail stores. Starbucks also produces and sells bottled Frappuccino and Starbucks DoubleS hot coffee drinks and a line of premium ice creams. Stock Prices Latest High Low 7 April 2003 20 March 2003 22 July 2002 25. 52 26. 56 18.
44 Pricing delayed 20 minutes Profit to Earning Ratio Price/Earnings Ratio is a widely used stock evaluation measure. For a security, the Price/Earnings Ratio is given by dividing the Last Sale Price by the Average EPS (Earnings Per Share) Estimate for the specified fiscal time period. Home Offices and Number of Locations The home office for Starbucks is in Seattle Washington. As of September 29, 2002 the group had 3, 496 stores operating only in the United States, Canadian provinces, the United Kingdom, Australia and Thailand, North American retail accounted for 77% of fiscal 2002 revenues; business alliances, 7% and all other business units, 16%. Primary Officers at Starbucks Chairman and Chief Global Strategist – Howard D. Schultz President, CEO, and Director – Orion C.
The Business plan on Starbucks Coffee Company 2
Beauty is only skin deep, companies must look within to secure longevity. Before a company can successfully bring a mission statement and vision to fruition, they must take a good hard look at their business plan. A company must reflect upon internal strengths and weaknesses, external opportunities and threats, and consider the trends associated with each. The fundamental process of strategic ...
Smith EVP, CFO, and Chief Administrative Officer – Michael Casey Number of Employees at Starbucks In the year of 2002 there were a reported number of 62, 000 employees with a 1-yr growth of 14. 8%. CONCLUSIONS AND RECOMMENDATIONS I definitely think starbucks is a very good company to invest in mainly because it keeps growing larger and larger. The company’s goal is to become the leading retailer and brand of coffee and related products. (As of the end of fiscal 2002, we have enjoyed 123 consecutive months of positive comparable store sales growth, and 11 consecutive fiscal years of comparable store sales growth of 5% or more.
We delivered fiscal 2002 revenue growth of 24% and net earnings of $215. 1 million-the highest reported net earnings in the Company’s history. Of course, we do not intend to rest on past achievements. While we are committed to our core business-coffee- we remain an entrepreneurial company that thrives on innovation and stellar execution. ) They are very focused and they are growing rapidly. Here is what analyst recommend about the company:.
