Financial Analysis of Starbucks Corporation

Starbucks was founded in 1985. Starbucks bought high quality beans and baked and started selling. Today, Starbucks offers tea and other beverages as well as coffee. The company's brand products will be brands of Starbucks, Tazo, Teavana, Starbucks VIA, Starbucks Refrers, Seattle's Best Coffee, La Boulange, Verismo. Starbucks is now a restaurant or specialty restaurant. In 2013, Starbucks stores entered 10,194 stores and 9,573 licensed stores.

The purpose of Starbucks financial analysis is to gain a deep understanding of annual financial reports and other company information. This gives measurable conclusions about the company. Understanding the nature of an enterprise's business is important by analyzing past economic and financial environment and strategic choices. The coffee industry has grown since 2002 and in recent years booms have occurred as consumers become more aware of espresso drinks and their manufacturing methods (H. Holmes, 2004). There are 20,000 stores in the coffee industry, with total sales of 11 billion dollars. Approximately 20 million people worldwide are engaged in the coffee industry. The market is concentrated on the top floor, 50 companies occupy 70% of sales and are scattered at the bottom. Starbucks is a market leader (franchise direct, 2010)

The purpose of this research was to conduct an internal analysis of the Starbucks as an organization and an external analysis of the coffee industry to study how Starbucks functions as an organization. This allows the author to make strategic recommendations to Starbucks in the coffee industry. The first Starbucks opened in Seattle in 1971. In the first 10 years, the company sold freshly baked gourmet coffee beans and accessories for brewing. In 1982, the founder joined the entrepreneur of Howard Schulz. Howard Schulz is responsible for retail and marketing companies (Garza, 2010). During Italy travel, Howard Schulz encountered Italian coffee culture. The cafe seems to be a meeting place for Italians. So they can be sociable and have leisure time. Schulz believes that this coffee culture can be reproduced in the United States. However, the idea of ​​Schulz was rejected by the founders.