Starbucks Case Study

1012 Words5 Pages
The case study introduces and analysis the financial report of coffee branding giant- Starbucks Corporation from year 2010 to year 2012. Starbucks is a worldwide famous brand on roasting and retailing their specialized coffees. Their marketing technique is consider as one of the most successful among its competitors with its slogan “to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time” Starbucks procure, roasts high quality coffee beams and sell finished products in fancy packaging in its retail outlet stores spread over the world with teas and desserts. Starbucks Corporation expand its retailing outlet stores through joint venture and strategic acquisitions. In year 2012, Starbucks Corporation completed…show more content…
More, they acquired Teavana Holding Corporation who produce premium loose-leaf teas, high-class tea wares and other related side products. Now customers of Starbucks can enjoy premium coffee, high-end juice, high quality bread and high- class tea products all only in one Starbucks outlets located near their house or office building. Other from retail outlet stores, Starbucks offering many different types of goods to their customers. They produce customer packaging goods (CPG) to customers who want to bring premium raw materials to roasts a premium coffee or bake a premium bread in their own places. Such ready-to-drink instant product is selling worldwide in Starbuck’s retail outlet store, grocery stores, major food service hubs, universities and transportation hubs like airports and ports. Some of the can products are very popular among customers. The common ratio calculation method is introduced to analysis the financial condition of the fiscal report. 3 main tools are used in the…show more content…
But operating margin rose a bit, because the decrease in operating expensive compare with its total revenue. Such phenomenon indicates the changing of revenue proportion of overall revenue, revenue from company retail outlet stores declines which lead the retail outlet store operating cost dropped. But the net margins decreased from year 2010 to year 2012 due to increase in tax expense. Good news is that the asset management analysis shows a good result from year 2010 to year 2011, since there is a strong increase in net profit margin in year 2011. The fixed assets turnover also showed good result, even Starbucks opened 151 new company-owned stores, but they sold two office buildings which balance out the investment in fixed assets. This result is optimist for their shareholders, due to they are earning same amount of profit while using less fixed assets costs. The main problems Starbucks facing now is the operating risk for its high priced coffee drinks like Arabica coffee. The price of such coffee keep hitting new high. And on the other hand, it reduced the profitability of Starbucks Corporation due to the inventory cost. Also, its store revenue is remain the same at around 7-8% yearly growth rate from year 2010 to 2012. The gross margin of Starbucks Corporation dropped in year 2011, because of the high

More about Starbucks Case Study

Open Document