Starbucks competes in the Service Sector, Specialty Eateries Industry and is the dominant player in the Gourmet Coffee segment. Starbucks has committed itself to a philosophy of Corporate Social Responsibility. This philosophy has led the company to develop ethical and environmental guidelines for the sourcing of its coffee beans. Starbucks is committed to enhancing and providing an excellent work environment for its employees and partners are treated with respect and dignity.

Starbucks, founded in 1985, by Howard Shultz has achieved an impressive rate of growth in earning per share of 20% per year for the past decade. The company has witnessed steady revenue growth in this time period, in spite of overall economic downturns. In addition, an impressive growth rate in store openings and success in maintaining the profitability of current operations. Starbucks has demonstrated its ability to grow steadily and responsibly. Although short term margins have tightened as a result of this aggressive expansion, its long term growth projections show promising growth in retail locations, steady sales growth at existing locations, and a continuously expanding product line that differentiate it from the competition and keep its customers coming back.

Starbucks’ ability to combat the risks and external threats that it faces from world economic factors, competitive forces come from its solid brand image, and its dedication to continual product innovation and the quality services that it offers its customers prove it to be a worthy investment.

The financial analysis of the company also provides us with more than ample reason to purchase Starbucks stock. Through our analysis using the SWOT Model, we’ve found that Starbucks is presently making smart choices and preparing for the future. Currently Starbucks is generating an increase in sales by 8% domestically