Premium Essay

I Just Want to Register

In:

Submitted By kasha
Words 5621
Pages 23
What Went Wrong with Starbucks? Financial Analysis and Business Evaluation Case Study
By Julia S. Kwok* Elizabeth C. Rabe Northeastern State University

* Corresponding author: Department of Accounting and Finance, College of Business and Technology, Northeastern State University, Broken Arrow, OK 74014; Email: kwok@nsuok.edu; Phone: 918-449-6516.

What Went Wrong with Starbucks? Financial Statement Analysis
Abstract After decades of grande growth based on the Starbucks experience, Starbucks Coffee Company experienced continuous drop of stock price since the beginning of 2007. Upon first glance of their financial statements, there was 20% increase in revenues and 9% increase in net income last year. Such growth could be counter intuitive to the drop of market value. This case encourages a more in depth examination of how the financing of the expansion impacted financial ratios. Further assessment should evaluate the impact of expansion on the company‘s free cash flows and return of the capital investment. Students would need to evaluate the relative contribution of factors leading to the drop of the stock price. The case provided detailed information that would allow students to investigate the impact of the economic and business conditions, the competition and Starbuck‘s business strategies on their financial performance. The students were advised to consider what changes to Starbuck‘s strategies could increase the economic value added of the expansion and help to reverse their road to failure. This case illustrates the importance of analysis of free cash flows and return on capital when making capital budgeting decisions.

Keywords: financial statement analysis, ratio analysis, common size statement, Du Pont analysis, free cash flows, expansion, economic value added JEL classifications: L25, G31, M41, F23, L22

Starbucks Coffee Company

Why went wrong

Similar Documents

Premium Essay

T301 Unit 3 Research Paper

...use the application to order pizza(s) and other side items available in the pizza shop. Assume the role of the customer. Identify 10 user requirements in user story format “As a (role), I want (feature), so that I...

Words: 1221 - Pages: 5

Free Essay

First Job

...October when I was hired to Kmart. Now I had just turn 16 two months ahead and this was my first job so I didn’t know anything about working for a retail store. I was hired on as a cashier; that meant I was the last stop in the store before a customer left with their merchandise that they have purchased. Being a cashier you have to be nice, greet the customer with a smile, and occasionally hold a small conversation with them. This was easy for me because I am a nice person, I smile a lot, and I can talk to just about anybody. On my first day working for Kmart was pretty good, I came right on in and they assigned and girl name Morgan to help me learn how to work the register. She just moved out the way and came to my side to tell me what to do as I was doing a transaction. I am going to be honest I was scared because I didn’t know what I was doing, but then again it was just my first day. After a couple of transactions I started to get the hang of checking people out and it wasn’t as hard as I thought it was going to be, then again I was just pushing a couple of buttons. During the slow times while we didn’t have any customers I talked with the other cashiers and got to know them. All of them seem to be pretty cool and we all got along very easily. About an hour went by then it was time for me to leave, but another girl came in, her name was Shanikka. I just worked with her then until it was time for me to go home. A few more hours went by, then she left me on the register by myself...

Words: 500 - Pages: 2

Premium Essay

T301 Unit 3 Project Planning Assignment

...As a customer, I want the online application to allow me to register with the pizza shop by providing my name, address, and the email address to receive coupons and other promotional offers when such offers are available 5 days 1 Week REQ2 As a customer, I want the application to allow me to register with just my email address in cases I do not wish to provide my name and address 2 days 2 days REQ3 As a customer, I want to see the daily specials along with the original price and the discounted price for items available at a discount. 4 days 4 days REQ1 and REQ2 REQ4 As a customer, I want the system to allow me to select available specialty pizzas and add them to the shopping...

Words: 1760 - Pages: 8

Premium Essay

Personal Narrative: What To Do During The Summer

...In order to be prepared for college this fall, there are many things I could do during the summer. First I will register for orientation.Since there is a fee for family orientation I might not take my parents. We might just go on a self guided tour around campus. During orientation I will register for classes and meet my counselor. Although I did receive lots of financial aid I still have to find a job soon so I can save money for college. I will also continue applying for as many scholarships are available. I will also contact roommates to make a list of things we need to pack. That way we can all agree on what each one of us will buy for our apartment. There are a bunch of learning I will have to do during the summer. I will have to learn...

Words: 308 - Pages: 2

Free Essay

Supervision and Management

... I am a supervisor at a shoe store and I have just arrived back from company headquarters to find my box full of tasks to take care of myself, and /or delegate to my managers or salesclerks. Two job applications were in my box. (No positions are available at this time) What am I going to do, there is nothing I can do except put them in with all the other applicants who have applied, and call the applicants to tell them I have no positions available at this time. My second task is a note to call one of my salesclerks about a vacation schedule. I called Mary, and she told me that she wanted to submit her vacation schedule. Mary submitted her vacation schedule, and there was another salesclerk who I had already authorized her vacation for the same time Mary had wanted to take off. I told Mary that she would have to change her vacation schedule because I have already authorized another salesclerk to take her vacation at that time. The third task in my box is a notice that the mall will be changing hours for the upcoming holiday, and requesting notice of store plans. What am I supposed to do, I will give them a copy of our store plans for the holiday, because this will help coordinate our hours with each other. The fourth task in my box is customer complaint. This task is one job that I should do myself, because there is certain procedure of handling customer complaints. My first step...

Words: 719 - Pages: 3

Premium Essay

How to Start Online Business

...do business online to register with SSM. This includes business that sells their product through social networking sites such as Facebook and Instagram. * It is an offence punishable under the Registration of Business Act, if they failed to do so. The maximum fine is RM50,000 or jailed up to two years. This is not a small matter and for people that try to supplement their existing income, it is not worth the risk. * Datuk Mohd Naim mentioned that cost of registration is only RM30 and the registration is a simple process. They will also gain from other benefits such as access to microloans and insurance coverage. * To catch these errant online shop bosses, SSM is working together with Malaysian Communications & Multimedia Commission to identify these people. How to Do Online Business in Malaysia To recap, to start an online business in Malaysia, you need to: 1. Register with MMC, if your business activity relates to telecommunication sector. 2. Register with CCM as a business enterprise 3. Get a domain name, a hosting account and a properly designed website. If you want to try out before spending additional money on these items, you can still sell through Facebook, eBay, lelong.com.my, mudah.my, your blogs and other social media sites. 4. Register and declare income with the Inland Revenue Board of Malaysia The followings are detailed write up for each of the above steps: 1. How to Register with MMC You only need to register with MMC, if your business...

Words: 1265 - Pages: 6

Premium Essay

Risk Management

...11 Project risk management Planning for the unknown Gee whiz, Bobby! What if these ropes break? Don’t worry, Sally! I took care of it with risk planning. You can swing away without a care in the world! Even the most carefully planned project can run into trouble. No matter how well you plan, your project can always run into unexpected problems. Team members get sick or quit, resources that you were depending on turn out to be unavailable—even the weather can throw you for a loop. So does that mean that you’re helpless against unknown problems? No! You can use risk planning to identify potential problems that could cause trouble for your project, analyze how likely they’ll be to occur, take action to prevent the risks you can avoid, and minimize the ones that you can’t. this is a new chapter 543 risks might occur What’s a risk? There are no guarantees on any project! Even the simplest activity can run into unexpected problems. Any time there’s anything that might occur on your project and change the outcome of a project activity, we call that a risk. A risk can be an event (like a fire), or it can be a condition (like an important part being unavailable). Either way, it’s something that may or may not happen... but if it does, then it will force you to change the way you and your team will work on the project. If your project requires that you stand on the edge of a cliff, then there’s a risk that you could fall. If it’s very windy out or the ground is...

Words: 16923 - Pages: 68

Free Essay

Chf Tsunami

...Post date: 01/15/2015 - 16:06 Je Suis _________ User login Username: * Home "It's Carnage" - Swiss Franc Soars Most Ever After SNB Abandons EURCHF Floor; Macro Hedge Funds Crushed Submitted by Tyler Durden on 01/15/2015 06:07 -0500 Search Password: * C reate new account Request new password Log in Bank of England Soros LIBOR National Bank Bond Crude Equity Markets None Reuters Twitter Fail France George Swiss Monetary Policy Switzerland Swiss Franc Twitter Volatility Tw eet 489 Like 382 Share 143 31 "As if millions of macro hedge funds suddenly cried out in terror and were suddenly silenced" Over two decades ago, George Soros took on the Bank of England, and won. Just before lunch local time, the Swiss National Audio Commentary From RanSquawk: open in browser PRO version Are you a developer? Try out the HTML to PDF API pdfcrowd.com Bank took on virtually every single macro hedge fund, the vast majority of which were short the Swiss Franc and crushed them, when it announced, first, that it would go further into NIRP, pushing its interest rate on deposit balances even more negative from -0.25% to -0.75%, a move which in itself would have been unprecedented and, second, announcing that the 1.20 EURCHF floor it had instituted in September 2011, the day gold hit...

Words: 5112 - Pages: 21

Free Essay

Hp12C

...hp 12c financial calculator user's guide H Edition 4 HP Part Number 0012C-90001 File name: hp 12c_user's guide_English_HDPMBF12E44 Printed Date: 2005/7/29 Page: 1 of 209 Dimension: 14.8 cm x 21 cm Notice REGISTER YOUR PRODUCT AT: www.register.hp.com THIS MANUAL AND ANY EXAMPLES CONTAINED HEREIN ARE PROVIDED “AS IS” AND ARE SUBJECT TO CHANGE WITHOUT NOTICE. HEWLETT-PACKARD COMPANY MAKES NO WARRANTY OF ANY KIND WITH REGARD TO THIS MANUAL, INCLUDING, BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF MERCHANTABILITY, NON-INFRINGEMENT AND FITNESS FOR A PARTICULAR PURPOSE. HEWLETT-PACKARD CO. SHALL NOT BE LIABLE FOR ANY ERRORS OR FOR INCIDENTAL OR CONSEQUENTIAL DAMAGES IN CONNECTION WITH THE FURNISHING, PERFORMANCE, OR USE OF THIS MANUAL OR THE EXAMPLES CONTAINED HEREIN. © Copyright 1981, 2004 Hewlett-Packard Development Company, L.P. Reproduction, adaptation, or translation of this manual is prohibited without prior written permission of Hewlett-Packard Company, except as allowed under the copyright laws. Hewlett-Packard Company 4995 Murphy Canyon Rd, Suite 301 San Diego, CA 92123 Printing History Edition 4 August 2004 2 File name: hp 12c_user's guide_English_HDPMBF12E44 Printered Date: 2005/7/29 Page: 2 of 209 Dimension: 14.8 cm x 21 cm Introduction About This Handbook This hp 12c user's guide is intended to help you get the most out of your investment in your hp 12c Programmable Financial Calculator. Although the excitement of acquiring this powerful...

Words: 53555 - Pages: 215

Free Essay

Chf Tsunami

...Post date: 01/15/2015 - 16:06 Je Suis _________ User login Username: * Home "It's Carnage" - Swiss Franc Soars Most Ever After SNB Abandons EURCHF Floor; Macro Hedge Funds Crushed Submitted by Tyler Durden on 01/15/2015 06:07 -0500 Search Password: * C reate new account Request new password Log in Bank of England Soros LIBOR National Bank Bond Crude Equity Markets None Reuters Twitter Fail France George Swiss Monetary Policy Switzerland Swiss Franc Twitter Volatility Tw eet 489 Like 382 Share 143 31 "As if millions of macro hedge funds suddenly cried out in terror and were suddenly silenced" Over two decades ago, George Soros took on the Bank of England, and won. Just before lunch local time, the Swiss National Audio Commentary From RanSquawk: open in browser PRO version Are you a developer? Try out the HTML to PDF API pdfcrowd.com Bank took on virtually every single macro hedge fund, the vast majority of which were short the Swiss Franc and crushed them, when it announced, first, that it would go further into NIRP, pushing its interest rate on deposit balances even more negative from -0.25% to -0.75%, a move which in itself would have been unprecedented and, second, announcing that the 1.20 EURCHF floor it had instituted in September 2011, the day gold hit...

Words: 5112 - Pages: 21

Free Essay

Why We Buy

...Page 1 Martin Lindstrom’s Buy•ology and Paco Underhill’s Why we Buy should be required reading for all business related major students. In Paco Underhill’s book he really digs in to and investigates that will make a person purchase on product from another. Paco Underhill is like the frontline specialist. On the sales floor is where he rules changing and adapting to consumers needs and wants. He is able to tell you why a product in one store is selling but not in another. Or why products that have huge advertisement budget have not really left the shelf. Now where Underhill is on the sales floor in his book, Martin Lindstrom digs into the minds of the consumers in his book Buy•ology. By doing this Lindstrom is able to identify why we purchase the products/ services we do. Now one thing that I really learned in Lindstrom’s book is that we lie. Consumers lie time and time again, not only are we lying to each other or surveys but to are selfs. Either that or we are to scared to tell the truth to anyone. In one of Lindstrom’s studies he was testing a new show for a U.S. audience that was already doing great in the U.K. The show was called Quizmania, to see how the audience was going to react to this show before it was even aired Lindstrom arranged at test of two hundred people. They had three shows for the group of two hundred to watch Quizmania, The Swan, and How Clean Is Your House? Now going into this study Lindstrom already new what people thought of both How Clean...

Words: 4277 - Pages: 18

Free Essay

Hp 12c

...calculator user's guide H Edition 4 HP Part Number 0012C-90001 File name: hp 12c_user's guide_English_HDPMBF12E44 Page: 1 of 209 Printed Date: 2005/7/29 Dimension: 14.8 cm x 21 cm Notice REGISTER YOUR PRODUCT AT: www.register.hp.com THIS MANUAL AND ANY EXAMPLES CONTAINED HEREIN ARE PROVIDED “AS IS” AND ARE SUBJECT TO CHANGE WITHOUT NOTICE. HEWLETT-PACKARD COMPANY MAKES NO WARRANTY OF ANY KIND WITH REGARD TO THIS MANUAL, INCLUDING, BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF MERCHANTABILITY, NON-INFRINGEMENT AND FITNESS FOR A PARTICULAR PURPOSE. HEWLETT-PACKARD CO. SHALL NOT BE LIABLE FOR ANY ERRORS OR FOR INCIDENTAL OR CONSEQUENTIAL DAMAGES IN CONNECTION WITH THE FURNISHING, PERFORMANCE, OR USE OF THIS MANUAL OR THE EXAMPLES CONTAINED HEREIN. © Copyright 1981, 2004 Hewlett-Packard Development Company, L.P. Reproduction, adaptation, or translation of this manual is prohibited without prior written permission of Hewlett-Packard Company, except as allowed under the copyright laws. Hewlett-Packard Company 4995 Murphy Canyon Rd, Suite 301 San Diego, CA 92123 Printing History Edition 4 August 2004 2 File name: hp 12c_user's guide_English_HDPMBF12E44 Printered Date: 2005/7/29 Page: 2 of 209 Dimension: 14.8 cm x 21 cm I ntroduction A bout This Handbook This hp 12c user's guide is intended to help you get the most out of your investment in your hp 12c Programmable Financial Calculator. Although the excitement of acquiring...

Words: 54268 - Pages: 218

Premium Essay

Gay Marriage

...Welcome everybody. Let me introduce the members of this team. We would like to give you a presentation about gay marriage. ! But first of all i have to tell u a little secret, we really dont want to choose this theme , but of course we like all the challenges, so we hope that we can provide you a really enjoyable lecture ! Have fun :) In Hungary in the sense of family law only a woman and a man can marry each other. When same-sex pairs live together, the civil code acknowledges it as register partnership. Before 1996 register partnership can be just between different biological sex / genders , but the Constitutional Court considered this law discriminative, and it prescribed to change this law. The parliament on 20th of April in 2009 accepted the law about register partnership. According this law , two same biological sex people can make register partnership before a registrar. The registered partners can not assume each other's name, can not adapt a kid and they can not take a part in artificial insemination. About the marriage between same sex people there are many public research there is increasing support for the marriage between same sex ppl. The Eurobarometer published a survey in 2006. 18% of Hungarians agreed with that statement, that to allow the homosexuals marriage. This percent increased by 12% in the following year, in 2007. In 2008 almost 40% of Hungarians agreed with it. and in 2009 60% of Hungarians agreed with that statement, that the same sex...

Words: 258 - Pages: 2

Free Essay

Arm Processer for Computer Architecture

...in the history of civilization: “Why?” However, generally speaking when a student asks the question “Why?” it is not for a genuine thirst for knowledge or explanation. It is not like a child who wants to know why the sky is blue, or why dogs can’t talk. A students real interpretation of the question why is more like: “Why is this important?”, or “Why do we have to learn this?”, or the big one (according to Algebra teachers), “Will I ever use this again in the real world?” A computer architecture professor is different from other professor (besides obviously being smarter ;) ), when having to answer this question. Unlike Algebra, which is pretty well established and unlikely to change operations in the next 10 years, Computer Architecture is a rapidly evolving industry and has the very good possibility to look completely different in the year 2022. So a computer architecture professor is faced with a difficult answer to the question. One answer could be “Yes you have to learn it, because it appears on the final and I will fail you if you don’t.”, or “Yes you have to learn it but it is strictly theoretical because nobody in the industry really does it this way anymore.” Each response respectively answers the question, but neither invokes a sense of real learning. The “because I said so” response serves to motivate the student strictly based on grades and crossing off another required course, but leads to a...

Words: 1463 - Pages: 6

Premium Essay

Organ Donation Persuasive Speech

...I was born in April. Which was a surprise to my mother because I was expected to be born mid June. Being almost two months early, I was very premature. My lungs were underdeveloped and I couldn’t breathe properly. The doctors had me on all sorts of medication, hooked up to machines, but I wasn’t responding to anything. Eventually they told my parents that if I didn’t improve, I would be put on a waitlist for a lung transplant. Thankfully, my condition improved, and it wasn’t necessary. But I was *this* close, and had I not recovered, the only way I would be alive right now is if somebody had donated their lungs. We’ve heard stories like this before, but it is difficult to grasp the reality of how serious situations like this are. That is, until we realize it could actually happen to anybody. Your mom, your dad, your brother, your sister, even you. It almost happened to me. That’s why today, my central concern is organ donation; or more specifically, the lack thereof. The lack of organ donors has become a significant problem, and more people need to be taking action to put an end to it. There are so many people that could potentially be alive today if they had received organs in time. According to the Organ Procurement and Transplantation Network, over 121,000 in the U.S. are still waiting (optn.transplant.hrsa.gov). Instead of letting that number increase, we have the power to diminish it. To do this we need to understand the problem. We will do this by looking at what causes...

Words: 1667 - Pages: 7