...Starbucks Coffee Company Linda Estes American InterContinental University Principles of Accounting I Dr. Felicia Olagbemi November 30, 2012 Abstract Many companies have to follows the regulation of GAAP that are set by FASB. Starbucks as adapts and agree to do what the GAAP principles and standards which can affect Starbuck dignity. I will introduce what Starbucks is all about where it started from, GAAP and description of the account principles, cost, revenue and matching for Starbucks Company. Show the application of GAAP in cost recording, revenue recognition, and the matching expenses and revenues. Basically show how Starbucks became a million dollar company. Give a description of their recent accounting standards and pronouncement of the company. Describes how the assertion of internal controls of the company financial statements. Starbucks Coffee Company Introduction/Background Information The founder and CEO of Starbucks Corporation is Howard Schultz. Howard Schultz is a man of vision who turned and unknown coffee company in Seattle Pike Place Market into a large global coffee and the most want and best respected brands to have. (Moe, m 2006) The first store open was in 1971. Starbucks got a new name in 1987 when Schultz Company, II Giornale brought Starbucks and change the name to Starbucks Corporation, at that time it was only 17 stores open. Today, with more than 17 thousands stores in 50 nations, Starbucks has the best roaster coffee and retailer of all...
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...Business Analysis Part III Diana Thomas University of Phoenix MGT-521 June 19, 2012 Roberto Guzman Abstract In continuation with my Business Analysis on Starbucks this week, I will review the strategic initiative that Starbucks has taken to adapt in the changing market. I will examine how the recent economic trend as affected the business, how they used or could use a strategy for adapting to the changing market with the recession going on. I introduce tactics that Starbucks has implemented or could implement to achieve their goals. I will also include a section on how their human resources management plays an important role in making sure Starbucks achieves their goals. In the end I will make my final decision whether or not, I want to invest my money into Starbucks Corporation. There will be a review on the analysis from my last two papers that I did and will show support for my conclusion. Business Analysis Part III Because of the recession Starbucks has had to make many changes to keep itself in the competitive market while trying to retain the authenticity of its brand. The Corporation has had to make some adjustments to its upscale formula to address a growing demand for a high quality product at an affordable price. Starbucks has to conform to keep their existing customers by outlining a twofold growth strategy, first to focus on profits in their existing stores...
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...Starbucks is a public company. that operates a chain of stores that sells high-quality coffee. Its typical company-owned store has a pleasant, coffee-house atmosphere complete with couches and Wi-Fi and is known for being a place to meet and gather. Starbucks licenses its stores to other business, not to individuals. For example, in the US Starbucks licenses stores to Host International, Inc. an Autogrill group (my employer), is a concessions company found in airports around the world, in operating travel malls on the East Coast and Canada, and doing business various malls throughout the U.S. Many of our establishments provide the standard Starbucks atmospheres; others just have a counter to sell coffee and pastries. Starbuck’s stores account for about 90% of Starbuck’s revenue. Global expansion is essential to Starbucks, just as it is to other successful companies. In 2003, Starbucks opened in foreign markets. But, the company encountered problems. Internally the problems arose within the company’s international business model, and externally the problems arose in the form of overseas competition. “Starbucks quickly learned that tactics that had worked to establish the market in the domestic market were not favorable in international expansion” (Yunker, 2006). Starbucks also encountered issues with rival coffee shops copying the Starbucks’ business practices (i.e., the Starbucks name, and even the Starbucks company logo). In turn, the company had to utilize intellectual...
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...China and Starbucks Starbucks is a globalized organization that began by selling coffee, tea, and spices. The first store opened in 1971 in Seattle, Washington’s Pikes Peak Plaza. Howard Schultz joined as a marketing director in 1983 and during a trip to Italy was impressed with the coffeehouse and wanted to try this concept in Seattle. The concept and business flourished, and by 1996 Starbucks opened the first international coffeehouse in Japan. Since 1983 Starbucks has expanded globally with 18,000 retail stores in 60 countries. The first Chinese Starbucks was built in China in 1999 and is currently operating in more than 500 locations in China and plans to expand to 1500 locations by 2015. Starbuck’s mission statement: “to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time” (Starbucks, 2013, p. 1). Starbucks not only sells premium coffee and teas, Starbucks sell a culture of excellence in customer service, and brand with the expertise of the partners (employees). Starbucks sells a lifestyle, an ambiance of the tranquil coffeehouse environment for the busy professional, student, or coffee connoisseur. So how has Starbucks, mainly known for the premium coffee sales by the cup been such a success in China where the more than one billion people drink and export tea? Starbucks success in China is a testimony to understanding the importance of globalized intercultural communication, marketing, and branding strategies. Starbucks’ corporate...
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...Behavior and Communication Paper Starbucks is a corporation dedicated to providing quality coffee, a diverse work environment, and outstanding customer service. “We’re committed to upholding a culture where diversity is valued and respected” (Starbucks, 2012). Starbucks (2012) uses an equation to define diversity, Diversity = Inclusion + Equity + Accessibility. Starbucks (2012) defines inclusion as human connection, equity as fairness and justice, and accessibility as ease of use and barrier free. Diversity is a strategy in the organization. “Our company wide diversity strategy focuses on four areas” (Starbucks, 2012). Partners, customers, suppliers, and communities are all included in the diversity strategy. Starbucks considers its employees to be partners. The culture created by the diverse strategy creates an environment where partners from many different backgrounds come together to create and outstanding level of customer service. Each employee at Starbucks is given a Standards of Business conduct booklet. This booklet helps them integrate into the company and become more in tune with the Starbucks culture. Communication is vital to the success of any business and Starbucks promotes good communication internally as well as externally. Partners within the corporation are encouraged to ask questions and get help whenever needed. They are also encouraged to be vocal about any problems or concerns they have. “At Starbucks we treat each other with respect and dignity...
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...should not be used as grading elements. Also, at present, WritePoint cannot detect quotations or block-quotes, so comments in those areas should be ignored. Please see the other helpful writing resources in the Tutorials and Guides section of the Center for Writing Excellence. Thank you for using WritePoint. Starbucks: A Responsible Company Represented by Their Enacted Values Stephanie White BCOM/230 Hannah Rosette August 20, 2012 Starbucks: A Responsible Company Represented by Their Enacted Values Many companies have mission statements and espoused values. However, they do not enact those values to the fullest extent. Too often espoused values are simply there for appearances. Starbucks has proved to be an exception and makes every attempt to enact their espoused values. Mission, Vision, and Values...
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...loyal to starbucks through Loyalty programs, with a majority of 63% saying they would return just for the rewards program (Horn, 2013) * Digital storefront promotion for teas proved to be successful (Laird, 2011) * Partnership with evergreen encourages Canadians to “go green” (Starbucks Encourages Canadians to Pledge to do some Green, 2010) * Partnership with AT&T Inc. to include free and paid wireless internet coffee shops in the united states (Associated press, 2008) * Partnership with Bell Canada to include free wireless internet in over 650 locations in Canada (Laird, 2008) * Leads specialist coffee shop sales in most countries (Starbucks Corp. (food), 2012) Weaknesses * Share price fell by 43% due to commercializing the business (Passikoff, 2008) * Price senstaive customers choosing other places to get their coffee (Starbucks Corp. (food), 2012) * Overall weak performance in the UK (Starbucks Corp. (food), 2012) * Starbucks cut back on new store openings in the United states (Janet, 2007) * Risky TV camping (Kang, 2007) * Competition from McDonald’s and Dunkin Donuts caused profits to decline in the United States (Lynn, 2008) * Overpriced coffee causes consumers to not purchase during recession. (Bryson, 2009) Threats * Fast food places moving into the coffee market segment provides a threat for Starbucks (Starbucks Corp. (food), 2012) * Starbucks holds 0.7% of market share for coffee (Starbucks Corp. (food)...
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...Reaching Global Markets It seems as if Starbucks tends to expand into global markets through joint ventures. As Kelly and McGowen (2012) explain a joint venture is when multiple companies come together in order to pursue the same goals and opportunities (Kelly & McGowen, 2012, p. 43). Taking this a step further, it seems as if the joint ventures that Starbucks pursues are set up more as partnerships. A partnership, as defined by Kelly and McGowen (2012), is a “voluntary agreement under which two or more people act as co-owners of a business for profit,” (p. 43). As recently as January 2012, Starbucks entered a joint venture with Tata Global Beverages to begin opening and operating Starbucks cafes throughout India (HT Media Ltd., 2012). Also, according to Carol Matlack (2008), there is a major difference between the way Starbucks stores are owned and operated within the United States versus without. Inside the U.S., close to two-thirds of their stores are owned by Starbucks while outside of the U.S. about two-thirds of their stores are partnerships. This makes sense for the Starbucks Corporation because they are able to align themselves with partners who may already have working knowledge of what it takes to run a business in other locations outside of the United States. They can also help by taking on some of the costs associated with expanding into new markets, making the move less of a risk and financial burden on Starbucks. As Carol Matlack (2008) puts it, with partners...
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...Starbucks Marketing Mix Paper Aiza Ashley Starbucks Marketing Mix Paper A good marketing plan must possess a strong marketing mix strategy. Organization uses marketing mix strategy modeling to estimate causal relationships and measure how marketing activity affects outcomes. The Marketing-mix models analyze data from a variety of sources, such as retailer scanner data, company shipment data, pricing, media, and promotion spending data, to understand more precisely the effects of specific marketing activities. In this paper there will be a description of the four elements of marketing mix: product, price, place, and production. It will describe how the four elements of marketing mix affect the development of the marketing strategy for Starbucks. The Four Elements of the Marketing Mix Modeling The four elements of the marketing mix modeling products, price, place, and promotions also known as the four Ps of marketing were known as the controllable parameters likely to influence the consumer buying process and decisions (Constantinides, 2006). The strength of the four Ps approach is that it represents a memorable and practical framework for marketing decision-making and has proved useful for case study analysis in business schools for many years (Constantinides, 2006). Product Product refers to aspects such as the firm’s portfolio of products, the newness of those products, their differentiation from competitors, or their superiority to rivals’ products...
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...Strategic Initiative: Starbucks Marla Campbell, Scott Gresham, Amanda Gray, Steven Peslak Lisa Vaira-Haslock, Janet Yuhas FIN 370 September 3, 2012 Matthew Tanzer Strategic Initiative: Starbucks Introduction Starbucks, a global coffee company, “opened the first store in Seattle’s Pike Place Market in 1971” (Starbucks Coffee Company, 2012). Since 1971 Starbucks main goal is for the company to assist in making the world better and in sharing great coffee with their friends. In Seattle, Starbucks was a single store historic Pike Place Market. Starbucks has always offered the world’s best fresh-roasted whole bean coffees. The name, Starbucks was inspired by Moby Dick. According to Starbucks Coffee Company (2012), “Howard Schultz joined Starbucks as the director of operations and marketing, and Starbucks began selling coffee to restaurants and baristas in 1982.” Once 1988 came around Starbucks operated about 33 stores and today Starbucks operates about 17,651 stores in 55 countries. Team B will discuss the relationship between strategic and financial planning. The subject of this report is Starbucks, and there are several topics we have touched on. First, Team B will describe a strategic planning initiative for Starbucks. Secondly, Team B will explain how the initiative will affect the financial planning at Starbucks. Team B will also explain how the initiative will affect costs and sales. Finally, Team B will explain the risks associated with the initiative and...
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...Starbucks is the place where people go to find some of the world’s best coffees (Starbucks Corporation, 2012). Today there are more than 15,500 Starbucks locations in more than 43 countries it seems as if there is one on every corner in downtown Seattle. (Starbucks Corporation, 2012). However, back in 1971 the only place one could go to grab a cup of some Starbucks joe, was at Seattle’s historic Pike Place Market (Starbucks Corporation, 2012). The Starbucks mission states they inspire and nurture the human spirit – one person, one cup, and one neighborhood at a time (Starbucks Corporation, 2012). Their coffee is always about the quality and always will be. The employees have full health benefits offered to them (Starbucks Corporation, 2012). Included in this paper are the company’s financial statements and view the assets, revenue, expenses and liabilities of the Starbucks Company. What are the company’s total assets at the end of its most recent annual reporting period? Why is it important? The total amount of assets for Starbucks at the end of October 2, 2011 was $7360.4. This amount is per millions (Starbucks Corporation, 2012). Assets, be it either tangible or intangible are of added value to the business (Crown, 2011). Assets are important to the business because they are the resources owned (Crown, 2011). They help the company secure loans whenever they need them. Companies protect their assets to help reduce risk to them (Crown, 2011). ...
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...Organizational Commitment and Communication Starbucks uses organizational communication to share important information and messages. The company operates at the international level in coffee supply and coffeehouse chain (Starbucks Coffee Company, 2012). Organizational communication at Starbucks is well developed. Leadership plays an important role with in Starbucks in terms of organizational communication. Leadership helps establish the effectiveness of communication with in the company to help increase growth and success. Starbucks cannot adopt to the different leadership style because of the impact of the working environment and the performances of their employees. If Starbucks were to use autocratic leadership the directions would be given to the associates, where they would be expected to follow the directions. Autocratic leadership suggests a one-way communication process in the company. Therefore, management would keep their authority and have control over the decision-making. Starbucks believes in improving the quality of their business but by using an autocratic leadership style they will loose their group communication and also the success of their long-term goals. If Starbucks were to have a charismatic leader then the managers will be able to influence the employees. The employee’s that receives the motivation will put in greater effort to achieve Starbucks goals, mission, and vision. Charismatic leader can motivate their employees and convince them to get the...
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...Starbucks | Financial Statement Analysis | Final Project | | Ryan Goguen, Che-Wei Chang, Yu-Ching Lin | 2013/3/11 | [請在此處鍵入文件的摘要。摘要通常是文件內容的簡短綜覽。請在此處鍵入文件的摘要。摘要通常是文件內容的簡短綜覽。] | Starbucks—Background Information Starbucks (“The Company”) began with a single store in 1971 in Seattle’s Pike Place Market, serving whole bean and ground coffee, tea and spices. As of July 1, 2012, the world-renowned coffee shop brand operates nearly 18,000 retail stores in 60 countries. Gordon Bowker, one of three founders, initially named the Company “Peqoud” after the doomed whaleship in Herman Melville’s Moby-Dick. However, the partners rejected the name, and the founders later agreed upon the name “Starbucks” after the chief mate, also in Moby Dick. Today, with millions of customers served daily, Starbucks offers a wide range of products, including coffee, handcrafted beverages, merchandise and fresh food. The company handpicks its coffee from some of the finest coffee farms in Latin America, Africa and Asia. Its beverage menu consists of fresh-brewed coffee, hot and iced espresso beverages, Frappuccino coffee and non-coffee blended beverages, smoothies and Tazo teas. Through the Company’s entertainment division and Hear Music Brand, Starbucks also retail books, music and film. The Company not only prides itself in the quality products but also the physical stores, where the customers could enjoy their drinks with the company with soothing music playing in the background. Each store...
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... Starbucks is a globally known brand that has brought coffee lovers hundreds of products and services to satisfy their caffeine fix. This company has grown from a small coffee house based in Seattle, to a worldwide corporation who is a superior example of how hard work goes a long way. Because of its size and popularity, Starbucks has become an example to other corporations on how to properly to business ethics and comply with the regulations set into place throughout the world. Not only does this company comply with all the standards set into place, but they also go above and beyond in helping out within the communities they serve at home and abroad in efforts to give back. Starbucks truly is a prime example of an ethically grounded and financially stable organization that has given back to all those who have helped make this a globally recognized brand. Starbucks Business Ethics and Compliance After the fallout of Enron, business ethics and, compliance have become a standard business practice for companies in America. To ensure compliance practices across an organization, companies implement standards of business conduct for its employees and leadership to comply with. Starbucks is no different. According to "Starbucks Business Ethics And Compliance" (2013), Starbucks publishes its Standards of Business Conduct and states its commitment to conducting business ethically and protecting its culture and reputation. The sections of Starbucks’ Standards of Business...
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