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Starbucks

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FIN 534
FINANCIAL MANAGEMENT

Financial Analysis
(Starbucks)

Lisa Massey
Strayer University

Due Date: September 14, 2013
Starbucks is a strong competitor in the service sector and a leader in the gourmet coffee industry. With a continued growth rate in store openings and maintaining successful profitability of its operations, Starbucks has demonstrated its ability to sustain a reliable and steady growth. Starbucks’ ability to contend with the vulnerability to current financial threats such as economic recession, higher interest rates, and global competition, is constantly proven by its incomparable brand image, its continual product innovations, and its exceptional customer service. This also proves to be its strongest investment strategy.
One strategic way to evaluate the vulnerability of Starbucks to current financial threats is to execute a SWOT Analysis. A SWOT analysis is a situation analysis in which the strengths and weaknesses of an organization, and external opportunities and threats it faces are examined to chart a strategy (Business Dictionary, 2012). SWOT is the acronym for strengths, weaknesses, opportunities, and threats. The purpose of the SWOT analysis is to assess what an organization can and cannot do in addition to evaluating the potential opportunities and any financial and economical threats it may face.
Over the years, Starbucks have developed much successful strengths. Here are a few of the most recognizable strengths: The quality of their coffee is considered the highest in the world. They engage with customers and the communities to provide better business. Starbucks has over 17,000 stores globally in convenient locations to attract more customers. Starbucks have expanded their product line to sandwiches, pastries, and natural tea-blend drinks. Starbucks have loyal employees who are...

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