Financial Research Report
Rationale for choosing the company for which to invest
Great Leadership
Brand Name
Growth and Expansion
Market Dominance
Starbucks Corporation Delivery Service
Diversification of Menu Items
Significant Growth
Profile of the Investor for which Starbucks Corporation May Be a Fit
Ratio analysis
Current Ratio
Quick Ratio
Earnings per Share
Stock price analysis
Stock Valuation
Estimated Beta of Starbucks
Estimated Expected Return of Starbucks using Capital Asset Pricing Method
Current Stock Price of Starbucks
FINANCIAL RESEARCH REPORT
FINANCIAL RESEARCH REPORT
Financial Research Report
The company selected and considered as an investment opportunity is Starbucks Corporation. Starbucks was established in 1971 and operates out of the United States. The company is renowned as one of the largest roaster, vendor in addition to seller of specialty coffee all across the globe. The company offers a variability of consumer products including coffee along with tea, readymade beverages and ice cream. Beyond its focal Starbucks brand, the corporation also carries out its marketing operations through other brands such as Tazo, Teavana, Evolution Fresh, Seattle's Best Coffee and several others. Starbucks Corporations has business operations in over sixty-five countries all over Europe, Africa, the Americas, The Middle East and Asia-Pacific. Starbucks Corporation is publicly listed on the NASDAQ under SBUX.
Rationale for choosing the company for which to invest
There are a number of rationales why Starbuck Corporation is being considered as a potential investment. Over the past fiscal year, the stock of Starbucks (SBUX) increased by more than fifty percent. This is greater in comparison to the two percent decline of S&P 500. More so, at a time when there is great uncertainty, reducing prices of commodities and a slow-moving market, the company's stock has been one of the limited large winners over the past twelve months. Nonetheless, this remarkable performance of the stock is not a contemporary manifestation. The stock of Starbuck Corporation rose more than 300% in the past five years in comparison to a mere 70% of the S&P 500. The following are some of the rationales for investing in Starbucks Corporation:
Great Leadership
Taking into account some of the most successful business over the past number of decades, one common, consistent factor amongst others is that of great leadership. Chairperson and Chief Executive Officer (CEO) of Starbucks, Howard Schultz, fits very well into that classification. Since taking over the company in the year 1986, Schultz had hunger, aspiration, determination, pioneering thinking and he was forceful. His positive attitude and drive persist even today (Thalman, 2015). Irrespective of whether it is constructive or adversarial, Schultz also recognizes how to employ his position to influence changes outside the corporation. He typically writes op-ed articles on politics and requests his personnel to talk over present-day happenings and be understanding when the stock market has issues. Schultz is the sort of leader that transforms average companies into extraordinary ones, as he has been able to do with Starbucks (Thalman, 2015).
Brand Name
Starbucks is ranked amongst the top 500 largest companies in the world. In the preceding year, Starbucks Corporation was ranked 52nd by Forbes in terms of being the most valuable brand in the globe. In addition, valuation of the company's brand was ranked at more than $11.1 billion in the present year which is a significant increase compared to the $9.9 billion the previous year (Thalman, 2015). Despite the fact that these statistics are all cause to experience criticism, it is imperative for the SBUX stock investor to recognize that Starbucks consumers are loyal. The loyalty arises out of the fact that Starbucks brand signifies consistent quality. In addition, forming a strong brand is not a simple undertaking, implying Starbucks has a competitive edge on its rivals, bearing in mind fast-food places are negatively perceived at the moment. For instance, one of its rivals, Dunkin Donuts is still lagging it in ranking in the industry (Thalman, 2015).
Growth and Expansion
In spite of being in operation for more than three decades, Starbucks Corporation is still expanding and more so at a fast pace. For instance, towards the close of 2014, the company had its business operations in more than 21,000 places. In addition, in the next five years, Starbucks Corporation intends to increase its locations to beyond 30,000 (Thalman, 2015). What is more, the business is revamping prevailing site drive-through windows, as well as planning to have new product offerings such as alcohol in the nearby future. The management team of the company is confident that these changes can assist Starbucks...
Starbucks' Human Resource Management Policies and the Growth Challenge In recent years, there has been much interest in the notion of "high commitment" human resource management (HRM). The high commitment HRM is focused on developing self-regulated behavior among employees that is based on mutual trust rather than external sanctions and pressures. Considering this premise, this paper provides a review of the relevant peer-reviewed, scholarly and organizational. literature concerning the advantages of
This strategy was combined with the company's focus on CAFE-based compliance and support for Fair Trade-based trading practices with coffee suppliers. This renewed focus on managing their supply chains to tighter levels of profitability and performance metrics including increasing quality standards has led to a significant reduction in operating expenses and control of variable costs (Starbucks Investor Relations, 2011). Starbucks was also able to manage costs of closing locations
Starbucks, a Market Analysis Starbucks is a major, world wide coffee retailer specializing in a variety of brands of blend coffee and iced beverages, among other related products. Within the market sector Starbucks exists stands several competing companies such as The Coffee Bean & Tea Leaf and Caribou Coffee. Each company shares similar strategies, appealing to a similar demographic, and hails themselves as the high-end of coffee-based shops/cafes. They also share
STARBUCK'S CASE ANALYSIS: STARBUCKS Starbucks Case Analysis Starbucks Case Analysis Situation Analysis Suppliers Competitors New Entrants Strengths Weaknesses Opportunities Threats Strategic fit Many individuals all over the world walk into Starbucks daily for their cup of coffee, but it is more than the costly coffee that brings individuals in day after day to the shops across the globe. Starbucks offers a high-energy atmosphere and helpful employees who help clients in any issue or question they might have with the coffee or service. People
Starbucks Innovation Competencies Last year, I wrote to you that the company's improved operational foundation, invigorated innovative muscle, and heightened customer relevance presented us with an opportunity to build a different kind of organization. One that would leverage and extend our strengths both inside and outside our stores. I am pleased to report that in fiscal 2011 we delivered. Howard Schultz, Starbucks Chair, FY2011 Annual Report -- Welcoming Message Starbucks is often thought
However, the company has in general enjoyed success overseas and as a result international sales now account for 27% of operating income (2010 Starbucks Annual Report). The international division remains a key source for growth at Starbucks, in particular the Chinese market, where Starbucks has enjoyed considerable success and now sits at over 500 stores. The company struggled in the mid-2000s due to two main factors. The first was the
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