Starbucks Corporation focuses on establishing itself as the leading purveyor of premium coffee globally while sustaining uncompromising principles as it grows.
Net Profits (n.a. 2013a)
|Period Ending||30 Jun 2013||31 Mar 2013|
|Selling (administrative & general)||1439100||1380800|
|Total Operating Expenses||–||–|
|Operating Income or Loss||615300||544000|
|Income from Continuing Operations|
|Total Other Expenses/Income||3400||50900|
|Earnings Before Interest & Tax||618700||594900|
|Income Before Tax||612400||588800|
|Income Tax Expense||194600||198100|
|Net Income from Continuing Operations||481200||442800|
|Effect of Accounting Changes||–||–|
Cash flow (n.a. 2013b)
|Period Ending||30 Sep 2012|
|Operating Activities, Cash Flows Offered By or Utilized in|
|Net Income Adjustments||189600|
|Changes in Accounts Receivables||(90300)|
|Changes in Liabilities||(20700)|
|Changes in Inventories||(273300)|
|Changes in Other Operating Activities||(19700)|
|Total Cash Flow from Operating Activities||1750300|
|Investing Activities, Cash Flows Offered By or Utilized In|
|Other Cash flows from Investing Activities||(165600)|
|Total Cash Flows from Investing Activities||(974000)|
|Financing Activities, Cash flows Offered By or Utilized In|
|Sales Purchase of Stock||(312500)|
|Other Cash flows from Financing Activities||(59000)|
|Total Cash flows from Financing Activities||(745500)|
|Effect of Changes in Exchange Rates||9700|
|Changes in Cash and Cash Equivalents||40500|
The expected sales target for Starbucks Corporation by the end of the fiscal year 2013 is US$ 11.22 billion.
The sales growth for Starbucks Corporation is 13.67 percent (n.a. 2013c). By the end of the fiscal year 2013, Starbucks Corporation aims at having a sales growth of 5 percent due to the culmination of the negative economic situation as well as the increased employment of people, which will lead to an increased surplus of spending money in the market. In addition, the increased surplus will enable people to avoid purchasing substitutes and buy coffee products.
Starbucks Corporation currently possesses an overall market share of 33 percent in the United States. Based on this, it is the second largest shareholder in the respective market with the first being Specialty Coffee Stores, which own a share of 47 percent. Additionally, its largest competitor, McDonalds, possesses a share of 7 percent while Gas Stations and Convenience Shops account for 13 percent.
Starbucks Corporation focuses on increasing its brand awareness through the utilization of the social media to its advantage. It augments its brand awareness through social media promotions. Such promotions are less costly in terms of resources. For instance, the company enhanced its brand awareness by using Twitter. Through this, Starbucks was able to send a tweet that allowed customers to gain a free Houseblend mug of coffee leading to excellent interaction between the clients and the brand.
Starbucks Corporation utilizes a multinational strategy in order to expand its channel of distribution. In this case, the organization focuses on extending its Frappucino can market by contracting the distribution channel of Pepsi. This enables it to fulfill gratification among its customers in different regions as well as broadening their brand name in other international markets.
The current average price for Starbucks products is US$ 4.13.
n.a. (2013, Oct. 22). Starbucks Corporation (SBUX): Income statement. Retrieved from <http://finance.yahoo.com/q/is?s=SBUX/>.
n.a. (2013, Oct. 22). Starbucks Corporation (SBUX): Cash flow. Retrieved from <http://finance.yahoo.com/q/cf?s=SBUX+Cash+Flow&annual/>.
n.a. (2013). Starbucks Corporation sales preparation. Retrieved from <http://www.hoovers.com/company-information/cs/sales-preparation.Starbucks_Corporation.824509ef484db9e9.html/>.
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