Starbucks Corporation

Starbucks Corporation

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Starbucks Corporation

Mission

Starbucks Corporation focuses on establishing itself as the leading purveyor of premium coffee globally while sustaining uncompromising principles as it grows.

Financial Objectives

Net Profits (n.a. 2013a)

Period Ending	30 Jun 2013	31 Mar 2013
Total Revenue	3741800	3555800
Revenue Cost	1597500	1530400
Gross Profit	2144300	2025400
Operating Expenses
Research Development	–	–
Selling (administrative & general)	1439100	1380800
Non Recurring	–	–
Others	153300	153100
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
Interest Expense	6300	6100
Income Before Tax	612400	588800
Income Tax Expense	194600	198100
Minority Interest	–	(400)
Net Income from Continuing Operations	481200	442800
Non-Recurring Situations
Discontinued Operations	–	–
Extraordinary Items	–	–
Effect of Accounting Changes	–	–
Other items	–	–
Net Income	417800	390300

Cash flow (n.a. 2013b)

Period Ending	30 Sep 2012
Net Income	1383000
Operating Activities, Cash Flows Offered By or Utilized in
Depreciation	580600
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
Capital Expenditures	(856200)
Investments	47800
Other Cash flows from Investing Activities	(165600)
Total Cash Flows from Investing Activities	(974000)
Financing Activities, Cash flows Offered By or Utilized In
Dividends Paid	(513000)
Sales Purchase of Stock	(312500)
Net Borrowings	(30800)
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

 

Marketing Objectives

Sales Targets

The expected sales target for Starbucks Corporation by the end of the fiscal year 2013 is US$ 11.22 billion.

Sales Growth

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.

Market Share

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.

Brand Awareness

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.

Channel Expansion

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.

Average Price

The current average price for Starbucks products is US$ 4.13.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

References

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/>.