Strategic InitiativeStrategic InitiativeThroughout history, companies have struggled to be the biggest and the best. Starbucks is no different. Starbucks opened its first store in Seattle, 1971. According to Starbucks.com (n.d.), Starbucks has grown to more than “18,000 locations in more than 62 countries” (Our Heritage, para. 7). This is not a task easily accomplished. Through financial planning and strategic innovations, Starbucks has managed to stay ahead of the rest. The strategic initiatives taken on by Starbucks have allowed them to become not only one of the best coffee houses in the world, but the best coffee house in the world. Moving forward Starbucks will become more available through not only an increase in locations, but moving into private homes as well.
Strategic Planning InitiativeStarbucks has complex and well-thought out strategic and financial plans. Through their Annual Reports, readers get an idea of how the plans have been developed and executed. Starbucks explained in their 2012 Annual Report “two years ago, we embarked on a strategic plan, the Blueprint for Profitable Growth, in which we would leverage multiple channels of distribution. I am proud to affirm that it is no longer theory but a true growth engine” (Starbucks, para. 2). The company has spent time and money developing their Verismo® System, which is a single cup home brewer to enable customers to make their own Starbucks coffee and latte. This coffee system has been in research and development phases for some time. Getting the process finished and to the market is a benefit to the company. The money invested in the planning can now reap rewards through sales of the coffee system and brewing products. 2012 was a good year for Starbucks. Their global revenues increased by 14% and earnings-per-share grew 10% (Starbucks, pg. 3).
Further financial planning is important for Starbucks. As they research expansion and their future, Starbucks is conscience of “respecting and reflecting regional customs and cultures so we may be locally relevant. When we strike this delicate balance, we establish trust, which ensures the company has opportunities for continued growth everywhere we do business” (Starbucks, pg. 3). Starbucks relates their strategic and financial planning through their forward-looking plans, some short-term and others long-term. Short-term plans specifically relate to the continued process of supporting their current locations and expanding on the products they currently have. Long-term plans include expanding into new areas and opening new stores. In the 2012 Annual Report, Starbucks ensures responsibility while expanding by stating, “Over the next five years, we plan to open 3,000 new stores in the Americas region alone. Unlike a period
2‛ Starbucks does not provide financial information, as is required for public and private companies, only the latest economic data.
Our mission is to help Starbucks to be global of ῂ provide our customers with innovative and meaningful experiences; lead the way in the global food and beverage industry, assist with innovative technologies, support and maintain our core brand and brand identity, encourage more diverse partnerships, strengthen local support, and create jobs and new jobs in our local economy. The company believes its focus, success and commitment to innovation to improve the lives of our customers will ensure its strong and sustainable legacy as a global leader, one that is sustainable to the full. Starbucks is committed to continue the growth and opportunity, both in the United States and globally, of our industry. In this context, the Company will work with local authorities, agencies and other stakeholders to ensure that our growth continues. This requires the Company to engage the local community in a public and engaged process to ensure the company maintains its global strategy, leadership, ᳁(Starbucks, pg. 32), a strategy that ensures fair and transparent processes for determining how to support our companies, businesses, customers, and the company’s community as well as a broad set of processes whereby a public, engaged market leader works with local governments to ensure that business success and leadership as well as sustainable growth and transformation is ensured. Starbucks’ investment in innovation, our commitment to its customers and our commitment to make every aspect of our business more inclusive, sustainable and accessible is reflected upon in our investment strategy and plan for growth at Starbucks ® – for more details in our 2016 annual management & public offerings document, see our 2016 Annual Report and our 2015 Annual Report. The Company also incorporates key components of its strategic and financial plan into its economic data. We utilize the Company’s key financial instrument data-based on an annualized basis when necessary to make this information available online to investors, employees, and others. This means that we analyze, analyze, and interpret our financial assets and liabilities on a quarterly basis as described in the Company’s Annual Report on Form 10-K. We use this information in our annual report on Form 10-Q to estimate our business and its results, as applicable, and in determining other important and future business objectives of our stockholders at the current time. Investors use our forward-looking data to gain insight into the company’s future financial condition and potential for growth and future results. Although we do not share such forward-looking information publicly, we believe it to be advisable to update this forward-looking information to reflect other information of its own and in its sole discretion, including its current experience, and this information generally has no specific counterpart.
MARKET-AVERAGE CONSOLIDATED FINANCIAL STATEMENTS—(In thousands) Years Ended
December 31,
2012 and 2011
(In millions, except per share amounts) 2013 2014 2015 2014 (Unaudited) Year Ended $ 30.1 / 9.0 % $ 10.5 / 7.2 % 2012 2016 (Unaudited) Year Ended $ 26.1 / 14.0 % $ 17.5 / 14.5 % (8 ) % 2007 2006 (Unaudited) Year Ended $ 25.0 / 10.5 % $ 9.6 / 10.3 % (18 ) %
MARKET-AVERAGE BERGE PRICES
In millions 2013 2014 2015 2014 Change 2013 2014 (Unaudited) 2012 (Unaudited) $ 24.1 / 12.0 % $ 25.1 / 12.2 % (8 ) % 2007 2006 (Unaudited) Year Ended $ 25.0 / 14.2