Starbucks Casa Analysis
Join now to read essay Starbucks Casa Analysis
Starbucks specializes in the sale of coffee at around 8500 stores operated and licensed in the United
States and across the globe. Starbucks stores offer a choice of regular and decaffeinated coffee beverages, Italian style espresso beverages, cold blended beverages, a selection of teas and distinctively packaged roasted whole bean coffees. Its stores also offer a selection of fresh pastries and other food items, sodas, juices, coffee-making equipment and accessories, a selection of compact discs, games and seasonal novelty items.
The company operates numerous stores in other countries through licensing arrangements with prominent retailers. The company has formed various business alliances, international retail store licensing agreements, grocery channel licensing agreements, warehouse club accounts, and other partnerships to expand the brand in other channels.
The company also sells its whole bean and ground coffees to office coffee distributors, hotels, airline retailers and restaurants as well as institutional foodservice companies that service business, industry, education and healthcare accounts. Starbucks retail stores are typically located in high-traffic, high-visibility locations. Its stores are located in a variety of settings, including airports, downtown and suburban retail centers, office buildings and university campuses. While the company
The company recorded revenues of $5294.2 million during the fiscal year ending September 2004, an increase of 29.9% over 2003. The operating profit of the company during fiscal 2004 was $610 million, an increase of 43.7% over fiscal 2003. The long term debt was $3.6 million during fiscal year 2004, a decrease of 18.2% from
2003.
In 1971, a small coffee roasting company opened a store in the heart of downtown Seattles Pike Place Market. The original store was a whole bean roaster and retailer. That remained their core business until 1982 when Howard Schulz joined the company. He was the new marketing executive and began immediately to convince more and more local cafes, upscale restaurants, and hotels to buy Starbucks coffee. The turning point for the company and of writing of coffee history would be one year later when Schulz traveled through Italy. He got inspired by the old Italian coffee bar traditions to serve fresh brewed Espressi and Cappuccini. He convinced the Starbucks founders to give his idea a chance and in 1985 he opened the first coffee bar in Seattle and gave it the Italian touch by naming it Il Giornale.
The new concept worked out, Il Giornale was a success. But Schulz aimed higher. He found local investors and bought Starbucks in 1987. That gave way for expansion and in the same year he opened new cafes in Chicago and even Vancouver, Canada. 17 Starbucks Cafes were established. From a single store in 1971 to 272 stores in 1993, Starbucks has expanded to almost 6,000 stores in 30 countries worldwide, opening multiple new stores daily. It is estimated that each week, over 19 million people stop to enjoy a Starbucks coffee drink.
In 2003, Starbucks opened international coffeehouse number 1,312 and it opened its first overseas roasting plant in Amsterdam, the Netherlands. The company is the number one specialty coffee chain in the world, accounting for nearly half of the worlds 15,000 specialty coffee stores and the business brought in $209 million in net revenue from international sales in 2002.
Starbucks has many strengths including being profitable and global presence. Starbucks is one of the most geographically spread companies in the world. The company operates about 8500 retail store locations. The company’s widespread presence provides it with brand recognition and a strong company base.
The company recorded revenues of $5294.2 million during the fiscal year ending September 2004, an increase of 29.9% over 2003. Furthermore, the operating profit of the company during fiscal 2004 was $610 million, an increase of 43.7% over fiscal 2003. Its net earnings also increased