Starbucks Coffee Company - An Analysis Assignment

Starbucks Coffee Company - An Analysis - Assignment Example No Heading Page No 1 Retail Sales Mix by Products Type for Company –Operated Stores 3 2 Coffee & Snacks Shops – Industry at a Glance – 2011 4 3 Total Net Revenues of Starbucks 5 4 Ranking of Porter’s Five Forces 7 5 Outlet Numbers of Selected Specialty coffee stores 9 4 Number of Coffee Outlets - UK 10 6 Comparable Stores Sales Growth 15 1.0 Introduction: Starbuck is the leader in roaster, retailer and marketer of specialty coffee in the international level functioning in sixty nations around the world. Through company operated stores, Starbucks buy and roast first-rate coffee beans which it would market with handcrafted tea, coffee and other hot drinks, roasted beans, coffee accessories and a number of food items to its customers around the world. Starbuck main goal is that its coffee should be grown under the top standards of quality employing just buying practices. (Bussing-Burks: 1). Retail Sales Mix by Products Type for Company –Operated Stores : Starbucks established its first store on March 29, 1971 in Seattle. The major turning point in Starbucks operations started after Howard Schultz joined as director of Starbucks retail marketing and operations in 1982 as Starbucks started to offer coffee to espresso bars and fine restaurants. In 1984, Howard convinced the founders of Starbucks to apply the Italian coffeehouse concept in Seattle and in 1984, the ever first Starbucks Caffe Latte was offered. In 1987, Starbucks was acquired by II Giornale and the name was changed to Starbucks Corporation (Gilbert: 1). In 2000, Howard Schultz was promoted as chairman of the company. In 2008, Howard Schultz returned as the chief executive officer from the position of chairman and Coffee Equipment Company was acquired. In 2011, it acquired evolution fresh and in 2012, it acquired La Boulange. As of 30th September 2012, Starbucks has 9405 company –operated stores and 8661 licensed stores around the world. (â€Å"Starbucks Timeline 2012†). 1.1 â€Å"Segment Analysis â€Å" â€Å"Current Market Position† Coffee & Snacks Shops – Industry at a Glance – 2011 â€Å"USD in Billions† Revenue 26.5 Industry Annual Growth 2006 to 2011 2% â€Å"Annual Growth 2011 to 2016† 4.1% Industry Profit 1.6 Industry Wages 6.1 As per IBIS World Industry Report 2011 (Coffee & Snacks Shops), Starbuck is occupying 32.6% of share in the industry. (Fellner 2008:17). As per Starbucks annual report, Starbuck serves about 33% of total QSR (Quick Service Restaurant), which includes both convenience store coffee shop and coffee shop despite cutthroat competition in QSR, Starbuck is able to hold its share in the industry. Further in the global market, every one cup of coffee out of 100 cups of coffee served is being served by the Starbucks. 1.2 â€Å"Current Strategies† Recovering from recession, Starbucks has attained the highest annual income of $11.7 bn in the year 2011. During 2011, Blonde Roast, was introduced in its products, it entered into the juice segment by acquiring Evolution Fresh. Starbucks is now able to serve about 60 million