Essay on Financial Analysis of Starbucks 2015

4581 Words May 26th, 2016 19 Pages
Managerial Accounting
Project Assignment

Starbucks
Coffee Company

Table of content
1. Introduction ………………………………………………………3
2. Management structure …………………………………………....4
3. Management of inventory ………………………………………..5
4. Ability to earn income ……………………………………………6
5. Reliance on debt financing ……………………………………….7
6. Types, volumes and prices of products sold …………………..8
7. Production processes …………………………………………….9
8. Management’s long term strategies ………………………………10
9. Efficiency of operation project …………………………………11
10. Conclusion ……………………………………………………….13
11. Appendix …………………………………………………………14

1. Introduction
Starbucks Coffee Company stands as the biggest coffeehouse business in the world. Starbucks was established in 1971 by
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Starbucks target market was 18 years to 24 years young professional because they are not yet been loyal with coffee industry. Starbucks strategy comprises to locate its stores at picky places such as the first floor of blocks of offices, underground main entrance and urban areas. Starbucks sales totally depends on company operate retail stores and certified retail operations, Starbucks sells coffee and tea products through many others channels like distribution targeting restaurants, hotels, colleges and universities and other work places.
According to Fleisher & Bensoussan (2002) Starbucks target market was wealthy, upper class and educated who are agree to pay high prices of Starbucks due to its high quality and customer service.

2. Management Structure
The firm’s industry leadership is partly attributed to the appropriateness of its organizational structure.
A company’s organizational structure influences management and leadership, communication, change, and other variables critical to business success. Starbucks has evolved to have an organizational structure that matches current business needs. This organizational structure is unique to Starbucks, although it can be characterized based on a conventional typology of organizational structures.
Starbucks succeeds because its organizational structure grows with the business, enabling the company to optimize processes and the quality of its

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