Essay on Starbucks Case Analysis : Starbucks

1011 Words Sep 1st, 2016 null Page
Starbucks Case Study Starbucks is a massive company that prides itself on delivering the consumer high quality coffee ethically. In recent years, Starbucks has experienced a lucrative amount of growth. In the third quarter of 2016, Starbucks’ store sales increased 4%, net revenues grew 7%, and profitability jumped 9% (Doraisamy 2016). I attribute these astronomical numbers to Starbucks’ initiative to expand its operations nationally as well as internationally while maintaining its signature quality wherever it goes (Trefis 2016). Starbucks’ EPS (earnings per share) has increased 24% to $0.51 per share, and this is due to the company’s high profitability trickling down to their stock holders. This creates great value for Starbucks stock, which incentivizes people to purchase their stock, and the company reinvests that income into expansion that leads to an even higher profit. Starbucks’ year to date continues to perform well, and its stock shows reliable growth. Revenue as well as operating income continue to boast immense growth (7%, and 9% respectively), and Starbucks is consistently creating new quarter records, as well as consistently breaking them (Doraisamy 2016). A keystone in Starbucks’ business strategy is international business. The coffee shop continues to emphasize the importance of moving overseas, and this has led to many successes as well as failures. In China, Starbucks has been expanding aggressively. “I wouldn 't be surprised if one day we have more…

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