Starbucks Case Study Analysis

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Register to read the introduction… Mr. Schultz served as chief executive officer from 1985 until June 2000, when he transitioned into the role of chief global strategist. From 1985 to June 1994, Mr. Schultz was also the company’s president. From September 1982 to December 1985, Mr. Schultz was the director of Retail Operations and Marketing for Starbucks Coffee Company, a predecessor to the company; and from January 1986 to July 1987, he was the chairman of the board, chief executive officer and president of Il Giornale Coffee Company, a predecessor to the company. Orin C. Smith joined Starbucks Corporation in 1990 and has served as president and chief executive officer of the company since June 2000. From June 1994 to June 2000, Mr. Smith served as the company’s president and chief operating officer. Prior to June 1994, Mr. Smith served as the company’s vice president and chief financial officer and later, as its executive vice president and chief financial officer. Peter Maslen joined Starbucks in August 1999 as president, Starbucks Coffee International, Inc. Prior to joining Starbucks, Mr. Maslen served in various executive positions within Asia Pacific and Europe with Mars Inc., PepsiCo, Inc. and Tricon Global Restaurants. From 1992 to 1999, as senior vice president with Tricon, he served as president of its German, Swiss, Austrian and Central Europe …show more content…
Projected P&L for Ipanema Store (US $) Year 1 Net Sales [1] $1,000,000 Cost of Goods Sold [2] $350,000 Gross Profit $650,000 Staff Costs Marketing [3] Other Costs Occupancy Costs Total Costs Operating Cash Flow Depreciation [4] Store Pre-Tax Profit Construction Costs [5] Key Money [6] $200,000 $75,000 $75,000 $175,000 $525,000 $125,000 $54,200 $70,800 $400,000 $1,000,000 Year 2 $1,100,000 $330,000 $770,000 $225,000 $50,000 $100,000 $175,000 $550,000 $220,000 $54,200 $165,800 Year 3 $1,210,000 $326,700 $883,300 $250,000 $50,000 $125,000 $175,000 $600,000 $283,300 $54,200 $229,100 Year 4 1,270,500 $343,035 $927,465 250,000 50,000 125,000 175,000 $600,000 $327,465 $54,200 $273,265 Year 5 1,334,025 $360,187 $973,838 250,000 50,000 125,000 175,000 $600,000 $373,838 $54,200 $319,638

Projected P&L for a 'typical' store in locations outside the Ipanema Area (US $)* Year 1 Year 2 Year 3 Year 4 Net Sales [1] $625,000 $650,000 $700,000 $735,000 Cost of Goods Sold [2] $218,750 $195,000 $189,000 $198,450 Gross Profit $406,250 $455,000 $511,000 $536,550 Staff Costs Marketing [3] Other Costs Occupancy Costs Operating Cash Flow Depreciation [4] Store Pre-Tax Profit $100,000 $45,000 $60,000 $70,000 $131,250 $25,000 $106,250 $115,000 $30,000 $75,000 $70,000 $165,000 $25,000 $140,000 $135,000 $30,000 $75,000 $70,000 $201,000 $25,000 $176,000 $135,000 $30,000 $75,000 $70,000 $226,550 $25,000

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