Explain why Business is so Good for Starbucks - 825 Words

Explain why Business is so Good for Starbucks (Essay Sample) Content: StarbucksNameCourseInstructorInstitutionDate1. Explain why business is so GOOD for Starbucks? Starbuck has been the top performing corporate over the years because it has had considerable experience in product production. Dating back 1971 when the company was developed, it has been able to provide quality coffee to the customers. It has led customers to increase their demand for the beverage compelling the company to introduce more coffee varieties. Moreover, it has contributed to the expansion and growth of the company raising its net revenues and increasing the profit margins year after year as cited in their financial reports. The consolidated Q3 in the year 2015 net revenues have drastically increased by 18% to almost a record breaking of $4.9B. The rise in demand for the coffee from the customers has contributed to this change in net revenues. The 22% increase in income profit has been contributed by factors such as the favorable sales power in the American n ation and from the cap segments. The company has implemented supply chain initiatives that have seen the company increase its income profit in the year. The earnings per share (EPS) have also soared to 21% due to the proliferative investment the company has made in the fiscal year. The targeted EPS is $1.77-$1.78 paid in dividends. Starbucks has been performing well yearly to date. The continued success is evident from the price returns data that shows a remarkable increase from 32.31% on July 31, 2015, to 41.21% in September 2015 from the financial reports. 2. What are some advantages and disadvantages of Starbucks global international expansion? The company is experiencing advantages and disadvantages in the international global expansion due to various factors. Competition is a major obstacle the company is experiencing since many other companies have come up selling coffee beverages at lower costs leading to customer depreciation. Others include high taxes imposed in other op erating countries. Some states have imposed high taxes on this beverage industry resulting to minimal or no profits from their operations. China serves as the best target market for Starbucks largely because it has more than 1700 stores that are operating in more than 90 cities in China. The company has committed partnership with the nation thus fostering growth. The company is struggling in the European market due to the lagging sales and the failure to meet the setup targets. Starbucks has also come up with an exclusive digital partnership that they are operating with to leverage their brands. 3. Why is Howard Schultz such an inspirational CEO? Howard Schultz is an inspiration CEO to the company; he returned to the company in August 1987. He advocates striking a balance between corporate social conscience and profitability to be able to push the company to another level and make it productive, profitable and building partnership. Starbucks aims to be a responsible and possess a p ositive influence on the communities it is under service and management of the environment. Howard leadership has seen the company achieve all its social and corporate responsibilities and continue to uphold them as they engage in the business.4. Why Starbucks is consistently ranked One of the 10 Best Corporations To Work For? Starbucks is always ranked among the top best corporate to work with due to the management it has and the reputation that it has acquired from the public. It has made careers so appealing due to the demands of the environment that call for highly skilled employees. In a hierarchy from top management down to the employees, these people have great skills thus makes their career appealing. The employees are referred to as partners because they are involved in the active performance of the corporate as similar to the business partners.5. Consider your own customer experiences at a Starbucks Personally the management is the main concern that I can reckon from the corporate and the hard work of the employees that lead to the production of that satisfying and demanding cup of coffee. The brand creates an emotional connection not only to me but to most of the customers making them always crave Starbucks brands. The personal loyalty I have developed from visiting Starbucks joint has been tr...