Our COFFEE,
Our PARTNERS,
Our CUSTOMERS,
Our STORES,
Our NEIGHBORS &
Our SHAREHOLDERS
Mission: “To inspire and nurture the human spirit – one person,
one cup and one neighborhood at a time” (Starbucks.com).
Company
Starbucks
Allen & Company LLC
Ariel Capital Management, LLC
Juniper Networks, Inc.
PepsiCo, Inc.
Kissinger Associates
Facebook, Inc.
Trinity Ventures
Colgate-Palmolive Co.
J.C. Penny Company, Inc.
PepsiCo, Inc.
Board of Directors
Position
Founder, Chairman, President and Chief Executive Officer
Managing Director
President
Chief Executive Officer
Retired Executive Officer
Managing Director
Chief Operating Officer
General Partner Emeritus
Retired Vice Chairman
Chairman and Chief Executive Officer
Retired Chief Executive Officer
Name
Howard Schultz
William Bradley
Mellody Hobson
Kevin Johnson
Olden Lee
Joshua Cooper Ramo
Sherly Sandberg
James Shennan, Jr.
Javier Teruel
Myron Ullman, Ill
Craig Weatherup
Title
Chairman, President, and CEO
President, Starbucks Coffee US
President, Starbucks International
President, Global Consumer Products, Foodservice
President, Global Development
President, Seattle's Best Coffee
Chief Marketing Officer
Chief Financial Officer, Chief Administrative Officer
Executive Vice President, General Counsel and Secretary
Executive Vice President, Global Supply Chain Operations
Chief Information Officer, Executive Vice President, Digital ventures
Executive Vice President, Partner Resources (Human Resources)
Executive Vice President, Public Affairs
Senior Vice President, Global Strategy
Name
Howard Schultz
Cliff Burrows
John Culver
Jeff Hansberry
Arthur Rubinfield
Michelle Gass
Annie Young-Scrivner
Troy Alstead
Paula Boggs
Peter Gibbons
Stephen Gillett
Kalen Holmes
Vivek Varma
Mary Egan
Community Service,
Youth Action,
Starbucks (RED) &
The Ethos Water Fund
“We’ve always believed that businesses can – and should – have a positive
impact on the communities they serve. “
Recycling, Energy, Water,
Green Building & Climate Change
Ethical Sourcing:
Farmer Support
Wellness: Health Care Reform,
Menu Labeling & Sodium
Reductions
External Environment – Natural and
Societal
• Natural Environment
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Growing water scarcity
Energy availability a growing problem
Increased focus on sustainability
Growing recycling focus
• Societal Environment
– Economic
– Technological
•
•
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•
> 3 million payments by phone since the launch of the mobile app
1.3 million followers on Twitter
4.5 million Foursquare check-ins
20 million fans on Facebook
– Political/Legal
Porter’s Five Forces:
1.Current Competitive Force
2.Threat of Potential Entrants
3.Bargaining Power of Buyers
4.Bargaining Power of Suppliers
5.Threat of Substitute Products
“Starbucks is always managing the tension
between opposites. One the other hand, I’d
say we’re comforting and predictable. Yet on
the other hand, we’re constantly surprising
and delighting.”
Starbucks Coffee Worldwide Locations
“We believed the best way to meet and exceed the expectations of our
customers was to hire and train great people, we invested in employees who
were zealous about good coffee.”
SBUX
PVT
MCD
NSRGY.
PK
Market Cap:
29.41B
N/A
88.44B
204.34B
272.47M
Employees:
137,000
10,751
400,000
281,000
15.90K
Qtrly Rev Growth (yoy):
9.90%
N/A
8.90%
N/A
20.90%
Revenue (ttm):
11.19B
577.10M1
24.58B
129.41B
1.60B
Gross Margin (ttm):
58.61%
N/A
39.95%
57.20%
34.97%
1.99B
N/A
8.76B
20.68B
266.74M
13.00%
N/A
30.39%
13.42%
6.32%
1.09B
26.90M1
5.07B
10.86B
N/A
EPS (ttm):
1.43
N/A
4.73
12.53
1.57
P/E (ttm):
27.41
N/A
18.01
5.01
27.65
PEG (5 yr expected):
1.48
N/A
1.66
3.63
1.62
P/S (ttm):
2.62
N/A
3.62
1.58
2.43
EBITDA (ttm):
Operating Margin (ttm):
Net Income (ttm):
*SBUX = Starbucks
*Pvt1 = Dunkin' Brands Group, Inc.
*MCD = McDonald's Corp.
NSRGY.PK = Nestl
Industry = Special Eateries
Industry
INTERNAL
EXTERNAL
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POSITIVE
NEGATIVE
Strengths
Weaknesses
The ability to sell a "Status"
Social Responsibility Program
Ability to reach consumers wherever they may be
Vertically integrated
Social networking, word of mouth and image advertising
Outstanding customer service & staff
Human Resources
Innovation /Technological development
Website presence (My Starbucks)
Extremely Profitable
Outstanding reputation
"Third Place"
Wi-Fi access
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Increase Outsourcing
Higher prices
Brand dilution
Market Saturation
Starbucks Coffee International, Joint Ventures
Don't participate in traditional marketing
Board of Directors demographics
Privacy security for electronic transactions
High operating expenses
Profits are dependent of coffee products
POSITIVE
NEGATIVE
Opportuntiies
Threats
Established industry leader
Offering unique products and atmosphere
Long term agreements with current suppliers to control costs
Increased consumers and need for more store locations
Well developed research and development team
Store locations are unique
Controlled access to distribution channels
Global expansion
Customers appear to not be price sensitive
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Economic situation
Competitors now offering similar products
Increase in Coffee Prices
Starbucks Effect
Change in societal expectations
High Real-estate expenses
Change in import laws and regulations
Health conscious epidemic
STRENGHTS
1. Social Responsibility
2. Social Media
3. ‘Third Place”
WEAKNESSES
1. Brand Dilution
2. Market Saturation
3. High Operating Expenses
OPPORTUNITIES
1. Increase Consumer Means Increased Store Locations
2. Unique Store Locations
3. Customer Are Not Price Sensitive
THREATS
1. Competitors Offering Similar Products
2. Starbucks Effect
3. Change in Societal Expectations
1. Reevaluate store locations to consider less
populated and affluent areas
2. Focus less on increasing output and locations
and more on quality on brand image
3. To continue operating in a non-franchise manner
4. Release new products and services that are more
unique/innovative than their competitors
5. Maintain long-term contracts with suppliers
6. Expand globally in a more timely manner