Overview of Starbucks Goods, Services, and Markets

According to MSN Money Starbucks offers both goods and services; they include High-quality whole bean coffees.
Along with fresh, rich-brewed coffees, Italian-style espresso beverages, cold blended beverages, complementary
food items, a selection of teas, and beverage-related accessories and equipment, through its Company-operated
retail stores. Starbucks produces and sells ready-to-drink beverages. Starbucks also sells merchandise such as cups
and music. They operate in nearly 60 countries with 18,000 retail stores.
http://globalassets.starbucks.com/assets/9a6616b98dc64271ac8c910fbee47884.pdf
http://investing.money.msn.com/investments/company-report?symbol=SBUX




Starbucks Corp

Overview and History














Stock Exchange and Ticker Symbol
Starbuck Corporations is traded on the
NASDAQ with the
ticker symbol SBUX.







Sources:http://investing.money.msn.com/investments/stock-
price?Symbol=SBUX&ocid=qbes&http://money.cnn.com/quote/qu
ote.html?symb=SBUX

Corporate Headquarters
The firm is headquartered in Seattle, Washington




Sources:http://starbucksfs.com/Company/Corporate



Sources:http://starbucksfs.com/Company/Corporate

Founding of Starbucks


Starbucks first store was located in Seattles Pike Place Market. It
started off with just one store in 1971. Then the marketing and
operations manager, Howard Schultz, decided the small coffee shop
should test out some of the strategies that he examined at coffee
shops in Italy. He wanted to bring their traditions back to the U.S. He
wanted the coffee houses to be a place to converse, and have a
sense of community. He left Starbucks to start his own Giornale
coffeehouses, and returned in 1987 to purchase Starbucks.
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dc6ac25ad0d.pdf



















Highlights from Corporate Annual Report


After 42 years, Starbucks now operates in 61 countries and recently had most successful launch ever
in India (DeGrande)
The net revenues for Starbucks increased by 14% or about 13.3 billion dollars.
The earnings per share increased by 10% from the previous year.
Starbucks returned approximately 1.1 billion dollars to shareholders during the year.
Operating income also increased, the increase was 11% from the previous year.
Channel Development, which sells ready to drink beverages, teas, and packaged coffees, grew 50%
(1.3 billion dollars).
Starbucks is currently growing towards nationwide distribution of their Evolution Fresh juice products
with products currently in 2,200 Starbucks stores as well as 1,500 grocery locations.
In the China and Asia Pacific region in 2012, Starbucks once again posted strong annual returns,
including 11 consecutive quarters of double-digit comparable store sales growth (Degrande).
Starbucks anticipates having 20,000 stores on six continents by 2014. Additionally, over the next five
years, Starbucks plans to open 3,000 new stores in the American region alone.
1,063 new stores were opened globally in the fiscal year of 2012.
http://investor.starbucks.com/phoenix.zhtml?c=99518&p=irol-newsArticle&ID=1753234


Major Events in Corporate History
1971: Starbucks opens first store in Seattles Pike Place Market.
1982 :Howard Schultz joins Starbucks as director of retail operations and marketing.
1987: Il Giornale acquires Starbucks assets with the backing of local investors and changes its name to Starbucks
Corporation. Opens in Chicago, Vancouver, and Canada.
1991: Becomes the first privately owend U.S. company to offer a stock option program that includes part time
employees. Total stores: 116
1994: Starbucks opens its first drivethru.
1997: Starbucks Foundation is established.
1998: Extends the Starbucks brand into grocery channels across the U.S. and Launches Starbucks.com.
2000: Howard Schultz transitions to chairman and chief global specialist, Orin Smith promoted to president and Chief
Executive Officer.
2008: Chairman Howard Schultz returns as CEO. Total Stores: 16,680
2009: Launches myStarbucks and Starbucks Card iPhone apps and Starbucks Card Mobile payment.
2011: Starbucks celebrates its 40th anniversary with updated brand identity and month of global community service.

http://globalassets.starbucks.com/assets/e56b2a6b08244aaab0632dc6ac25ad0d.pdf



































Overview of Corporate Responsibility, Ethics, and
Sustainability






















Highlights of Corporate Responsibility Report
Annual Global Month of Service 230,000 hours of community service and 2100 projects
completed in 2012. Plans to expand for 2013.
Ethical Sourcing Starbucks wants to ensure their products are sourced from ethical place.
93% of the coffee sold at Starbucks is ethically sourced. Their goal is to be at 100% by 2015.
This also includes every other non-coffee item sold in the stores.
Farmer Support - Starbucks opened their first Farmer Support Center in 2004. It was made
to teach farmers responsible techniques to growing coffee, and how to improve the quality
and size of the crops. In 2012, Starbucks opened 4 new Farmer Support Centers.
Farmer LoansStarbucks provides loans to farmers with reasonable terms to ensure quality
crops being grown. Their loans increased from 14.7 million in 2011, to 15.9 million in 2012.
Their goal is 20 million dollar loans by 2015.
Community Service Starbucks does community service anywhere their business touches,
not just the stores. They increased their community service hours by 40% in 2012, totaling
613,214 hours. Their goal is to have 1 million hours logged in 2015.
Engaging Youth Starbucks has a Youth Leadership Grant program that provides 15-24 year
olds with funding for businesses and non-profit organizations.
Giving - Starbucks has a charitable organization called The Starbucks Foundation which
donates money each year to hundreds of non-profit organizations. In 2012, they donated 13.8
million dollars total to over 400 non-profit organizations.
Community Stores Starbucks opened its first community store in New York, in 2012.
Community stores are designed to work with a non-profit located in the area they are built.
The community stores program focuses on school, employment, housing, health, and safety.
It has raised over 800,000 dollars for community revitalization programs.
Starbucks has surpassed their goal for 2015 of 50,000 youth members in the program for the
last 3 years. The youth involved did 1.8 million hours of community service in 2012.
http://globalassets.starbucks.com/assets/581d72979ef0486682a5190eca573fef.pdf

Diversity Initiatives
Diversity is a core value in Starbucks leadership competencies!
Diverse workplace, increasing cultural competencies, shaping an inclusion
culture, and having a diverse variety of suppliers.
Starbucks has built 7 partner network groups for insight and research into
new partners, building relationships with partners, and product innovation
around the world.
Starbucks also empowers 2 diversity councils.
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Overview of Management Structure
O




Environment and Sustainability Efforts
1. Greener Stores- Starbucks joined the U.S. Green Building Council in to help them develop the LEED program (Leadership
in Energy and Environmental Design.) The program works on more environmental friendly buildings.
2. Conserving Power and Water In 2008, Starbucks set goals to reduce its water and power usage 25% by 2015. Since then,
they have implemented and tested many techniques on how to lower both. Currently, Starbucks has reduced power usage by
6.5% and water usage by 17.7%.
3. Investing in Renewable Energy Starbucks purchases Renewable Energy Credits that encourage developments of cleaner
energy sources.The credits provide wind farmers more revenue.
4. They currently have purchased renewable energy equivalent to 50% of what they use in their stores globally.
5. Innovating in Recycling and Food Packaging Starbucks has offered a 10% post-consumer recycled paper cup since 2006,
but they are still working to decrease materials used in packaging and encourage reusable cups.
6. In 2012, Starbucks introduced The Earth Sleeve, a sleeve for hot drinks. It requires fewer raw materials to produce,
while providing more post-consumer content. They save an average of 100,000 trees a year, and Starbucks is working on
rolling out The Earth Sleeve worldwide.
7. Starbucks also plans to release a 1-dollar reusable cup this year in the U.S. and Canada.
8. Forest Conservation Starbucks works with Conservation International to better understand the risk climate change can
have on growing coffee, and natural habits.
9. They work on conservation of natural habitats where coffee is grown, and building strategies on improving the
sustainability of growing coffee.

http://globalassets.starbucks.com/assets/581d72979ef0486682a5190eca573fef.pdf

Corporate Vision, Mission, and Purpose

Starbucks mission: To inspire and nurture the human spirit one person, one cup and one neighborhood at a time.
Principles of Starbucks Company-
1. Coffee: It has always been, and will always be, about quality / 2. Partners: Were called partners, because its not
just a job, its our passion / 3. Customers: When we are fully engaged, we connect with, laugh with, and uplift the lives
of our customers/ 4. Stores: our stores become a haven, a break from the worries outside, a place where you can meet
with friends./ 5. Neighborhood: Every store is part of a community, and we take our responsibility to be good neighbors
seriously./ 6. Shareholders: We know that as we deliver in each of these areas, we enjoy the kind of success that rewards
our shareholders.
http://www.starbucks.com/about-us/company-information/mission-statement


















CEO and Corporate Officers
Howard Schultz: Starbucksfounder, chairman,
president and chief executive officer
William (Bill) Bradley: Allen & Company
LLCmanaging director
Robert M. Gates: former Secretary of Defense
Mellody Hobson: Ariel Investments and
LLCpresident
Kevin Johnson: Juniper Networks, Inc. chief
executive officer
Olden Lee: PepsiCo, Inc.retired executive
Joshua Cooper Ramo: Kissinger Associatesvice
chairman
James Shennan, Jr.: Trinity Venturesgeneral
partner emeritus
Clara Shih: Hearsay Social, Inc.chief executive
officer
Javier Teruel: Colgate - Palmolive
Companyretired vice chairman
Myron Ullman, III: J.C. Penney Company, Inc.
chief executive officer
Craig Weatherup: Pepsi-Cola Companyretired
chief executive officer
http://investor.starbucks.com/phoenix.zhtml?c=99
518&p=irol-govBoard



Strategic Focus
Increased focus on international licensed
stores.
Successfully leveraging Starbucks brand
portfolio.
Focusing on relevant product innovation.
Focusing on profitable new growth
platforms.
Continue to accelerate the growth of our
Channel Development business.
Balancing disciplined global store growth and
existing store renovation.
Meet target store-level unit economics in a
given market.
Timely completing certain supply chain
capacity expansion initiatives.
Execute a multi-channel advertising and
marketing campaign to effectively communicate
our message directly to Starbucks consumers
and employees.
http://www.sec.gov/Archives/edgar/data/829224/00
0082922412000007/sbux-9302012x10k.htm

Economic Conditions, Challenges, and Risks

Risk that customers wont accept new products
Declines in general consumer demand for specialty coffee products
Negative publicity regarding our business practices or the health effects of consuming our products.
Labor costs such as increased health care costs, general market wage levels and workers' compensation insurance
costs.
Lower customer traffic or average value per transaction, which negatively impacts comparable store sales.
Customers trading down to lower priced products within Starbucks.
Poorer Economic conditions could affect the way consumers spend
Deterioration in our credit ratings, which could limit the availability of additional financing and increase the cost of
obtaining financing.
Negative economic conditions persist for a long period= Long lasting changes to purchasing behavior
Construction costs associated with new store openings and remodeling of existing stores.
http://www.sec.gov/Archives/edgar/data/829224/000082922412000007/sbux-9302012x10k.htm
Overview of Marketing
















Major Brands and Markets
Starbucks Corporation has Six Major Brands Starbucks, Tazo Tea, Teavana, Evolution
Fresh, Seattles Best, and La Boulange spanning products from over 30 different types of coffee,
Merchandise, Fresh Food, Ice Cream, Consumer made beverages, and RTD or Ready to
drink beverages. They have turned their brand/brands into a massively well orchestrated
corporation for premium coffee, tea, baked goods, bottled and canned beverages as well
as merchandise generating 13.3 billion dollars in revenue this past year 2012 according to
the companys annual report
Sources:http://globalassets.starbucks.com/assets/9a6616b98dc64271ac8c910fbee47884.pdf
http://investor.starbucks.com/phoenix.zhtml?c=99518&p=irol-reportsannual





Use of Social Media
Starbucks Corp not only uses online social media like
Youtube, Google Plus, Facebook, Twitter and Pinterest
all of which they are on advertise through and keep in
contact with the outside world they also went as far as
creating their venture in the online realm called
mystarbucks idea. Also most Starbucks locations carry
free wifi as per corporate procedure to give the
customer access to the online world in the comfort of
his/her local coffee shop. This furthers there
establishment of online advertising and marketing
using the social media services to which they belong.
Sources:
http://www.starbucksstore.com/on/demandware.store
/Sites-Starbucks-Site/default/Default-
Start?cm_mmc=Sbuxcom-_-HP-_-CMRedirect-_-
HolidayFY14


















Press Releases Regarding Products and Services
* (RED) Honors World AIDS Day With The Launch Of New Holiday Campaigns
From Partners To Help The Fight Against AIDS 4:00 p.m. Nov. 29, 2013 - PR
Newswire
*Starbucks Concludes Packaged Coffee Dispute with Kraft (November 13, 2013 -
Business Wire)
*Starbucks Launches Tweet-a-Coffee; Encourages Spontaneous Gifting on
Twitter (October 28, 2013 - Business Wire)
*AIRMALL USA Bringing Signature Brews from Starbucks to Coffee Lovers at
Cleveland Hopkins International Airport (CLE) (October 17, 2013 - PR Newswire)
*Starbucks and Green Mountain Coffee Roasters Enter Into Expanded, Long-
Term Strategic Partnership (05/08/13)
*Teavana Fine Teas + Tea Bar Debuts in New York Citys Upper East Side
(10/23/13)
*Starbucks Foundation Donates $350,000 to Relief and Rebuilding Efforts in the
Philippines
*Starbucks introduces Thanksgiving Blend - A Coffee Fit for a Feast
*Starbucks Continues Expansion in India with Opening of New Flagship Store in
Bangalore (Nov 22, 2013)
*Starbucks Launches New Reserve Coffee: Aged Sumatra Lot No. 084 (Nov 20,
2013)
*More Than 200 Million Sold: Fans Celebrate the Return of the Original Pumpkin
Spice Latte at Starbucks (Sept.2
nd
, 2013)
Sources:
http://news.starbucks.com/news/category/coffee-beverages

http://investor.starbucks.com/phoenix.zhtml?c=99518&p=irol-
news&nyo=0


Overview of Financial Status


Revenues (Past 3 Years)
10.71 billion In 2010
11.7 billion In 2011
13.3 billion In 2012.
http://www.marketwatch.com/investing/stock/sbux/fin
ancials


Net Income (Past 3 Years)
945.6 million In 2010
1.25 billion In 2011.
1.38 billion In 2012.
http://www.marketwatch.com/investing/stock/sbux/fin
ancials


Earnings per Share (Past 3 Years)
1.27 For 2010
1.66 For 2011
1.83 For 2012.
http://www.marketwatch.com/investing/stock/sbux/fi
nancials
http://www.nasdaq.com/symbol/sbux/revenue-
eps

Current Ratio (Past 3 Years)
1.452 For 2010
1.549 For 2011
1.963 For 2012
http://www.marketwatch.com/investing/stock/sbux/fin
ancials

Current Stock Price
80.03 billion
http://www.marketwatch.com/investing/stock/sb
ux/financials
Analyst evaluation of Corporate Stock
Strong buy.


http://www.marketwatch.com/investing/stock/sbux
/financials