Preview

Starbucks Corporation

Best Essays
Open Document
Open Document
1726 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Starbucks Corporation
Starbucks Corporation
By Oybek Salimov

Outline
Introduction…………………………………………………………………………………3
1. Background of the company…………………………………………………………..4 2. Starbucks’s expansion.………………………………………………………………..4 3. Risks associated with expansion………………………………………………………6 4. Capital structure of the company………………………………………...……………7
Conclusion…………………………………………………………………………………… 9
Reference ……………………………………………………………………………………10
Appendix …………………………………………………………………………………… 11

Introduction Globalization greatly influenced businesses to expand worldwide. Cross boarder communications let people all around the world to exchange demand on services and products. Besides, countries opened boards to foreign investments. New type of business International and/or Multinational Corporations emerged to serve in a worldwide scope. The following report is just an introduction to these complicated phenomena – Multinationals – by illustrating Starbucks Company.

Background of the company
One of the most best known brand and dominant retailer and roaster of whole coffee bean and ground coffee tea, and spices - Starbucks Company began its tremendous success since in 1971 soon after it had been established by three academics Jerry Baldwin, Zev Siegel, and Gordon Bowker in Seattle’s Pike Place Market, USA. The tree scholars chose the brand name in honor of Starbuck in Herman Melville’s Moby Dick and the logo – a twin-tailed siren from Greek mythology which encourages seas and evokes the feelings of the ancient coffee trades through the sea. (Starbucks’ home page)
World leader premier roaster and retailer of specialty coffee Starbucks Corporation was formed in1985. Stocks of the company are traded on trades on the NASDAQ Global Select Market (“NASDAQ”) under the symbol “SBUX.” (Starbucks Corporation Fiscal 2009 Annual Report)

Why Starbucks Company became Multinational Company and how it engaged its international business?
The theory of comparative advantage, the



References: Jeff Madura (2008) International Corporate Finance 9th edi. Thomson South-Westren. Pp 6- 8 John E.Gamble and Arthur A John Yunker (2006) “Starbucks CEO on Globalization: Don’t Go Changing”. Available at http://www.globalbydesign.com/blog/2006/12/03/starbucks-ceo-on-globalization-dont-go-changing/ K Lukasz (2011) An essay: “Starbuck’s International Operations.” Available at http://essaysforstudent.com/essay/Starbucks-International-Operations/94663.html Morningstar Corporate Credit Rating Committee (2010) Starbucks Corporation SBUX (NAS) Starbucks Corporation Fiscal 2009 Annual Report (2009) Available http://media.corporate-ir.net/media_files/irol/99/99518/SBUX_AR.pdf Appendix A

You May Also Find These Documents Helpful

  • Best Essays

    Starbucks the known name in the world of coffee business had started off with little company which now has transformed in a successful corporation. This brand has gained remarkable success over period of time and has proved itself as a reputable coffee provider in term of taste and quality. The major contribution in this success was their aggressive expansions strategies. These strategies have enabled them to develop a dense chain of stores not only in America but all over the world. Their strategic approach towards the business has enabled them to gain value of $12 billion in 2008 from $2.9 billion in 1998 (Higbee, Liaw, Ting, Tjho, ton, 2008).…

    • 4211 Words
    • 17 Pages
    Best Essays
  • Good Essays

    Starbucks Corporation

    • 922 Words
    • 4 Pages

    If we were investors in this company, we would consider 5% to be material. The company does not seem to have any high risk of fraud or material misstatement, so we are very comfortable with the quality of its financial reporting. A misstatement of 5% or above in any of the significant company accounts, or a combined misstatement of 5% or above for the company accounts as a whole, would require increased investigation and would reduce our confidence in the records. Any misstatement under 5% would be permissible.…

    • 922 Words
    • 4 Pages
    Good Essays
  • Better Essays

    Multinational Corporations “MNC” such as Starbucks, are important factors in the processes of globalization. National and local governments often compete against one another to attract the type of company’s facilities, with the hopes of increased tax revenue, employment, social and economic stability. In order to compete, the country’s political powers push toward their goals of developing the economies of developing countries, providing there is a market for the company, and to also provide other employment for companies working as vendors and suppliers.…

    • 1203 Words
    • 5 Pages
    Better Essays
  • Better Essays

    This paper will discuss the disclosures contained in Starbucks’ financial Statements that are related to cash and cash equivalents, receivables, and inventories. This paper will identify the components of their cash and cash equivalents. The original name of the company was Starbucks Coffee, Tea and Spices which later on was changed to Starbucks Coffee Company. Starbuck was staring in 1971; they were located at Seattle’s Pike Place Market. Starbucks is named after the first mate in Herman Melville’s Moby Dick. (Starbucks.com)…

    • 837 Words
    • 4 Pages
    Better Essays
  • Powerful Essays

    Culture and Starbucks

    • 1411 Words
    • 6 Pages

    The reasons behind most corporations' expansion and globalization are strategic growth and profits. Starbucks is not exempted from this fact. However, Starbucks was in a moment taken aback by the consequences of globalization. Patriotism and differences in culture and heritage which may affect the quality and…

    • 1411 Words
    • 6 Pages
    Powerful Essays
  • Better Essays

    Starbucks

    • 1215 Words
    • 5 Pages

    While discussing about the business ethics and corporate social responsibility (CSR) of any business organization, it is necessary to mention that although both the concepts might overlap each other as far as their operations are concerned, yet their goals remain the same for the organization. While ethics involve the individual actions within an organization, the CSR constitutes the organization’s performances and activities as a whole that have direct influence on its stakeholders, customers as well as on the environment. In the present times, organizations are found to have become more concerned about CSR and thus several measures can be found to be considered in this regard (Mullerat, 2010, p.48). The present study focuses on learning about the CSR activities of Starbucks Company and the different issues that the organization addresses.…

    • 1215 Words
    • 5 Pages
    Better Essays
  • Better Essays

    Starbucks

    • 684 Words
    • 3 Pages

    AA, which makes their k d 5.28%. The corporate tax rate ( T ) for…

    • 684 Words
    • 3 Pages
    Better Essays
  • Powerful Essays

    Coffee and Starbucks

    • 2128 Words
    • 9 Pages

    Transnational corporations have had a tremendous impact on the interconnectivity that between countries, corporations, and people on a global landscape. Fueled by capitalistic ideals of increasing profits numerous corporations have expanded there operations into the global marketplace, some with much more success than others. One such transnational corporation that has embodied this pursuit of expansion in domestic and foreign markets for profit is the Starbucks Coffee Company. This company, which finds its roots in the opening of a single retail location in Pike place Market of Downtown Seattle in 1971, has been able to infiltrate into countless foreign domains and grow into a global powerhouse of the food and beverage industry with over nine thousand stores across the globe today in thirty-four countries outside of the Unites States.(Business Wire, 2005) Starbucks serves is an excellent specimen of a company that follows continual patterns of expansion directly correlating to increased access to foreign markets, and also the ability to nurture growth within these markets as well as gain access to new markets through the Market merging.…

    • 2128 Words
    • 9 Pages
    Powerful Essays
  • Powerful Essays

    There is no better concept for a logo in the corporate world than one that evokes cravings. The logo for the coffee corporation, Starbucks, is ideal to this standard, no longer standing as a symbol but an icon. Over the companies 41 years history it has changed significantly. The once small-business coffee brewery has expanded itself internationally, deeming itself to the world as the definition of what coffee is. Looking over its history one can see the strategic steps the corporation has taken to develop its logo into a distinct identifier suited to cause all environments to come back for more.…

    • 1738 Words
    • 7 Pages
    Powerful Essays
  • Powerful Essays

    Starbucks

    • 1707 Words
    • 7 Pages

    In 1971 an english teacher a history teacher and a writer were inspired from the their love of coffee to open a coffee house. They first started by selling just the beans but then they moved on to brew the coffee. Based out of Seattle Washington, this small coffee house name Starbucks grew from the ideas of a man named Howard Shultz. Howard bought into the company in the early 80’s after taking a trip to Italy and being inspired by their culture. His inspiration and ideas proved to be right, Seattle soon became crazy about about coffee and before you know it their was lattes and mochas in everyones hands. With the great demand and success in Washington Starbucks decides expand in North America. Immediately after that Starbucks decided to expand globally and become a publicly traded company. This made Starbucks on the first coffee houses to offer stock options and health benefits to all of its partners.…

    • 1707 Words
    • 7 Pages
    Powerful Essays
  • Satisfactory Essays

    Starbucks

    • 690 Words
    • 3 Pages

    China contains large number of population. For Beijing’s Forbidden City, which is China’s top tourists attraction, as a destination of choice for both Chinese and foreign visitors, hosts millions of visitors each year. As evidence of the potential of the coffee market in China, domestic and international companies are selling high-priced reports on demand forecasts, trends, and development in the Chinese coffee market. Because the North America Market has been saturated, Starbucks continues to look farther afield for potential markets, highlighting an international focus in its mission. Chinese consumers want a Western experience. They have interest on and become excited about the environment, atmosphere and the fresh-brewed process brought by Starbucks.…

    • 690 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    Indirect Costs

    • 370 Words
    • 2 Pages

    Our story began in 1971. Back then we were a roaster and retailer of whole bean and ground coffee, tea and spices with a single store in Seattle’s Pike Place Market. Today, we are privileged to connect with millions of customers every day with exceptional products and nearly 18,000 retail stores in 60 countries. Starbucks is named after the first mate in Herman Melville’s Moby Dick. Our logo is also inspired by the sea – featuring a twin‐tailed siren from Greek mythology.…

    • 370 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    A historical perspective of Starbucks revealed that the company began in 1971 with three individuals having like passion for fine coffees and exotic teas. English teacher Jerry Baldwin, History teacher Zev Siegel, and writer Gordon Bowker collectively combined their thoughts and resources and opened a store called Starbucks Coffee, Tea, and Spice in a marketplace in Seattle. They selected the name Starbucks in honor of Starbuck, a character in Herman Melville’s book, “Moby Dick”. A two-tailed mermaid, encircled by the words Starbucks, is used as the company’s logo.…

    • 979 Words
    • 4 Pages
    Powerful Essays
  • Good Essays

    COMPETITOR OF STARBUCKS

    • 1140 Words
    • 5 Pages

    There are the known international company that become the competitor for the Starbucks. There are:…

    • 1140 Words
    • 5 Pages
    Good Essays
  • Satisfactory Essays

    Starbucks Coffee Company (Hong Kong) was established in May 2000. They opened the first store in Central 's Exchange Square. By May 2008, Starbucks has opened more than 100 branches across Hong Kong commercial, shopping & entertainment and residential areas.…

    • 889 Words
    • 4 Pages
    Satisfactory Essays