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Starbucks Corporation

Autor:   •  October 5, 2017  •  Case Study  •  1,604 Words (7 Pages)  •  674 Views

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MGMT 702 (101) CRAFTING AND EXECUTING STRATEGY

Research and Case Analysis No. 1 Part B:    Starbucks Corporation

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Question 1:

 Line chart comparing Starbucks corporation and McDonald’s corporation

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Summary:

  • Starbucks and Mcdonalds are among largest food beverages in food industries. The chart shows that starbucks is growing rapidly after year 1992 whereas mcdonalds growth is deteriorated. Mcdonalds is quite clearly the cheaper of two companies which is result of no growth over the years. (McDonald’s versus Starbucks: Dividend Stock Analysis, 2015)
  • Starbucks is expected to growth over next several years as comapare to mcdoanlds,the company will grow through a massive new store opening campaign and also expecting comparable store sales growth from a mix of greater food sales and teavana sales.
  • On the other side, Mcdoanld’s is already mature company and will likely to generate at expected range. So Starbucks is palying way top above the Mcdonalds. Unfortunately, Mcdonalds doesn’t seem to be a match for starbucks. (starbucks corporation, 2017)
  • Investors should buy SUBX shares which has growing trend.

Quesation 2 :

 Total net revenues, net earnings, ROA, ROE, and the total number of stores – 2016 to 2012.

                                                                (Years)

Particulars

2016

2015

2014

2013

2012

Total net Revenue ($B)

21.32

19.16

16.45

14.9

13.3

Net Earnings ($B)

2.82

2.76

2.07

8.3

1.38

ROA

19.67%

22.14

19.23%

0.07%

16.84%

ROE

47.89%

47.38%

39.22%

0.18%

27.08%

Total number of company operated and licensed store as of oct 2,2016

                                                                                     Countries

Particulars

 Americas

China/Asian Pacific

EMEA

Other Segment

TOTAL

Company operated

9019

2811

523

358

12711

Licensed stores

6588

3632

2119

35

12374

Total

15607

6443

2642

393

25085

(Fiscal 2016 Annual Report, 2016)  

Quesation 3 : What factors might explain the relative decline in the performance of the company during specific periods in the last decade?

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