Financial Feasibility Of Starbucks Corp. Expansion In Italy.

Financial Feasibility of Starbucks Corp Expansion in Italy Patten University Financial Feasibility of Starbucks Corp Expansion in Italy This report will focus on evaluating the financial stability of Starbucks Corporation by assessing the feasibility of an expansion of operations into Italy and will include a forecast of future financial outcomes as a result of the expansion. Introduction Company Description Starbucks began in 1971 as a single store in Seattle’s historic Pike Place Market. From just a narrow storefront, Starbucks offered some of the world’s finest fresh-roasted whole bean coffees. The name, inspired by Moby Dick, evoked the romance of the high seas and the seafaring tradition†¦show more content†¦Starbucks is no stranger to international markets and has multiple overseas subsidiaries in almost every country in which they operate. In 1985, Starbucks started its expansion into different cities in the USA and Canada, opening in Chicago and Vancouver, B.C. In 1995, Starbucks decided to internationalize its business outside of North America and expanded into Japan by creating a joint venture with SAZABY Inc. Today, Starbucks is the largest coffee shop company in the world holding 42.4% of the U.S. market share (Tucci, 2017) and generating more than 10 times the revenue of its closest global competitor, Costa Coffee, as of 2015 (Presi dent, 2015). Annual Reports Financial Statements This section shows copies of the company’s financial statements for the past five years. STARBUCKS CORP INCOME STATEMENT Fiscal year ends in September. USD in millions except per share data. 2012-09 2013-09 2014-09 2015-09 2016-09 Revenue 13300 14892 16448 19163 21316 Cost of Revenue 5813 6382 6859 7788 8511 Gross profit 7486 8510 9589 11375 12805 Operating expenses Sales, General and administrative 4719 5224 5630 6608 7425 Other operating expenses 980 3611 878 1166 1208 Total operating expenses 5700 8835 6508 7774 8633 Operating income 1787 -325 3081 3601 4172 Interest Expense 33 28 64 70 81 Other income (expense) 305 124 143 372 108 Income beforeShow MoreRelatedExploring Corporate Strategy - Case164366 Words   |  658 Pagesto be big and cutting edge – there are big mass market brands like Nike and PlayStation that manage to retain an edge despite their size. That’s what we intend to do.9 6 7 Financial Times, 30 April (2003), p. 13. Financial Times, 28 February (2003), p. 22. 8 9 New Media Age, 13 November (2003), p. 24. Financial Times, 30 April (2003), p. 13. ECS8C_C02.qxd 22/10/2007 11:53 Page 608 CASE STUDY The global pharmaceutical industry Sarah Holland The case looks at the developmentRead MoreInnovators Dna84615 Words   |  339 PagesSalesforce.com’s Marc Benioff. For a full list of innovators we interviewed whom we quote in this book, see appendix A; virtually all of the innovators we quote, with the exception of Steve Jobs (Apple), Richard Branson (Virgin), and Howard Schultz (Starbucks)—who have written autobiographies or have given numerous interviews about innovation—are from our interviews. We also studied CEOs who ignited innovation in existing companies, such as Procter Gamble’s A. G. Lafley, eBay’s Meg Whitman, andRead MoreManaging Information Technology (7th Edition)239873 Words   |  960 PagesProject at Consumer and Industrial Products, Inc. CASE STUDY III-2 A Make-or-Buy Decision at Baxter Manufacturing Company CASE STUDY III-3 ERP Purchase Decision at Benton Manufacturing Company, Inc. CASE STUDY III-4 The Kuali Financial System: An Open-Source Project CASE STUDY III-5 NIBCO’s â€Å"Big Bang†: An SAP Implementation CASE STUDY III-6 BAT Taiwan: Implementing SAP for a Strategic Transition CASE STUDY III-7 A Troubled Project at Modern Materials, Inc.