Final Paper_T Olsen.docx - Final Milestone MBA665 Final Paper Teresa Olsen Southern New Hampshire University 2 STARBUCKS Business Profile Starbucks

Final Paper_T Olsen.docx - Final Milestone MBA665 Final...

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Final Milestone MBA665: Final Paper Teresa Olsen Southern New Hampshire University October 13, 2019
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2 STARBUCKS Business Profile Starbucks opened its doors in 1971 and has turned into a multinational organization. Starbucks main focus was growth since they issued their projections in 2016. However, the desire for growth did not start there. Chairman and chief executive officer Schultz joined the company, he embraced it and took to Italy to learn and bring back the Italian coffeehouse tradition to the US (Starbucks, 2018). When he was done, he came back, and Starbucks took flight. “After 48 years, Starbucks has become one of the most respectable and admired companies in the world. A merchant who today delivers the Starbucks Experience more than 100 million times per week at more than 30,000 stores in 78 countries. (investor. Starbucks).” Starbucks offers a variety of products to meet the customer’s needs, for example they offer a variety of beverages hot and cold, teas, instant coffee’s, espresso’s and in a multitude of different flavors. Providing the public with a fast pace service, offering many products and offering them on the go. The company maintains a number of locations throughout the world. Their newest launch of the Starbuck app for mobile devices allows customers to maintain orders and pay for them in advance, allowing the company to keep up with those who share the market. Having this feature brought them closer to a generation of consumers who are on the move at all times and need fast service. An annual ranking in 2018 in Fortune magazine ranked Starbucks number one in the food and beverage industry. (Stories Starbucks) In the annual report submitted in 2019 Starbucks reported a Net Revenue of 24.7 billion which was a 10% increase over the previous year. They also reported that 80% of the total revenue came from company operated stores during 2018
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3 STARBUCKS (starbucks.com). Starbucks currently shares “39.8% of the market share in US coffee chain industry (Lock, 2018).” Currently Starbucks has 11 main competitors in a study that ranked these three at the top: Costa Coffee, McDonalds and Dunkin (Bhasin, 2018). Starbucks has remained a top competitor for decades against these brands. “In 2018, the organization recorded revenue of $ 24,719.5 million (Starbucks Corporation, 2019).” This figure represents a 10.4 percent increase from 2017. Furthermore, the organization is the leading coffee brand in the world. As such, its market share is about 21.9 percent. Starbucks has some great opportunities with growth in the industry. Their focus was mainly on growth since they published projections in 2016. Expanding the US market and recording stability, profit and further expansion shows investors they have a great product. They have been able to prove year after year they are investment worthy and it has given them the ability to keep expanding. All of this brings on great potential of further opportunities.
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