OMM 622: Financial Decision-Making Financial Statement Analysis: Starbucks

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Running head:STARBUCKS1Financial Statement Analysis: StarbucksOMM 622: Financial Decision-MakingInstructorDate:Analyze the financial performance and strategic positioning of Starbucks Corporation, focusingon key components of its financial statements, including profitability, liquidity, and financialhealth ratios. Discuss the company's growth prospects, particularly in international markets, andrecommend potential strategies for enhancing its product offerings and revenue streams.Additionally, evaluate the impact of Starbucks' competitive advantage in terms of customerexperience, brand loyalty, and innovative business strategies on its sustained success in theglobal coffee market.Word Count Requirement:1500-2000 words

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STARBUCKS2Starbucks coffee ispracticallysynonymous with urban and suburban living; their whitecups and green logo areeasily recognizablebearing in mindtheir global reach with21,000 storesin over 65 countries.Starbucks is currently ranked 196 on the 2014 Fortune 500 companies listand the company profile brands it as “the roaster, marketer & retailer of specialty coffee in theworld…It sells a variety of coffee & tea products. It sells goods and services under the brandsTeavana, Tazo, Seattle's Best Coffee, etc.” (Fortune, 2015).Starbucks has remained true to theiroriginal mission of serving quality and responsibly-sourced coffee, providing excellent customerservice and offering consumers a pleasant environment, it is because of these qualities that theyhave remained top-ranked in their industry.Financial statements “provide a snapshot of thefinancial health of a company for a specific period of time, and give both internal and externalreaders information needed to make financial decisions about a company” (Epstein, 2014).It isthe intent of this paper to provide a thorough fundamental financial analysis of Starbucks withspecial attention to the company’s background and an analysis of the numerous componentsfound within their financial statements.The mission of Starbucksis:to inspire and nurture the human spirit–one person, onecup and one neighborhood at a time(Starbucks, 2015).Starbucks prides itself on being aresponsible company, not just a chain of coffeehouses. By achieving abalance betweenprofitability and a social consciencethe Starbucks Corporation focuses on ethical sourcing of its’products, environmental stewardship, and community involvement.One of the maincommitmentsof Starbucks is to be different;to bebrandedas not onlyas a coffee shop but aninstitution that offers more than just coffee, ratheran experience filled with acomfortableambience and top-of-the-line customer service. By offering quality service and providing awell-

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STARBUCKS3appointed and comfortable environment,Starbuckscustomers willbe morecommittedto theidea of enjoying acup of coffee atStarbucks over other coffee shopsmerely because the focus oftheir business acumen is centered on their products, customer service and environment. As such,this can be identified as their competitive advantage in the industry today due to the idea ofdrinking in Starbucks is a fulfilling, rewarding and enjoyable experience after a long day ofwork, school or other activities that maydeemed asstressful to people.Starbuckshas continued to be an industry strongholdas a result of their collective vision.Theorganizational vision of help, discipline andthefivekey business principles developed bytheir president, chief executive officer and chairman, Howard Schultz.These are result-orientedbusinessstrategiesthatprovide aprogressiveeffect for the company and they include:Make ityour own, Everything matters, Surprise and Delight, Embrace resistance,andLeave your Mark(Starbucks, 2015).These key business principles skyrocketed theStarbucks enterprise andcoupled with the leadership skillsdeveloped and implemented from the top down, has bolsteredthe appeal and breadth of the company.I believe that the goalto any successful businessis toidentify yourcompetitive advantage and beingable to maximize that uniqueness into innovativeideas such as defining your own mission-vision, creating an impact to the industry by learningwith the market or the customers that appreciate your efforts in becoming a game-changer in themarket–everything that Starbucks has accomplished.In 2013 Starbucks gave a press release entitledStarbucks Corporation FundamentalCompany Report Including Financial, SWOT, Competitors and IndustryAnalysis(2013)whichprovideda complete overview of the company's affairs, financial andotherwise. Thisinformation includesfinancialand SWOT data, industryanalysis, opinions,estimates,andannual and quarterly predictions made by stock market experts. The report also

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