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Adv antage
2. At the same time, Starbuck’s cost of sales also raised. But it is under a strict
control.
Weakness
1. We can’t see the operating expense from the income statement. But we have
reason to believe that Starbuck’s operating expenses was not so high in 2006.
In 2006, Starbucks gross income was lower than it in 2008, but it can achieve
a better net income. This is unmoral.
2. Starbucks’s net income was reduced very much. I think this is be cause
the management pr oblem of Starbucks. Starbucks has so ma ny
br an ches which are not easy for it to contr ol with .
Suggestion: Starbucks can reduce its branches and improve the quality of his
business.
Advantage
1. Starbucks’ net operating cash flow has increased by about 11.23%. This is a
good phenomenon.
Weakness
1. From Sep 06 to Sep 08, we can see that the cash flow was (CFO+CFI+CFF)
from$135.3 in 2006 to $-12.4 in2008. Which means that Starbucks didn’t has
enough fund to operate the company effectively.
2. Starbucks’ net investing cash flow was always negative, and the amount was
increased by about 29.20%. On one hand, it means that Starbucks made a
good use of its fund. But on the other hand, the increasing amount of
investment made Starbuck plunged into cr isis of the shortag e of
funds.
3. The net financing cash flow was also reduced about 18.80%. Starbucks met
some problem on collecting money.
SUMMERY
Starbucks was not so safe like its quiet surface. The problem of raising
money; huge ex pendi ture…. Star bucks faced wi th man y
prob lems. But I bel iev ed that Starbucks wil l find the right way.
The only thing it has to do now w as to r edu ce its large s ystem
whi ch it can’ t cont rol with. By this w ay, it can reduce its cost
and at the same time, it wi ll in cr eased its prof it.