Introduction

Starbucks is world brand. Starbucks story began in 1971. Back then we were a roaster and retailer of whole bean and ground coffee, tea and spices with single store in Seattle s Pike Place Market. Today, Starbucks are privileged to welcome millions of customers through our doors every day, in more than 16000 locations in over 50 countries. Starbucks products are coffee, handcrafted beverages, merchandise, fresh food, consumer products and brand portfolio. Starbucks believed in serving the best coffee possible. It s Starbucks goal for all of Starbucks coffee to be grown under the highest standards of high quality, using ethical trading and responsible growing practices. Starbucks coffee buyers personally travel to coffee farms in Latin America, Africa and Asia. Starbucks went public on June 26, 1992 at a price of $17 per share and closed trading that first day at $21.50 per share.

1. What are the reasons for the company to enter Mongolian market?
After the democratic revolution in 1990, the number of Mongolian people going abroad increased drastically. Many of them had transferred their citizenship status to many foreign countries. For instance, people who lived in USA lived an American life, coffee in the morning burger for lunch and etc. When they bring along cultural influence with them to their home country, Mongolia. It spread so quick that many people wanted to drink original high -class coffee. a. Mission of the Starbuck - To inspire and nurture the human spirit person, one cup and one neighborhood at a time. b. Vision of the Starbuck- To establishes Starbucks as the most recognized and respected brand in the Mongolia. one

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You can drink them any seasons. Tazo Teas 8. Brewed coffee 3. You can drink this many type of drinks. cappuccinos macchiatos. Espresso Beverages 5. mochas and much more -Frappuccino Blended Beverages: The icy-cold original -Kid s Drinks & Others: Some fun. every day -Chocolate Beverages: Luxurious hot chocolate for the sophisticated palate -Espresso Beverages: Lattes. Bottled drinks 2. Those coffee brands are: -Tazo tea -Ethos water -Seattle s Best Coffee -Torrenfazione Italia Coffee Starbucks has eight types of drinks.Con s -Pay and benefit structure dictated by corporate HQ -Cost of benefits would additional benefits lower site profitability -New reward system requires additional management -Staffing is a cost that will decrease profitability -Upper-level management perception of low employee productivity -Employees may get in each other s way c. flavorful alternatives for anyone to enjoy 3 . That drinks are very comfortable to drink in any seasons. Chocolate Beverages 4. -Brewed coffee: Artfully fresh all day long. Vivanno Smoothies All this type of drinks has different pleasure. -Bottled drinks: You can take them with you wherever you go. Brand portfolio Starbucks have many type of coffee brands. 1. Frappuccino Blended Beverages 6. Kid s Drinks & Others 7.

4 -4.6 4.0 Sep 27 2009 9.1 41.1 549. Starbucks is largest coffeehouse company in the world.080. It s very convenient to drink coffee in Starbucks.4 4. Starbucks it s a common destination people go to meet friends.201.3 Income Tax Expense 383.5 -39.6 6.999. Dollars Sep 30 2007 Restated Revenues 9.-Tazo Teas: Made from the world s most delicious teas and botanicals -Vivanno Smoothies: Nourishing blends made with real fruit and other good stuff d. the vibe is very chill and Starbucks offers amazing drinks and snacks.2 772.5 Cost of Goods Sold 3. Income Statements Currency in Millions of U.412. Every people are going to Starbucks to drink coffee or other things.737.7 144.1 -11.4 NET INTEREST EXPENSE 2. Market dominate Starbucks globally dominate in coffee markets.707.7 4-Year Trend 4 .248.458. Starbucks is very successful in coffee market.878.2 -332.677. There are a lot of Starbucks stores selling coffee daily. And their variety of coffee flavors that appeals to all sorts of people with different tastes.4 10.324.485. Financial Statements This is result of the Starbucks last 5 years financial statements.6 -722. TOTAL 4.5 1.2 Other Operating Expenses 294.2 -48.0 1. Washington.2 4.2 24.774. INCLUDING UNUSUAL ITEMS 1.705.4 293.7 57.8 4. work and just relax.6 -266.9 168.4 Selling General & Admin Expenses. e.9 Interest Expense -38.4 Oct 03 2010 10.7 264.1 534.0 10.9 -53.411.9 -455.4 4. Starbucks Corporation is an international coffee and coffee house chain based in Seattle.7 3.6 9.9 559.8 121.9 510.324.466. The more stores they have the more they sell.437.0 4.2 113.2 OTHER OPERATING EXPENSES.5 TOTAL REVENUES 9.5 148.7 4.0 Interest and Investment Income 40.383. Not to mention.707.0 4.2 -53.383.1 5.9 -897. EXCLUDING UNUSUAL ITEMS 1.3 -32.924.449.3 Merger & Restructuring Charges -Gain (Loss) on Sale of Investments -EBT.4 5.0 488.120.4 Income (Loss) on Equity Investments 108. Total 3.9 2. Total 467.9 5.7 As of: Sep 28 2008 10.1 Depreciation & Amortization.645.411.0 Currency Exchange Gains (Loss) -EBT.5 OPERATING INCOME 945.056.1 GROSS PROFIT 5.3 5.1 1. USA.3 330.5 657. Coffee i s served quick and not everyone has the time to make their own coffee.056.774.S.

5 374.6 550.536.1 271.7 2.6 6.0 664.416.7 242.8 129.8 527.9 324.9 269.7 39.7 148.4 2.0 296.793.3 83.343.5 329.700.6 7.5 322.8 3.7 3.045.2 154.Minority Interest in Earnings Earnings from Continuing Operations NET INCOME -672.4 2.3 0.9 691.7 3.1 2.5 2.343.888.4 3.9 2.9 5.9 554.7 549.6 2.1 5.3 388.8 160.3 710.9 287.6 815.6 5.890.7 76.1 132.0 236.2 57.0 49.3 2.189.696.8 315.3 329.7 414.1 0.472.416.5 49.7 18.1 713.471.7 6.531. Long Term Other Intangibles Other Long-Term Assets TOTAL ASSETS LIABILITIES & EQUITY Accounts Payable Accrued Expenses Short-Term Borrowings Current Portion of Long-Term Debt/Capital Lease Current Income Taxes Payable Other Current Liabilities.3 333.5 137.4 -1.4 304.8 -2.8 1.7 186.4 215.9 5 . Total Unearned Revenue.5 -2.1 549.9 2.8 0.5 -0. Current TOTAL CURRENT LIABILITIES Long-Term Debt Capital Leases Minority Interest Other Non-Current Liabilities TOTAL LIABILITIES Common Stock Additional Paid in Capital Retained Earnings Comprehensive Income and Other TOTAL COMMON EQUITY TOTAL EQUITY TOTAL LIABILITIES AND EQUITY 599.8 21.164.0 5.2 6.1 2.7 39.7 302.5 368.6 945.6 372.5 5.7 390.2 65.6 Balance sheet Currency in Millions of U.8 5. Current Other Current Assets TOTAL CURRENT ASSETS Gross Property Plant and Equipment Accumulated Depreciation NET PROPERTY PLANT AND EQUIPMENT Goodwill Long-Term Investments Deferred Tax Assets.7 0.059.0 0.3 195.9 2.9 390.045.7 3.2 0.5 2.490.4 533.8 151.760.8 666.8 282.3 70.576.8 11.6 133.1 152.8 1.0 271.6 438.7 945.4 259.9 86.8 42.779.674.956.9 3.5 315.711.1 3.2 381.717.S.4 2.5 262.4 54.1 17.674.6 5.402.6 Sep 27 2009 Oct 03 2010 4-Year Trend Assets Cash and Equivalents Short-Term Investments Trading Asset Securities TOTAL CASH AND SHORT TERM INVESTMENTS Accounts Receivable TOTAL RECEIVABLES Inventory Prepaid Expenses Deferred Tax Assets.5 692.4 5.3 7.2 8.7 287.2 5.8 92.385.581.4 48.306.189.164.4 2.672.490.2 68.181.4 2.7 145.2 3.6 279.2 0.672.2 118.6 3.8 390.5 286.5 135.6 7. Dollars As of: Sep 30 Sep 28 2007 2008 Restated 281.0 --24.5 -0.6 3.8 2.449.756.3 156.2 57.7 302.284.0 549.1 1.155.576.7 543.3 417.7 3.284.1 423.0 127.7 1.7 5.385.5 44.2 2.9 139.1 2.9 66.6 672.8 73.4 3.6 267.748.4 234.4 266.2 1.035.1 713.4 2.

4 7.4 -13.9 11.0 -336.6 490.7 --12.331.630.0 -5.070.6 1.5 -0.7 563.8 67.016.0 -445.1 1.2 -12.704.6 -6.9 18.299.2 564.1 22.5 1.6 539.017.0 1.0 -8.4 -48.071.2 1.9 -440.5 604.2 57.086.4 23.3 57.Cash Flow Currency in Millions of U.9 72.2 -27.6 24.6 -63. TOTAL 491.3 ---14.0 -421.4 --13.9 1.8 18. Plant.3 224.6 36.2 -3.299.296.0 0.0 16.258.6 -171.2 -23.8 -789.2 1. Share price 6 .080.1 18.7 -10.2 Asset Writedown & Restructuring Costs (Income) Loss on Equity Investments Tax Benefit from Stock Options Change in Inventories Change in Accounts Payable Change in Unearned Revenues Change in Income Taxes Change in Other Working Capital CASH FROM OPERATIONS Capital Expenditure Sale of Property.4 123. and Equipment Cash Acquisitions Investments in Marketable & Equity Securities CASH FROM INVESTING Short-Term Debt Issued Long-Term Debt Issued TOTAL DEBT ISSUED Short Term Debt Repaid Long Term Debt Repaid TOTAL DEBT REPAID Issuance of Common Stock Repurchase of Common Stock Common Dividends Paid TOTAL DIVIDEND PAID Other Financing Activities CASH FROM FINANCING Foreign Exchange Rate Adjustments NET CHANGE IN CASH 26.5 -53.3 -1.0 -10.4 -22.389.2 86.0 -171.5 Sep 27 2009 390.081.8 561.303.2 4.201.7 -346.7 23.8 -0.0 Sep 28 2008 315.7 176.5 325.3 -68.3 --53.9 -285. Dollars As of: NET INCOME Depreciation & Amortization Amortization of Goodwill and Intangible Assets Sep 30 2007 Restated 672.4 22.0 66.2 -85.6 1.6 -171.6 127.5 603.S.9 -1.0 -184.3 -642.0 -66.0 18.9 28.1 549.0 Oct 03 2010 945.303.6 42.3 330.9 -0.3 -31.4 112.5 --74.2 4-Year Trend DEPRECIATION & AMORTIZATION.3 64.5 0.7 -984.6 66.4 -25.5 --18.7 -17.2 540.9 -996.297.2 -1.2 181.8 --89.3 f.9 -11.9 -0.5 -----6.1 63.6 66.3 -311.1 1.

S. 1991 -Becomes the first privately owned U. 1971 -Starbucks opens first store in Seattle s Pike Place Market. history teacher Zev Siegl. The name is SBU . This is time line of the Starbucks. 1982-Howard Schult joins Starbucks as director of retail operations and marketing. Africa and Asia. 1984 -Howard convinces the founders of Starbucks to test the coffeehouse concept in downtown Seattle. USA. h. 1987-Starbucks opens first stores outside of Seattle area in Chicago and Vancouver. where the first Starbucks® Caffè Latte is served. Caribbean. and writer Gordon Bowker. English teacher Jerry Baldwin. 1988-Offers full health benefits to full. South and Central America.and part-time employees. Europe. Oceania. where he s impressed with the popularity of espresso bars in Milan. ) ( & $ #" ' % c xc ge 1 $ #0 r 7 . on March 30.C. Brief hi The first Starbucks was opened in Seattle. 1983 -Howard travels to Italy. 1992 -Completes initial public offering (IPO). company to offer a stock option program that includes part-time employees. Now currently Starbucks I present in more than 55 countries. He sees the potential to develop a similar coffeehouse culture in Seattle. Washington. 1995 -Begins serving Frappuccino® blended beverages. 1971 by three partners. In North.g. with common stock being traded on the Nasdaq National Market under the trading symbol SBU . B. Starbucks stock exchange listed at Nasdaq.

1998 -Acquires Tazo. Introduces the Starbucks Card. Ore. 2002 -Starbucks enters into licensing agreements with national Fair Trade organizations to sell Fair Trade Certified coffee in the countries where Starbucks does business. Opens Farmer Support Center in Kigali.Becomes the world s largest buyer of Fair Trade Certified Coffee 8 . 1999-Partners with Conservation International to promote environmentally responsible methods of growing coffee. Acquires Coffee Equipment Company and its revolutionary Clover® Brewing System. benefiting local communities. a tea company based in Portland.1996-Joins with Pepsi-Cola North America to begin selling bottled Frappuccino® coffee drink our first ready-to-drink beverage. 2001 -Introduces coffee-sourcing guidelines developed in partnership with Conservation International. Introduces Starbucks Coffee Master Program to provide Starbucks partners with an opportunity to learn more about the world of coffee. 1997 -Establishes The Starbucks Foundation. and share their passion with customers and partners.Opens first store outside of North America in Japan. 2008 -Announces a renewed focuses on customer experience and innovation. 2004 -Opens first Starbucks Farmer Support Center in San Jose. Rwanda. 2009-Launches innovative VIA Ready Brew coffee. Costa Rica.

They lost many customers because of that. CEO is most important employee. c. Economic issues. Key employees are very important for the company life and growth. That policy is there must be a Mongolian person that is a shareholder of the Starbucks coffee shop. Starbucks must teach theirs employee s communication lessons. There have some cases they not respect the customers. Starbucks already has their chain restaurants in China and Russia. c. There s not much difference in the culture. In Starbucks case Howard Schultz is very important for the Starbucks. Because CEO decide the whole works. Main management is communication. Is there o erdependency of management in the company? a. Also managers are important. It s mean they can t buy high price things. Starbucks may sell theirs products cheaper price. Because they not respect the customers. sellers. They must follow the Mongolian government policy. Big problem is communication problem. Customers didn t like some sellers and managers communication. b.Many Mongolian people have standard life. Political/Legal issues-There will not be any political and legal issue to enter Mongolian market. Analy e the broad en ironment of the Mongolian market in regards to the business of the company.3. Starbucks may be able to bring the whole 3 5 2 4 9 . Analy e the management of the company. Managers say to employees what s wrong. Starbucks have one big problem. CEO and other workers. d. which are two countries that surround Mongolia. Good managers say employees do the work own way. Managers motivate employees. 4. Key employees of the Starbucks are top managers. Russian culture is very similar to Mongolian culture. Socio-cultural issues-Starbucks must analyze culture to enter the Mongolian market. If CEO do the work wron g company will may fail. b. Managers are communicating with employees. Customer like good communication service. Technological issues-Mongolia does not have every technological thing to grow the coffee beans. It s very easy to employees do work. a. what s correct. That s why CEO is most important worker. Asian culture is almost similar.

Starbucks think media is very important.Starbucks buy the coffee bean from countryside peoples. Media-You can see everywhere Starbucks logo. But in Mongolia doesn t have high quality coffee shops. That disadvantage is every coffee house can smoke in there. Ti-Amo has 4 good locations in town. If Starbucks open in Ulaanbaatar. But they not so popular like a Starbucks. Local communitiesj. Most of the business peoples are drinking coffees.In Mongolia has many coffee shops like a Starbucks. You can listen about the Starbucks on radio.technological thing. c. Customer-Now many Mongolian people drinking coffee. They drink coffee every time. Maybe Mongolia has some technology to produce coffees and other drinks. Because they have lot work to do and coffee give them energy. That s main problem for non-smoking peoples. many people will like that. Suppliers. Also students are drinking coffee. Distributorsd.Mongolian climate is very hot and very cold. soft drink and some cakes. Analy e the task en ironment of the company in Mongolian market related to the business of the company a. But they have one big disadvantage. Competitors. Climatic issues. Financial intermediariesf. That coffee shops are: Ti -Amo. Starbucks use everyday lot of coffee beans. On Internet. Unionsg. 5. Media one of the thing we can communicate with costumers. television and other things. e. Governmenti. Activitiesh. But in winter they must starts to import coffee beans from other countries. So Starbucks may be able to produce the coffee beans in summer. b. They sell coffees. Coffee House and other many small coffee houses. 7 6 10 . e. Some it mean they helping countryside.

They can t buy one -cup coffee for high price. 8.There has some disadvantages. Starbucks can find best location in the town. Starbucks is largest coffee shop in world. Threats-Starbucks will become Mongolian daily products. Starbucks sell high quality coffees. c. They prefer tea. Strengths. Starbucks may give the customer free pure water. Also Starbucks may lose the costumer for theirs high price. Many Mongolian have standard life. Also Starbucks must learn about Mongolian culture. Starbucks must find a good location in Ulaanbaatar. Many Mongolian has standard life. Then Starbucks will open other coffee shops around the town. It s efficiency of operations and product pricing Net profit margin=Net profit after tax/Sales*100. They can eat lunch their and do the work their. Weaknesses. e ise SW T analysis based on the sur eillance of the task and broad en ironment. 7. If many people like Starbucks and have many customers. Further locations are likely to be found near the Shangri-La hotel construction site. Every Starbucks has a free WIFI.Starbucks may have very good location. Based on the SW T analysis inferences de ise a strategy for the company to operate in a Mongolian market Starbucks is world brand. It s earnings power of equity B B 9 A 9 @ 9 8 11 . by the State Department Store as well as near Sukhbaatar Square and Maybe even Zaisan. Khan Buuz has a very good location.Starbucks is world brand. Starbucks present more 55 countries. You can seat their whole day. cakes. Last thing is Starbucks service must very quickly. Starbucks must have free high speed Internet. Also coffee shops must very comfortable for the business peoples. Many Mongolian not drink coffee. Opportunities. I think Starbucks must buy the Khan Buuzs location. It may be able to become Mongolian best coffee shop. Mongolian culture is not same like other countries. I think first Starbucks may open only one coffee shop.6. It s your choice. a. sandwiches and other things. Good location may in Central Tower. d. It s efficiency after all expenses are considered Return on assets (ROA)=Net profit after tax/Total assets*100. What tools you will use to measure the effecti eness of your newborn strategy? Gross profit margin=(Sales-COGS)/Sales*100. It s productivity of assets Return on equity (ROE)=Net profit after tax/Stockholders equity*100. Then see what will happen. b. Starbucks price must be low.

Mongolian must be shareholder of the company.aspx?S ymbol=SBUX 12 . Starbucks will never fail on Mongolian market. http://www.Conclusion From those facts Starbucks may open in Mongolia.wikipedia.starbucks.com/about-us/company-information 2.com/about-us/company-information/missionstatement 3. I think there are many facts Starbucks to enter Mongolian market. Starbucks enter to the Mongolian market they should follow the Mongolian policy.wikipedia.com/investor/invsub/results/statemnt. http://en.starbucks. http://www.org/wiki/SWO T_analysis 6. Starbucks may buy very good places in town.starbucks.com/about-us/companyinformation/shareholders-meeting 4. http://en. If Starbucks go with good strategy Starbucks become largest and high quality coffee shop in the Mongolia. Ti-Amo is the Mongolian best coffee shops. That s not that big problem. Mongolia does not have many coffee shops like Starbucks. Reference: 1.msn. http://moneycentral.org/wiki/Starbucks 5. http://www.

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