NAME: RINKAL PATEL

CLASS: FYBBA- B
ROLL NO: 1130
SUBJECT:ECONOMICS
FOR MANAGERS
STARBUCKS
TABLE OF
CONTENTS
Company Introduction

Strength and Threats

Demand

Financial Data

Key Products and Services

Market Analysis
INTRODUCTION
STARBUCKS CORPORATION, an American company founded
in 1971 in Seattle, WA, is a premier roaster, marketer and
retailer of specialty coffee around world. Starbucks has about
182,000 employees across 19,767 company operated &
licensed stores in 62 countries. Their product mix includes
roasted and handcrafted high quality/premium priced
coffees, tea, a variety of fresh food items and other beverages.

Starbucks also markets its products mix with other brand

names within its portfolio of companies, which include
Teavana, Tazo, Seattle’s Best Coffee, Starbucks VIA, Starbucks
Refreshers, Evolution Fresh, La Boulange and Verismo.
Starbucks net worth as of January 27, 2023 is $125.13B.
STRENGTHS AND THREATS
The core competence of Starbucks has been its ability to effectively leverage their
cornerstone product differentiation strategies by offering a premium product mix of high
quality beverages and snacks

Strong Market Position and Global Brand Recognition:

Products of the Highest Quality:
Location and Aesthetic appeal of its Stores
Human Resource Management
Diverse Product Mix
Use of Technology and Mobile Outlets:

Expensive Products
Developed Countries Economy
Changing Consumer tastes and lifestyle choices
American/European coffee culture clash with that of other countries
DEMAND
The industry’s demand for premium coffee and snack products are mainly driven by
a number of factors which include disposable income, per capita coffee
consumption, attitudes towards health, world pricing of coffee and
demographics.
This industry is highly sensitive to the macroeconomic factors that affect the
growth in household disposable.
Crucial factor for analyzing the demand in the industry is the per capita coffee
consumption where the increase in coffee consumption increases the revenue of
coffee & snack shops. The main driver of this consumption increase would be the
increase disposable income, as the economy improves and consumers start to relax
their budgets.
FINANCIAL DATA
Starbucks Corporation reported earnings results for the fourth quarter
and full year ended October 02, 2022. For the fourth quarter, the
company reported revenue was USD 8,414.2 million compared to USD
8,146.7 million a year ago.
Net income was USD 878.3 million compared to USD 1,764.4 million a
year ago.
For the full year, revenue was USD 32,250.3 million compared to USD
29,060.6 million a year ago. Net income was USD 3,281.6 million
compared to USD 4,199.3 million a year ago.
KEY PRODUCTS
AND SERVICES

Handcrafted Beverages: Fresh-brewed coffee, hot and iced espresso

beverages, Frappuccino® coffee and non-coffee blended beverages,
Starbucks Refreshers, smoothies and Tazo® teas.
Merchandise: Coffee- and tea-brewing equipment, Verismo System
by Starbucks, mugs and accessories, packaged goods, music, books
and gifts.
MARKET
ANALYSIS
THANKYOU