1. ASMO Company Project
Starbucks Coffee
STARBUCKS WOR1LE001B-4
1 December 2011
COFFEE ™
A presentation by…
Julia Nykänen
AnnikaNuutinen
Paula Tuppurainen
Leban Ibrahim
Henna Hiltunen&
Anna Winschel
2. I N T H I S P R E S E N T A T I O N. . .
4. W HAT I S S T A R B U C K
Scoffee house chain
International
?
Lead by Howard Schultz
Ethics are important – working closely with farmers
Goal – “to be one of the most inclusive
companies globally, working toward full equity, inclusion and
accessibility”
5. W HAT I S S T A R B U C K
S?
☞ (CONT)
☞
☞
☞
☞
☞
6. STAR B U C K I NTE R NATI O NAL
LY
☞ 17,009 stores in 55 countries
☞ Largest markets are Japan, UK and China
☞ The first Starbucks location outside North America opened
in Tokyo, Japan, in 1996
☞ Starbucks entered the U.K. market in 1998
☞ The company plans to expand to 1,500 stores in China by
2015.
☞ Closing 70% of its Australian stores.
8. O R GAN I ZATI O NAL STR U CTU
RE
Matrix structure
☞
☞
☞
☞
☞
☞
☞
☞
9. THREE–REGION STRUCTU
RE
CEO
Howard Schultz
America China and Asia
Pacific EMEA
(USA, Canada,
Mexico and Latin (Asia Pacific market (U.K., Middle East,
America) and China) Russia and Africa)
11. HISTORY( CONT)
Remarkable locations outside the U.S. . . .
First store outside the U.S.
San
Tokyo, U.K. Lima, Salvador,
Mexico
Japan market Peru El
City 2002
1996 1998 2003 Salvador
2010
CLOSURES:
☞ Israel, 2004
☞ Australia (61/84 stores), 2008
12. STAR B U C K S LO G
O
Original brown logo
used 1971-87
Green logo
used 1987-2010,
still used as a secondary
Redesigned logo used
from 2011
47. CONSOLIDATEDSTATEMENTS OF
EARNINGS
(SHORTENED, 2010)
Company-operatedretail 8963,5
Licensing 1340,9
Foodservice and other 403
Total specialty 1743,9
Total netrevenues 10707,4
Cost of salesincludingoccupancycosts 4458,6
Store operating expenses 3551,4
Advertisingexpenses 176,2
Depreciation and amortizationexpenses 510,4
General and administrativeexpenses 569,5
Restructuring charges 53
Total operating expenses 9436,1
Operating income 1419,4
Earningsbeforeincometaxes 1437
Income taxes 488,7
Net earningsattributable to Starbucks 945,6
48. C O N S O L I DAT E D BALAN C E S H E
E T S(2010)
Liabilities and equity
Currentliabilities Currentassets
Accountspayable 282,6 Cash and cashequivalents 1164
Accrued compensation and related costs 400 Short-terminvestments—available-for-
salesecurities 236,5
Accruedoccupancycosts 173,2
Accruedtaxes 100,2 Short-terminvestments—tradingsecurities
49,2
Insurance reserves 146,2 Accountsreceivablenet 302,7
Otheraccruedliabilities 262,8 Inventories 543,3
Deferredrevenue 414,1
Total current liabilities Prepaid expenses and other current assets
1779,1 156,5
Long-term debt 549,4 Deferredincometaxesnet 304,2
Other long-term liabilities 375,1 Total currentassets 2756,4
Total liabilities 2703,6 Long-terminvestments—available-for-
Shareholders’ equity salesecurities 191,8
Common stock Equity and cost investments 341,5
0,7
Additional paid-in capital Property plant and equipment net 2416,5
106,2
Other additional paid-in-capital Other assets 346,5
39,4
Other intangible assets 70,8
Retained earnings 3471,2
Goodwill 262,4
Accumulated other comprehensive income 57,2
TOTAL ASSETS 6385,9
Total shareholders’ equity 3674,7
Noncontrolling interests 7,6
Total equity 3682,3
TOTAL LIABILITIES AND EQUITY 6385,9
49. S T A R B U C K S, 2010 A N D 2011
Revenue mix by
☞
product type
Beverage
9%
☞ 11%
☞ Food
17%
63%
Whole
bean and
soluble
☞ Revenue by area
☞
22% United
States
☞
Other
78% countries
50. KEY FIGURES
Equityratio 57,7 %
Relativeindebtedness 25,2 %
Net profit marging 8,8 %
Quick ratio 1,16
Current ratio 1,55
Quality of earnings -11,89 %
Net ROA 15,8 %
ROE 30,9 %
Earning power of sales 9,16 %
Capital turnover rate 3,50
Inventory turnover 1,971 %
Total assetturnover 1,68
P/B 19.11.2011 8,5
P/E (NASDAQ
20.11.2011) 25,94
51. LAS T F I V E Y EAR S
2006 2007 2008 2009 2010
Net revenues 7786,9 9411,5 10383 9774,6 10707,4
Operating
income 894 1053,9 503,9 562 1419,4
Net profit 564,3 672,6 315,5 390,8 945,6
Profitmarging 7,2 % 7,1 % 3,0 % 4,0 % 8,8 %
Net revenues 2006-2010 Growth 2006-2010, %
12000 200 %
10000 153 %
150 %
142 %
8000
Million USD
100 %
Net revenues
6000
50 % 24 % Operating income
21 %
4000 12 % Net profit
18 % 10 % 10 %
0% 19 % -6 %
2000 2007 2008 2009 2010
-50 % -52 %
0 -53 %
2006 2007 2008 2009 2010 -100 %
