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1. STARBUCKS CORPORATION
SWOT ANALYSIS 2016

2. SLIDE | 2
ABOUT STARBUCKS
Name Starbucks Corporation
Logo
Industries served Restaurants (Coffeehouses)
Geographic areas served Worldwide (23,043 coffeehouses in more than 68 countries)
Headquarters Seattle, Washington, United States
Current CEO Howard Schultz
Revenue US$19.163 billion (2015) increased 16.5% over US$16.448 billion (2014)
Profit US$2.757 billion (2015) increased 33.3% over US$2.068 billion (2014)
Employees 238,000 (2015)
Main Competitors
Caribou Coffee Company, Costa Coffee, Dunkin' Brands Group, Inc., Green Mountain
Green Mountain Coffee Roasters, McDonald's Corporation, Nestlé S.A. and many other
and many other restaurant chains and coffeehouses.

3. Starbucks Corporation business overview from the company’s financial
report:
“Starbucks is the premier roaster, marketer and retailer of specialty
in 68 countries. We purchase and roast high-quality coffees that we sell,
coffee, tea and other beverages and a variety of fresh food items,
stores. We also sell a variety of coffee and tea products and license our
channels such as licensed stores, grocery and national foodservice
flagship Starbucks Coffee brand, we also sell goods and services under
Teavana, Tazo, Seattle’s Best Coffee, Evolution Fresh, La Boulange and
SLIDE | 3
BUSINESS DESCRIPTION (1/2)
“
”

4. “In addition, by leveraging the experience gained through our traditional store model, we continue
to offer consumers new coffee and other products in a variety of forms, across new categories,
and through diverse channels. We also believe our Starbucks Global Responsibility strategy,
commitments related to ethically sourcing high-quality coffee and contributing positively to the
communities we do business in, and being an employer of choice are contributors to our
objective.
We are continuing the expansion of our various store formats, including Drive Thru and express
stores, to provide a greater degree of access and convenience for our customers.”[1]
SLIDE | 4
BUSINESS DESCRIPTION (2/2)
“ ”
“Our objective is to maintain Starbucks standing as one of the most recognized and respected
brands in the world.”

5. 1. Operating efficiency and strong growth leading to superior financial
performance
SLIDE | 5
STRENGTHS
S W
O T
2015 was one of the best financial years in Starbucks’
history
Figure 1. Starbucks’ consolidated revenue 2011-2015
11.7 13.3 14.9 16.4 19.2
9.3
13.5
12.0
10.6
16.5
0
2
4
6
8
10
12
14
16
18
20
0
2
4
6
8
10
12
14
16
18
2011 2012 2013 2014 2015
Revenue (in US$ billions) Growth %
Source: Starbucks’ financial
report[1]
Figure 2. Starbucks’ consolidated profit 2011-2015
1.25 1.38 1.72 2.07 2.76
31.7
11
24.4
20.1
33.3
0
0.5
1
1.5
2
2.5
3
2011 2012 2013 2014 2015
0
5
10
15
20
25
30
35
Revenue (in US$ billions) Growth %
Source: Starbucks’ financial report[1] (2013 profits do not include a
pre-tax charge of US$1.713 billion)

6. SLIDE | 6
STRENGTHS
S W
O T
Figure 3. Starbucks’ assets and long-term debt
7.36
8.22
11.52
10.75
12.45
0.55 0.55
1.30
2.05 2.35
0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
2011 2012 2013 2014 2015
Assets (in US$ billions) Debt (in US$ billions)
Source: Starbucks’ financial report[1]
Figure 4. Starbucks’ consolidated store count
17,003 18,066 19,767 21,366 23,043
0
5,000
10,000
15,000
20,000
25,000
2011 2012 2013 2014 2015
Source: Starbucks’ financial report[1]

7. 1. Overdependence on revenue from the Americas segment
SLIDE | 7
WEAKNESSES
S W
O T
U.S. is the most important
market for the company,
generating over
US$14.124 billion in sales
or more than 73.7% of its
total revenue. Americas
69%
CAP
13%
Channel
Developmen
t
9%
EMEA
6%
Other
3%
Figure 9. Starbucks’ sources of revenue by operating segment
Source: Starbucks’ financial report [1]

8. 1. Growing ready-to-drink (RTD) tea market with many smaller brands that can be
easily acquired
SLIDE | 8
OPPORTUNITIES
S W
O T
2012 2013 2014 2015
Ready-to-Drink Tea 4.90% 0.40% 3.70% 6.10%
Whole Beverage Market 1.0% -0.10% 2.20% 2.80%
-1.00%
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
Figure 9. RTD tea growth compared to the whole liquid beverage market growth in the U.S.
Source: Beverage Marketing Corporation[18][19][20][21]
• Market for healthy
beverages is increasing;
• Starbucks has capabilities
and the right partnerships
to develop and sell its own
RTD teas;
• There’re many independent
small brands in RTD tea
market that could be
acquired.

9. 1. The price of coffee beans could significantly rise due to major weather disasters
SLIDE | 9
THREATS
S W
O T
Starbucks profit margins
are dependent, to some
extent, on the price of
coffee beans, which over
the past several years has
been very volatile.
Figure 16. The price of coffee beans 2005-2015
Source: Nasdaq[25]

10. 1. Starbucks Corporation (2015). Form 10-K for the Fiscal Year Ended September 27, 2015. Available at:
http://investor.starbucks.com/phoenix.zhtml?c=99518&p=irol-sec Accessed April 27, 2016
2. Dunkin’ Donuts (2015). Dunkin’ Donuts Announces Expansion Plans in China with Signing of Largest Development Agreement in Company
History. Available at: http://news.dunkindonuts.com/news/dunkin-donuts-announces-expansion-plans-in-china-with-signing-of-largest-
development-agreement-in-company-history Accessed April 27, 2016
3. Whitbread PLC (2015). Annual Report and Accounts 2014/15. Available at:
https://www.whitbread.co.uk/content/dam/whitbread/download_centre/reports_and_results/2015/Interactive-Annual-Report-2015.pdf
Accessed April 27, 2016
4. Burkitt, L. (2015). McDonald’s Aims to Sell Taiwan Stores, Expand China Franchise Business. Available at:
http://www.wsj.com/articles/mcdonalds-aims-to-sell-taiwan-stores-expand-china-franchise-business-1435219854 Accessed April 27, 2016
5. Starbucks (2016). Quality. Available at: http://quality.starbucks.com/quality Accessed April 27, 2016
6. Starbucks (2016). Explore Our Menu. Available at:
http://www.starbucks.com/menu/catalog/product?drink=refreshers#view_control=product&drink=refreshers&drink=evolution-fresh&drink=iced-
tea&drink=bottled-drinks&drink=brewed-coffee&drink=chocolate&drink=espresso&drink=frappuccino-blended-beverages&drink=kids-drinks-
and-other&drink=smoothies&drink=sodas&drink=tea&drink=iced-coffee&page=4 Accessed April 27, 2016
7. Customer Service Scoreboard (2016). The Leaderboard. Available at: http://www.customerservicescoreboard.com/ Accessed April 27, 2016
8. McDonald’s Corporation (2016). Form 10-K for the Fiscal Year Ended December 31, 2015. Available at
http://www.aboutmcdonalds.com/content/dam/AboutMcDonalds/Investors%202/2015%20Annual%20Report.pdf Accessed April 27, 2016
9. Interbrand (2016). Best Global Brands. Rankings. Available at: http://interbrand.com/best-brands/best-global-brands/2015/ranking/ Accessed
April 27, 2016
10. Forbes (2016). The World’s Most Valuable Brands. Available at: http://www.forbes.com/powerful-brands/list/ Accessed April 27, 2016
11. Brand Keys (2016). Customer Loyalty Engagement Index. Available at: http://brandkeys.com/portfolio/customer-loyalty-engagement-index/
Accessed April 27, 2016
12. Starbucks (2016). Investor Relations. Supplemental Financial Data. Available at:
http://investor.starbucks.com/phoenix.zhtml?c=99518&p=irol-financialhighlights Accessed April 27, 2016
SLIDE | 10
SOURCES (1/3)

11. 13. Pymnts (2015). Starbucks’ Massive Mobile App Momentum Available at: http://www.pymnts.com/news/2015/starbucks-massive-mobile-app-momentum/
Accessed April 27, 2016
14. Starbucks (2016). Investor Relations. Webcast & Presentations. Available at: http://investor.starbucks.com/phoenix.zhtml?c=99518&p=irol-presentations
Accessed April 27, 2016
15. Fast Food Menu Prices (2016). Starbucks Prices. Available at: http://www.fastfoodmenuprices.com/starbucks-prices/ Accessed April 27, 2016
16. Fast Food Menu Prices (2016). McDonald’s Prices. Available at: http://www.fastfoodmenuprices.com/mcdonalds-prices/ Accessed April 27, 2016
17. Fast Food Menu Prices (2016). Dunkin’ Donuts Prices. Available at: http://www.fastfoodmenuprices.com/dunkin-donuts-prices/ Accessed April 27, 2016
18. Beverage Marketing Corporation (2015). Press Release: The U.S. Liquid Refreshment Beverage Marketing Enlarged in 2014, Reports Beverage
Marketing Corporation. Available at: http://www.beveragemarketing.com/news-detail.asp?id=335 Accessed April 27, 2016
19. Beverage Marketing Corporation (2016). Press Release: The U.S. Liquid Refreshment Beverage Market Accelerated in 2015. Available at:
https://www.beveragemarketing.com/news/viewnews.asp?newsID=382 Accessed April 27, 2016
20. Beverage Marketing Corporation (2014). Press Release: The U.S. Liquid Refreshment Beverage Market Grew by 1.0% in 2012, Reports BMC. Available
at: http://www.beveragemarketing.com/news-detail.asp?id=255 Accessed April 27, 2016
21. Beverage Marketing Corporation (2014). Press Release: The U.S. Liquid Refreshment Beverage Market Remained Flat in 2013. Available at:
http://www.beveragemarketing.com/news-detail.asp?id=299 Accessed April 27, 2016
22. Beverage Industry (2013). 2013 State of the Industry: Tea & RTD tea. Available at: http://www.bevindustry.com/articles/86554-state-of-the-industry-tea-rtd-
tea?v=preview Accessed April 27, 2016
23. Beverage Industry (2014). 2014 State of the Industry: Tea and RTD tea. Available at: http://www.bevindustry.com/articles/87613-state-of-the-industry-tea-
and-rtd-tea?v=preview Accessed April 27, 2016
24. Beverage Industry (2015). 2015 State of the Beverage Industry: Health and wellness trends drive tea sales. Available at:
http://www.bevindustry.com/articles/88566-state-of-the-beverage-industry-health-and-wellness-trends-drive-tea-sales Accessed April 27, 2016
25. Kollewe, J. (2011). Coffee prices expected to rise as a result of poor harvests and growing demand. Available at:
http://www.theguardian.com/business/2011/apr/21/commodities-coffee-shortage-price-rise-expected Accessed April 27, 2016
SLIDE | 11
SOURCES (2/3)

12. 26. NASDAQ (2016). Markets. Commodities. Coffee. Available at: http://www.nasdaq.com/markets/coffee.aspx?timeframe=10y Accessed April 27, 2016
27. Trading Economics (2016). Euro Area GDP Growth Rate. Available at: http://www.tradingeconomics.com/euro-area/gdp-growth Accessed April 27, 2016
28. Trading Economics (2016). GDP Growth Rate Forecast. Available at: http://www.tradingeconomics.com/forecast/gdp-growth-rate Accessed April 27, 2016
29. Trading Economics (2016). China GDP Growth Rate. Available at: http://www.tradingeconomics.com/china/gdp-growth-annual Accessed April 27, 2016
30. Calorie King (2015). McDonald’s Cheeseburger. Available at: http://www.calorieking.com/foods/calories-in-sandwiches-burgers-burger-cheeseburger_f-
ZmlkPTEwMDk0Ng.html Accessed April 27, 2016
31. Calorie King (2015). Starbucks Mocha Frappuccino with Nonfat Milk, without whipped cream. Available at: http://www.calorieking.com/foods/calories-in-
beverages-frappuccino-mocha-with-nonfat-milk-without-whipped-cream_f-ZmlkPTE4MTgwNQ.html Accessed April 27, 2016
SLIDE | 12
SOURCES (3/3)

13. SLIDE | 13
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