Apply Porter’s five forces framework to the specialty coffee retail industry.
How would you characterize the strategy of Starbucks? How does Starbucks create value for its customers? What critical risk and success factors must Starbucks manage?
Interpreting Financial Statement Relationships.
Exhibit 1.29 presents common-size and percentage change balance sheets and Exhibit 1.30 (page 81) presents common-size and percentage change income statements for Starbucks for 2009–2012. The percentage change statements report the annual percentage change in each account from 2010 through 2012.
Respond to the following questions:
The dollar amount shown for cash and cash equivalents (see Exhibit 1.26) increased between the end of fiscal 2011 and the end of fiscal 2012, yet the percentage of total assets comprising these assets declined (see Exhibit 1.29). Explain.
From 2009 through 2012, the proportion of total liabilities declined while the proportion of shareholders’ equity increased. What are the likely explanations for these changes?
How has the revenue mix of Starbucks changed from 2009 to 2012? Relate these changes to Starbucks’ business strategy.
Net earnings as a percentage of total revenues increased from 3.2% in fiscal 2009 to 10.4% in fiscal 2012. Identify the most important reasons for this change
Integrative Case Study 1.1 Starbucks Introduction.docx
