Starbucks

 

Starbucks

Introduction

Starbucks Corporation is an American coffee house that started its operations in 1971 at the Pike Place Market in the United States. Since the inception of the Corporation, it has undergone tremendous development, which has seen it open up more branches globally hence rendering it a global corporation. However, due to the positive reception of the company in the worldwide market, investment in this Corporation is advisable and promises positive returns. At its start, the company started as a single store corporation, however, due to sound management that the company employed, it has developed and currently boasts of having a value of $80 billion net worth business.

Under the leadership of Howard Schultz, the Corporation employed the aggressive nature of development, thus seeing it open its 1,000^th café in Singapore in 1998. In 2002, the Corporation opened its 2,000^th café. Due to the dynamic nature of the organization, investment in it is a sound decision. In recent years, consumption of coffee with sugar content has been in decline, and due to dynamism exhibited in the organization, the company introduced Frappuccino drinks, which have reduced sugar content hence attracting customers who do not use sugar content. In 2015, the Frappuccinos accounted for 14 percent of the Corporation revenue hence worth to note the positive impact which the product had in the company.

According to Sarah Whitten, from 1987 to 2017, the company has experienced the surging graph in new stores. Furthermore, the company’s profitability has continually increased, thus making it a profitable company to invest in. With the quest to expand its operations, Starbucks has introduced cold drinks in its services hence increasing its customer base. In recent years, the company signed an agreement with Uber Eats, which ensures that its products can be conveyed to clients in their residential areas;

hence the company possesses a lucrative future. According to the strategic report provided by the Corporation, later on, this year, the Corporation will introduce Reserve Roasteries, whose main objective is to attract tourists. To achieve this, the Corporation will set up the Reserve Roasteries at the tourist attraction sites; hence the company projects to earn more profits. Furthermore, due to sound strategies employed by the Corporation, there is a projection that the company will experience a 10 percent rise in their shares; hence with this information, Starbucks posts as the best company to invest with little risks of experiencing losses.

Background Information

            The Starbucks corporation started as a single store at the Seattle Pike Market Place. The company offered a high quality fresh-roasted coffee drink, which earned it a positive reputation in the market. However, in 1981, Howard Schultz took over the leadership of the Corporation. He introduced aggressive development, which saw the organization open up more stores oversees hence giving the company an international image. With the quest to earn more knowledge on how to make the Corporation more lucrative, Howard traveled to Italy in 1983 to benchmark on how restaurants are run.

As postulated by Peter Bondarenko, in the quest to attract more investors into the Corporation, Howard incorporated limited liability in the organization, which ensured that investors do not experience losses more than their investment. Share transferability is another feature introduced by Howard with the quest to increase the number of investors in the Corporation hence its ability to expand to other countries. Due to its share transferability and limited liability of the Corporation, the company presents a positive opportunity to invest due to the flexibility it offers. In recent years, the company has adopted technology in its operations and sound marketing strategies, which gives it a lucrative future hence a worthy corporation to invest.