Annual Report Project

Annual Report Project: Starbucks

Date: 2/25/13

Starbucks, through its global network of company owned and franchised coffee retail outlets, is the world’s leading roaster and retailer of specialty coffee. Starbucks sells its coffees and teas through arrangements with grocery stores as well as retailers. It has an outlined multi-channel growth strategy that highlights initiatives to increase sales through multiple brands and channels as well as increase its focus on large emerging markets such as China and India. The company set a target to open 1,500 stores in China by 2015. The company prides themselves on delivering in a broad market for their specialty coffee. Opening more franchises and looking into possible joint-ventures could allow them to increase their stock in the coming years. As for what's happening now, Starbucks is continuing to thrive despite a lackluster economy. The coffee giant is raising its profit target for the coming fiscal year and says it plans to add 1,300 new stores around the world. The company shows how sales climbed 11 percent in the most recent quarter, and Starbucks expects revenue to grow as much as 13 percent next year. How is it thriving? I think that Starbucks picks good locations and renegotiated many of its leases. The company is so huge, it can extract lower prices from its suppliers overall.

1. Identify and explain the main sections of the annual report.

There are 4 main parts to the report. Part I includes information about the business such as the main objective which encompasses the maintaining their standing as one of the most respected and recognized brand in the world. Other information included is segment financial information which involves hoe management reviews financial information for operational decision making. One main highlight was the percentage of sales in the marketing mix. As of September 2012, Beverages were 75% of the revenue, food was 19%, Packages and Single serve coffees were 4%,...