Starbucks Corporations Essay

980 Words4 Pages
Business Strategy Phase 1 Individual Project The Starbucks Corporation has had a rocky road but pressed though with the gains of more than 20% in the year of 2012. With an event-filled year for the corporation, it has came about Starbucks Blonde, Announced the determined decision to expand internationally. This was acquired with the bakery link La Boulange for $100 Million and was recently announced the decision to open up tea stores under a brand Tazo tea. The success or failure of which could affect its stock prices significantly is the coffee prices being critical to the Starbucks’ profitability. Within coffee chains their not often to raise the cost on menu prices at the same rate as in raising the international coffee price. Since the menu prices of Starbucks are already higher than most of their competitors such as Dunkin Donuts and McCafe, a raise in its prices can dissolve a great proportion of the customer’s impacts or force them to choose a more inexpensive brand of variety. The Global Consumers Products in which coffee greatly impacts the profitability of the coffee division, within this division which gets impacted the most from the price of coffee since the price is accounted for the total cost of coffee. In its revenues the division exceeds $1 billion for the year of 2011 and is proceeding as one of the most vital parts for the Starbucks Company. Profitability wise of this division will influence the overall profit. With the plans to open new stores in Asia and Latin America. Such as China the stores are accelerating in openings to 1,500 by the end of 2015. Then double the number of stores in South Korea to 700 by 2015 and open its first stores in India in 2012 itself, similar to Brazil it’s expected to open another several hundred new restaurants in the next five years. These countries offer tremendous opportunity due to Starbucks’ low
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