Annual Report Project. Lindsey Berkowitz Susan Crosson ACG2021 10 October 2006. Executive Summary.
10 October 2006
Starbucks Corporation, since its start, has been steadily growing every year. Each fiscal year, the company expands its enterprise to more locations around the world and produces new and unique products for consumers. The company’s paramount goal is to become the most respected coffee distributor in the world. In order to fulfill this goal, Starbucks plans to continue to expand, to develop new products, and to discover new and innovative means of distribution. Starbucks is not only concerned with making the most profits but they are also concerned about the wellbeing of their stakeholders, which is what I believe makes the company such a success.
Annual Report Fiscal Year 2005
According to the experts, the price per share is projected to increase steadily.
This stock is a good investment if the investor is looking for long term activity,
but at the moment it looks like selling is the best option for short term activity.
Starbucks coffee is a part of the special eateries industry. This particular industry is relatively small in reference to the companies it includes. Companies such as Panera Bread, Caribou Coffee Company and Tim Hortons Inc., examples of other names seen in this industry (www.bizyahoo.com). This industry is one that is relatively elastic being that people’s incomes, tastes and preferences affect the demand of the good. The prosperity of this industry depends somewhat on consumer goods and how badly they want the product. On the flip-sde, the industry, particularly coffee, depends on many other factors that include climate and its affect on the supplies needed to produce coffee.
The outlook on the prosperity of Starbucks for the future is a very positive one. The company has many plans for the next fiscal year and because of the company’s ongoing success, those plans will most likely become a reality. In fiscal 2005, Starbucks expanded their international activity in countries including Jordan, the Bahamas and Ireland. In the upcoming year the company plans for future growth in countries including Brazil, India and Russia that will contribute to the projected opening of 1800 new stores. Starbucks expects a 20% increase in annual net revenue growth for the next 3-5 years. Starbucks, however, does not just focus on financial success. The company strives to build positive partnerships with its suppliers, coffee farmers, customers and surrounding environment.
There have only been increases in these amounts. If Starbucks uses its
retained earnings to build their company and the industry remains the same,
the company should continue to prosper.
The asset account for 2005 more than doubled compared to the previous fiscal
year. This just confirms that Starbucks is a growing corporation and it has done
so significantly in the past year.