Starbucks financial analysis paper

Starbucks is the name of an American coffee chain company, which was founded in 1971 and is the largest coffee chain in the world. Here I bring a financial analysis paper of Starbucks, hoping to help you.

Abstract Profit is the foundation of enterprise's survival. Since the outbreak of the international financial crisis in 2118, the world economy has experienced ups and downs. Under the new situation that inflation is like a sword hanging over the heads of catering enterprises, the profit model of catering industry needs to be innovated urgently. As the "coffee kingdom", Starbucks has an unshakable position in the international market. It can become a fashionable drink popular from stars to the general public, and its success must be different from other coffee brands. Therefore, this paper will select Starbucks, the "coffee empire", as the object and analyze its profit model.

Keywords Starbucks profit model innovation

I. Introduction

Since the establishment of the world's first Starbucks coffee in 1971, it has achieved a magnificent transformation from a small coffee shop to a "coffee empire" in just a few decades, which has made coffee lovers in more than 61 countries around the world crazy. With the financial frenzy sweeping across the world, the United States, where Starbucks is located, suffered a severe blow, and Starbucks naturally fell into an extremely difficult predicament. Under this situation, the profit margins of enterprises around the world were greatly reduced, and even faced with losses. Starbucks sat at the top of the coffee industry, and it was difficult to escape the end of reduced profits. How to respond to the crisis, change the unfavorable situation and achieve its own breakthrough has become the top priority of Starbucks.

on the one hand, analyzing Starbucks' business model can fully tap its internal potential. On the other hand, studying the profitability plays an important role in the planned management of Starbucks. It can be seen that profit is the foundation of the enterprise, and it is of great significance to study the present situation and main problems of Starbucks and make suggestions for its future development. Only by making clear its own development defects and making timely adjustments can Starbucks consolidate its position as a "coffee empire", sit firmly at the top of the industry and build a more influential coffee brand.

second, the main problems faced by Starbucks and their causes

in 2117, Starbucks began to decline. Due to the excessive pursuit of growth, Starbucks neglected the company's operation. At present, the main problems faced by Starbucks are: the consumption demand of customers in Starbucks has decreased; Customer churn caused by poor management. The reasons for the above problems in Starbucks are as follows:

First, there are serious product quality problems in Starbucks, which have caused incalculable negative effects, cast a shadow on consumers' minds, damaged corporate image and decreased customer loyalty. Case: In September 2115, the results released by the General Administration of Quality Supervision, Inspection and Quarantine showed that the total number of colonies of 431 grams of Starbucks "Heartwarming Gift Box" produced on July 28th, 2115, which was sampled in Tianjin No.1 Store of Beijing Starbucks Coffee Co., Ltd., was found to exceed the standard.

Second, under the background of big data, Starbucks' marketing channels are mainly confined to physical stores, and the development of online marketing is not enough. With the constant change and development of social science and technology and the world economy, network marketing will surely occupy a larger share in enterprise marketing. Starbucks' traditional consumption pattern is that customers give you a cup of coffee with one hand, which is single in form and will be in a weak position in the background of big data era.

3. Suggestions on solutions

(1) Product quality

As a leading catering enterprise, Starbucks is also facing serious product quality problems. We will analyze the food safety and service quality of Starbucks.

1. Food safety

In recent years, the food safety of Starbucks has been increasingly questioned by consumers. For food safety, Starbucks should take the initiative to take responsibility for the safety of consumers. As the main responsible party of the incident, Starbucks employees must respond positively, actively investigate and promptly announce the results of the investigation to the public, and compensate the victims according to regulations; After the incident, Starbucks should reflect and learn from it, pay more attention to food safety in the later period, strengthen management of all stores, ensure that all materials are within the shelf life marked by products, and maintain high-intensity surprise inspection of stores to prevent food safety incidents from happening again. Only in this way can we maintain the corporate image of Starbucks as a "high quality representative".

2. Service quality

Pay more attention to pre-job training: One of Starbucks' main competitive strategies is to communicate with customers in coffee shops, especially the communication between coffee waiters and customers. Every coffee waiter should receive pre-job training for not less than the specified time, including customer service, basic sales skills, basic knowledge of coffee, coffee making skills and so on. Coffee waiters must be able to anticipate customers' needs and boldly make eye contact with customers when patiently explaining the different tastes and flavors of coffee.

Starbucks is an enterprise that pays attention to "experience culture". Starbucks treats employees with heart, and employees treat guests with heart. Guests enjoy not only coffee in Starbucks, but an experience culture of full participation in activities. Customer experience accounts for the first place in customer consumption, so customer feelings are extremely important. The service provided by Starbucks must be perfect and perfect, so that customers can experience the ultimate enjoyment in the process of consumption, thus better cultivating customer loyalty.

(II) Marketing channels

Network marketing is a brand-new enterprise marketing method and mode that is suitable for the current era of big data. Buck's traditional consumption pattern is that customers give you a cup of coffee with one hand, which is single in form and will be in a weak position in the background of big data era. Regarding online marketing and digital marketing, Starbucks can consider online marketing, booking virtual sales such as coffee and loyalty cards in the future, and broaden its own marketing channels.

(3) Brand remodeling

The rapid expansion of Starbucks before has left a deep impression on consumers. What we need to do is to deepen its influence on the existing influence and expand its influence and popularity. We will start from the following aspects:

1. Starbucks brand positioning: Starbucks' target market is a group of people who pay attention to enjoyment, leisure, advocating knowledge, respecting people-oriented and full of emotional appeal.

2. Starbucks brand appeal: Customer experience is the core appeal of Starbucks brand equity. The success of Starbucks lies in the shift from products to services in the center of consumer demand. In the era of service to experience, Starbucks products are not just coffee, but coffee is just a carrier. Through this carrier, Starbucks wants to convey a unique style to customers. This is a perceptual consumption at the cultural level.

IV. Summary

At present, the economic crisis has not completely subsided, the world economy is still fluctuating, and inflation still permeates every corner of life. Undoubtedly, under this situation, Buck sits at the top of the coffee industry, and it is hard to escape the end of reduced profits. How to respond to the crisis, change the unfavorable situation and achieve its own breakthrough has become the top priority of Starbucks.

References

[1] Sina Finance, Starbucks Annual Financial Report

[2] Liu Chaoqun, Research on Destructive Innovation of Business Model [J], Oriental Corporate Culture, 18, 2111.

[3] Diao Su, Xu Liqun, Lv Tingjie, Research on E-commerce Business Model Based on Social Computing Environment [J].