Starbucks organizational structure and financial performance analysis

Starbucks Coffee Company

Key Executives:

CEO, Chairman and President: Howard Schultz

President, Americas: Cliff Burrows

President, Starbucks Coffee China and Asia Pacific: John Culver

President, Channel Development and Seattle's Best: Jeff Hansberry

President, Global Development: Arthur Rubinfeld

President, Starbucks Europe, Middle East and Africa: Michelle Gass

Global Chief Marketing Officer & President, Tazo: Annie Young-Scrivner

CFO, Chief Administrative Officer: Troy Alstead

CIO: Stephen Gillett

Organizational Structure:

Starbucks is primarily organized around geographic regions. The company has a domestic unit, an Asia Pacific/China unit and a Europe/Middle East/Africa unit. There are also several smaller units comprised of operating companies that are almost exclusively in the North America market: Tazo Tea, Seattle's Best, Starbucks Consumer Products and Starbucks Coffeeshop Offerings. These are all subsidiaries within the main (North America) Starbucks operating group. Within the Asia Pacific group, China is given special attention. The company's biggest market in that group is Japan, but China is expected to be the company's most important growth driver over the next few years.

In general, Starbucks is a flat organization. Its structure is organized around regional managers and store managers, with only a few layers in between. This keeps the costs low, and is facilitated by the fact that the company operates a relatively simple business model, with most of its business focus on operating its coffee shops.

Financial Strategy and Practice

The company's fiscal year was just completed and the financial results were:

Consolidated FY2011

2-Oct-11

Net Revenues

11700.4

Cost of Sales

Store Operating Exp

Other Operating Exp

Depreciation and Amortization

General & Administrative Exp

Total operating Expenses

10175.8

Gross Profit

Gain on sale of properties

30.2

Income from equity investments

Operating Income

Interest Income, net

Interest Expense

-33.3

EBIT