This paper contains an analysis of Starbucks. The directors, the org structure and the financial performance are all given.
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
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