whilst walking from his hotel to the conference centre, Schultz spotted an espresso bar and went in to have a look . a few blocks away he entered another espresso coffee bar. In the after that a few blocks away , he saw two other espresso bars. Schultz was on the whole struck by the reality that there were one thousand and five hundred espresso coffee bars in Milan, a city approximately the size of Philadelphia, and a totality of one fifth of one million in the entire of Italy. His mind started churning. Schultz left Starbucks two decade before. The first Il Giornale store opened two decade before in April. It had a mere seven hundred square feet and was located near the entrance of Seattle's tallest building.
The first Starbucks locality outside of North America is in Tokyo, and Starbucks is in thirty other countries as well. Industry analysts saw Starbucks as being well on its way to turning into a well known company. Every next year company improves its financial position. Current ratio and Acid test ratio show company strong liquidity position, company has more than double assets to pay his current liabilities. Company long term debt to equity ratio decreased that show company pay off his long term debt. Gross profit margin increase and return on total assets also increase that show proper use of assets. Total assets turnover and shareholder's equity turnover also increase that show company better performance and attract investors to invest their capital in that company, because their funds used properly and firm maximize their wealth every year.
Star Bucks posted nearly 18% jump in fiscal 2007 first-quarter profit, helped by record store openings and strength internationally, and backed its targets for the year. The Seattle-based coffee shop operator also said it activated 30% more gift cards and sales of food drove U.S. retail results. Net income for the first quarter 2007 rose to $205 million, or 26 cents a share, from $174.2 million, or 22 cents a share, in the year-ago period. Quarterly revenue rose 21.8% to $2.36 billion. (http://www.marketwatch.com/news/story/starbucks-profit-jumps-nearly-18/story.aspxguid=%7BBF2BD3DC-6862-4B81-96A1-A19B5A8A10E0%7D)
Star Bucks Asia
2. Corporate Strategy
2.1. Objective and Aims
Starbucks' foremost objective is to ascertain itself as the most recognized and esteemed brand in the world. The company plans to continue to expand its outlets all over the world, grow its retail sales, introduce new products and develop new distribution channels in order to achieve its objective. The company's aim is to become the leading coffee brand in every target market by selling high quality products, providing good services and building relationships among customers, employees and the company (Brown 1997). Also, the company aims to build its outlets as customers' "third place", which means it is the place where customers can relax from work or home.
2.2. Internal Operations
Starbucks' internal operations can be divided into two parts: Retail and Specialty. The Retail division is governed directly by