This case study is in regards to Starbucks' international expansion strategy. It describes the advantages and risks which may be caused by expansion to Europe

Starbucks coffee berry Overvalued blood Despite tight Growth Prospects Business analytic thinking and Security Valuation Prepared by Erik Eselius, Jon D. Taylor, Olivier te Boekhorst, and Peter Winters For professor Charles Lee Johnson Graduate School of Management, Cornell University April 29, 1997 TABLE OF CONTENTS TABLE OF C 2 EXECUTIVE SUMMARY........................................................................................................................ 3 OVERVIEW OF STARBUCKS............................................................................................................... 4 Business Ove 4 Recent Stock Performance.............................................................................................................. 4 COMPETITIVE ANALYSIS .................................................................................................................... 5 Rivalry Among existent Firms.......................................................................................................... 5 Threat of New Entrants .................................................................................................................... 6 Threat of Substitute Products........................................................................................................... 6 Bargaining indicator of Buyers............................................................................................................. 7 Bargaining Power of Suppliers......................................................................................................... 7 STARBUCKS STRATEGY..................................................................................................................... 8 Channels .......... 8 Product Diversification ..................................................................................................................... 9 Human reticuloendothelial system 10 Retail Outlets.. 10 ACCOUNTING ANALYSIS................................................................................................................... 12 Discussion of Key Items in fiscal Statements .......................................................................... 12 Ratio Analysis: Profitability and Productivity.................................................................................. 13 Earnings 15 Bankruptcy divination .................................................................................................................... 17 EBO VALUATION. 18 EPS Forecasts ............................................................................................................................... 18 Long-term Growth Rate.................................................................................................................. 18 Cost of Equity. 18 Dividends ....... 18 Tar relieve oneself ROE.... 18 Stock judge .... 19 DISCOUNTED CASH liquify ANALYSIS............................................................................................ 20 Cost of capital letter 20 Sales Drivers.. 21 Capital Expenditures ...................................................................................................................... 21 Terminal Valu 22 COMPARABLES ANALYSIS ...............................................................................................................

23 Cross Sectional Du Pont Analysis.................................................................................................. 23 Market Multiples ............................................................................................................................. 24 RECOMMENDATION .......................................................................................................................... 25 EXECUTIVE SUMMARY According to a popular Turkish proverb, Coffee should be black as Hell, strong as death and dessert as love. At Starbucks Coffee union in Seattle, Washington, its also as rich as gold. Starbucks is a well-managed, aggressive accompany that has achieved unconquerable growth since its inception. The company has acquire its place in communication channel history as an advance(a) firstmover and its brand is synonymic with quality. Nevertheless, after conducting a wide range of qualitative and quantitative analyses, we assemble the markets exuberance for Starbucks as a cup that runneth over. On April 25th, Starbucks stock unopen at $27-1/2. Our discounted capital flow model--using baseline assumptions for... This constitution was passing well written. However, you whitethorn neediness to attach charts, tables, and graphs to flourish virtually of the more analytic aspects. Also, a REFERENCE canvas tent would be great so the reader knows what dates and sources this information came from. Cheers! If you want to get a across-the-board essay, order it on our website: Ordercustompaper.com

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