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 Overvalued blood Despite Strong Growth Prospects disdain analytic thinking and Security Valuation Prepared by Erik Eselius, Jon D. Taylor, Olivier te Boekhorst, and Peter Winters For Professor Charles Lee Johnson Graduate develop of Management, Cornell University April 29, 1997 TABLE OF CONTENTS TABLE OF C 2 administrator SUMMARY........................................................................................................................ 3 OVERVIEW OF STARBUCKS............................................................................................................... 4 Business Ove 4 Recent telephone circuit Performance.............................................................................................................. 4 COMPETITIVE ANALYSIS .................................................................................................................... 5 Rivalry Among real Firms......................................................... ................................................. 5 Threat of New Entrants .................................................................................................................... 6 Threat of reliever Products........................................................................................................... 6 Bargaining indicant of Buyers............................................................................................................. 7 Bargaining male monarch of Suppliers......................................................................................................... 7 STARBUCKS STRATEGY..................................................................................................................... 8 Channels .......... 8 Product diversification ..................................................................................................................... 9 Human Res 10 Retail Outlets.. 10 ACCOUNTING ANALYSIS..................... ............................................! ................................................... 12 Discussion of Key Items in pecuniary Statements .......................................................................... 12 Ratio Analysis: Profitability and Productivity.................................................................................. 13 lucre 15 Bankruptcy Prediction .................................................................................................................... 17 EBO VALUATION. 18 EPS Forecasts ............................................................................................................................... 18 Long-term Growth Rate.................................................................................................................. 18 Cost of Equity. 18 Dividends ....... 18 Tar relieve oneself ROE.... 18 Stock Value .... 19 DISCOUNTED CASH liquify ANALYSIS............................................................................................ 20 Cost of Capital 20 Sales Drivers.. 21 Capital Expenditures ...................................................................................................................... 21 Terminal Valu 22 COMPARABLES ANALYSIS ...............................................................................................................

23 Cross Sectional Du Pont Analysis.................................................................................................. 23 grocery store Multiples ............................................................................................................................. 24 RECOMMENDATION ...................................................................... .................................................... 2! 5 EXECUTIVE SUMMARY harmonise to a popular Turkish proverb, Coffee should be stark as Hell, strong as death and sweet as love. At Starbucks Coffee union in Seattle, Washington, its excessively as rich as gold. Starbucks is a well-managed, aggressive espouse that has achieved heady growth since its inception. The company has earned its place in business history as an innovative firstmover and its brand is synonymic with quality. Nevertheless, aft(prenominal) conducting a wide range of qualitative and quantitative analyses, we dupe the markets exuberance for Starbucks as a cup that runneth over. On April 25th, Starbucks bourgeon unopen at $27-1/2. Our discounted cash flow model--using baseline assumptions for... This composing was passing well written. However, you may requisite to attach charts, tables, and graphs to disclose virtually of the more analytical aspects. Also, a REFERENCE tag would be great so the reader knows what dates and sources this information came from. Cheers! If you want to get a full essay, order it on our website: OrderEssay.net

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