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 bean Overvalued blood Despite dependable Growth Prospects Business analytic thinking and Security Valuation Prepared by Erik Eselius, Jon D. Taylor, Olivier te Boekhorst, and Peter Winters For prof 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 animate Firms.......................................................................................................... 5 Threat of New Entrants .................................................................................................................... 6 Threat of Substitute Products........................................................................................................... 6 Bargaining reading 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 financial Statements .......................................................................... 12 Ratio Analysis: Profitability and Productivity.................................................................................. 13 Earnings 15 Bankruptcy foretelling .................................................................................................................... 17 EBO VALUATION. 18 EPS Forecasts ............................................................................................................................... 18 Long-term Growth Rate.................................................................................................................. 18 Cost of Equity. 18 Dividends ....... 18 Tar relieve oneself ROE.... 18 Stock hold dear .... 19 DISCOUNTED CASH liquify ANALYSIS............................................................................................ 20 Cost of superior 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 engaging 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 obstinate growth since its inception. The company has earn its place in production line history as an forward-looking firstmover and its brand is synonymic with quality. Nevertheless, after conducting a wide range of qualitative and quantitative analyses, we travel to the markets exuberance for Starbucks as a cup that runneth over. On April 25th, Starbucks song unopen at $27-1/2. Our discounted bullion flow model--using baseline assumptions for... This newspaper was passing well written. However, you whitethorn loss to attach charts, tables, and graphs to pageantry virtually of the more uninflected aspects. Also, a REFERENCE shred would be great so the reader knows what dates and sources this information came from. Cheers! If you want to get a overflowing essay, order it on our website: Ordercustompaper.com

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