6 Starbucks has 12,711 company-operated stores, 0.05 4 0.20 12,374 licensed stores, and employs approximately 254,000 people. Employee morale is high and Starbucks holds good, 0.04 4 0.16 7 long-term relationships with their employees. 8 Starbucks has a strong global business model, and 0.03 4 0.12 makes disciplined investments in their business and employees. 9 There are over 1,000 stores that are Leadership in 0.02 3 0.06 Energy and Environmental Design (LEED) certified in 20 different countries. 10 Starbucks reduced consumption from 0.02 3 0.06 stores by 26.5% in 2015. Weaknesses 1 Starbucks is highly dependent on the financial 0.10 1 0.10 performance of the United States operating segment; Starbucks operates in more than 75 countries, but 69% of revenues are generated in the United States. Starbucks has imitable products that can be produced 2 0.08 1 0.08 and sold cheaper. 3 The Europe, Middle East, and Africa segment only 0.07 1 0.07 contributed to 6% of revenue in 2015. 4 Europe, Middle East, and Asia segment revenues 0.04 1 0.04 declined 8% to $1.1 billion in fiscal 2016 compared to a year ago. 5 Product pricing; one customer buying the smallest, 0.04 2 0.08 cheapest specialty at $3 dollars a cup can expect to spend $780 dollars a year. 6 Revenue decreased 6% from $1294.8 million in 2014 0.04 2 0.08 to $1217.7 million in 2015. Starbuck's reward system is lacking. You get 2 stars 7 0.03 2 0.06 per $1 dollar spent, at 300 stars you get a free drink or food item, costing about $150 dollars to get there. 8 74% of sales were from beverages, 19% from food, 0.02 1 0.02 3% from packaged and single-serve coffees and teas, and 4% from coffee-making equipment. 9 Lack of internal focus; more interested in expansion, 0.02 2 0.04 even though the majority of income is from the Americas.
6 Starbucks has 12,711 company-operated stores, 12,374 licensed stores, and employs approximately 254,000 people. 0.05 4 0.20 7 Employee morale is high and Starbucks holds good, long-term relationships with their employees. 0.04 4 0.16 8 Starbucks has a strong global business model, and makes disciplined investments in their business and employees. 0.03 4 0.12 9 There are over 1,000 stores that are Leadership in Energy and Environmental Design (LEED) certified in 20 different countries. 0.02 3 0.06 10 Starbucks reduced consumption from stores by 26.5% in 2015. 0.02 3 0.06 Weaknesses 1 Starbucks is highly dependent on the financial performance of the United States operating segment; Starbucks operates in more than 75 countries, but 69% of revenues are generated in the United States. 0.10 1 0.10 2 Starbucks has imitable products that can be produced and sold cheaper. 0.08 1 0.08 3 The Europe, Middle East, and Africa segment only contributed to 6% of revenue in 2015. 0.07 1 0.07 4 Europe, Middle East, and Asia segment revenues declined 8% to $1.1 billion in fiscal 2016 compared to a year ago. 0.04 1 0.04 5 Product pricing; one customer buying the smallest, cheapest specialty at $3 dollars a cup can expect to spend $780 dollars a year. 0.04 2 0.08 6 Revenue decreased 6% from $1294.8 million in 2014 to $1217.7 million in 2015. 0.04 2 0.08 7 Starbuck's reward system is lacking. You get 2 stars per $1 dollar spent, at 300 stars you get a free drink or food item, costing about $150 dollars to get there. 0.03 2 0.06 8 74% of sales were from beverages, 19% from food, 3% from packaged and single-serve coffees and teas, and 4% from coffee-making equipment. 0.02 1 0.02 9 Lack of internal focus; more interested in expansion, even though the majority of income is from the Americas. 0.02 2 0.04
StarbucksProject.docx