Author(s)

Jingjing Gao, Xinzhe Li, Ziyuan Wang, Hongjia Zhang

Corresponding Author

Ziyuan Wang

ABSTRACT

This article analyzes the business strategy and financial performance of Starbucks corporation. Starbucks is currently the biggest retail coffee store chain in the industry, and it has just been through the COVID-19 period with the demand of expansion of their business. It is worth to take a deep look at Starbucks performance to gain an understanding of what strategies Starbucks is taking and how Starbucks performed during this unique period of time. We identify Starbucks strategies by using Porter's Five Forces analysis, SWOT analysis, PESTLE Analysis and give a general strategy that Starbucks has been taken. Next, we give an overview of Starbucks’ annual report at first. Then, we demonstrate common-size analysis and ratio analysis on its three financial data. Finally, we project the following five years’ revenue for Starbucks. The analysis reveals the Starbucks ability to operate well and generate revenue in the future. Hopefully, implication on business operation in a retail store can be provided, and stakeholders could have a fresh perception on Starbucks.

KEYWORDS

Strategy, Financial Statements, Revenue Projection