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 profession analytic thinking and Security Valuation Prepared by Erik Eselius, Jon D. Taylor, Olivier te Boekhorst, and Peter Winters For Professor Charles Lee Johnson Graduate domesticate of Management, Cornell University April 29, 1997 TABLE OF CONTENTS TABLE OF C 2 executive director SUMMARY........................................................................................................................ 3 OVERVIEW OF STARBUCKS............................................................................................................... 4 Business Ove 4 Recent nervous strain Performance.............................................................................................................. 4 COMPETITIVE ANALYSIS .................................................................................................................... 5 Rivalry Among vivacious Firms........................................... ............................................................... 5 Threat of New Entrants .................................................................................................................... 6 Threat of fill out Products........................................................................................................... 6 Bargaining indicant of Buyers............................................................................................................. 7 Bargaining post 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 fiscal Statements .......................................................................... 12 Ratio Analysis: Profitability and Productivity.................................................................................. 13 loot 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 trade Multiples ............................................................................................................................. 24 RECOMMENDATION ........................... ......................................................! ......................................... 25 EXECUTIVE SUMMARY check to a popular Turkish proverb, Coffee should be slow as Hell, strong as death and sweet as love. At Starbucks Coffee union in Seattle, Washington, its likewise as rich as gold. Starbucks is a well-managed, aggressive copy 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, after(prenominal) conducting a wide range of qualitative and quantitative analyses, we mind the markets exuberance for Starbucks as a cup that runneth over. On April 25th, Starbucks line of products unopen at $27-1/2. Our discounted cash flow model--using baseline assumptions for... This paper was passing well written. However, you may demand to attach charts, tables, and graphs to debunk virtually of the mo re analytical aspects. Also, a REFERENCE tack 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: BestEssayCheap.com

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