Uploaded by bunmigee on Apr 20, 2012
Starbucks is a multinational coffee and coffee house chain company founded in 1971 and based in Seattle, Washington. Starbucks is the largest coffeehouse company in the world, with 15,011 stores in 42 countries. Starbucks sells drip brewed coffee, espresso-based hot drinks, snacks and items such as mugs, and of course their well renowned coffee beans. This analysis will provide an overview of Starbucks and its industry; examine the current market and future market conditions and suggestions for maximizing the organization’s future profits and growth. Starbucks takes pride in delivering the highest quality of fresh roasted great tasting coffee. They believe in making sure the customer is satisfied every time. Starbucks purchases the highest quality of coffee beans and roast them on location to provide the finest coffee in the world. However, one area of personal finance that rightfully gets a lot of attention is budgeting, the art of directing how company money should be used. I think there were only few ways to budget, but I can now name at least six, here are the various types of budgets:
1. Line item budget: This is the typical spreadsheet budget that most of us started out on. Each estimated item gets a line and an amount, with the total hopefully adding up to less than your planned income. This is an example of a “passive” budget, where actual expenditures might be compared to budgeted amounts weekly or monthly, but always after the expense already occurs. However Starbucks can use this type of budgeting method to evaluate their income and planned how to estimate the total amount of money that will be spend yearly on their business, so that they will not overspend on their budget. More also, the company can cut down on their expenses by hiring small amount of employee.
2. Envelope (zero-sum) budget: My personal choice, envelope budgeting is an “active” process that works by assigning income to various virtual “containers.” Money is spent from these containers with a theoretical $0 limit, which makes it difficult to go over-budget in any particular category. Saving for irregular expenses and short-term goals is also easier to grasp with this kind of budget. For this type of budget Starbucks can assign how money will be spend on each department and also the amount they have to spend on each product. For examples are the amount they have to spend on coffee, milk, sweetener,...