Analysis of a publicly-traded company Research Paper

Analysis of a publicly-traded company - Research Paper Example The company is a publicly traded company trading in the New York Stock Exchange under the symbol SBUX. The common stocks of Starbucks Cafe were trading at a price of $52.96 as of December 10, 2012 (Yahoo, 2012). The market capitalization of Starbucks Cafe is $39.38 billion. The firm uses a holistic approach towards the sourcing of its coffee. Starbucks Cafe sources its coffee through fair trade coffee. Fair trade coffee guarantees the farmers a price of at least $1.26 per pound. Other benefits that farmers receive in a fair trade coffee arrangement are technology transfer and financing of crops. Customers are more likely to support companies that source coffee using fair trade coffee practices due to the green movement and the tendency of customers of buying from companies that act in a socially responsible manner. The market share of Starbucks in the U.S is 33% of the coffee market (O’Farrell, 2012). During the recession the business of Starbucks declined because the demand f or gourmet coffee is price sensitive. Buying coffee from Starbucks Cafe is considered a luxury by a lot of American buyers. During harsh economic times people tend to be more price conscious. The store has 192,866 employees and 39.66% of its workforce works outside the United States (Cnn, 2012). The employees of the firm are referred too as baristas. The firm believes in the value of diversity in the workplace. Diversity is valued by the managerial staff of the company. The equation that defines diversity at Starbucks Cafe is: Diversity = Inclusion + Equity + Accessibility (Starbucks, 2012). The use of diversity can enhance the creativity of the employees and foster an environment in which innovation is a critical component of the success of the enterprise. The customer service of the company has helped the firm differentiate itself from the competition. Starbucks Cafe offers free services to its customers including Wi-Fi internet accessibility. The firm generates an alternate reven ue stream through the sale of iTunes. The firm believes a lot in the value of corporate social responsibility (CSR). The CRS program of the firm is comprehensive due to the genuine effort the firm places in helping the community and other stakeholder groups. Starbucks Cafe was named one of the world’s most ethical companies in 2012 for the six year in a row. The firm certifies 75% of all new stores under the LEEDÂ ® green building standard. The firm minimizes the use of water and energy at its stores to save resources and protect the environment. About half of the firm’s company owned store are powered by renewable energy. The communities in which Starbucks operates are an important stakeholder group for the organization. The firm donated 441,000 community service hours during 2011 (Starbucks, 2012). During fiscal year 2011 Starbucks Cafe generated sales of $11,700 million. The sales of the company increase by 9.27%. The net income of the firm in 2011 was $1,246 milli on. In the last two years the company’s net income increased by 219%. A firm’s net margin measures the absolute profitability of the company. The desirable outcome is to have a high net margin. During 2011 the net margin of Starbucks Cafe was 10.65%. The net margin of the company is much higher than the industry average of 3.8% (Dnb, 2012). The earnings per share and cash dividend per share of the company were $1.66 and $0.56 respectively. The liquidity of the firm is an important aspect of the business that managers must consider. A

Essay Questions Example | Topics and Well Written Essays - 500 words - 14

Questions - Essay Example The resultant turnovers are as a result of lack of low income growth that is contemporaneous and is not found in government change propensity that is also contemporaneously increasing. (Russett, Starr and Kinsella) Economic growth results to a middle class that is educated and entrepreneurial which soon or later strives for control over the country’s fate. This ends in the acceptance and giving in by the repressive government in place. The progression in most of the countries that are democratic is not pegged to economic growth after their democratization. Among democracies that are already existing and established, a high growth rate is as a result of stability as a result of liberal democracy. Greater prosperity alone doesn’t result to political freedom of a greater degree. However, the benefits of economic development are reaped through invasion of pressure to political control relaxation. The connection between liberal democracy that is emerging and economic growth lies in sophistication growth of authoritarian governments. Democracy has a minimal impact on economical success to countries that practice it. All the successes in economy are propagated under the political regime that is undemocratic. Many of them developed as a result of state capitalism and centralization which is different from economic liberalization. This is as a result of policy which directly achieves rapid growth in third world countries. This is done through the creation of protective tariffs around the country’s nascent ship-building and automotive industries. Economies succeed through economic liberation adoption, this process usually occurs under political system that is authoritarian. This type of system always associates to military coup in democratic overthrow of elected government. Democratic states that are developing are usually undermined by economic liberation. This is because of the