Starbucks Essays Examples

Executive summary

The fiscal year 2014 saw Starbucks perform well in its financial perspective. Its results were impressive in financial key performance indicators such as net revenues, comparable store sales, operating revenue, cash flows, among other indicators. Starbucks net revenues rose by 11% from $16.4 billion in 2014 to $14.9 billion in 2013 (, 2015). The company also experienced a 6% growth in comparable store sales with the number of transactions and average ticket increasing by 3%. The year also saw an increase in operating income from an operating loss of $325.4 million in 2013 to $3.1 billion in 2014. The operating margin also increased from (2.2)% in 2013 to 18.72% in 2014. There was also a significant increase in earnings per share from $0.01 in 2013 to $2.71 in 2014. An important financial metric that decline is cash flow from operations (, 2015). Starbuck’s cash flows from operating activities declined from $2.9 billion in 2013 to $607.8 million in 2014. The decline was caused by the payment of $2.8 billion in respect of Kraft arbitration matter.
The management also reports that it complied with the requirements of Section 302 of the SOX Act and filed the necessary certifications. The management has also reiterated that it bears the responsibility for the establishment and operation of adequate internal controls. A statement in compliance with Section 404 of the Act stated that the management of Starbucks evaluated the effectiveness of the company’s internal controls. The evaluation indicated that the internal controls were adequate and effective as of 28th September 2014. It also reported that there were no significant changes in the internal controls over financial reporting that could material affect the financial reporting process. Starbucks complied with all the requirements of the Sarbanes-Oxley Act with respect to disclosures on the internal controls over financial reporting and the necessary certifications, filings, and procedures.
Starbucks is committed to effective governance through compliance with corporate governance principles. It has established an effective board of directors to manage the affairs of the company. Starbuck’s board is composed of 12 members, most of whom are independent directors as required by the Nasdaq Stock Market. Starbucks has adopted a code of ethics to govern the operations of the board. The code of ethics is in compliance with the requirements of SEC and is publicly available. The code clearly outlines the duties of each committee of the board as well as the qualifications for membership to committees. The board of Starbucks is composed of three committees; Audit and Compliance Committee, Nominating and Corporate Governance Committee and the Compensation and Management Development Committee. The effective governance of the company has spurred it to success in achieving its targets and key performance indicators. The executive of Starbucks has not been involved in any corporate scandals.
Starbucks is involved in various corporate social responsibility and other programs aimed and ensuring environmental and corporate sustainability. It has invested in coffee farmers and their communities through ethical sourcing (Starbucks Coffee Company, 2015). It understands that its success is dependent on the success of farmers, which guarantees a sustainable supply of coffee. It supports the farmers through loans, among other services. The company is also a leader in green retail and water conservation. It has also invested in renewable energy to ensure sustained operations and success. It also supports communities through its community stores that offer training and education to eradicate poverty (Starbucks Coffee Company, 2015). Besides, it gives back to the society through the Starbucks Foundation.

References,. (2015). Apple Inc. - Annual Report. Retrieved 27 July 2015, from
Starbucks Coffee Company,. (2015). Global Responsibility Report Goals & Progress 2014. Retrieved 27 July 2015, from

Cite the page

Choose citation format:
EssayWeb. (2021, November, 03) Starbucks Essays Examples. Retrieved May 21, 2024, from
"Starbucks Essays Examples." EssayWeb, 03 Nov. 2021, Accessed 21 May 2024.
EssayWeb. 2021. Starbucks Essays Examples., viewed May 21 2024, <>
EssayWeb. Starbucks Essays Examples. [Internet]. November 2021. [Accessed May 21, 2024]. Available from:
"Starbucks Essays Examples." EssayWeb, Nov 03, 2021. Accessed May 21, 2024.
EssayWeb. 2021. "Starbucks Essays Examples." Free Essay Examples - Retrieved May 21, 2024. (
"Starbucks Essays Examples," Free Essay Examples -, 03-Nov-2021. [Online]. Available: [Accessed: 21-May-2024].
Starbucks Essays Examples. Free Essay Examples - Published Nov 03, 2021. Accessed May 21, 2024.
Warning: This sample is available for anyone to see.

If you want a unique paper, you can have one of our writers create it for you

Approx. price
Don't Go!
Get -11% Off today for any essay!
Enter a discount code
Order Now