Starbucks Case Study Inventory Management

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EXECUTIVE SUMMARY Imagine that you have the opportunity to travel all over the world and visit great cities like Paris, London, Berlin, Rome, Venice, Barcelona, Madrid, Tokyo, Rio de Janeiro, Dubai and many others. Now, imagine you are walking downtown all of those cities and you smell fresh coffee around the corner. Most likely the first thing that comes to your mind is Starbucks coffee. And for sure if you are at any major airport you will smell the fresh coffee that comes from Starbucks. Starbucks is the brand name that is associated with coffee. Starbucks is the largest and fastest growing coffee house chain in the world. Starbucks is one of the 100 America’s best employers according to Forbes. At the end of fiscal 2012 year Starbucks store count was 18,066. Starbucks is growing fast, but is it growing too fast? The answer to this question we will find in this case study. Like any other large international corporation Starbucks has few problems even though on the first look everything seems to be fine. According to the financial analysis in this case study Starbucks has two problems: inventory management and financial leverage. Aims of this analysis are to help investors, in that way that they can understand Starbucks’ management and operations strategies. This analysis can help both, current and future investors. Current investors can be more informed on how to vote on the next stockholders’ meeting and in what direction is this company headed. Future

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