Description
Instructions
Revenue and Income
Part One
Return to the same MS Excel file you submitted for Dropbox 1. Under the Week 2 tab, gather the revenue, operating income, and net income of your chosen company and its closest competitor.
Part Two
In a memo to the Chief Executive Officer, answer the following questions, which are pre-loaded in your Memo Template:
Which of the two companies you reviewed in Discussion 2 is growing faster? What data, reference, or ratios drew you to that conclusion?
Which of the two companies is generating the most profit?
Which of the two companies is the “better run company”? (Keep in mind that you will be posed this question for the next several weeks. Keep track of how you grow from this week to the next week with your response.)
Criteria Level 3 Level 2 Level 1 Criterion Score
Content Data gathered in the spreadsheet is 90% to 100% accurate Data gathered in the spreadsheet is 80% to 89% accurate Data gathered in the spreadsheet is 70% to 79% accurate Data gathered in the spreadsheet is below 70% accurate or is not present. / 20
Analysis The assignment’s content is thorough, well organized, and provides critical thinking into the topic(s) presented in the course material and textbook. Additionally, the submission is at least 500 words. The assignment’s content addresses the topic(s) for the week and shows thought was given to the topic(s) presented in the course material and textbook. Or the submission is between 400 and 499 words. The assignment’s content is evident; however, it is lacking in critical thinking or is not well organized to the topic(s) presented in the course material and textbook. Or the submission is at least 200 words but not 300 words in length. No memo submitted or the submission is below 200 words in length. / 20
Reference, Spelling, Grammar, and Mechanics No issues with spelling, grammar, or mechanics. The reference selected is applicable to the week’s content. The reference is at the end of the analysis, so the instructor can review the reference. Reference follows current APA format. Minor issues with spelling, grammar, or mechanics. The reference selected is applicable to the week’s content. The reference does not provide either a title or a link for the article. Reference follows current APA format. Several issues with spelling, grammar, or mechanics. The reference selected is applicable to the week’s content. The reference is at the end of the analysis, but the title is mislabeled, or the link is to an incorrect reference. Reference follows current APA format. Significant issues with spelling, grammar, or mechanics make the assignment difficult to read and understand. The reference provided is not applicable to the week’s content. Or no reference was provided. / 5
TotalScore of Analysis Memo Rubric,/ 45
Unformatted Attachment Preview
Memo
To:
Chief Executive officer
From:
Your Name
Date:
Date
Re:
Weekly Dropbox Memo #2
1. Using all of the resources available to you (e.g., course material and financial
websites), which of the two companies is growing faster? What data, reference,
or ratios drew you to that conclusion? Please be detailed. (After answering this
question, please remove the question.)
2. Using all of the resources available to you (e.g., course material and financial
websites), which of the two companies is generating the most profit? Please be
detailed. (After answering this question, please remove the question.)
3. Using all of the resources available to you (e.g., course material and financial
websites), which of the two companies is the “better run company?” Keep in
mind, you will get posed this question for the next several weeks. Keep track of
how you grow from this week to the next week with your response. Please be
detailed. (After answering this question, please remove the question.)
Please consider inserting the MS Excel chart in this section. If you do, there is no need
to upload the spreadsheet to Dropbox.
Memo
To:
Chief Executive Officer
From:
Christopher Eusebio
Date:
March 8, 2024
Re:
Analysis 1
The risk in Starbucks’ associated with competition and market trends and operational risk
related to supply chain and commodity costs directly impact shareholder wealth maximization
and hence accountable investment principles. Starbucks gets exposure from one or both of these
risks, given that each could have an effect on performance from a top-side (revenue) to a bottomside (net income) and eventually influence the ability of the firm to raise shareholder value. The
Competition and Market Trends has a Top Line Impact Given that, same-store sales and profit
development could be adversely impacted and Intense competitive pressures from other players
in the industry who may potentially offer similar quality products at the price points that could be
more attractive or a shift in the preferences of the consumers from the products that Starbucks
offers towards another brand could in every way compromise Starbucks’ market share and lead
top-decline as a consequence of loss in top-line revenue growth.
Responsible Investment is the enhanced desire and scrutiny by investment bodies is for those
companies that have a strategic advantage, which can deal with social and environmental
obligations in the long-term. Therefore, the credible role being played by Starbucks to last your
brand reputation through quality, innovation and ethical business is a fit to the responsible
investment criteria. However, failure to appropriately respond to the dynamics in competitive
pressure and market conditions will threaten your strategic profile and hence perhaps the
attraction of the stock for responsible investors.
Operational Risks Related to Supply Chain and Commodity Costs has a Bottom-Line
Impact as the price of coffee beans and other commodities swing Starbucks’ cost of goods sold
and operating margins. High commodity costs, with no way to directly hedge such costs or have
consumers effectively share an increase in cost, can squeeze margins and lower profitability.
Supply chain disruptions will throw in a level of operational inefficiencies that will hurt the
company’s ability to serve customers through its stores, as they will also be affecting the bottom
line.
Responsible Investment Considerations is the Operational efficiency and sustainability whereby
the underlying focus on attaining tangible value, the investors apply Starbucks supply chain and
management, transparency and demonstration of capability to source ethically produced coffee
with less environmental footage, in the evaluation of commitment to the responsible business
approach. Poor operational risk management of a business impacts not only the financial
performance but also emerges as a risk to Starbucks’ reputation as a socially responsible
investment.
Corporate governance refers to the system by which companies are directed and
controlled and is concerned with the full relationships among the management, the Board,
shareholders, and other stakeholders. However, for Starbucks to exist with ethical corporate
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business, there should be social responsibilities with a high brand reputation for them to be
derived from extensive governance strategies. The fact that company admits there is a lot of risk
that is attached to the business in case it fails to maintain high standards in the quality of
products, ethics, social responsibility, and potential damage to the brand and reputation.
Starbucks further expands into the quality and operational procedures running throughout the
company’s website. Such policies if not strictly followed can seriously damage the trust of
customers and hence the value of the brand. It is basically to do with governance as it directly
bears upon the shareholder value and the long-term outlook of the business. Some of the most
important relationships if poorly maintained are threats to the business operations and brand of
the business. Starbucks termed this as how the company is maintained with an inclusive
domestic partnership with an international business partner in supply operations and ensured that
their operations are within the ethics and demand of laws. it has also enumerated problems being
encountered in managing the growth of one of the retail store businesses or global consumer
products business which is a great stress on the part of its management and employees. This
relates to corporate governance because it highlights the need for good leadership, strategic
decision-making, and adeptness in a changing business environment.
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STARBUCKS COMPANY
Name of Risk (e.g., supply chain,
Enter a brief description of the risk mentioned in the 10K
currency risk, interest rate risk,
Report. Do you believe it is a strategic, financial
etc.)
operational, regulatory risk?
Starbucks company competes aggressively in the specialty
coffee business where price, convenience, service, and
product quality are important considerations. There is strong
competition for the business in all of its markets and
Competition and Market
channels which could lower profitability. Along with big
Trends Risks
players in the quick-service restaurant industry are also
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vying for customers by emphasizing the sale of premium
specialty coffee drinks. Starbucks’ sales and operational
outcomes may suffer as a result of this competition. This
risk can be classified as Strategic risk
With the rise in price or decrease of supply of commodities
mainly the high-quality Arabica coffee beans the company
as Starbucks face huge risks. Weather and natural disasters,
Operational Risks Related to
political and economic conditions in the producing countries
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Supply Chain and
of coffee can be all adequate provokers for fluctuations of
Commodity Costs
great measure in price and supply of coffee beans. For
example, in the case of Starbucks, the coffee beans are a key
resource and any cost increase to a level which they could
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not pass it on to customers fully, by secured buying and
hedging, would unfavorably affect its profit. This risk is
classified as operational risk.
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