Introduction
Starbucks and Apple are two of the most influential companies in the world. People from different backgrounds and diverse cultures use the products of these two organizations. Both organizations are role models for start-ups, as it is essential to understand their performance to understand what should be done to achieve success.
Therefore, this essay will explain the financial position of these two businesses, show their operations in specific industries, compare competitors and commitment to the surrounding world.
Starbucks
Starbucks is one of the multinational organizations in the food industry that is taking leading positions in the market. Even though the company’s success has always been notable, the balance sheet for the last three years shows a slight decrease in the total liabilities and shareholders’ equity. According to Investor Relations, in 2020, the company has increased its revenue almost twice. And the same increasing trend continued until 2021, generating $31,392.6 (Starbucks Investor Relations, n.d.).
Nevertheless, the situation worsened in 2022 with a decrease of more than $ 4,000 (Starbucks Investor Relations, n.d.). The operating income also decreased by $200, which is insignificant for the multinational company (Starbucks Investor Relations, n.d.). Therefore, the financial situation of Starbucks can be considered as stable. However, a sharp decrease in cash flow states that momentary issues may appear shortly, forcing the company to introduce new strategies.
Starbucks is one of the food industry representatives that sells caffeine, non-caffeine drinks, and food for people who follow different diets. The company’s official website says its ranking is 14th worldwide (Starbucks, n.d.). The company also positively influences the environment and governmental laws by using biodegradable packaging, cups, and straws (Starbucks, n.d.).
Starbucks has unique competitors in other countries. For example, in the United States, the primary opponents are Dunkin’ Donuts and The Coffee Bean (Goh et al., 2020). The main comparison is the product range, which includes prepared food and drinks. Nevertheless, the main contrast is related to the quality and promotion. The brand has a unique symbol and a long history, increasing customer loyalty.
Apple
Apple has always been a leading company in the electronics industry, and its product performance supports its financial position and protects the future. According to Investor Relations, in the last three years, there has been an increase in total liabilities and shareholders’ equity. The company did not experience a decreasing trend, but its strategies worked well. Net income rose significantly during COVID-19, from $57,411 to $94,680 from 2020 to 2021 (Apple Investor Relations, n.d.).
However, in 2022, there was a slight increase of less than $6,000 (Apple Investor Relations, n.d.). Due to the boom in sales during pandemic times, the company had the highest cash flow in 2021. Nevertheless, these days, the lack of new strategies caused a decrease in cash flow.
Apple operates in the consumer electronics software industry, which provides clients with the gadgets that make their lives easier. The company offers many products: phones, watches, tablets, software, and subscription services (Tien, 2019). The company ranks highly worldwide, beating all its competitors in sales (Tien, 2019). The commitment to governance of the company is related to transparency and accountability (Apple Investor Relations, n.d.).
Workers are trained in effective decision-making to ensure these goals are achieved. Google, Samsung, and Huawei are the leading worldwide competitors of Apple’s smartphones. According to Tien (2019), call functionality, texting, and picture-taking are leading comparisons. However, many differences are related to the software, display, applications, and support system.
Conclusion
In conclusion, Starbucks and Apple are the most popular companies in the world. They are famous for their products and their support and commitment. Even though both companies operate in different industries, the key marketing strategies can be applied to any new business to ensure success. Understanding the financial side of popular companies is important to controlling investing estimation and developing further strategies.
References
Apple Investor Relations. (n.d.). Financial Data. Web.
Goh, S. Y., Kee, D. M. H., & Ooi, Q. E. (2020). Organizational culture at Starbucks. Journal of The Community Development in Asia, 3(2). Web.
Starbucks Investor Relations. (n.d.). News and Results. Web.
Starbucks. (n.d.). Web.
Tien, N. H. (2019). International distribution policy comparative analysis between Samsung and Apple. International Journal of Research in Marketing Management and Sales, 1(2), 24-27. Web.