Preview

Intellectual Capital Valuation

Good Essays
Open Document
Open Document
741 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Intellectual Capital Valuation
Intellectual Capital Valuation Starbucks
02/16/2013
Bonnie J Gray
OI/365

Intellectual capital is one of the most important assets that an organization will ever have. It contributes to each and every component of an organization, and helps to formulate success, growth, and development. Understanding the value of intellectual capital can turn any dive of a company into a thriving successful business. To dig deeper into that idea, embracing the value of intellectual capital and applying that knowledge into valuations can bring forth new innovative ideas, growth, profit, and major success. Realistically, intellectual capital forms a foundation for an organization to work off of. When forming any type of foundation, it is important that it is strong, stable, and expandable. Therefore, it is imperative that intellectual capital is fully understood and protected in any type of organization, large or small. Valuation in itself forms the glue to intellectual capital and the organization. It ties intellectual capital to each portion of the business. It helps form finances, employees, work place ethics, and any other components that help build a business into a well working machine. Valuation helps to protect intellectual capital within the organization, while linking methods to growth and profitability for that respected business. There is an abundance of methods available for each type of organization in any given industry. The important part is to find the correct method for the business, and to also make sure it links back to the project that is being developed and/or implemented. Large businesses may implement multiple methods in order to continue growth and profitability for their organization. Starbucks is a fast growing, international company that utilizing intellectual capital to obtain success. This Seattle based company has implemented many new concepts in the past two years and will need to continue to hold their

You May Also Find These Documents Helpful

  • Better Essays

    Starbucks vs Tim Hortons

    • 1379 Words
    • 6 Pages

    Starbucks is a “premier roaster, marketer and retailer of specialty coffee” (Marketline 2012). This company is globally recognized because of their vast amount of stores, consisting of more than 17,000 retail stores in over 55 countries. Most retail stores are in highly populated areas, like “downtown and suburban centers, office buildings, university campuses and in select rural and off-highway locations” (Marketline 2012).…

    • 1379 Words
    • 6 Pages
    Better Essays
  • Good Essays

    In short order, Starbucks Corporation has become a premier purveyor of coffee and related beverages along with selected merchandise and has acquired almost universal domestic brand name recognition (MacArthur, 2001). Currently, Starbucks is engaged in a number of activities designed to expand its presence in the new global beverage market. Starbucks' growth strategy thus far has tended to emphasize positioning its stores in high traffic areas, including mini-stores located in hotels, upscale grocery stores, shopping mall food courts, and other ventures which are not free-standing (Kim, 2000).…

    • 423 Words
    • 2 Pages
    Good Essays
  • Best Essays

    Starbucks the known name in the world of coffee business had started off with little company which now has transformed in a successful corporation. This brand has gained remarkable success over period of time and has proved itself as a reputable coffee provider in term of taste and quality. The major contribution in this success was their aggressive expansions strategies. These strategies have enabled them to develop a dense chain of stores not only in America but all over the world. Their strategic approach towards the business has enabled them to gain value of $12 billion in 2008 from $2.9 billion in 1998 (Higbee, Liaw, Ting, Tjho, ton, 2008).…

    • 4211 Words
    • 17 Pages
    Best Essays
  • Powerful Essays

    The Starbucks Corporation is well known for its strong positive culture and a willingness to adapt and change. “Starbucks has rearranged their organizational structure to better accommodate customer satisfaction. The CEO of Starbucks announced expansion of their matrix organizational structure last month, They will operate under four U.S. divisions including Western/Pacific, Northwest/Mountain, Southeast/Plains and Northeast/Atlantic” (Starbucks Corporation, 2008). This decision was made when Howard Schultz, founder of Starbucks, returned to the helm as President, CEO, and Chairman. His enthusiasm to bring Starbucks back to its core – all things coffee – and a renewed focus on the customer experience was the driving force behind this reorganization. In one of many e-mails sent to all Starbucks partners, Schultz said, “I pledge to communicate with you about our efforts to improve the currents state of our U.S. Business, reignite the emotional attachment with our customers and make foundational changes to our business; and I have done so in six previous emails” (Schultz, 2008).…

    • 2461 Words
    • 10 Pages
    Powerful Essays
  • Satisfactory Essays

    The methodologies used to determine business value include the company’s profitability, efficiency, products, and services, customer base, economic conditions, and expected growth. The process often includes a review of the company’s financial statements, other internal documentation, as well as a marketplace analysis and competitive assessment. Unlike financial statements which show financial activities of a business, person, or other entity, a business valuation can help unearth what is needed to strengthen the business and ensure long term viability. It can also aid in identifying ways to increase the value of the company and allow it become more attractive to potential investors and buyers.…

    • 414 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    This proposal will open your eyes to the limitless possibilities there are for Starbucks. It…

    • 2119 Words
    • 9 Pages
    Powerful Essays
  • Better Essays

    Starbucks Corporations’ overall goal and main agenda for profit and growth in the industry is by keeping a competitive edge and constant reinventing itself through its value principles. There are many strategies that can allow any company to change for the better. Starbucks focuses on rapid global expansion and its executive management team is leveraging the strength of the company. Operational resources are maximized through the experience and strength of the management team along with the realignment of executives. The current president of Starbucks Coffee International, Martin Coles, was promoted to Chief Operating Officer (COO). Coles understands that Starbucks is adept and knowledgeable in the area of increasing profits and its market share while continuously building a close relationship with its customers and their needs.…

    • 1205 Words
    • 5 Pages
    Better Essays
  • Good Essays

    Intellectual capital: the total sum of a workforce’s knowledge and abilities that can be used for an organization’s benefit…

    • 4154 Words
    • 17 Pages
    Good Essays
  • Powerful Essays

    Starbucks, originally based in Seattle, was established in 1971 and today with more than 6,500 retail locations in North America, Latin America, Europe, the Middle East and the Pacific Rim, Starbucks Coffee Company established itself as the dominant and most aggressive retailer in the coffee house segment. The company has transformed a simple beverage into a lifestyle accessory with as much elegance as the latest fashion (Starbucks.com). It offers whole bean coffees, espresso beverages, confectionery and bakery items and equipment in its retail stores. The retail strategy has been to put a coffee shop on every corner and to make fresh-brewed coffee by selling only the highest-quality products and charging a premium price. However, the product mix has changed significantly over the years, with beans accounting for about 15% of the chain's sales. Meanwhile, Starbucks is expanding its offerings with a line of ice cream for supermarkets and a joint venture with Pepsi Cola to market, frappuccino. The quality of the product has attracted a loyal and growing following among consumers.…

    • 3173 Words
    • 13 Pages
    Powerful Essays
  • Good Essays

    IT Value is defined as the worth or desirability of a thing. It is a subjective assessment. The value of IT depends very much on how a business and its individual managers choose to view it. Strategic positioning, increased productivity, improved decision making, cost savings, or improved service are all ways value could be defined.…

    • 514 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Business Valuation

    • 763 Words
    • 4 Pages

    Most people do not know the purpose of a valuation. A business valuation is a procedure for assessing the selling price of a business. Although there are many ways of making valuations, the common procedure is to add the cost of the business, the profit and liabilities. The aim is to find the value at which the business would be worth if it was sold today.…

    • 763 Words
    • 4 Pages
    Good Essays
  • Good Essays

    BA 440 Starbucks SWOT

    • 870 Words
    • 3 Pages

    Starbucks employs over 149,000 workers and brought in a profit of $1.38 billion in 2012 (www.strategicmanagementinsight.com). The company is a household name that has been featured in television and movies and a brand that is sought after by countless celebrities. Although the company is the top retailer of coffee in the United States, Starbucks has shown a trend in sales since early 2009 that allude to the fall of the “great coffeehouse empire”. Because of this troubling news, executives at Starbucks have began to look deeper into the strengths and weakness of the organization and have tried to build courses of action that will help propel the chain back to the top of their market.…

    • 870 Words
    • 3 Pages
    Good Essays
  • Best Essays

    Starbucks Strategy Analysis

    • 4623 Words
    • 19 Pages

    Starbucks has established in1971 by three partners in Seattle, Washington by initially fund of just $9.050 (Thompson, JR & Strickland, 1999) It has known through its high price but best quality, innovative products and accessible location and the Coffee Industry leader in the market. Most of its product is consist of high quality instant coffee & tea, coffee and tea gourmet, cakes and etc. Starbucks had been inspired by Italian style café after 1983 through it’s CEO manager, Howard Shultz. The first store outside U.S opened in Japan in 1996 and followed in U.K. Base on a report in 2011, it has 18,887 stored in 55 countries, while 12,500 stores are domestic. (Wikipedia.org/Starbucks) The market share of Starbucks in U.S is 32.6 % in 2011, whereas, it’s closest threat, which is ‘Dunkin Donuts’, has 16.1% of U.S market share. (Quora.com) The current mission of Starbucks is “ to inspire the human spirit by one person, one cup and one neighborhood at the time”. (Starbucks.com)…

    • 4623 Words
    • 19 Pages
    Best Essays
  • Powerful Essays

    Cost of Capital

    • 5336 Words
    • 22 Pages

    The long-term investments that make today will determine the value of business tomorrow. In order to make long-term investments in new product lines, new equipment and other assets, managers must know the cost of obtaining funds to acquire these assets. The cost associated with different sources of funds is called the cost of capital. . If the business earns more than its cost of capital, the market value of the business will increase. Likewise, if returns on long-term investments are below the cost of capital, market values will decline. Therefore, how we manage capital is extremely important to fulfilling the basic objective of increased shareholder value.…

    • 5336 Words
    • 22 Pages
    Powerful Essays
  • Good Essays

    Starbucks is one of the largest chains of coffee shops in the world. Their business first started in the early 80s on Sixth Avenue and Pine Street in downtown Seattle as a tiny chain coffee shop. Then, they grew up rapidly in the 90s and spread out 5,689 outlets within 28 countries in 2002. Being very well managed by a well seasoned management team which is known as H2O from the combination of 3 names: Howard Schultz (Chairman and Chief Global Strategist), Howard Behar (Head of North American Operations) and Orion Smith (CEO), this first chain of Starbucks was successfully popular on that time.…

    • 1319 Words
    • 6 Pages
    Good Essays

Related Topics