Introduction
Starbucks and Apple are two global corporations that hold leading positions in their respective sectors. Regardless of the numerous challenges associated with the financial crisis, the companies remained stable and demonstrated stable growth. However, some issues might impact their work and future results.
For instance, relations with employees and relations might affect financial performance and opportunities for growth. Understanding these issues might help make informed and wise solutions about investing and cooperating with one of the two brands. Therefore, comparing the corporations, their relations with specialists, and financial issues will assess Starbucks and Apple’s current states and opportunities.
Relations with Employees and Investors
The chosen corporations devote much attention to human resource management and investor relations. Apple outlines its business conduct policy, which treats customers, partners, and investors respectfully (“Business conduct,” 2022). The framework applies to all full, and part-time employees of the company and its subsidiaries (Business Conduct,” 2022). Apple also establishes the basis for individuals’ personal and professional development, which is part of its corporate strategy.
As for investors, Apple encourages their participation in various activities by providing financial statements and outlining the benefits of a partnership. In general, most partners remain satisfied because of the firm’s stable work and generation of revenues. Starbucks views its workers as partners treated through the lens of humanity (“Culture and value,” n.d.). It means that the company offers everything necessary to satisfy and evolve. Regarding investor relations, Starbucks cultivates transparency through reporting and sharing information with stakeholders (Goh et al., 2020). In such a way, both companies have similar approaches to the problem.
Impact on Financial Performance
The models chosen by the corporations directly impact their financial performance. Thus, there is a direct correlation between employee satisfaction and the firm’s ability to generate revenue (Nelson, 2017). For this reason, Apple and Starbucks create an environment that is beneficial for specialists’ personal and professional development. For instance, the first firm’s HR strategy makes its employees creative, which leads to the emergence of new ideas and projects. As a result, the organization acquires a competitive advantage, improving its financial performance (Nelson, 2017).
In Starbucks, individuals’ competence and skills directly affect client relations, which is crucial for the company managing the chain of coffeehouses (Goh et al., 2020). The culture of building strong relations with clients and teams results in high customer loyalty levels and their readiness to continue cooperation (Goh et al., 2020). This means the brands’ financial results are associated with their attention to workers and investors.
Current Issues and Impact on Financial Viability
Nevertheless, both companies under the research face some issues that should be mentioned. Apple’s value of innovation is high as it operates within a highly competitive environment. Companies invest in research and development (R&D) to introduce new products and adapt to clients’ trends (Wahlen et al., 2022). Apple remains one of the leaders in the sphere; however, it has also been criticized for repetitions and the absence of radical changes in its design. It affects both the firm’s human resource management and investor relations.
Starbucks has also experienced some issues that have impacted its employee and investor relations. First, it critically depends on a single product, which makes it vulnerable (Wahlen et al., 2022). Second, its workers might report too high pressure during understaffed shifts or customer abuse (Sainato, 2021). As a result, productivity and the level of satisfaction are reduced, which also affects the performance.
The outlined problems might adversely impact the overall financial viability of companies. The term represents the firm’s ability to generate the cash flow necessary for debt repayments and cover operational expenses (Wahlen et al., 2022). Thus, Apple remains competitive and can retain high client interest because of its iconic status.
However, it has exceptionally potent competitors, while its new devices’ sales might not be as high as expected (Carter, 2023). This might result from a lack of creativity and investment in the R&D segment (Carter, 2023). As for Starbucks, it has experienced some reputational losses because of the complexity of its operations (Sainato, 2021). From a long-term perspective, it might affect the financial viability due to the critical reduction in workforce and productivity levels. For this reason, addressing these problematic issues is essential for the brand’s ability to continue its evolution and preserve its stable position in the market.
Financial Statements
Financial statements are another tool that helps to evaluate a company’s work and compare it with others. Thus, according to its financial report, Apple generated a net income of $99,803 with sales of around $316,199 million (Apple Inc., 2023). It also reports $135,405 million of current assets, $304,083 million of total liabilities, and $50,672 shareholder equity (Apple Inc., 2023). This financial data evidences the corporation’s health and opportunities for further rise.
Starbucks’ financial statement outlines that it has 7,018.7 million in total assets, $36,677.1 million in total liabilities, and negative shareholder equity of $8,698.7 million (Starbucks Corporation, 2023). Its revenues comprise $32,250.3 million, with a net income of $3,284.4 million (Starbucks Corporation, 2023). The data from financial statements show that both companies remain strong players in their segments; however, Apple has better financial health because of the higher net income and sales. This means that the company might perform better in the future and produce better results.
Choice for Investment
Comparing financial statements and the approach to working with human capital and investors can help make informed investment decisions. Apple is a more reliable partner because of its more substantial position. Starbucks faces cash flow issues, which might worsen in the future because of the complexities with employees and pressure from other franchises. Apple remains stable despite the growing rivalry and some issues with its new devices. It generates revenues and net income higher than competitors (Apple Inc., 2023). Additionally, its earnings per share are around $6$, which might be considered an attractive option for a potential partner (Apple Inc., 2023).
Another important factor is the company’s innovativeness and overall culture, which are peculiar to the company. Apple remains an iconic brand with a substantial impact on popular culture. This means that the company’s stock will remain stable, and it will attract new shareholders. The set of these reasons impacts the choice of the option for possible cooperation and investing.
Conclusion
Altogether, both Apple and Starbucks are potent corporations that hold leading positions in their operating segments. They employ similar approaches to working with employees and investors as they try to establish transparent and supportive relations. However, comparing the brands’ financial statements, it is possible to conclude that the tech giant is more stable and has better opportunities for future development. Apple reports a stable increase in income levels and effective management of liabilities, while Starbucks suffers from a reduction in cash flow and some debt issues. For this reason, the first brand can be recommended as the option for investing to benefit from returns due to the gradual increase in the stock price.
References
Apple Inc. (2023). Form 10-K [PDF document]. Web.
Business conduct. (2022). Apple. Web.
Carter, T. (2023). Apple’s new iPhone 15 is an underwhelming ‘slap in the face,’ say disappointed fans. Business Insider. Web.
Culture and value. (n.d.). Starbucks. 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.
Nelson, W. (2017). Advances in business and management. Nova Science Publishers.
Sainato, M. (2021). ‘Coffee-making robots’: Starbucks staff face intense work and customer abuse. The Guardian. Web.
Starbucks Corporation. (2023). Form 10-K [PDF document]. Web.
Wahlen, J. M., Bradshaw, M. T., & Baginski, S. P. (2022). Financial reporting statement analysis, and valuation: A strategic perspective (10th ed.). Cengage.