Friday 1 June 2012

Starbucks


      Starbucks seems to be quite the success story, following in the steps of many other US companies that have gone global. With having over 19,000 stores open to date and only a small hiccup during the recession closing 600 stores. The closing of these stores was mostly linked to the cannibalization of sales from other Starbucks so it was decided to concentrate on overseas openings. This happens to many of the largest companies, Walmart and McDonald's also reached the point that almost every new store open was going to have a negative effect on nearby stores. Possibly in the long run it'll work out better to work on expansion than concentration. 

If     If your not someone who frequents Starbucks you may be shocked by the general cost of items. you may think how come anyone would pay such prices for coffee? Part of the answer would be taste preference but its also tied to the initiatives of Starbucks to be a responsible company. They are actively reducing energy use, recycling cups and being involved with community volunteering. Even with there stated 86% coffee coming from ethical sources, a quick Google search will reveal many people who state its all just a front for show.  Is it that the company actually cares or is that it has crunched the numbers and knows the payback from looking good will generate the maximum economic profit.


      . (2011). Starbucks. In Goals and Progress 2011. Retrieved June 1, 2012, from http://assets.starbucks.com/assets/c007fb25782442ac8283b154364c1016.pdf.

      Everyone. (2012). Wikipedia. In Starbucks. Retrieved June 1, 2012, from http://en.wikipedia.org/wiki/Starbucks.

      Allison, M. (July 2, 2008). Seattle Times. In Starbucks closing 5 percent of U.S. stores. Retrieved June 1, 2012, from http://seattletimes.nwsource.com/html/businesstechnology/2008028854_starbucks02.html.

No comments:

Post a Comment