Monday, May 16, 2011

Introduction

           Starbucks is called the third place for a reason, it is a place where you can take a break from

your home and work life. There are so many different components that make Starbucks your place in

between. Those being the friendly baristas, the warming environment, and most importantly the

coffee and beverages. The Starbucks Corporation has been very successful due to these factors and

 rapidly growing. In this blog you will learn about the effects Starbucks has on the economy

and internationally.




The Growth of Starbucks

    Within the past ten years Starbucks has been expanding globally with more than 17,000 stores worldwide throughout 55 different countries. The very successful company has had a great revenue increase of 9.90 percent.  The average growth range in the past five years is 10.09 percent, which means the corporation is doing great. Starbucks is bringing in a lot of money and it is really making a positive impact on the economy.

Sunday, May 15, 2011

Starbucks vs. Caribou

       One of Starbucks biggest competitors is Caribou Coffee, both are popular coffee brands and compete

against each other. Although Starbucks is makes more money, has more customers, and is worth more in

general Caribou still continues to compete. When both of the companies are competeing for the best prices,

best drinks, and best food more money is brought in helping the economy. Back in 2006 Caribou lost to

Starbucks going down one percent and Starbucks going up seven percent. Starbucks total was 21.5 percent

and Caribou had 17.5 percent. Starbucks could actually buy Caribou, but then there wouldn't be as much

coimpetition.
(The above image illustrates the amount of daily unique visitor to the Caribou Coffee Website [red] and
the Starbucks Website [blue] from May 2007 to April 2009.  Data was retrieved using Google Trends

Starbucks and the Fair Trade

Starbucks is called the third place for a reason, it is a place where you can take a break from your home and work life. There are so many different components that make Starbucks your place in between. Those being the friendly baristas, the warming environment, and most importantly the coffee and beverages. The Starbucks Corporation has been very successful due to these factors and rapidly growing. In this blog you will learn about the effects Starbucks has on the economy nationally and internationally.
                Within the past ten years Starbucks has been expanding globally with more than 17,000 stores worldwide throughout 55 different countries. The very successful company has had a great revenue increase of 9.90 percent.  The average growth range in the past five years is 10.09 percent, which means the corporation is doing great. Starbucks is bringing in a lot of money and it is really making a positive impact on the economy.

Trading Between Countries

Trading between countries positively affects the country doing the exporting. The country doing the exporting creates a positive impact on the country’s GDP, making their economy better and healthier. The healthier that country gets the lower the unemployment rate gets and the higher the wage rate gets. For this reason the country is bringing in more money increasing the revenue. An example of this for Starbucks is the importing from Latin America helps their economy become healthier by making more capacity for employment and increases the country’s wages bringing in more money.

Employment

Trading between countries positively affects the country doing the exporting. The country doing the exporting creates a positive impact on the country’s GDP, making their economy better and healthier. The healthier that country gets the lower the unemployment rate gets and the higher the wage rate gets. For this reason the country is bringing in more money increasing the revenue. An example of this for Starbucks is the importing from Latin America helps their economy become healthier by making more capacity for employment and increases the country’s wages bringing in more money.


Starbucks Shared Planet



Starbucks does a lot to help the planet, which also in ways can affect the economy. In Starbucks stores recycling is being done. When people recycle and reuse items it lowers the demand for raw products and therefore costs less for the people and for the company. By 2015 all Starbucks cups will be 100 percent reusable or recyclable. A lot of coffee sold by Starbucks is responsibly grown and purchased, meaning it is a fair trade item helping the poverty stricken countries exporting the beans. By 2015, all Starbucks coffee will be fair trade items. Several people throughout the world help with Starbucks community service helping the environment and community from building houses for the poor or cleaning a park. By 2015, Starbucks will total about one million hours of community service each year.