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.

http://www.starbucks.com/about-us/company-information

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.

http://ycharts.com/companies/SBUX/revenue_growth

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

http://seekingalpha.com/article/31290-is-it-time-for-starbucks-to-buy-caribou-coffee

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.

http://www.transfairusa.org/what-is-fair-trade/impact

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.

http://www.investopedia.com/ask/answers/199.asp

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.

http://wiki.answers.com/Q/How_does_unemployment_affect_your_economy

http://urbanhabitat.org/node/869

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.

http://www.starbucks.com/blog/shanghai-community-helps-transform-gumei/1012

Starbucks Foundation

 

The Starbucks Foundation was started in 1997, organized to help and support our communities by nurturing young leaders, supporting coffee, tea, and cocoa communities, accessing clean water, fostering education in China, and rebuilding the Gulf Coast. Nurturing young leaders gives the youth an opportunity to support efforts and make a difference to make the world a better place for everyone. Communities in which coffee, tea, and cocoa are from are being supported by Starbucks for social development projects such as access to education, agricultural training, increasing health, and nutrition. By increasing agricultural training in these communities helps produce more of the countries commodities other countries cannot access, so not only do those communities export they also increase the employment rate. The brand water of Ethos Water helps countries in need access clean water, for every bottle sold in the United States five cents is donated to the Ethos Water Fund. They have raised up to $6 million for these countries. The China Education Project is a $5 million US commitment to help support educational programs in China. Starbucks Foundation has started the C.O.A.S.T Fund to help with assisting and rebuilding the Gulf Coast that was destroyed by hurricanes Katrina and Rita.

http://www.starbucks.com/responsibility/community/starbucks-foundation

(Starbucks) RED

Starbucks Corporation purchases from many coffee growing countries in Africa and with the help from the Product (RED), money is donated to the communities in Arica that are suffering from HIV/Aids. Each time a (Starbucks) RED tumbler is purchased one dollar is sent to the Global Fund to help those with HIV/AIDS in Africa, also when a (Starbucks) RED gift card is used 40 cents is contributed to the fund each time the card is used. There have been more than 18 million daily doses of medicine generated due to these remarkable products being purchased by the loyal Starbucks customers. People with HIV/Aids positive need two pills a day to treat the disease, which cost 40 cents per day. The RED line of products is not only just a line of coffee mugs; it’s also an amazing way to help saves lives of those suffering in Africa.

http://www.starbucks.com/responsibility/community/starbucks-red

Conclusion

          Overall Starbucks does create a positive impact on the national and international economies. Many factors make this possible from fair trade coffees, to employees, and expansion. Expanding Starbucks throughout the world really makes a difference. Within the next three years 40 percent of Starbucks is going to be out of the United States compared to only the 29 percent today. Starbucks is a lot more vulnerable in other countries so the expansion is definitely a good thing for those out of North America. Most of Starbucks profits come from the US making up 85 percent of the $9.4 billion in revenue. Starbucks creates jobs, helps communities in poverty, helps the environment, and helps the economy.

                                                 http://www.wapt.com/r/16778963/detail.html