Starbucks Financial Analysis

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An Analysis of Starbucks as a Company and an International Business

Lauren Roby

A Senior Thesis submitted in partial fulfillment of the requirements for graduation in the Honors Program Liberty University Spring 2011

STARBUCKS AS AN INTERNATIONAL BUSINESS Acceptance of Senior Honors Thesis This Senior Honors Thesis is accepted in partial fulfillment of the requirements for graduation from the Honors Program of Liberty University.


______________________________ Edward M. Moore, Ph.D. Thesis Chair

______________________________ Melanie A. Hicks, D.B.A. Committee Member

______________________________ Harvey D. Hartman, Th.D. Committee Member
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The price has been rising, not simply due to the price of coffee itself, but because of the supply chain and the current economic situation around the world. Last year Starbucks had to raise prices globally, but especially in the United States and China, due to rising prices for coffee and other ingredients, but this year they are taking the hit from the rising coffee prices for the consumers (Baertlein, 2011). Although the prices of coffee had to be raised globally due to the high demand of the product and the cost of producing it, there is still a strong outlook for the coffee industry because of the large consumer base of the industry. The coffee industry is expected to continue growing through at least the year 2015 and even longer in other emerging markets around the world (Lingle, 2007). Even if the market in the United States begins to decline, there are other emerging markets for the specialty coffee industry. Due to Brazil’s rising economy, it is set to be the biggest coffee drinking country in the world with recent coffee consumer growth of 39% from 2000 to 2009 (Murphy, 2011). With Brazil’s upper and middle classes expanding, it has more money to spend on specialty coffee and other superfluous items. Brazil could be

STARBUCKS AS AN INTERNATIONAL BUSINESS the single most important economy to invest in for the coffee business, if its economy continues to grow. India is another major source of economic growth. Starbucks plans to open its first
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