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Starbucks Corporation

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Starbucks Corporation
Starbucks Corporation
By Oybek Salimov

Outline
Introduction…………………………………………………………………………………3
1. Background of the company…………………………………………………………..4 2. Starbucks’s expansion.………………………………………………………………..4 3. Risks associated with expansion………………………………………………………6 4. Capital structure of the company………………………………………...……………7
Conclusion…………………………………………………………………………………… 9
Reference ……………………………………………………………………………………10
Appendix …………………………………………………………………………………… 11

Introduction Globalization greatly influenced businesses to expand worldwide. Cross boarder communications let people all around the world to exchange demand on services and products. Besides, countries opened boards to foreign investments. New type of business International and/or Multinational Corporations emerged to serve in a worldwide scope. The following report is just an introduction to these complicated phenomena – Multinationals – by illustrating Starbucks Company.

Background of the company
One of the most best known brand and dominant retailer and roaster of whole coffee bean and ground coffee tea, and spices - Starbucks Company began its tremendous success since in 1971 soon after it had been established by three academics Jerry Baldwin, Zev Siegel, and Gordon Bowker in Seattle’s Pike Place Market, USA. The tree scholars chose the brand name in honor of Starbuck in Herman Melville’s Moby Dick and the logo – a twin-tailed siren from Greek mythology which encourages seas and evokes the feelings of the ancient coffee trades through the sea. (Starbucks’ home page)
World leader premier roaster and retailer of specialty coffee Starbucks Corporation was formed in1985. Stocks of the company are traded on trades on the NASDAQ Global Select Market (“NASDAQ”) under the symbol “SBUX.” (Starbucks Corporation Fiscal 2009 Annual Report)

Why Starbucks Company became Multinational Company and how it engaged its international business?
The theory of comparative advantage, the



References: Jeff Madura (2008) International Corporate Finance 9th edi. Thomson South-Westren. Pp 6- 8 John E.Gamble and Arthur A John Yunker (2006) “Starbucks CEO on Globalization: Don’t Go Changing”. Available at http://www.globalbydesign.com/blog/2006/12/03/starbucks-ceo-on-globalization-dont-go-changing/ K Lukasz (2011) An essay: “Starbuck’s International Operations.” Available at http://essaysforstudent.com/essay/Starbucks-International-Operations/94663.html Morningstar Corporate Credit Rating Committee (2010) Starbucks Corporation SBUX (NAS) Starbucks Corporation Fiscal 2009 Annual Report (2009) Available http://media.corporate-ir.net/media_files/irol/99/99518/SBUX_AR.pdf Appendix A

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