Starbucks: Delivering Customer Service


1. Expanding the number of stores in a foreign market, such as the expansion plan launched by Starbucks in
China (announced in 2018), is a major capital budgeting project. A project of this scale requires coordinated
planning across all functions of a business that you are studying in your Integrated Core classes. Choose and
discuss three items on the income statement that you think will be impacted by this new undertaking. Explain
why you chose those particular items, and how those items are impacted by the marketing, management, and
operations decisions of the company.
2. Choose and calculate three ratios for Starbucks for the last two years. Make sure to select ratios that you
think would be impacted by expanding in a new market, and explain your reasoning. Identify a competitor of
SBUX and contrast the ratios. Explain why you selected this competitor. Describe how the decisions made by
management, marketing, and operations functions of the company can impact, and hopefully improve, these
financial ratios.
3. Explain how the financial decisions regarding opening a new store are related to management, marketing, or
operations decisions that the company must make (or has made)?






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