With the number of Starbucks sprouting up everywhere, and the competition from McDonalds, Dunkin’ Donuts and others, the supply and demand curve has shifted inward for Starbucks. In the past there were not as many comparable substitutes for Starbucks coffee, so the demand continued to stay ahead of supply for specialty brewed coffee. Today, Starbucks is trying a number of incentives to boost customer demand. One of those is the $1.00 standard size coffee, competing with McDonalds. Lowering the prices on their coffee, and promoting additional product lines, they hope to achieve an equilibrium state or at least move the demand curve in an upward state on the curve. That being said, Starbucks will still have to remain innovative to avoid stiff competition and inward slippage on the supply and demand curve. This may include shifting investments into markets outside the coffee business, such as the movie production business they are currently looking into. As defined earlier in this analysis, the current daily business conducted by Starbucks is impacted by many different government regulations. Those regulations along with other acts have to be observed by all employees of Starbucks, which is why the company created the Starbucks Business Conduct and Corporate Compliance Program. “In partnership with local management, the program serves to detect and deter wrongdoing, promote ethical business practices and assist partners in making good business decisions” (Starbucks, 2004). By taking advantage of globalization, Starbucks is able to outsource the roasting of coffee beans to international companies at lower production costs. “Outsourcing and off shoring are two corporate practices that create competition among workers for the benefit of the transnational corporations” (p.6). Currently, Starbucks has comitted
itself to environmental and social charities around the globe. According to its web site, Starbucks has prided itself on being at the...