Please answer the questions below. Use either the Bloomberg terminals located at the
Feliciano School of Business or other reputable sources such as the SEC website,
finance.yahoo.com, Compustat, morningstar.com or Wall Street Journal etc. for the financial
data you use in your answers. You need to provide the references regarding the financial
data you use to support your answers at the end of the finance portion of the term paper.
Questions:
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 and balance sheet (a total of six items) that you
think this new undertaking will effect. Explain why you chose those particular items,
and how the marketing, management and operations decisions of the company will
affect them.
2. Choose and calculate three ratios for Starbucks for the last two years. Make sure to
select ratios that you think that expanding into a new market will effect, and explain
your reasoning. Identify a competitor of Starbucks and contrast these three ratios for
the two companies. 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, the components of firm operations that these
financial ratios measure.
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)?