Explain how the weakness turned into a new strength would impact the disciplines of Marketing, Finance, Management and Operations.

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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)?


Listed below you will find some WEAKNESSES and THREATS for Starbucks, read them carefully then proceed to answer the questions that follow:

Starbuck Weakness:

1) Customers not willing to wait in long lines at stores during morning rush hour and lunch hour.

2) Coffee dominant business with a poor reputation for creativity around new product and companion product development.

3) Too dependent on word of mouth to create brand awareness.

Starbucks Threats:

1) Better value offered by local coffee house shops and national companies like Dunkin Donuts and McDonalds McCafe.

2) Downturn in the economy can decrease customer traffic and spending.


1). Assume you are the Vice President of Marketing for Starbucks. Select 1 Weakness and 1 Threat from the list provided above, and explain how you would recommend taking that selected weakness and turning it into a strength and the selected threat and turning it into an opportunity.

Part 2: Provide 2 explanations as follows:

2a) Explain how the weakness turned into a new strength would impact the disciplines of Marketing, Finance, Management and Operations.

2b) Explain how the threat turned into a new opportunity would impact the disciplines of Marketing, Finance, Management and Operations.