Thursday, October 05, 2006

ATTENTION: Liquid Crack Lovers!



Large Corporations are a big part of our economy; Starbucks is planning on becoming and even bigger part. Starbucks is planning on 40,000 new stores worldwide, expanding to China, Egypt, and Brazil by 2007. As of now in the United States there is 1 Starbucks to every 11,000 people in Washington. Despite investors concerns, Starbucks has been doing well in the stock market; shares rose $2.73, or 7.6 percent, to close at $38.69 on Thursday. It was the stock’s highest closing price since May. Obviously the shareholders are happy with these numbers, and excited about the rise in income that Starbucks will be seeing in the future. But, can something ever be too big or too great? Could adding 40,000 more stores have a negative affect on the company, such as over saturation throughout the United States? Could there be too much supply and not enough demand?

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