Definition of six indicators for Starbucks service store
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I need around 1000 word. Define each of the six indicator for starbucks (interest rate, housing starts, auto sales, foreign exchange rate, producer price index, and oil and fuel prices). and describe its current status, also present a separate graph for each indicator, illustrating each historic trend.
Analyze the relationship amont inflation,unemployment and business cycle on the industry.
Assess the effect on inflation and unemployment on the industry. explain whether current government economic policies are more consitent with keynesian or classical economic.
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Solution Summary
The expert examines the definition of six indicators for Starbucks service store. The effect on inflation and unemployment on the industry is assessed.
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Running Head: STARBUCKS
Economic Indicators for Starbucks
Introduction
Starbucks Corporation is the largest coffeehouse chain in the world headquartered in Seattle, US. It provides varieties of products to its customers worldwide as it has its operation in more than 44 countries around the globe. The main competitive advantage of Starbucks is its quality products. It offers its quality products to the customers through supermarkets and specialty sales groups. The main objective of the organization is to establish the company as a most recognized and reputable brand in the world (Starbucks Coffee, 2010). It is a service store, which also get affected from the different economic indicators such as interest rate, foreign exchange rate, oil and fuel rate etc.
Economic Indicators
Interest rate: Interest rate is an important economic indicator, which affects the business operation of China. The interest rate in US is declining significantly, which is causing an increase in the business operation of Starbucks due to increase in the resource availability at lower cost. The current interest rate is 5%, which is far less in comparison of the year 2007 in which it was 6.46% (Heyl, 2008). It also provides the facility to establish more stores of for Starbucks. But this affect is due to stock market volatile and housing market collapse, which may affect the financial position of Starbucks in service industry.
(Source: Historical Interest Rate for 30 Year Fixed Loans, 2009).
Housing Starts: Housing Starts can be explained as the number of houses that is owned privately. The Housing Starts are used by analysts in order to create estimations for other consumer based economic indicators. It helps to explain the consumer spending behavior, which is beneficial for the service stores. The decline in the Housing Starts is causing a decrease in economy recovery in US, which is affecting the business operation of Starbucks. The current Housing Starts in US were reported as 590,000 units (US Inflation Edges Up, Housing Starts Fall ...
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