Business Economic Influences on the Term Paper

Open, View, and/or
Download this Document

Total Length: 859 words ( 3 double-spaced pages)

Total Sources: 1+

Page 1 of 3



Starbucks has the potential to benefit from the improving economic conditions. The firm appeals to the mass market, selling a non-essential product. Sales of non-essential products suffer most during economic downturns. Furthermore, when there is a recovery, firms that sell items of a relativity low cost that are still perceived as 'luxuries' may benefit from even small increases in the level of disposable income (Kotler and Keller, 2011). A key indicator of the economy in the U.S. is the unemployment level; this has dropped to 7.5% in 2013 with a recent Wall Street Journal survey of economists indicating they expect a further 180,000 jobs will be created each month for the next 12 months in the U.S. (Casselman and Izzo, 2013). As increase employment emerges wages are also likely to increase; raising the level of disposable income where the increases are above the rate of inflation. There is a general agreement that there is a recovery taking place, it may be slow, but it is also believed that another recession is unlikely (Casselman and Izzo, 2013).

Stuck Writing Your "Business Economic Influences on The" Term Paper?

View All Our Example Business Economic Influences on the Term Paper

Have A Custom Example Essay Written



Increased jobs will increase the aggregate level of disposable income in an economy, and increase aggregate demands; Starbucks may benefit from that demand and have more consumers who may have the utility to purchase the coffee, and associated products. Increases sales of core items will also increase the potential to sell complementary items. Where there is consumer confidence in the economy, this will also encourage spending, as consumer will not feel the need to remain cautious (Baye, 2007).

Starbucks face uncertainty, as there is no crystal ball which will tell the future. However, there are many positive influences emerging, short-term lower coffee costs and the long-term potential for increased demand may see some of the benefits offset by increases in other costs. However, there is a greater potential for gains compared to losses; so Starbucks is likely to benefit from the changing economic influences, seeing both sales and profits levels increase......

Show More ⇣

     Open the full completed essay and source list


OR

     Order a one-of-a-kind custom essay on this topic


sample essay writing service

Cite This Resource:

Latest APA Format (6th edition)

Copy Reference
"Business Economic Influences On The" (2013, June 05) Retrieved May 17, 2024, from
https://www.aceyourpaper.com/essays/business-economic-influences-91522

Latest MLA Format (8th edition)

Copy Reference
"Business Economic Influences On The" 05 June 2013. Web.17 May. 2024. <
https://www.aceyourpaper.com/essays/business-economic-influences-91522>

Latest Chicago Format (16th edition)

Copy Reference
"Business Economic Influences On The", 05 June 2013, Accessed.17 May. 2024,
https://www.aceyourpaper.com/essays/business-economic-influences-91522
   

Open, View, and/or
Download this Document
order custom essay example