Dante Godinho's Blog

Original Globe and Mail article

(Photgraph: Stephen Chernin – Getty Images, The Guardian)

According to the above Globe and Mail article, Starbucks representatives announced today that, after much anticipation, they will be teaming up with local Indian steel-to-beverage conglomerate Tata to open up the first Starbucks outlet in India. Analysts say that Starbucks has been eyeing down the Indian market for years and, in my opinion, this announcement comes at a great time for the world’s largest coffee-chain. Why? Starbucks posted its third-quarter fiscal reports in July. Results show that out of the 116 new stores it opened worldwide between July 2011 and July 2012, 45 of them fall under the China/Asia Pacific segment and revenues in this particular area have increased an incredible 31% (Starbucks Corporation). It only seems logical that the next step is to expand to the rapidly emerging, untapped market that is India. When you factor in India’s already massive economy, its populations general rise in spending power, the lack of serious competition, and India’s well-known affinity for tea, the Indian market serves as a huge long-term opportunity for Starbucks.

The following linked articles involve a local Vancouver corporation’s (Baja Mining Corp.) alleged misrepresentation of increased costs for its Boleo mining project near Santa Rosalia, Mexico. In April of 2012, the company’s stock plummetted over 31% after news of a $246-million cost increase was announced. The announcement was made shortly after a contested proxy battle was narrowly won by the existing management/directors over a new slate of directors proposed by the company’s largest shareholder. The central ethical issue concerned is whether or not the management team deliberately withheld crucial negative information in an attempt to maintain their current position at the time.

Canadian Business article/July 27th, 2012

Financial Post article/April 25th, 2012