Month: September 2010

http://www.financialpost.com/news/Starbucks+raise+prices+some+drinks/3567821/story.html#ixzz10NzdAjoZ

My analysis on the article, “Starbucks to raise prices on some drinks,” suggests that Starbucks Corp wants to maintain their contribution margin by increasing the price due to the inflation of coffee beans. Furthermore, coffee beans are variable costs that will affect the contribution margin. In order for Starbucks to continue to make a profit, they must increase the price of their drinks or else they will be generating less income. This move from Starbucks Corp is risky but necessary because customers will dislike the price increase; therefore, the demand for drinks will decrease. Yet, if the company maintains the same prices the inflation of coffee beans will also decrease the contribution margin. As a result, Starbucks Corp is relying on their brand and customer loyalty, hoping that customers will continue to purchase their drinks from Starbucks. Since all companies yearn to make a profit and not just to achieve the break-even price, Starbucks Corp believes that increasing the selling price will be more profitable rather than increasing the volume sold when decreasing the price. In conclusion, my analysis determines that Starbucks Corp made the most lucrative and sensible decision to maintain profit and to compete with other coffee companies.

http://www.theglobeandmail.com/report-on-business/economy/currencies/japan-intervenes-in-currency-market-to-weaken-yen/article1707860/#article

My analysis on the article, “Japan intervenes in currency market to weaken yen,” conveys the message that the term “weakening” may not have such a negative impression. By weakening the yen, Japan remains competitive against other countries, generating more clients for companies such as Honda Motor Co. and Panasonic Corp. In my opinion, this rational decision from the finance minister of Japan was definitely contributed by the need of survival to benefit their economy, allowing them to remain as one of the top manufacturing countries. Ironically, therefore by weakening the yen, Japan has strengthened their economy, allowing them to continue to compete against other countries. If the Japanese did not lower the yen, their economy would have slowly deteriorated, causing them to forfeit lucrative business deals that would have boosted their market. Furthermore, other countries such as South Korea and Taiwan would have benefited from the soaring Japanese yen because countries like Canada or the U.S. would shift their business to cheaper means from South Korea and Taiwan. Judging from the SWOT, Japan’s decision to weaken the yen has strengthened their competitiveness, opened new opportunities with other plentiful countries, and lessened the threat from eager competitors.

http://www.theglobeandmail.com/globe-investor/women-sue-goldman-claim-discrimination/article1708372/

My analysis on the article, “Women Sue Goldman, Claim Discrimination,” suggests that women still have desires to obtain what men have. Trying to fight for equality for women in the workforce, three women – who worked for Goldman Sachs Group Inc. – decided to sue the company, claiming that they did not receive the same amount of income or promotion opportunities. In my opinion, this is not a necessity that women need to survive but a passionate desire to be equal to men. Furthermore, the women claim that Goldman Sachs “intentionally implemented” company-wide policies to promote and support men rather than women. In my perspective, this is not the first time women tried to break down the wall of discrimination in the workplace, demonstrating their indefatigable efforts to succeed. Similar to the article “Detroit is still stuck in the 1950s,” women – even after countless years – still face discrimination in companies. After many years, GM and businesses still follow the past norms: inefficient fuel cells and male priority. Even though women have achieved their goals in the past, they continue to fight for more rights, suggesting that businesses still follow an “outdated corporate culture” that do not support women as they do for men.

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