How Starbucks has Managed the Recession Analytical Essay by Nicky

An analysis of how Starbucks managed the financial collapse at the end of 2008 and the subsequent recession.
# 150857 | 2,807 words | 20 sources | APA | 2012 | US
Published on Apr 29, 2012 in Business (Companies) , Business (Marketing)

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The paper outlines Starbucks' immediate and longer-term response to the credit crisis and highlights its difficult task of being an affordable luxury yet also a premium brand. The paper considers the opinions of financial analysts and consumers on Starbucks' strategies of affordability and luxury and reaches the conclusion that this strategy must be continued and refined.

Part I: Firm Analysis
Part II: Different Directions

From the Paper:

"Even firms not directly involved in the real estate, insurance, and credit markets were impacted by the 2008 credit crisis and subsequent market meltdown. The hospitality industry was especially concerned, as data indicated that more and more people were eating at home: an industry survey revealed that 82% of representatives from the food, beverage, and hospitality industry said that they believed the 2008 crisis would have a "direct impact" in terms of people's immediate buying habits (Survey, 2008, They also expressed more obvious concerns with liquidity of daily working capital and their ability to improve their enterprise's technology through the use of new capital.
"Starbucks, a Standard and Poor's (S&P) Index 500 company, sells a good and a service often viewed as a luxury item, namely that of purveying and making of premium coffee, breakfast pastry and some savory light foods. Although people are addicted to coffee, no one needs to buy coffee at a coffee shop. Moreover, one of the first things people were advised to give up in the wake of the credit crisis was their morning latte. Popular financial guru Suze Orman even created a buzzword: "She's particularly into what is commonly termed the 'latte factor': cutting down on unnecessary expenses and investing them are real keys to moving forward with a strong personal finance plan" (Hamm 2007). Latte calculators abounded on the Internet, demonstrating in real financial terms how much people could save if they gave up pricey coffee."

Sample of Sources Used:

  • Adamy, Jane & Nick Wingfield. (2009, March 17). Starbucks to present recession strategy.The Wall Street Journal. Retrieved October 11, 2009 at
  • Andrews, Edmund L. (2008, December 8). U.S. recession began last December, economists say. The New York Times. Retrieved October 11, 2009 at
  • Clout, Laura. (2008, July 19). Starbucks offers free refills. The Daily Telegraph.Retrieved October 11, 2009 at
  • Economic definition of a luxury good. (2009). Econ Guru. Retrieved October 11, 2009 at
  • Dunkin' Donuts rolling back prices by 15% in New York City. (2008, May 5). DoobyBrain.Retrieved October 11, 2009 at

Cite this Analytical Essay:

APA Format

How Starbucks has Managed the Recession (2012, April 29) Retrieved June 06, 2023, from

MLA Format

"How Starbucks has Managed the Recession" 29 April 2012. Web. 06 June. 2023. <>