10) it is the case that Starbucks was founded in the 1970’s in Seattle with just a single store which operated as an independent coffee retailer, wholesaler, and vendor. The company kept a focus on regular American style coffee. It was not until the 1982 that Howard Schultz joined the company and introduced specialty coffees (Cappuccino, mocha etc) after a trip to Milan. With this business model in place the company began a massive expansion across the United States and internationally however it is important to not that the company kept this success without resorting to franchising their business model. A Starbucks location is still centrally run from corporate.
In regards to how the company is affected by Federal tax policy presents a tricky distinction for the company. Firstly it is the case that the company is truly global, with operations located across the entire globe and supplied by a vertically integrated supply and distribution network, it becomes difficult to place specifically how each federal tax policy affects the company in each country that it operates. In the American context it is the case that the company is most definitely affected by Federal tax policy. According to Warnka (2009) it is the case that the tax measure 67 which affect businesses with operations in Oregon. Measure 67 places an additional tax rate amounting to 1/10 of 1% with a cap of $100,000. What this could translate to is a disproportionately higher tax increase on small businesses but a larger corporation such as Starbucks sees a negligible increase in their tax rate which ultimately would be capped at the $100,000 mark, whereas their smaller, independent competitors are likely to see this affect their bottom line. What this translates to is a clear policy that ultimately has a negative effect on the bottom line of Starbucks however will ultimately negatively affect their smaller competitors more significantly. In regards to upcoming plans for the company, according to a 2008