Assignment:
Star Bucks Company
1. Identify the firm's primary industry by name, its Standard Industrial Classification (SIC) code, and its North American Industry Classification System (NAICS) code.
2. How would you describe the market structure of the industry in which your firm operates? To arrive at answer you should discuss (1) the number of competitors, (2) product similarity, (3) barriers to entry, and (4) the importance of non-price competition. (Be sure to define the geographic nature of the market. Is the market best described as local, national, or international?) How much pricing power does the firm have? Are economies of scale a barrier to entry in this industry?
3. Calculate the company's sales and profit growth rates for (1) the past year and (2) the past three years. Do the same for the firm's rivals (firms with the same industry classification). Have the firm's growth rates matched its rivals? Summarize the company's performance relative to the rivals?