Part 1. Respond to the following in a minimum of 175 words:
· Select a business you are familiar with or by conducting a search of the internet. Identify its business structure. Explain the advantages and disadvantages of that designation for the business. Provide examples.
Part 2. Reply to the following post in a minimum of 100 words:
“Costco a fortune 500 company worth about 153 billion dollars. The place where you can get toilet paper for the month along with a giant bottle of mayo for the next year. Costco was first established in Seattle Washington. This makes Costco a domestic corporation in the state of Washington. Costco also operates in every other state in the U.S., so it is also a foreign corporation.
Costco has Chairman and president and CEO. Costco also is in the stock market so shareholders who buy stock buy a piece of ownership of Costco.
The advantages of being a domestic and foreign corporation is the profit, the ability to get your product across the nation. You are establishing a giant brand. A product that the consumer can trust and lean on when going to Costco.
The disadvantages are being too BIG for your own good. If you are nationwide your liable to many things, from your product to the accidents and mistakes from your employees. What if the stock-market crashes and your company is part of that crash? What if you are very profitable in California but losing money in New Mexico. You have to have one heck of an accountant.” – Gabriel F
Part 3. Respond to the following discussion in a minimum of 100 words.
“The business I am most familiar with is Starbucks, Starbucks Corporation is an American coffee company and coffeehouse chain, Starbucks was founded in Seattle, Washington, in 1971. As of early 2019, the company operates over 30,000 locations worldwide. Starbucks coffee’s corporate structure involves geographic divisions, which are based on physical location of operations. The company has three regional divisions for the global market America, China and Asia-Pacific, Europe, Middle East, and Africa. Advantages: Starbucks retains their brand competence by controlling all the process of production by themselves which starts from growing the coffee plant, selecting the coffee nut, roasting the nut, grinding the nut until mixing with ingredients and become a cup of coffee and have selling coffee by their own shops. Disadvantages: Starbucks produce very few ads, so they have their restaurant to promote their brand. Starbucks is faced with the high production costs such as locations, taxes, employees’ wages etc. because they do their own. For example, to promote the Starbucks brand, Starbucks utilizes the mobile platform when it launched the “Tweet-a-Coffee” promotion in October 2013.” -Sheila H