The Starbucks Company is a coffee most leading retailer across the world. Presumably, the company’s activities are comprised of a broad outlook of both national and international investment through mergers, acquisitions, franchises and start-ups. Such has to have an advantage in the foreign market which has a compound of both political and also market risks. A great activity in research helps the company to proclaim investment advantages in such foreign investment.
Due to the market risks and also opportunities that underlie the investment environment for the company, financial intermediaries both lenders and investment banks play a subordinate role in ensuring adequate business functionality for the company. Firstly, financial intermediaries to the Starbucks Company has been a foundation for raising investment capital through bank loans and purchase of investment assets for the company. Various banks have helped the company in its security trading where it buys and sells various capital oriented securities on behalf of the company.
These institutions have broadly offered strategic service on investment advisory to the company about its business divesture, acquisitions as well as mergers in the international portfolio. Through their bank-lender relationship, the Starbuck Company has been able to get financial services from the institutions that offers guidelines on foreign exchange investment, commodity autonomy, equity securities, fixed income and others. Broadly, a great scope allied to investment banking is provided by these institutions to the Starbucks Company.
(Prencipe, Davies, Hobboday, 2003) This includes assistance towards raising investment funds. Elsewhere, they help to provide advice on the capital market investment and also information on the international business functions such as the mergers and acquisitions. Also, the aspects of corporate finance for the company get an advice from these institutions. An important role of business strategy forms the benchmark of roles played by these institutions to the company.
Due to the complexity and competitive nature of the business environment, a strong package of business strategies form a benchmark of the supportive tools that provide operational advantages within the market. Elsewhere, risk management in the investment portfolio of the company is well catered for. This is an advice to ensure a greater scope of business functionality in the highly competitive market characterized by both market and political risks. Risk management by the institutions to the company helps to provide a framework in support of an adequate business operation environment.
Financial obligation of these institutions to the company remains an important operational facet. This is achieved through advice on the capital management of the company. The company is provided with the adequate investment layout which could even help to ensure proper and efficient use of its investment finances. (Prencipe, Davies, Hobboday, 2003) An important aspect of these institutions is the investment management. This helps to provide a professional knowledge on the management of the company equity assets such as treasury bonds, shares and bills. Read also how financial intermediaries engage in maturity transformation
Since these are important constituents of investment capital, their management remains important. The institutions involve in meeting various investment contracts needs and processes on behalf of the company. Since investment assets represent an important part of the company’s assets, adequate management should be ensured to provide an appropriate investment conception. The business strategy departments of the financial institutions help to provide business performance and operational strategies through performing research and business success surveys across the market.
Usually, through such strategy reviews, the company is provided with a supportive edge with which it can redirect its investment objectives towards a more adaptive protocol. (Prencipe, Davies, Hobboday, 2003) Therefore, the institutions do a lot in providing business success strategies to the company across its investment environment. They provide investment guidelines to the company that helps to provide investment advantages.
Prencipe, A, Davies, A& Hoboday, M (2003) The Business of Systems Integration. Oxford: Oxford University Press