Final answer:
Starbucks makes money through the sale of beverages, food, and products in its retail stores and licensed locations, as well as product sales in grocery stores. The company also generates revenue from branding and licensing fees, rewards programs, and mobile applications. Shareholders realize a return on their investment through stock appreciation and dividends.
Step-by-step explanation:
The nature of Starbucks' business, as a coffeehouse chain, is to make money through the sale of coffee, tea, beverages, food, and related products.
Starbucks primarily generates revenue from its company-operated retail stores. Customers can also purchase Starbucks-brand coffee and tea products in grocery stores, and the company makes money through licensing its brand to other foodservice operators.
Besides direct sales, additional revenue streams include rewards programs, mobile applications, and Starbucks card reloads. The company also benefits financially from its global presence in the form of international store licensing and franchise fees.
Financial capital is vital for the company's growth and relates to profits by enabling investment in new stores, technology, and product development.
Starbucks can raise capital through the sale of stock, and the rate of return for shareholders comes from stock price appreciation and dividends, among other ways.
When it comes to decision-making in a company owned by a large number of shareholders, such as Starbucks, the management team makes the daily operational decisions, while shareholders vote on major decisions typically during shareholder meetings or by proxy.