Daily we are getting a reaction from the US business industry because of the ongoing trade war between the US and China. Yesterday while giving an interview to CNBC, Starbucks CEO Kevin Johnson gave his opinion on this continuing trade war and how this trade war is impacting Starbucks business. Kevin said, “We have not seen any significant impact on our business due to the trade war, we’re also not immune.”
This statement given by Kevin to the CNBC says lots of things about the ongoing condition of the company. Starbucks has been operating in China from last few years, and recently they tied up with China’s biggest e-commerce company Alibaba to expand its operation in that region, and till date, this decision has benefited company a lot. Starbucks sees China as the second biggest market for their business after the USA, and after investing that much significant amount of monies Starbucks seems to be concerned about this trade war, which Trump has started.
While giving this interview on CNBC Kevin further said that “we operate in more than 78 countries and due to that we are now familiar with these type of geopolitical situations”. Even if the Starbucks business has not been affected because of the trade war, it seems like the company is still optimistic about its decision to choose China as their second biggest market. When a company invests that much amount of money to scale up their business globally, geopolitical situations like this makes them hard to operate. Starbucks CEO Kevin Johnson said “There is still more to do” when asked a question regarding company’s latest financial reports.
Even though Kevin has been optimistic throughout this whole interview, it seems like many big companies are still in fear due to a trade war between US and China and now only time will tell who’s going to take the initiative to end this deadly business war.