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Abstract
The Israel-Palestine conflict has had a significant impact on multinational companies like Starbucks, with boycotts being conducted as a form of protest against alleged support for Israel by Starbucks. The boycott has greatly affected the company's finances, as well as its reputation and overall business expansion. This study aims to assess the financial condition of Starbucks following the boycott phenomenon. The method used in this research is literature review. The collected data shows the extent of Starbucks' financial decline, including not only global sales but also the drop in Starbucks' stock price. Additionally, the study provides information on the reasons behind the boycott and Starbucks' clarifications. Based on the data obtained, Starbucks experienced the longest and steepest stock decline since its IPO, with an 11-day consecutive drop from $107.21 to $93.8906, amounting to approximately $12 billion. This decline reflects investor concerns about the company's sales trends. Starbucks also faced a sales drop of $862.3 million in Q1 2024. Furthermore, the boycott's effects caused Starbucks to delay its expansion and only realize new store openings in Q1 2024. This is because Starbucks focused more on the welfare of its employees and improving sales performance. To mitigate the impact of the boycott, Starbucks can diversify its services, invest in digital technology, and maintain transparent communication to avoid misunderstandings. By taking appropriate and responsive actions, Starbucks can restore sales and consumer trust.
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This work is licensed under a Creative Commons Attribution 4.0 International License.
How to Cite
Sarjono, H., Khairunnisa, A. S., Sandy, C. A. N., Leono, M., Melisa, & Soeratin, B. S. (2024). The Effect of The Israeli and Palestinian War Boycott on Starbucks Financ-es. Jurnal Ekonomi Dan Statistik Indonesia, 4(1), 13-22. https://doi.org/10.11594/jesi.04.01.02
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Puspaningtyas, L. (2023, November 11). The reason why Starbucks is called pro-Israel and is being boycotted. https://ekonomi.republika.co.id/berita/s3wp6e502/alasan-starbucks-disebut-proisrael-dan-ikut-diboikot
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Santika, E. F. (2023, November 24). Starbucks profits touch US$1.21 m as of October 2023, will they fall due to the boycott? Dataword. https://databoks.katadata.co.id/datapublish/2023/11/24/laba-starbucks-sentuh-us121-m-per-oktober-2023-bakal-turun-imbas-boikot
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Wati, F. F., Tan, R., Ayuni, M. (2022). Digital Transformation of Starbucks Internation-al Company to Increase Company Com-petitiveness. UNTAG Semarang Scientific Journal,11(2), 51-61. Retrieved from https://jurnal2.untagsmg.ac.id/index.php/sa/article/download/759/709
Afrillana, A., Al-Khaidar, M. A. (2023). Opinion Leaders and Boycott Intentions: Factors Influencing Consumer Behaviour in Sup-port of Israel Boycott. Journal of Digital Marketing and Halal Industry, 5(2), 243-264. Retrieved from https://doi.org/10.21580/jdmhi.2023.5.2.20166
Agung Jatmiko, A. F. S. (2023). History of the Israeli-Palestinian Conflict that Has Oc-curred Until Now. Retrieved from https://katadata.co.id/berita/internasional/652562f3cc97a/sejarah-konflik-israel-palestina-yang-terjadi-hingga-kini
Alexander, K. (2024). Consumers Protest the Gaza War by Boycotting US Goods • Stim-son Center. Retrieved from https://www.stimson.org/2024/consumers-protest-the-gaza-war-by-boycotting-us-goods/
Anisah, S. (2015). Regulation and Enforcement of Boycott Laws in United States Antitrust Law.
Retrieved from https://media.neliti.com/media/publications/115181-ID-pengaturan-dan-penegakan-hukum-pemboikot.pdf
Aprilia, Z. (1970, January 1). RI Starbucks Manager's Profit Drops 5.18%, Effect of Supporting Israel? CNBC Indone-sia. https://www.cnbcindonesia.com/market/20231122124928-17-491059/laba-pengelola-starbucks-ri-jeblok-518-efek-dukung-israel
Bondarenko, P., Petruzzello, M. (2024). Starbucks. Retrieved from https://www.britannica.com/money/Starbucks
Darongke, F. J. (2024, April 11). The Impact of the Israeli Pro Product Boycott: A Case Study of Starbucks Softselling https://yoursay.suara.com/kolom/2024/04/11/160000/dampak-boikot-produk-pro-israel-studi-kasus-softselling-starbucks
Dennen, J. M. G. V. D. (2005). On War: Concept, Definitions, Research data - A Short Lit-erature Review and Bibliography. Retrieved from https://core.ac.uk/download/pdf/12857871.pdf
Desak Ari G.W.; Masruri M.; Pardomuan R.S. (2023). Determinan Produk Domestik Bruto di Provinsi Bali Tahun 2014-2019, Jurnal Ekonomi dan Statistik Indonesia, 3(1), May. 15 – 26. http://dx.doi.org/10.11594/jesi.03.01.02
Dewi, R. S. (2024). The Influence of the Pales-tinian-Israeli Conflict on the World Econ-omy. Journal of Economics Business Eth-ics and Science of History, 2(3), 11-19. Retrieved from https://jurnalhamfara.ac.id/index.php/jb/article/view/511/310
Diani, E. R. (2020). Operational Process in the Finance Division of PT. Intercontinental Transport Express (Doctoral dissertation, Indonesian College of Economics, Jakar-ta). Retrieved from http://repository.stei.ac.id/2656/3/BAB%20II.pdf
GoodStats. (2024). Countries with the Most Starbucks Stores in the World. https://data.goodstats.id/statistic/negera-dengan-gerai-starbucks-terbanyak-di-dunia-InooS
Grahanusa Mediatama. (2024b, May 17). Boy-cott Effect, Starbucks Can Only Realize the Addition of 13 Stores in the First Quarter of 2024. kontan.co.id. https://industri.kontan.co.id/news/efek-boikot-starbucks-baru-bisa-realisasikan-penam bahan-13-gerai-pada-kuartal-i-2024
Haniyah, A. Z., Dewi, A. M. (2024). Starbucks' Image After the Pro-Israel Boycott Case. Journal of Social Humanities and Educa-tion, 3(1), 76-81. Retrieved from https://doi.org/10.55606/concept.v3i1
Haryanto, A. (2021). What is Happening in Palestine Today & the Causes of the Israe-li Conflict?. Retrieved from https://tirto.id/apa-yang-terjadi-di-palestina-saat-ini-penyebab-konflik-israel-gfLw
Hayes, A. (2024). What Does Finance Mean? Its History, Types, and Importance Ex-plained. Retrieved from https://www.investopedia.com/terms/f/finance.asp
Indriawati, T. (2023). The Origins of the Palestinian Nation. Retrieved from https://www.kompas.com/stori/read/2023/10/16/160000379/asal-usul-bangsa-palestina
Indriawati, T. (2023). History and Origins of the Israelites Page all. Retrieved from https://www.kompas.com/stori/read/2023/10/16/190000479/sejarah-dan-asal-usul-bangsa-israel?page=all
Investing.com. (n.d.). Starbucks Corp (SBUX) Income Statement. https://id.investing.com/equities/starbucks-corp-income-statement
Jaelani, A., Nursyifa, Y. (2024). Islamic Con-sumer Behavior Against the Boycott of Is-raeli Products. Karimah Tauhid, 3(2), 2312-2327. Retrieved from https://ojs.unida.ac.id/karimahtauhid/article/view/12162/4707
Khalidi, R.I., Bickerton, I.J. (2024). Palestine. Retrieved from https://www.britannica.com/place/Palestine
Ledysia, S. (2023, November 19). Starbucks Denies Pro Israel: We Support Peace - Lifestyle. Bloomberg Technoz. https://www.bloombergtechnoz.com/detail-news/21239/starbucks-bantah-pro-israel-kami-dukung-perdamaian
Lustick, I. S., Shils, N. (2022). The Palestinians, Israel, and BDS Strategies and Struggles in Wars of Position. Israel Studies Re-view, 37(3), 28-57. Retrieved from https://doi.org/10.3167/isr.2022.370303
Mahwati, T., Nanda, A, R. (2022). Analysis of the Palestenian and Israeli Conflict in the Perspective of International Humanitari-an Law. International Law Discourse in Southeast Asia,1(1), 23-42. Retrieved from https://doi.org/10.15294/ildisea.v1i1.56873
Malaysiakini. (2024, May 23) BFood lost RM33.16 million in the third quarter due to the boycott of Starbucks. https://www.malaysiakini.com/news/706483
Masdakaty, Y. (2015). A Peek at the Brief His-tory of Starbucks. Retrieved from https://ottencoffee.co.id/majalah/mengintip-sejarah-singkat-starbucks
Maulina, U. (2023, December 5). Starbucks shares fall for 11 consecutive days, boy-cott action starting to have animpact? https://www.idxchannel.com/market-news/saham-starbucks-turun-11-hari-beruntun-aksi-boikot-mulai-berdampak
Mokobombang, M. A. R., Niu, F. A. L., Hasan, J. (2023). Boycott Behavior from an Islamic Perspective and Its Implementation in the Contemporary Era. Maqrizi: Journal of Economics and Islamic Economics, 3(1), 88-95. Retrieved from https://ejournal.iain-mana-do.ac.id/index.php/maqrizi/article/view/769/495
News. (2023, December 5). Sales are increas-ingly sluggish, Starbucks loses market value of IDR 185 T-market. Page 2. https://www.bloombergtechnoz.com/detail-news/22787/penjualan-makin-lesu-starbucks-kehilangan-nilai-pasar-rp185-t/2
News. (2023, November 2). Crowded Boycott of Pro-Israel Products, McD-Starbucks Shares Shake -Market. Bloom-berg Technoz. https://www.bloombergtechnoz.com/detail-news/19736/ramai-boikot-produk-pro-israel-saham-mcd-starbucks-sempat-goyah
News. (2024, January 31). Starbucks Revenues Rise Slightly in Early 2024 Amid Boycott Calls-Market. Page 2. https://www.bloombergtechnoz.com/detail-news/28340/pendapatan-starbucks-naik-tipis-awal-2024-di-tengah-seruan-boikot/2
News. (2024b, May 1). Starbucks Sales and Shares Continue to Slump, Worst Since 2020 - Market. Page 2. https://www.bloombergtechnoz.com/detail-news/36672/penjualan-dan-saham-starbucks-terus-merosot-terparah-sejak-2020/2
Nugraha, J. A. (2023). Boycott is refusing to cooperate, here is an explanation and ex-amples. Retrieved from https://www.merdeka.com/sumut/boikot-adalah-menolak-bekerja-sama-berikut-penjelasan-dan-contohnya-45925-mvk.html
Pratiwi, F. I., Syarafi, M. A. R., Nauvarian, D. (2022). Israeli-Palestinian Conflict Be-yond Resolution: A Critical Assessment. Jurnal Ilmu Sosial dan Ilmu Politik, 26(2), 168-182. Retrieved from https://doi.org/10.22146/jsp.66935
Puspaningtyas, L. (2023, November 11). The reason why Starbucks is called pro-Israel and is being boycotted. https://ekonomi.republika.co.id/berita/s3wp6e502/alasan-starbucks-disebut-proisrael-dan-ikut-diboikot
Research guides: Research methods: Litera-ture reviews. (n.d.). https://guides-auraria-edu.translate.goog/researchmethods/literaturere-views?_x_tr_sl=en&_x_tr_tl=id&_x_tr_hl=id&_x_tr_pto=rq#:~:text=Definition,%2C%20dissertation%2C%20or%20grant%20proposal.
Santika, E. F. (2023, November 24). Starbucks profits touch US$1.21 m as of October 2023, will they fall due to the boycott? Dataword. https://databoks.katadata.co.id/datapublish/2023/11/24/laba-starbucks-sentuh-us121-m-per-oktober-2023-bakal-turun-imbas-boikot
Sicherman, H., Ochsenwald, W. L. (2024). Israel. Retrieved from https://www.britannica.com/place/Israel
Tysara, L. (2021, July 26). What is Analysis? Understand the Types and How to Do It. liputan6.com. https://www.liputan6.com/hot/read/4615728/apa-ituanalisis-pahami-jenis-dan-cara-melakukannya?page=6
Wati, F. F., Tan, R., Ayuni, M. (2022). Digital Transformation of Starbucks Internation-al Company to Increase Company Com-petitiveness. UNTAG Semarang Scientific Journal,11(2), 51-61. Retrieved from https://jurnal2.untagsmg.ac.id/index.php/sa/article/download/759/709