Regulatory bodies affect financial decision making
Starbucks operates in over 50 countries worldwide. With this Starbucks must look at all types of regulatory bodies for financial reasons, making sure their guidelines are met both at home and abroad. Starbucks has gone out of its way to rely on and help out their farmers abroad. From Tokyo to Seattle the Starbucks brand is one that is symbolic of a successful business. The success of Starbucks has been built on international partnerships as the business aspect of bringing in coffee beans from businesses that share the same values of Starbucks. There has to be a marriage of the companies in order to do business. Financially this affects Starbucks in that if a company they do business with does something wrong or acts unethically it falls back on the Starbucks brand.
Howard Schultz summed it up nicely when he said, “We remain highly respectful of the culture and traditions of the countries in which we do business. We recognize that our success is not an entitlement, and we must continue to earn the trust and respect of customers every day.”
Regulatory agencies have a huge impact financially on Starbucks as the company grows and expands it must meet all the regulations and acts within that area. Regulatory agencies are at multiple levels such as state, federal, and international levels. When dealing with international levels Starbucks must also deal with the local levels there as well. The best way to do this is making sure to employ people who deal with these regulations on a daily basis to advise and work for Starbucks to not only ensure the highest quality product but also the highest quality public relations image. Making sure the highest quality product is key as it will keep the consumers happy taste wise. Without good flavors, the brand would start to lose business. Making sure the public relations image is high by meeting all regulations and acts in foreign countries will help keep the...
Please join StudyMode to read the full document