Starbucks Risk Management

Topics: Coffee, Asia-Pacific, Risk Pages: 4 (1237 words) Published: April 27, 2013

Starbuck Corp is well known as one of the world’s largest coffee chains. From original Seattle stores, Starbucks has grown to a multi-national company with more than 17,000 stores across the globe in less than 40 years. Starbucks going deep in Asian markets because of the emerging markets in Asia. Asian consumers’ disposable wages is growing as their countries’ economies nurture, as well as for the most part of all, people over there are open to Western lifestyles. Starbucks decided to enter the Asia Pacific Rim market first (Asia Pacific Rim markets consist of Japan, Philippines, Indonesia, Thailand, Taiwan, Malaysia, Singapore, China, South Korea, North Korea, New Zealand, Australia, Vietnam, Cambodia, Papua New Guinea). Growing consumerism in the Asia Pacific countries and eagerness among the younger generation to imitate Western lifestyles made these countries attractive markets for Starbucks However, the company is likely to encounter difficulties in Europe due to fierce competition. (Tarantino, 2007) Starbucks' competitive advantage is built on product, service, and brand attributes, many of which have been shown through market research to be important to Starbucks' customers. 

 Chinese consumers accept purchases of luxury goods as a means to pursuing quality lifestyles, and no longer consider it to be decadent or indicative of a lack of a nationalistic orientation.

A risk to the Starbucks is any event or action that could have a negative impact on the company. This includes events that could lead to: uncertainty and risk rise from legal, logistics, cultural and currencies stand point.

* Cultural risk: The nature of a society attacking their culture of drinking tea-they positioned stores in high-traffic and high visibility locations. Moreover, Starbucks very deliberately began to bridge the gap between the tea drinking culture and the coffee drinking culture by introducing beverages in the Chinese stores that included local...
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