Question

In: Finance

Please write a discussion regarding either Starbucks or Boeing that focuses on some of the risks...

Please write a discussion regarding either Starbucks or Boeing that focuses on some of the risks that either company faces in the arena of international business.

Solutions

Expert Solution

Starbucks is a global brand which offers various kind of coffee based products and is a coffee chain. It has presence in USA, Europe, China and India among other places. The primary risk that the company faces in its international business is:

  • Starbucks has to put a stringent set of quality measures in place to ensure that the products world wide are as per Starbucks standard and the ambience in the coffee chain is standardised and as desired standards
  • To make world class coffee, its supply chain should be robust enough to source coffee beans of highest quality across its stores which is spread in different parts of the world. So the risk is to ensure that supply chain don’t get disrupted and continue to provide great coffee products.
  • It should be able to modulate the offerings as per the requirements of the local market. So Starbucks faces the risks of not being flexible enough to respond to changes in the local taste.
  • Also the risks of complying with local and international laws as well as currency fluctuation is always there.

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