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.