Starbucks Case

By cutting down the loss-making stores would increase benefit in short term and re-invest in better options. Observationally there are some problems with huge expanding business strategies of Starbucks in international scale which should be re-thought. For example, many war declarations of the US troops to some other countries make the situation worse and worse for business. By retarding the expansion, Starbucks may concentrate to improve the quality of stores which are invested and not massive-stores. also rethink its entry strategy in international markets and focus on pricing. Last but not least, there are also needs of management efficiencies and innovative improvement.Starbucks International Operation.....

A company faces diverse set of risks in international markets. What were the risks faced by Starbucks in its international operations? Explain how Starbucks can reduce risks in its international business.

To mitigate some political risk Starbucks should concentrate on countries that are more stable and it have prospect problems and also try to promote image and peacefulness of its brand in long term and distance from being a American entity. The company can regard on environmental issues that is concerned by people; this can be profitable in long term; regarding operational and strategic risks, Starbucks can reduce risks in its international business by using the free flow of cash to rebuild the operations or at least improve its condition.Thanks to this, a better vision of operation cost controls can be taken for future strategies. The improvements of operation functionality might help reduce the costs, make the Starbucks' products more accessible and have more competitive confidences. On the other hand, there might be changes in supply chain when intake materials can be chosen from local markets if the price is more competitive than importing from the US.