The Risk Management Plan For Starbucks - 880 Words

Businesses face a Variety of risks every day. These risks usually have a negative impact on performance and financial condition. Without an effective risk management plan, organizations would not grow and thrive. In this paper, we developed a risk management plan to help us identify, evaluate and treat all potential risks faced by an organization. The risk management process will focus on the frequency and severity of potential losses, with a view to risk control or risk finance. Introduction: Starbucks, founded in 1985, is the world’s largest coffeehouse chain, with more than 19,000 coffee shops in 62 countries. Starbucks product mix includes specialty coffee, hot and cold beverages, fresh food items, and other items such as mugs and coffee grinders. Starbucks-brand coffee, refreshers, and ice cream are also offered at grocery stores. Mission: â€Å"to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.† At Starbucks, it is all about quality. Starbucks strives to maintain a positive brand image within the company itself and also within the communities they serve. The company s passion is expressed throughout its products, engaging baristas, and modern store designs, all directed towards enhancing the â€Å"Starbucks experience† for its customers. With these high goals and standards as well as the desire to deliver the best service within all of its locations, the company is exposed to various types of risks. The frequent potential lossesShow MoreRelatedCase Study : Qso 600 Milestone Three Essay1375 Words   |  6 Pagesinherent risk when a company attempts to introduce a new product to the market, and most of the risk is associated with the initial risk mitigation strategy as well as management strategies for how manage the new product’s launch. Research shows that roughly 75% of consumer packaged goods and retail products fail to earn at least $7.5 million during their first year, and much of these failures can be attributed to poor strategy (Schneider Hall, 2011). Starbucks is not immune to the same risks thatRead MoreControl Mechanisms972 Words   |  4 PagesStarbucks: Control Mechanisms Starbucks: Control Mechanisms Starbucks is the leading coffee company in the world. They have locations around the world, many of which are independently owned. In order for the corporation to keep accurate records on the stores, they have implemented many types of controls. Four types of controls used in the Corporation are Bureaucratic Control, Budgetary Control, Financial Control, and Concurrent Control. Bureaucratic Control Read MoreEssay on Starbucks Risk Management1233 Words   |  5 PagesINTRODUCTION 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 toRead MoreSwot Analysis : The Matrix1371 Words   |  6 Pagesexternal opportunities and threats facing a company and matches them up to the internal strengths and weaknesses, to give the company four possible strategic alternatives (Hunger, Wheelen, 2011, p. 77). As discussed previously, a major concern for Starbucks is their need for growth in foreign markets, and their education of the foreign markets, needs wants and expectations. According to the TOWS matrix, an alternative Strength Opportunity (SO) Strategy is to utilize the company’s ethical values andRead MoreStarbuckss Strategic Initiatives At Starbucks1243 Words   |  5 Pagespresident and chief executive officer of Starbucks, Howard Schultz, launched a transformation plan, which included focusing on the customer while still achieving value for the shareholders. In January 2008, Starbucks released a statement regarding the strategic initiatives planned to accomplish just that (Starbucks announces strategic initiatives to increase shareholder value; chairman Howard Shultz returns as CEO, 2008). In the announcement Schultz shared that his plan would include refocusing on the customerRead MoreStarbucks Risk Management Essay1110 Words   |  5 PagesStarbucks Risk Management FIN 415 March 25, 2013 Starbucks Risk Management In this documentation Team B will discuss different risk management benefits and techniques, and how companies use these benefits and techniques to further their financial goals and prevent future losses. There are two distinct risk management benefits categories: hard and soft. Hard risk management benefits are contingencies, decisions, control, and statistics. Hard benefits support the strategic business planningRead MoreCritical Thinking Application B International Hr1422 Words   |  6 PagesCritical Thinking Application 2- B International HR: 1. So what are the critical HR issues with regard to Starbucks’ international goals? Critical HR issues include: One of the critical HR issue that may have a direct influence on Starbucks when operating outside the United States is related to compliance with the employment and labor law in the host country: management should understand the labor law in the host countries, staff entitlements and benefits, staff promotions and compensations, recruitmentsRead MoreStarbucks Company Evaluation1607 Words   |  7 PagesBA 530 Employee Retention and Company Success Starbucks believes that the compensation paid to executive officers should be closely aligned with the performance of the company on both a short-term and a long-term basis, and that such compensation will assist the company in attracting and retaining key executives, which is critical to long-term success.    Thus, compensation for executive officers consists of three components: annual base salary, annual incentive bonus, and long-term incentiveRead MoreStrategic and Financial Planning1336 Words   |  5 Pagesthe goals of an organization or business, financial planning is described as the approach towards the management of an organizations finances in methods that contribute to the accomplishment of the business needs. Links between Strategic and Financial Planning: Strategic and financial planning processes involve the definition of objectives, collection and analysis of data, execution of the plan, and evaluation of results. As previously, mentioned, strategic and financial planning have two majorRead MoreStrategic Management : Mission And Objectives1176 Words   |  5 Pagesremain diligent in their strategic management. Review of Mission and Objectives According to all three summary analysis tools that have been utilized, the EFAs, IFAS, and the SFAS, these tools indicate that Starbucks understand what their mission, vision and goals are. They also understand that they need to continually assess where their current strategic plan is placing them in their market and what weaknesses and threats continuously remain for them. Starbucks understands that with corporate