The major sources of risks facing Starbucks and the potential solutions

Global expansion is one of the major sources of risks to Starbucks. Because of the operation with the local partners, the company makes less money. Although it is easier to start the company in the foreign market but unfortunately it decreased the company’s share of revenue. To solve this, Starbucks needs to slow down their expansion and established their company in the home country before going further. Furthermore, the wave of baby boomers in the 1990s make the company faces the unfriendly reception from its future consumers which are the twenty to thirty something of the Generation X. since the older generation not giving a warm welcome to them, they need to attracts new customers such as the young generation. Other risk is the decreasing of morale and employee burnout among its store managers and baristas. The jobs at Starbucks is consider as just another fast-food gigs although the paid is better than the same level workers everywhere. Disappointment over odd hours and low pay is upsetting the quality of the normally sterling service and even the coffee itself. Starbucks have other big risks which are, the employee hate working there. Although with all the benefits but the pay doesn’t match with the workload it needs .Increasing the wages and benefits equal to the workloads will give solution to this problem. The company strategy of keeping the competitors out could backfire them because not only the neighborhood and local business hated the tactics but the lack of choices will make the customers grow annoyed. Having a healthy competition will do the tricks. Doing special promotions or having unique products will definitely attracts customers to come.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

Top