Essay Starbucks Risk Management

1248 Words May 8th, 2013 5 Pages
INTRODUCTION

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 to enter the Asia Pacific Rim market first (Asia Pacific Rim markets consist of Japan, Philippines, Indonesia, Thailand, Taiwan, Malaysia, Singapore, China, South Korea, North Korea, New Zealand, Australia, Vietnam, Cambodia, Papua New Guinea).
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When a consumer goes to a Starbucks, they expect to place their order and receive it in as a short a time as possible. In other countries, this type of speed could seem rude to a customer if they don’t place such emphasis on speed, and would rather have the experience last longer. Starbucks has recently been experiencing a problem meeting these sociocultural differences and are currently working on creating a strategy to counteract them. n European countries, many consumers have been turned-off by the Starbucks custom of having their employees wear name tags and refer to orders by customer name (Alderman, 2012). Consumers their also have different palates than many Americans and they prefer their coffee to taste differently. Therefore, Starbucks has been tweaking its drinks and coffee blends to better reflect the cultures preferences (Alderman, 2012). Another major issue has been the atmosphere of the Starbucks store itself. An American consumer of Starbucks has a general idea of what to expect upon entering a Starbucks store, as this has become part of their branding approach. However, other countries once again have different tastes then Americans and they prefer their stores to reflect them. To help fix this, Starbucks has started to individualize stores based on the region in which they’re located. As Quenifer Lee, Starbucks Director of Store Design for Asia-Pacific, puts it: “We have chosen to gradually enhance selected stores to celebrate and reflect the local

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