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Top Five Risk that Starbucks Face as a Company (Essay Sample)


Acting as a brokerage firm we are assigned to write a proposal that addresses the five top risk that Starbucks face as a company. (I only will touch upon 2 out of the 5 risks which will be work-related injuries & customer-related injuries relevant to burns and slip and falls). Page 1 out of the 5 needs to be an Introduction page. Pages 2&3 should speak to the first risk. Talking about it and offering a preventable solution. Same for pages 4&5 as well. For slip and falls, I was thinking along the lines of water-absorbent anti-fatigue mats that allow 3x more of the ability to stand for employees and also absorb any liquid spills that may reduce traction for employees. For burns, I was thinking along the lines of a mat the reduces the temperature of all hot beverages through the cup prior to being given to the customer. Driven by technology that can generate a fan that blows cool air through the cup (for 120 seconds) to cool down the beverage.


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Student's Name
Top 5 Risk That Starbucks Face as a Company
In the previous few years, Starbucks has undergone remarkable development and expansion. Unfortunately, the corporation is vulnerable to various hazards that continue to jeopardize its ability to form a strong link with its clients in America and other regions of the world where it has developed. Some of these risks that Starbucks faces are work-related injuries like slip and fall, customer-related injuries like burns from coffee, global competition, commodity prices, and changing dynamics in the retail market. First and foremost, Starbucks is required by the US Securities and Exchange Commission to disclose risk factors in its annual report. Starbucks has an excellent mitigation strategy and reporting system if they tell their risks to the people. Since no one will trust that a single corporation is entirely safe, Starbucks must also disclose that they have analyzed their risks quarterly to demonstrate their openness. Furthermore, all risk elements provide information user based on the substance of the risks.
Work-related injuries like slip and falls
Countless local families rely on the factory and distribution hub for income. Their families depend on their earnings, which is why firms like Starbucks must create a safe working environment for their workers. Like any other employer, the Starbucks institution has prospective hazardous situations, including standing for long periods, which can cause lower-limb muscle soreness and increase the likelihood of long-term back problems and musculoskeletal problems, as well as workplace injuries like sprains, falls, slips, and lacerations.
Customer-related injuries like burns from coffee
When a porcelain platter is dangerously hot in your hands, restaurant staff will warn you. However, nobody ever informs you that the coffee may scorch and scar you at the drive-through. Coffee-to-go is well-known for being supplied steaming hot. Hot drinks can inflict second-and third-degree wounds. The cases of client burns hinge on proving that defendants have a responsibility to warn (dangerous temperature) or negligently provide the product (defective lids). Or, in the case of other items, whether there was a fundamental defect in the design or production or assembly carelessness.
Global competition
Competitors can be found in every facet of the cyclical restaurant and beverage industry. Starbucks is up against low-cost competitors like Dunkin' Donuts, McDonald's, convenience store chains, and hot and cold beverage competitors like Coca-Cola and Pepsi, which are always on the hunt for new growing brand trademarks. Starbucks has the largest market percentage, but its closest competitors have a sizable market share, placing Starbucks under a lot of pressure. Moreover, consumers shoulder the risk of switching to a competitor, resulting in intense competition. Because the industry is developed and development levels have been modest, competition among companies has risen slightly, as they all try to take a market position from established businesses like Starbucks.
Commodity prices
Starbucks recognizes that it is sensitive to commodity price fluctuations. The firm spends a significant revenue on coffee beans, sugar, milk, and other goods. The corporation realizes that these critical products' pricing, distribution, and availability directly impact its financial results and activities. The price of coffee is projected to impact Starbucks' future developments. It isn't vulnerable to commodity swings now. Starbucks employs derivative agreements as a safety net if prices rise dramatically. And there is evidence that these efforts are beneficial to the company's bottom line.
Changing dynamics
The American stock market has been on a wonderful ascension since the 2009 downturn, with the economic and stock market improving every year. This has boosted stocks in practically every area, and many investment analysts are hopeful about the prospects. Nonetheless, with the Federal Reserve's ambitions to raise rates, periods of compounding earnings, and higher market volatility risks, bear market prospects in 2018-2019 are increasing. Although Starbucks' beta of 0.63 reduces these risks, recession markets are known for having distinct catalysts, which can be extremely harmful when combined with other idiosyncratic risk factors.
Preventable Solution
Water-absorbent anti-fatigue mats allow 3x more of the ability to stand for employees and absorb any liquid spills that may reduce employee traction. When contemplating the usage of anti-fatigue mats, there are several other aspects to consider, including footwear. Footwear is a component that, if chosen correctly, can help to lessen the negative consequences of prolonged standing. There's no denying that choosing the proper footwear is crucial for employees who spend time on their feet. While giving relaxation to the wearer, shoes should provide enough arch and heel stability and padding. Anti-fatigue mats or anti-slip carpets on the floor alone will not eradicate sore feet, but when paired with correct work arrangements and appropriate footwear, they should help to enhance workplace conditions.
However, the cost and shelf life of anti-fatigue/slip mats should be considered. You must evaluate the mat's quality and functional ability, as well as your environment when choosing the ideal mat for your specific needs. Anti-fatigue mats come in a wide range of prices, but as you can guess, performance and longevity are closely linked. It's critical to think about your requirements and environment and how a mat would perform in such circumstances. Make sure you get a mat that can handle the demands of your workplace while also meeting the safety regulations. The chart below helps determine which mats fit the required environment and the expected shelf life.
A mat that reduces the temperature of all hot beverages through the cup before being given to the customer. Driven by technology that can generate a fan that blows cool air through the cup (for 120 seconds) to cool down the beverage. We must consider the presentation of any hot liquid to the individual very attentively. It must be provided safely while protecting the individual's dignity and keeping the experience pleasant. A balance must be achieved between the necessity to thoroughly steep the drink, which necessitates a temperature of around 100°C for tea, and the requirement to preserve skin, which can be injured at 43°C. The drink must be tasty, and in most circumstances, 60°C will suffice.
Starbucks can maintain a competitive advantage by distinguishing its offers with premium commodities, culminating in a small amount of competition. As a response, popular items or mergers, such as the Coca-Cola Costa merger, may negatively influence Starbucks' sales. When it relates to competitiveness, alliances are another issue to consider. Starbucks has many Barnes & Noble, Best Buy, and Target stores. It's also critical to keep these links strong and prevent opponents from forming alliances through these channels. From an operational perspective, preserving its image through interactions with vendors like Walmart, Target, and other retailers, particularly online stores, is also critical.
Starbucks purchases the majority of its coffee from vendors on a fixed-price basis. Because the cost and quantity are predetermined, it will not be affected by short

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