Question

Please discuss how the supply chain of Starbucks are exposed to Risk. You can get a lot of this information from the 10K and the web sites of this company. Discuss political risk, currency risk and climate change risk or anything else you can think of.

Answer 1

There are more than 27,000 stores running in more than 64 different countries. The company claim to be leader in the delivery of the coffee at global front. Even one cup of Starbucks coffee has inputs from 19 different countries from over 9,000 suppliers. The suppliers are combination of farmers, logistics providers and retailers. In the global footprint, company have many risk and problem in management of supply chain and profitability. The suppliers are from different origin , culture, education and geographical origin.

The company is dealing in different country and currencies , so highly exposed to currency risk.

The climate do have impact on sales on company , even working in different political condition and situation is area of concern for startegy maker for profitability in business.

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