The Financing and management of risk Essay Example | Topics and Well Written Essays - 3000 words

The Financing and management of risk - Essay ExampleThe come with has major seam activities in countries the likes of Canada, Japan, China, UK, Mexico, Taiwan, Philippines, India, etc. Apart from drinking chocolate, Starbucks also sells ice cream, cold and fervid beverages, snacks, beer, etc. The products offered by Starbucks atomic number 18 specific to the location of the store and argon seasonal and customized to the target mart segment. Starbucks employs around 149000 employees in its coffee bean stores and operations all over the world. Through its massive chain of coffee houses all over the world, Starbucks generated revenue of $13.29 billion in 2012 with a net income of $1.36 billion for the company. The strong mental process of Starbucks coffee agate line sector across the world is highly dependent on its business sticker which has been sound established by the company. The business model of Starbucks lays its success story for attracting customers into its stores for a cup of coffee mean solar day after day all over the world. The coffee selling stores of Starbucks present a status symbolic representation for the customers of coffee. Although the coffee sell in the stores of Starbucks are priced highly, it the ambience that the stores of Starbucks offer to the customers that makes a difference. The coffee selling stores are supported by friendly and helpful staffs who address the problems, queries and grievances of customers who walk in to take coffee. The customers taking coffee are largely esteemd in the stores which in turn help the stores to hold their customers (Starbucks Corporation, 2013, p.1). The over business model of Starbucks which is applicable to its national as well as international presence is described below. Starbucks permit a transnational model of business in which it has a universal product that is customized to fit the requirements of the local anaesthetic market. Starbucks follows a business model whereby the coffe e and other products like beverages, beer, ice cream, snacks, etc. are sold through the coffee house chains in the international markets. Starbucks products under brand names are also sold in the grocery shops and retail market chains across the world. The coffee business of Starbucks has to be responsive to the markets and fits the taste and culture of the local people who walks in to take coffee. The strong business model of Starbucks has helped them to build international relationships and achieve their targets. Starbucks original business model was based on selling of coffee by providing enriched customer experience in an upbeat environment inside the coffee stores. In order to cope up with the competitive market, Starbucks have now adopted advertising strategies by media like newspapers, television, offering cheaper prices, etc (Kazmi, 2010, p.21). As depicted above in the diagram for business model of Starbucks, the business model takes into consideration a range of factors t hat includes product strategy, customer economic, marketing of coffee, cost of capital of the business, economic sale, assessing value of the business, production costs, revenue mechanism, growth of assets and competitive barriers, etc. The product strategy is framed by looking at at the emerging demands of the market. Apart from offering a single product of coffee, Starbucks took into consideration