Ass1_MITTARPORN 1051 _ManageRisk1 1

MANAGE RISK

BSBRSK – 501

Assessment 1

TRAINER: RIYADH ZAMAN

CHAICHAN MUENKUL

Student ID: 1359

JARE KLINPEN

Student ID: 1470

MITTARPORN TONGKLUN

Student ID: 1051

BSBRSK501 Manage Risk

Assessment 1

Introduction

Starbucks is a coffeehouse or coffee shop. A Coffeehouse is a house which sells coffee. They usually sell other beverages and snacks as well. There are different types of coffee houses, local or global. Starbucks is a coffee shop which offers the richest and finest coffee beans that are bought from overseas suppliers in coffee rich countries. The man named Howard Schultz, was the man responsible for making Starbucks the Coffee shop chain that it is now. He was the one that saw the potential in premium, overseas coffee.

The following are some goals that the Starbucks company is trying to achieve.

The scope of the strategic goal is similar to the summary and final objective. Defining the scope of a strategic goal is to define the final objective that the strategic goal is expected to achieve.

PESTLE Analysis

Political

Australia is trying to develop their country and start new relationships with countries such as US, Europe and other Asian countries. The country is now on a stable political government and Asian countries will benefit from relationships. Australia has to accept agreements of Starbucks to use their coffee and purchase their coffee.

Economic

Local exchange rates in Australia will definitely affect the business of Starbucks because they fluctuate. Australia is the second biggest exporter of Coffee beans. Australia is starting to open to the world to WTO to invest in the country. Prices must adapt to the Australian market so they will change their price according to the number of sales. The average salaries of Australians in each area are different. The overall population is low due to the farms and villages. The buying power of the customers is quite weak but can still affect the Starbucks strategy and prices and of course the level of taxation is a very big factor on the prices and sales of Starbucks coffee.

Cultural......

Cultural

Australia used to be a very agricultural country. Everyone worked in farms and plantations. After opening to the world, Australia became more developed and businesses began to increase. The family patterns in Australia began to change and this can either increased the sales of businesses. Old Thai people like to drink the traditional coffee. Now younger Australian people are buying branded coffees from commercial companies such as McDonalds and Gloria Jeans. Some families like to have breakfast together however some are too busy and buy coffee outside the house. It is then up to the preferences of the Australian people to decide if they are going to buy Starbucks or any other coffeehouse coffee. Education levels are important in the coffee house industry this is because people usually start to drink coffee when they go to university. Lifestyles, work patterns and values will change too.

Technological

The beverages of Starbucks in Australia won’t really change, this is because everything is made from natural products. However the machines that make the product, will always increase in speed and efficiency. As a the number 1 coffee house in the world it can get very busy so being fast and efficient is an important factor.

The coffee beans themselves can be produced in a better and more efficient way in their farms and coffee plants. The developments in agriculture can increase the number of beans produced reducing the prices of the coffee beans. Therefore, Starbucks can choose a cheaper price to sell their products. Starbucks now includes free Wi-Fi which allow for business or recreational activities.

Legal

Environmental

Operational process

Quality Starbucks offers the highest quality products. This means that they purchase them from suppliers which are well known ledged and experienced in the process of producing coffee beans.

makes sure that the balance between quality and Price is nice . Not only that, but Starbucks Coffee is able to supply the best ingredients to their customers for a lower price. and packaged in the exact same way and quickly through a series of well-designed manufacturing processes.

All raw materials are then sent to a roasting, manufacturing, and packaging plant

Starbucks’ major products are their premium coffee and other famous beverages such as ice chocolate for teens. They have so many different varieties of coffee to choose from, latte, cappuccino, mocha and other types. They use the best quality coffee beans to make these coffees and that is why they have such a successful business and packaged in the exact same way and quickly through a series of well-designed manufacturing processes.

Risk Areas

There are many risks to consider when creating a new business in an established market. The risk evaluation process I would use would be the PEST analysis which identifies most market risks. Political risks, Economic Risks, Social Risks and Technological risks are all identified and discussed in the PEST…