Starbucks is a famous company known for its quality coffee processing. Just like any other company star bucks experiences several challenges in its processing coffee bean to a coffee ready for making a beverage. Weather is one of the main challenges as the coffee is greatly affected by weather in the farm and also during drying period. Shipping and logistics is another major challenge that this company face as the people or the company that is supposed to aid the shipping may not be up to the challenge ("Case Application," n.d).
Some companies that are responsible in shipping the coffee sometimes may delay making the company to realize some losses. The potential buyers of this coffee are from different countries, and incase of political instability in any of the buyer countries, the company is affected a great deal through decreased sales. The major challenge among all that this company faces is about balancing its quality coffee with the price. The price of this coffee is expensive and only few who affords to purchase, as the majority claim that it's a luxury. The challenge of the price to its customers and the economic downturn periods are the major challenges.
The management challenges like the shipment, weather and the political instability can be solved through advancement of the technology by the company. In matters concerning the shipment and logistics, the company can establish itself through reliable means to ensure effectiveness of the shipment ("Case Application," n.d). Natural challenges like weather may be hard for the company to control and also the political instability of other buyer countries. About the pricing of the coffee depending with its quality it's a challenge to this company, but there is no option as the company may end up making losses. It's better for the company to produce minimal products for the few customers who can afford it, and enjoy the profits. Reducing the price does not necessarily guarantee the company of the increased customers.
Starbucks Company has several environmental activities that help in processing the bean to coffee for instance, bean conservation (Hirt 203). This activity is managed by this company through the help of Conservation International that helps in controlling the biodiversity as well as increasing the farmers' opportunities. Through this company, star buck has managed to produce coffee throughout the year, although farmers harvest twice annually.
|Federal Express||Philosophy of Business|