Starbucks Risk management items for this supplier global expansion Essay

Starbucks Risk management items for this supplier global expansion project and risk breakdown structure, which outlines the orga - Essay Example This writing analyses some of the risks, and risk management strategies employed by Starbuck due to adoption of global supply by Starbuck. Starbucks have always considered the nature of demand of their coffee thus using this as the base of selecting the best suppliers as a way of minimizing global supply risk. As much it may be hard to engage international supply because of many risks associated with the transaction, Starbuck went ahead and realized that risk and return are allied and therefore the more risky the business is, the higher the returns (Katrinli, Gunay & Biresselioglu, 2011). Starbuck is committed in her strong values of ensuring equal treatment of individuals both with respect and high degree of dignity as well as conservation of the environment and this applies to their supply chain. Supplier Code of conduct created by the company was driven by the need for their suppliers to embrace Starbuck’s values. This helps in reducing a lot of risks associated with global supply. Unless a global supplier adopts and strictly follows the Starbuck’s Coffee Sourcing Guidelines, they may not qualify as the preferred suppliers for the company (Berman, Christner & Bell, 2010). Starbuck normally communicates to her suppliers and letting them know about their Supplier Code of Conduct. a supplier must always show commitment to the welfare, economic sustainability, measuring, reporting and verify compliance to the Supplier code of conduct. Also, suppliers must adhere to the local laws and international labor and human rights standard as well as good businesses strategies that enhance environmental protection. The company may carry out an independent audit or just random audit to verify supplier’s compliance (Trent & Llewellyn, 2010). Relationship between Starbuck and her global suppliers of green coffee is so much established in such a manner that the risk of non-delivery on purchases is minimal. As a way of ensuring continuous production of high quality green coffee and leadership sustainability Starbucks empowers her international coffee producers. Furthermore, Starbuck purchases coffee either through the fixed price or price to be fixed purchase commitments dependent on the market conditions (Katrinli, Gunay & Biresselioglu, 2011). Global supply chain is exposed to risks compared to local supply chains because they are longer and complex. In that regard, there is probability of experiencing more uncertainties and challenges thus making information technology very relevant and useful for Starbuck. Information regarding risks such as legal setbacks, custom fees, taxes, political conflicts and cultural differences may be gotten from the newspapers, the internet and other media or through whistleblowing. Thorough coordination and understanding of suppliers’ information is very useful. Such kind of information sources may reflect political turmoil and perhaps currency depreciation and other activities showing that the company is not doing very well (Trent & Llewellyn, 2010). Financial statements of a particular supplier may also be used by Starbucks to assess the level of risk associated with dealing with the company in question. Also, Starbuck may hear from the public opinion or media various serious allegations such as poor environmental dealings and unfriendly labor laws practiced by their suppliers. This is enough information to reflect the activities and the supplier’s attributes. Furthermore, St

Strategic Management at British Airways Case Study

Strategic Management at British Airways - Case Study Example The present study on British Airways is to identify, evaluate and assess the planning, development and implementation process of its strategy management and to analyze the performance of the strategic decisions made as part of the strategic management on the organization because it is believed that British Airways has been able to achieve the present position since its establishment in 1919 only due to its strategic management decisions (Cole, G.A., 2003:191). This section deals with various literatures available on the present research in order to study the process of planning, development and implementation in British Airways and also to identify the role of various stakeholders in the decision making process. Thompson, Martin and Thompson (2009:p2) stated that strategy is about how organizations cope with the world which is dynamic and emergent with technologies, design and competitors getting revamped at regular intervals providing the impetus t reformulate the existing strategy and restructure the organizations in order to survive in the competitive market. It is further clarified that strategies are means to ends; whereas the process of strategic management involves clarifying the desired ends, mapping out a route for achieving them (development), putting those strategies into practice (implementation), changing what the organization is doing tactically in the face of competition and unexpected issues that arise and finally evaluating progress and performance. Mintzberg (cited in Idenburg, 1993) stated that there are at least ten schools of strategy development with two fundamental dimensions i.e. goal orientation (what) and process orientation (how). The process of strategy developme nt includes rational planning, planning as guided learning process, logical in incrementalism and emergent strategy. Idenburg (1993) stated that four alternative view of the process of strategy development must be reflected in business research and education. Thompson and Martin (2005, p8) mention that strategic management is a complex and fascinating subject with straightforward underlying principles but no right answers. It is further stated that companies succeed if their strategies are appropriate for the circumstances they face and are feasible in respect of their resources, skills and capabilities and the same companies fail if the fail to meet the expectations of its stakeholders or produce undesirables outcomes. According to Thompson and Martin (2005), strategies are means to end as opined various other researchers and management specialists and managers are strategy makers to some extent in the companies. This statement articulates that mangers are the key persons involved in the strategic management process of planning who then take decisions regarding the development and implementation in the organization. The aviation industry has undergone major transition phase wherein the main stakeholders were involved and have been granted a greater degree of autonomy. Airlines were the first to realize the importance of strategies and strategic decision making in a competitive environment (Delfmann, 2005; p3). British Airways (BA) is major international airline with multinational operations which came into existence with merger of two