Globaledge Assignment. Global Business

GlobalEDGE Assignment #2: Chapter 10

GlobalEDGE Assignment #2: Chapter 10

MGT – 538-1

8/3/2013

MGT – 538-1

8/3/2013

Roberto Santamaria

Risk Assessment of the food and beverage industry. Executive summary of the Starbucks Corporation using Fortune Magazine’s nine criteria.

Roberto Santamaria

Risk Assessment of the food and beverage industry. Executive summary of the Starbucks Corporation using Fortune Magazine’s nine criteria.

GlobalEDGE Question 1

When it comes to assessing food and beverage global markets, one must pay attention to the local and global economic trends and crises. As a company, we do have a few things going in our favor. The fragmentation seen within our industry allows us to enter a market without fear of being “muscled out” by a single large entity in the market (ie. Coca-Cola, Kraft). Also, due to the fragmented nature of the industry, we can capitalize on markets that have the makings of a market void due to loss of business or mergers. However, before we decide to enter a global market, we must first assess which market and/or specific country to enter, and the monetary risk inherent with the local economies.

First off, on a global scale, the food and beverage industry has been greatly affected by the 2008 economic crisis (GlobalEDGE Food). The volatility in prices and exchange rates for sugar, coffee and other crops makes it harder for our company to expand into foreign markets. The European market has seen an increase in consumer debt. As a result, food consumption has been shifting to the more basic and entry-level products that companies offer (GlobalEDGE Food). We can expect a market similar to the market we have been witnessing here in the United States.

In China, there has been a positive shift in consumer trends. The market has slowly shifted to a preference for imported goods as the idea of safe and best business practices have been...