Discussion question Small business management

29 Sep No Comments


Starbucks Company has been in existence since 1971 and it has enjoyed great success with operations in more than 50 countries but even with that like any other business there are some challenges and opportunities that face this great coffee giant.

Some of the threats that face Starbucks include; the emphasis on healthy living that is quickly gaining ground where people have associated caffeine taking healthy problems such as hypertension (Lopez-Garcia et al, 2008). The effects of climate change have also been greatly felt whereby the cost of coffee production has gone up and this subsequently leads to higher price for raw materials and finally the pressure from both government agencies and the trade unions to increase the minimum wage and this results in reduction in the profit margin of the company.

Starbucks is also face some great opportunities such as the globalization of the market has made it possible to open and expand into new frontiers. Emergency of social networking sites such as twitter and facebook has made it possible to assess the demands of customers and work on meeting them and giving them feedback.


Lopez-Garcia, E., Van Dam, R., Rodriquez-Artalejo, F. & Hu, f. 2008. The relationship of coffee consumption with mortality. Ann. Intern Medicine; 2008; 148: pp.904-914

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