Managerial Decision Making and Analysis - Research Paper Example

This strategic initiative has enabled the company to grow its business in international scales. As a result, nowadays, Starbucks operates in 62 countries across North America, Latin America, the Europe, Asia Pacific, Middle East and Africa. As of September, 2014 the company employed approximately 191, 000 people (Starbucks Annual Report, 2014). For the FY 2014 the company reported the total net revenue of $16, 447.8 million, which resulted in 12% increase compared to the revenue generated in FY 2013 (Starbucks Annual Report).

Below is provided more detailed overview of company’s total net revenue for the past 5 years. Thus, total net revenues of Starbucks increased by 11% in 2014 compared to 2013. In terms of business segments, the Americas business segment has generated the highest share of revenue - $ 12 billion (increased by 9% compared to FY 2013 (Starbucks Annual Report, 2014). Starbucks, being a company operating internationally faces many different types of risks and uncertainties, which are industry-specific, country-specific and general business risks.

In its Annual Financial report, Starbucks indicates risks and possible changes to the economic environment that could ultimately appear to have adverse affect on its financial condition, business, or results of operation. Some of these risks include the following: As the US is one of the major markets generating significant share of the total revenue of the company, it is dependent on the economic condition in this country, in particular, on consumer discretionary spending (Starbucks Annual Report, 2014).

Starbucks operates in food and beverage industry and is subject to public criticism and other adverse opinions. Such incidents could harm the company’s business and damage its brand value (Starbucks Annual Report, 2014). Thus, for example any report linking Starbucks with use of unclean water would threaten the