Risk Analysis of Starbucks and Dunkin Brands

5369 Words Oct 19th, 2012 22 Pages

Table of Contents

1. Starbucks 1.1 Business and Industry Risk factors. 3
1.2 Financial Risk factors. 3
1.3 Economic Risk factors. 4
1.4 Political Risk factors. 4
1.5 Global/International Risk factors. 4
1.6 Management Risk factors. 5
1.7 Technology Risk factors. 5
1.8 Operation Risk factors. 5

2. Dunkin Brands 2.1 Business and Industry Risk factors. 5
2.2 Financial Risk factors. 6
2.3 Economic Risk factors. 8
2.4 Political Risk factors. 8
2.5 Global/International Risk factors. 8
2.6 Management Risk factors. 9
2.7 Technology Risk factors. 9
2.8 Operation Risk factors. 9

3. Conclusion 10

4. Bibliography 12


1.1 Business and Industry Risk factors.

In the general course of
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rable general economic conditions in the markets in which they operate that adversely affect consumer spending;
• Declines in general consumer demand for specialty coffee products; or
• Adverse impacts resulting from negative publicity regarding their business practices or the health effects of consuming their products;
• Cost increases that are either wholly or partially beyond their control, such as:

• commodity costs for commodities that can only be partially hedged, such as fluid milk, and high quality Arabica coffee;
• labor costs such as increased health care costs, general market wage levels and workers’ compensation insurance costs;
• adverse outcomes of current or future litigation; or
• construction costs associated with new store openings;
• any material interruption in their supply chain beyond their control, such as material interruption of roasted coffee supply due to the casualty loss of any of their roasting plants or the failures of third-party suppliers, or interruptions in service by common carriers that ship goods within their distribution channels, or trade restrictions, such as increased tariffs or quotas, embargoes or customs restrictions;
• delays in store openings for reasons beyond their control, or a lack of desirable real estate locations available for lease at reasonable rates, either of which could keep us from meeting annual store opening targets and, in turn, negatively impact net revenues, operating income and earnings per share;
• the