Starbucks Technology Case Study

1565 Words7 Pages
Technology
Starbucks offers many technological advantages such as the mobile app. Starbucks makes ordering much more efficient for their customers. The mobile app allows customers to conveniently order, pay and earn rewards with The “My Starbucks Rewards” program. Along with the mobile app, Starbucks is focusing on the better health and wellness of their customers. In 2011, Starbucks acquired Evolution Fresh to enhance the health and wellness brand. According to Howard Schultz, Starbucks chairman, president and CEO, “Our intent is to build a national Health and Wellness brand leveraging our scale, resources and premium product expertise. Bringing Evolution Fresh into the Starbucks family marks an important step forward in this pursuit” (Cannold,
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As stated in the section above, Starbucks operates in a highly saturated and competitive market. They depend on a stable economy to succeed. Their results of operations are easily influenced by macroeconomic conditions as a retailer that is dependent upon consumer discretionary spending. Starbucks has a lot going for it as it confronts the challenge of regaining its fast and steady growth because of constant competition with its competitors and overcoming the economies at the same time. A case study called Going Global Fast points out a strategy that was used in order to keep competitors from overpowering. The strategy is to “pay more than the market-rate rents to keep competitors out of a location.” That is exactly what Starbucks has done. Starbucks did not just pay more than the market rate, but Starbucks paid double the rate. Howard Schultz, CEO of Starbucks stressed that “the real estate of business in America is a very, very tough game. It is not for the faint of heart.” Schultz also expressed that there is no need to be apologizing for such tactic. The competitive mindset of Starbucks drives the company forward to stay on top while heightening the audit risk for material misstatement at the same time. They are more likely to commit a fraudulent act or misstate their numbers to reach their goal to be number one in the…show more content…
They must find a way to have the best cup of coffee for the best price of that cup. To many a major competitor such as McDonald’s would be a surprise. McDonald’s sells coffee called McCafe that is said to be better quality in lightness, not “burnt” and much more inexpensive compared to Starbucks (Kristin Cwalinski, 2015). Starbucks has large goals to grow even more internationally. Currently, Starbucks has approximately 21,000 different locations in 65 countries (Starbucks, n.d.). When a company is international such as Starbucks, there is a concern risk over the reporting of financial statements. Auditors must audit the financial statements to ensure they are followed by IFRS. According to Starbucks Going Global Fast, “Yet cup by cup, Starbucks really is caffeinating the world, its green-and-white emblem beckoning to consumers on three continents. In 1999, Starbucks Corp, had 281 stores abroad. Today, it has about 7,000-and it’s still in the early stages of a plan to colonize the globe.” Although Starbucks is already a global company, Starbucks wishes to expand internationally and bring beverages that are offered abroad to the United States. It reduces the audit risk to see that Starbucks maintains their business successfully over the years. However, it also intensifies the material misstatement

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