Risk Identification Operational Risks Supply chain There is a possibility of facing issues while procuring coffee beans from other countries due to import restrictions, government regulations, border closure, etc. Technological changes Starbucks needs to remain updated with the latest technology by improvising its processes thus helping the company to perform better. It will have to make changes in the system to reduce manual effort and digitalize to reduce errors (Starbucks Corporation, 2020). Material procurement Starbucks procures its authentic coffee beans from all over the world to give its customers an experience that they will never forget. This leads to a risk of an increase in the cost of coffee over the other brands. Financial Risks Tax policy An increase in the taxes on the farmers in the bean-producing countries can lead to a rise in the price of the coffee, which would be borne by the customers. This event results in an increase in the price of the final product (Starbucks Corporation, 2020). Fluctuating Tariffs An increase in the tariffs paid by the bean-producing countries can affect the price of the coffee if it is not borne by the company. If the company decides to bear the increase in the price by itself, it will lead to a decrease in the profit margins thus reducing its share price (Starbucks Corporation, 2020). Competitor's Pricing Competitors cause an impact on Starbucks pricing that results in reducing the profit margin as they try to maintain their market share (Starbucks Corporation, 2020). Inflation Rates Inflation affects business costs causing an increase in the final price which would be borne by its customers (Ross, 2018). Strategic Risks Monopolistic market Starbucks faces competition from coffee shops such as Dunkin Donuts, Cafe Coffee Day, and Tim Hortons as the base product is the same for all of them. The areas where Starbucks stands out from them are in terms of quality and customer satisfaction. They should consider the innovations that their competitors are doing to increase the sales volume (Ross, 2018). Marketing Strategy Starbucks promotes its brand with the help of its cup which has its logo. Other brands promote their brand with the help of social media advertisements, which create a long-lasting impact on the customers (Ross, 2018). Niche Market Starbucks believes in selling its product to a segment of the market that values the quality of the product over its price. Hence, they do not distribute their packaged beans to local sellers, thus reducing their market share as compared to brands such as Nestle, which is easily available. Closure of stores Owing to the ongoing pandemic, many Starbucks stores had to shut down as they could no longer incur losses. Sales have been low. They are going through a financial crisis. Hazard Risks Health and safety regulations Any degradation in the health and safety measures can lead to huge losses as the company would be liable to pay for the damages as it is their responsibility to take care of the staff on the job location. Covid-19 Pandemic This unexpected risk caused billions of dollars losses to industries worldwide. Risks such as these if not forecasted, can lead businesses to closure. Starbucks also had to face loss in revenue leading to laying off employees, reducing hours of operation, decreasing operations (Klein, 2020). Natural disasters Starbucks locations throughout the world have an unavoidable risk of facing a natural disaster. This risk applies to the whole company as the location within which the franchises operate, can face any type of natural disaster such as earthquake, lightning burning down the caf, floods, tsunamis, etc. How will these risks be treated. explain in detail.

how will the above mentioned risks be treated.