Starbucks’s Schultz on Growth Strategy, Asian Markets Essay Example

Structural unemployment could lead to a decrease in skilled workers, intensifying the war for talent and decreasing motivation among F;B employees. Governments, both domestic and international, have the capability to acquire farmland in remote countries and subsidize agricultural products, thus preventing a food crisis.

The viability of the euro is continuously being questioned due to new aid funds for Greece and debts of the European periphery, as well as the weakening of creditors, which could potentially lead to a collapse of the currency. In China, the Yuan/dollar rate has not fluctuated as much as it would under free market forces, which keeps rapid investment in the F;B sector there attractive. The G20 is putting more effort into gaining political ground to avoid uneven trade restrictions. A recession caused by the fiscal cliff could have a negative impact on the F;B industry. Starters in the F;B market may struggle to gain capital, resulting in less growth of density. The numerous bankruptcies and economic downturns may demotivate potential starters and entrepreneurs. Risk aversion among investors may lead to decreased spending on new entrants with the potential to become role models.

The growth of industries may be hindered due to the impact of the financial crisis on customers and regulators. Uncertainty remains high as the effects of the recession continue to be felt. Customer demands have changed and are not expected to revert back anytime soon. This could have both positive and negative consequences for the F;B industry's appeal. Due to the financial crisis, individuals may have less disposable income to spend on F&B, particularly outside of their homes.

The importance of a customer-centric focus

in the hospitality industry cannot be understated, as it makes customers more aware of the value they receive. Companies that lack this focus may face difficulties surviving. Speculations can be made about whether regulators can make or break deals and make the right recovery choices to prevent long-term economic problems. Ultimately, creating a positive investment atmosphere and business sentiment lies in the hands of politics.

The global economy has a significant impact on the competitive environment and changes in stock and food prices, making it important to consider competitors and suppliers. While the F&B industry may become more attractive with fewer players in the market, it is crucial for competitors and suppliers within the industry to focus on strategic planning for the next 5 years. By adopting a growth perspective and striving for a competitive advantage, they can proactively maintain their position instead of constantly defending their existence.