Starbucks dominates the coffee roasting, distribution, and pouring market. Starbucks owns or licenses over ten thousand stores
Question:
Starbucks dominates the coffee roasting, distribution, and pouring market. Starbucks owns or licenses over ten thousand stores internationally that sell primarily various coffee-related drinks featuring its gourmet roasts of coffee. To expand its market presence and increase its brand value, Starbucks has created alliances to serve its coffee in prestigious retail and leisure outlets, including distribution agreements with major hotels, booksellers, airlines, and department store organizations. In addition, Starbucks has agreed to supply coffee flavoring for candy and ice cream with leading providers of each product. Starbucks has a well-developed web site that offers a line of coffeehouseoriented CDs and furniture, both produced by outside (third party) corporations.
Discuss the impacts of Starbucks' strategic alliances on the organization's business risks. How should the audit be adjusted to account for these risks?
Step by Step Answer:
Auditing Assurance And Risk
ISBN: 9780324313185
3rd Edition
Authors: W. Robert Knechel, Steve Salterio, Brian Ballou