Accounting

Of the risks Starbucks Corporation discloses, you must identifyat least one risk at Starbucks store level and connect it to afinancial statement, explaining its adverse financial statementoutcomes if it were to materialize. Demonstrate your understandingby showing an effect one on at least one of the ratios.

At the store level, identifying risk is more challenging than atthe company level. Apply your understanding financial reportingconcepts you learned but take it a step further to incorporate yourunderstanding of various assets and liabilities. You must analyzerisks talking like an accountant, not a marketer or strategicmanager. In this deliverable, it is expected that you integratemany different accounting concepts and demonstrate yourunderstanding of what you have read in the textbook applies to whatyou see in a store.

Risks

1. Economic conditions in the U.S. andinternational markets could adversely affect our business andfinancial results.
2. Our success depends substantially onthe value of our brands and failure to preserve their value, eitherthrough our actions or those of our business partners, could have anegative impact on our financialresults.
3. Incidents involving food orbeverage-borne illnesses, tampering, adulteration, contamination ormislabeling, whether or not accurate, as well as adverse public ormedical opinions about the health effects of consuming ourproducts, could harm our business.
4. The unauthorized access, use, theft ordestruction of customer or employee personal, financial or otherdata or of Starbucks proprietary or confidential information thatis stored in our information systems or by third parties on ourbehalf could impact our reputation and brand and expose us topotential liability and loss ofrevenues.
5. We rely heavily on informationtechnology in our operations and growth initiatives, and anymaterial failure, inadequacy, interruption or security failure ofthat technology could harm our ability to effectively operate andgrow our business and could adversely affect our financialresults.
6. We may not be successful inimplementing important strategic initiatives or effectivelymanaging growth, which may have an adverse impact on our businessand financial results.
7. We face intense competition in each of our channelsand markets, which could lead to reducedprofitability.
8. We are highly dependent on thefinancial performance of our Americas operatingsegment.
9. We are increasingly dependent on thesuccess of certain international markets in order to achieve ourgrowth targets.
10. Increases in the cost ofhigh-quality arabica coffee beans orother commodities or decreases in the availability of highquality arabica coffee beans or other commodities couldhave an adverse impact on our business and financialresults.
11. Our financial condition and results ofoperations are sensitive to, and may be adversely affected by, anumber of factors, many of which are largely outside ourcontrol.
12. Interruption of our supply chain couldaffect our ability to produce or deliver our products and couldnegatively impact our business andprofitability.
13. Failure to meet market expectations forour financial performance and fluctuations in the stock market as awhole will likely adversely affect the market price and volatilityof our stock.
14. The loss of key personnel ordifficulties recruiting and retaining qualified personnel couldadversely impact our business and financialresults.
15. Failure to comply with applicable lawsand changing legal and regulatory requirements could harm ourbusiness and financial results.