Question

If a customer ordered a coffee at Starbucks, and the barista puts it at the handoff and barista loudly called the customer name at least 4 or 5 different times and there was no response. After about 15mins the barista threw away the coffee. Write a one page explaining how wasting Starbucks products can affect the company's balance sheet.

Answer 1

In this case a customer ordered a coffee at starbucks and barista loudly called the customer name for atleast 4 to 5 times and there were no response at all. Later barista threw away the coffee. Here the wastage of coffee will affect the income of starbucks indirectly. The cost of the coffee which was wasted will be a loss to the company and the net profit will be reduced to the certain extent and the margin of over all profit will be reduced. finally the balance at balancesheet as net profit will be reduced to a certain extent . (but usually starbuck charge before delivery of product).

Therefore each and every wastages done by starbucks will affect their total net income and it will finally affect to their goodwill. hence due to wastages the cost of each product will be going on increasing and the demand for the product will be reducing to the certain extent .hence they should form such a platform that does not lead to any wastages. Billing before the delivery of the product is the good initiative to reduce such wastages as customer will be charged even though they are not collecting the product.