Starbucks Pestle Analysis Pdf

The other political imperative that Starbucks faces is the need to adhere to the laws and regulations in the countries from where it sources its raw materials. Activism and increased political awareness in developing countries have made his essential. Buying power of consumers Local currency exchange rates Local economic environment within each market Starbucks operates Taxation level.

This means the brands they buy from should abide by social and environmental norms during production. Similar Articles Under - Strategic Management. Recent market research reflects that consumers have not cut down on their coffee consumption.

Therefore, Starbucks has to take into account these concerns if it has to continue holding on to the trust it enjoys with its consumers. It is willing to follow the sourcing strategies.

This is the key challenge that Starbucks faces as it confronts the emerging challenges of the new era of consumer awareness and the galloping Smartphone revolution. But there are many other factors seeking attention.

Starbucks is already performing well in these aspects. The foremost external economic driver for Starbucks is the ongoing global economic recession, which as explained in the introduction has dented the profitability of many companies. Another impact is the need to follow the laws and regulations in the countries from where Starbucks buys the raw materials. So, as recession is the most important factor, Starbucks has to lower costs and increase the value. The company must monitor political stability within the country as well.

Starbucks PESTEL Analysis - Research Methodology

Apart from this, Starbucks has already made some moves to jump on the emerging mobile computing revolution by tying up with Apple to introduce discounted coupons in the apps used in the iPhones. This has convinced buyers to shift to cheaper alternatives.

Impacts of Political Factors on Starbucks

Starbucks is well poised to reap the benefits of the emerging mobile wave and as it has tied up with Apple to introduce app based discount coupons, it can expect to ride the mobile wave with ease. Currency exchange rate is another important economic factor Starbucks has to deal with. The constant global economic recession has dented the macroeconomic environment which Starbucks operates in. Many Starbucks business practices concern activists and international advocacy groups.

However, the company must work to address the identified threats, especially the threat of substitution linked to the increased availability of home-use specialty coffee machines. It can also introduce mobile payments and this is something that it is already testing out in pilot locations in the United States. However, the rising availability of home-use specialty coffee machines is a threat to Starbucks because it increases the availability of substitutes to Starbucks products. This means that the firm can still influence the buying power by offering cheaper products. Neglecting such norms intentionally or unintentionally are likely to cause political pressure on the business.

It should also stay alert about introduction of caffeine production and consumption related policies and regulations by health authorities. Starbucks is well poised to enjoy the benefits of the Smartphone revolution. The company has already introduced Wi-Fi capabilities in its outlets so that consumers can surf the web and do their work while sipping coffee. Starbucks has taken steps to be a part of the mobile computing revolution.

Impacts of Economic Factors on Starbucks

However, studies have shown that consumers instead of cutting down on their coffee consumption are shifting to lower priced alternatives which is an opportunity for Starbucks. This is an added value to the brand. This way it can retain its consumer base and also gain consumer loyalty.

It gives importance to fair trade practices. You will find the details for how the factors impact business for Starbucks below. This is indeed an added value to the Starbucks brand and something, which enhances the consumer experience.

The company introduced Wi-Fi capabilities in its outlets already. It has worked with Apple and introduced discounted coupons via iPhone apps.

Economic Factors Important to Starbucks CoffeeStarbucks PESTEL Analysis - Research Methodology

The baby boomer generation is retiring. As I already mentioned, this factor dented the profitability of Starbucks. Even the consumers have expressed issues.

Starbucks PESTEL Analysis

Starbucks Coffee Situation Analysis and Recommendation. This means spending by older consumers will decrease. It is often seen as the most effective analytical tools to analyze the impacts of external issues. However, bureaucratic red tape persists in most countries.

The high economic growth of developing countries and the declining unemployment rates create opportunities for Starbucks to gain more revenues from various markets around the world. Starbucks is also enabling mobile payments. Further, this exercise has also been accompanied by co-branding and cross selling which means, choix de financement pdf that Starbucks is well placed and poised to reap the benefits of the Smartphone revolution. The preceding analysis proves the point that Starbucks is operating in a relatively stable external environment.

It will expand consumer base to include the buyers from the lower and the middle-income tiers. Note that the company already has responsible sourcing policies. Starbucks has to be aware of this trend.

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