Premium Essay

Pest Analysis of Starbucks

In:

Submitted By 16304701Ww
Words 663
Pages 3
6-2 Final Project Milestone Three: PEST Analysis
Wilhelmina Williams
MBA 515
July 3, 2016
Dr. Jonathan Sturtz

6-2 Final Project Milestone Three: PEST Analysis
A PEST Analysis is used to assess a business’ external factors. PEST stands for Political, Economic, Social, and Technological. The analysis will help to establish how the four elements will affect the behaviors and operation of the company in the long-term. The significance of the four sections means:
• Political – Legal elements and government guidelines are evaluated for the ability that affects the trade markets and corporate environment. The relevant topics to address include tax guidelines, trade regulations, political stability, work laws, and safety regulations.
• Economic – is examining the economic matters that develop an impact on the company. The factors contain interest rates, price increases, economic growth, commerce cycle the country follows, and unemployment rate and procedures.
• Social – analyzing the socio-economic environment of the market through fundamentals of consumer demographics, lifestyle assertiveness, cultural limitations, and education. With this analysis, the company can identify the customer needs and determine what to bring to the market for purchasing.
• Technological – whether it can negatively or positively impact the presentation of products and services to the marketplace. The issues include lifecycle of technologies, advancements, and the government spending for research.

Political * The relationship with the U.S. and countries operating Starbucks or generating coffee beans * Business- Specific ecological regulating Local government jurisdictions * Stability of taxes, policies on economy, trading, view on culture, terrorism, religion, and culture by the government * Governmental red tape in developing countries | Economic * Request for

Similar Documents

Premium Essay

Starbucks Pest Analysis

...| Introduction of Starbucks | 3 | 3.0 | Introduction of PEST analysis | 4 – 6 | | 3.1 Political-legal forces | | | 3.2 Economic forces | | | 3.3 Socio-cultural forces | | | 3.4 Technological forces | | 4.0 | PEST components of Starbucks | 7 – 8 | | 4.1 Political-legal component | | | 4.2 Economic component | | | 4.3 Socio-cultural component | | | 4.4 Technological component | | 5.0 | Conclusion | 9 | 6.0 | References | 10 – 11 | 7.0 | Appendixes | 12 | 1.0 Introduction First of all, I would like to thank my lecturer, Miss Kanchini who is providing adequate information about the task which given in this Business Management assignment. For a business to be succeed in the market, each of the business need to analyze their surrounding environment for the purpose of increasing their revenue and to be stayed longer in that particular market. There having two types of environment to be analyzed which are internal and external environment. Internal environment of a business is indicating the strengths and weaknesses of a business that must be identified to do some changes on weaknesses and strengthen the strengths owned. For the external environments which influence the long run decisions of an organization also needed to be analyzed especially for the bigger company so that the business will last longer in the market. There are several types of external environment such as PEST, PESTLE, and STEEPLE analysis. (Wheelen & Hunger...

Words: 2238 - Pages: 9

Premium Essay

Pest Analysis of Starbucks

...3.1.1 PEST Analysis Political Globalization today has changed worldwide trend of doing business. Companies find it difficult to survive by relying solely on domestic market. The borders between various countries are getting invisible. Companies are nowadays creating business in various countries without boundaries. Advertisements are all over the world for many products. Company strategists find it not an easy task to expand the business beyond borders. The basic need for globalization is to learn the different cultures of the country they plan to start business. Taking all aspects including tax rates, law and legislation is important in globalization. Economic People are nowadays looking for more income to continue their luxurious life. The number of two income households is getting increased all over the world. People are looking forward for products which reduce their time to be spent on. Improved customer service, immediate availability, trouble free operation of products is becoming more important. Since the world is facing crisis, people are looking forward for cheap and quality products. Price is becoming priority to customers. Increase in the inflation rates and increase in unemployment is also a factor for demand in lower priced products. Social, Cultural, Demographic and Environmental According to these analyses, it creates different type of consumer and consequently needs for different products, different services, and different strategies. In the view of...

Words: 460 - Pages: 2

Premium Essay

Pestle of Starbucks Corp

...5. 5. 2016 PESTLE Analysis of Starbucks  What are you looking for? PEST ANALYSIS  MARKETING SWOT ANALYSIS     STEEP ANALYSIS BUSINESS  PEST Analysis, PEST Examples GET MORE ANALYSIS Subscribe to our mailing list and get our articles and updates to your email inbox. Enter your name here PESTLE Analysis of Starbucks  Jim Makos    1 Year Ago FACEBOOK    0 Comments   PREV ARTICLE   NEXT ARTICLE  PESTLE is a strategic analysis tool. It is often seen as the most effective analytical tools to analyze the Enter your email here impacts of external issues. It is an extended version of PEST analysis. Other forms of this tool are PESTEL, SIGN UP NOW STEEP, and STEEPLE. The acronym PESTLE stands for 6 factors which affect the business. The factors are: We respect your privacy Political Economic http://pestleanalysis.com/pestle­analysis­of­starbucks/ 1/9 5. 5. 2016 PESTLE Analysis of Starbucks Social Popular Recent Technological Legal Environmental In this article, I am discussing the PESTLE analysis of SWOT Analysis Examples for Every Business Situation December 30, 2013 Starbucks. The constant global economic recession has dented the macroeconomic environment which Starbucks operates in. The recession has hurt the consumer’s purchasing power. Recent market research re䈠౲ects that consumers have not cut down on their coffee...

Words: 1434 - Pages: 6

Premium Essay

International Timber Management

...bought in any coffee shops, cafes, restaurants and even sold by vending machines. Besides that, Singapore is one of the highest coffee-consuming countries in the world which is meant that 4.4kg of coffee per year (280 cups of coffee) (Channel NewsAsia, July 14, 2013). For coffee lovers, Starbucks is a famous name. It is because of the high quality of coffee bean used and the environment that lets customers enjoy the coffee. So, Starbucks is always the first choice of many people. The purpose of this report is to investigate about how Starbucks can expand their market in Singapore. This report will provide the background of the company and country. A SWOT analysis, PEST analysis and Porter’s 5 forces also will be provided in this report. Lastly, this report will give the recommendation and conclusion. 2. Company Background Starbucks is mainly famous for selling coffee, but it also sells other hot and cold beverages, pastries, sandwiches and other snacks. Today, Starbucks is the top largest coffee chain in the world which has more than 19000 branches in more than 60 countries (Hawthorn, October 30, 2013). Singapore is the third international country outside North American to introduce the Starbucks (Our heritage, 2011). 3. Country Background Singapore is a prosperous developing country. It is one of the commercial hubs in the world. Although it is a small country, it has education, healthcare, government transparency and economic competitiveness which are placed with the...

Words: 2911 - Pages: 12

Premium Essay

International Business Management

...Starbucks Entry Mode in India Executive Summary: The following report consists of the entry mode chosen by STARBUCKS to enter the Indian Market of Coffee House. This Report will give you a better understanding about an organization’s require to expand globally. Globalisation plays a very important role for any organization. It helps the company to expand over different areas and connect with different people. The report depicts about the entry mode chosen by STARBUCKS to invade the Indian market. It also briefs about the competitive Environment faced by STARBUCKS to gain the desired market share. It also consists of the Political, Economical, Social and Technological Analysis faced by STARBUCKS and the Corporate Strategy used to survive among the rivalry. This report clearly discusses the Strength, Weakness, Opportunities and Threats faced by STARBUCKS in the Indian Economy and how they have been successful to overcome them. Followed by the conclusion part which states how successful was the chosen entry mode and growth of STARBUCKS in its new market. Vanessasong.(2012).Retrieved from http://blogs.ubc.ca/vanessasong/2012/11/15/doesnt-matter-what-starbucks-sells-india-loves-it/ Table of Contents: Assignment Cover Sheet…………………………………………….………………………………………………………………………………1 Assignment 1 – Research Report…………………………………………….………..………………………………………….…………...2 Project Starbucks India...…………………………………………………………………………………………………………………………….3 Executive Summary……………………………………………………………………………………………………………………………………...

Words: 2327 - Pages: 10

Premium Essay

Starbucks

...Starbucks – Strategy of a global brand * Table of Contents 1 Preface 2 2 The McKinsey-7S-Model 2 2.1 Strategy 3 2.2 Structure 3 2.3 System 3 2.4 Skills 4 2.5 Shared Values 4 2.6 Staff 5 2.7 Style 5 3 The Five Forces Model 5 3.1 Bargaining power of buyers 6 3.2 Bargaining power of suppliers 6 3.3 Threat of new entrants 7 3.4 Threat of Substitute products 7 3.5 Rivalry among competing firms 7 4 PEST Analysis 8 4.1 Political Influences 8 4.2 Economic Influences 8 4.3 Social Influences 8 4.4 Technological Influences 9 5 SWOT Analysis 9 5.1 Strengths 9 5.2 Weaknesses 10 5.3 Opportunities 10 5.4 Threats 10 6 Entry Strategies for new markets 11 6.1 Establishing a subsidiary 11 6.2 Arrange joint ventures 11 6.3 Licensing 11 7 Conclusion 12 8 Reference List 13 Preface The following analysis of Starbucks will focus on how internal as well as external factors influence this company. Internal factors will be highlighted by the McKinsey-7S-Model. External analysis will conclude Porter’s Five Forces model to outline the threats Starbucks faces in its industry. The SWOT Analysis will show Strengths, Weaknesses, Opportunities, and Threats to Starbucks business model. Furthermore the PEST Analysis will give explanation how external factors influence the company. Finally this paper will outline what strategies Starbucks uses to penetrate markets in new countries. The McKinsey-7S-Model Because...

Words: 2900 - Pages: 12

Premium Essay

Starbuck Information System

...Contents Introduction 3 PEST Analysis 4 References 8 Picture references 9 APENDIX A 10 APENDIX B 11 Introduction The coffee industry is a multi-billion dollar industry which is getting bigger and bigger each year. Coffee is a huge industry and is the second most traded product in the world after oil. Even though there is an economic crisis going on in many countries, there strong demand for coffee keeps rising. All the major companies including Starbucks are repeatedly raising prices and consumers are spending as normal. Starbucks is an international coffee chain and is the largest such company in the world. The industry that Starbucks can be placed in is within the speciality coffee industry. Starbucks total net revenues went up to $3.032 billion, up 15% on last year. As of January 2nd 2011, they have 17,009 stores worldwide operating in more than 50 different countries. Their products include coffee, hand crafted beverages, merchandise and fresh food. Within the speciality coffee industry there are many companies. Some of Starbucks competitors include 7-Eleven, Dunkin Donuts, Caribou Coffee and McDonalds which are all USA based. In the UK Starbucks main competitors would be Costa Coffee, Café Nero and McDonalds. On top of these big competitors there are countless small independently owned coffee shops. Competitors like 7-Eleven, Dunkin Donuts and McDonalds offer coffee at relatively low prices. These chains simply just sell coffee to customers who want it...

Words: 2654 - Pages: 11

Premium Essay

The Marketing Strategy of Starbucks Coffee

... Introduction Starbucks has been leading the coffee shop market in more than 40 years now. It has always been the place to find the world's best coffees. Its first store was founded at Pike Place Market in Seattle, Washington, United States. It has given a positive outcome so they serve consumers all over the world. The success of Starbucks coffee had come this far because they expand their operation and services and didn't limit their products. They sell not just coffee but tea, pastries, frappuccino, beverages and smoothies as well. Starbucks is the largest coffee house company in the world ahead of UK rival Costa Coffee, with 22, 551 stores in 65 countries and territories, including 12, 739 in Canada, 1,117 in Japan and 830 in the United Kingdom. From Starbuck' founding in 1971 as Seattle coffee bean roaster and retailer, the company has expanded rapidly. Between 1987 and 2007, Starbucks opened on average two new stores every day. Starbucks had been profitable as a local company in Seattle in early 1980's but lost money on its late 1989's expansion into the Midwest and British Columbia. Its fortune did not reverse until the fiscal year of 1989-1990, when it registered a small profit of $812, 000. By the time it expanded into California in 1991 it had become it trendy. The first store outside the United States or Canada opened in Tokyo in 1996, and overseas stores now constitute almost one third of Starbucks' stores. The company planned to open a net...

Words: 9092 - Pages: 37

Premium Essay

Starbucks Pestle Analysis

...http://prezi.com/2jzdhoz6yhqo/starbucks-industry-analysis/http://www.coursework4you.co.uk/essays-and-dissertations/porter-5-forces.php http://www.scribd.com/doc/27614539/Starbucks-a-Strategic-Report-by-James-Heavey Starbuck employees are called partners http://en.oboulo.com/starbucks-corporation-58582.html http://www.authorstream.com/Presentation/bandineepradhan-1770180-starbuck-pre-bandinee/ http://www.scaa.org/ Starbucks Strategic Report (Industry Analysis) Porters Five Forces Porter’s five forces focus on factors outside of the industry which can have an effect on the competition within the company. The force within the company (microenvironment), which in turn effects how the company deals with its competitive market place. The five forces that (Porter-1980) identifies as having an impact on a company’s behaviour in a competitive market are as followed: * The threat of new entrants to the market * Bargaining power of suppliers * Bargaining power of buyers (customers) * Threat of substitute products * Competitive rivalry Starbucks have the real threat of competitive rivalry by competing with some major competitors like McDonalds, Dunkin Donuts, Costa and other small coffee shops and cafes. With competitor’s low prices and the opportunity to break into the speciality coffee market pose a real risk to Starbuck’s. Substitute products such as tea, juices, water and energy drinks pose a real threat to Starbucks as with pubs and bars because...

Words: 1347 - Pages: 6

Premium Essay

Pestel

...Hong Kong is an affluent free market economy with nearly no import tariffs, a net food importer with a high value food and beverages market and a good showcase and test market for foods from China and other parts of Asia. Its food trends are driven by food safety, increasing health consciousness, altering demographics and busy lifestyles and its trend in food consumption include organic, functional, convenience and snack food, chilled and frozen meat and food for gifts. The major food retail outlets in Hong Kong are supermarket chains and department stores, specialty stores, traditional markets and convenience stores. Hotels, restaurants, airlines and hospitals comprise the food service sector in Hong Kong and there is a trend toward quality food and non-Chinese restaurants like Japanese food, fast food, coffee and snacks and casual dining restaurants.[1] Hong Kong consumers are typically sensitive to price and not loyal to brands and prefer small and convenient packaging, with middle and high income young groups favoring premium Western food products. The qualities of clean and green production environments and high safety standards in connection with foods are seen as competitive advantages. Australian and Victorian producers in the Hong Kong market are particularly well-served in in-store promotion, alongside international trade shows and menu promotions of their products. Hong Kong is lenient in import regulations and standards, food labeling, organic certification and...

Words: 1604 - Pages: 7

Premium Essay

Dunkin' Donuts

...Table of Content Executive Summary 3 Background 4 Dunkin’ Donuts (Dunkin’ Brands) 4 Starbucks Coffee (Starbucks Corporations) 4 Leader VS Follower 5 Financial Analysis 6 Liquidity Ratio Analysis 6 Debt Analysis 11 Profitability Analysis 13 Stock Investment Analysis 16 Non-Financial Analysis 20 SWOT Analysis 20 PEST Factor Analysis 23 Product Life Cycle Analysis 24 Boston Consulting Group (BCG) Analysis 25 Conclusions and Observations 27 References 29 Executive Summary People love to drink coffee. Coffee shops, independently owned or chains are every corner. Statistics show that people are taking more coffee every day. It is a very profitable business. Nowadays when people think of coffee and its related items, the word “Starbucks” immediately come to mind. Internationally, Starbucks has already become a very famous brand and many are trying to study the secret of its success. In the States, however, another company rivalry is competing with it quite well. Quite often, the Americans are taking preference to this over the Starbucks. The company that is being mentioned is Dunkin’ Donuts. It is without doubt that Dunkin’ Donuts will act as the follower in this industry. Starbucks, on the other hand, is acting the leader. This paper will try to study how the Dunkin’ Donuts are performing by making the benchmarking financial analysis against Starbucks. Financial ratios are prepared and analyzed to evaluate its performance. The study will...

Words: 7051 - Pages: 29

Premium Essay

Coffee Industry Strategy

...Content 1.0 Introduction 1 2.0 Coffee industry in the world 1 2.1 Driver and trend 1 2.1.1 Porter’s five forces model 2 2.1.2 PEST analysis 4 2.2 Growth of coffee industry 7 3.0 Coffee industry in the China 7 3.1 BCG matrix analysis 8 4.0 Conclusion 10 5.0 Reference 12 1.0 Introduction Currently, coffee has been a very popular product in the world as well as become a daily item in people’s life. They usually drink coffee in order to relax their mind and refresh themselves. Therefore, coffee industry produces a significant development in the market. This essay will illustrate the situation of coffee industry in the world market, including driver and trend. Also, it will talk about some coffee companies in China like Starbucks, Costa and so on. Some models will be applied to analyze the industry and companies. 2.0 Coffee industry in the world 2.1 Driver and trend The most important driver of coffee industry is the continuous developing technology. If an industry applies the new technology and produce a new product that people may like, other industries would find advanced technology and use it to produce their products to attract people because the competition between industries is stiff. What is more, the healthy idea of people is an important driver for coffee industry as well. The idea may reduce consumption of coffee as people pay attention to their health and do not want to buy the drinks that are harmful to health...

Words: 3103 - Pages: 13

Premium Essay

Starbucks Strategy

...1. Introduction Starbucks distinguishes itself by focusing on creating and sustaining its own ‘coffee culture’. It has long been known as a ‘third place’ other than home and workplace. It serves not only quality coffee products but distinctive customer experience. With considerable research on the strategic positioning of Starbucks, this paper will introduce the history and the present of Starbucks as well as its corporate achievements before analyzing its brand value and strategic positioning, with focus on its competition and marketing strategies. Subsequently, the influences of external factors on Starbucks will be examined through PEST analysis and Porter's Five Forces Model analysis. Next parts will be concerned with the question of how Starbucks boost the value of its strategic position. Finally, the paper will be reviewed and the comments on the sustainability of Starbucks’ strategic positioning provided. (不需要改) 2. Basic facts regarding Starbucks 2.1 Developmental History In 1971, a business called Starbucks that sold coffee and other spices was set up by several people whose names have long been basically forgotten. Howard Schultz, the most important figure in Starbucks’ history, became part of Starbucks in 1982. In a business trip to Italy, he was inspired by some famous Italian coffee brands to the idea that the lucrative coffeehouses could cultivate a sense of emotional and cultural attachment among customers. In 1986, he managed to raise sufficient venture capital...

Words: 2728 - Pages: 11

Premium Essay

Macro and Micro Environmens of Starbucks

...Tutorial | 2 | Tutorial Name | Starbucks Coffee - Case Study | STUDENT ID | STUDENT NAME | 2011127 | Dinali Cooray | 1. Coffee has become popular in UK because flavoursome coffee is within their reach rather than the grey unappealing liquid like before. 2. The facts that would influence my choice of coffee bar are based on the : * Affordable prices * Location * Good comments heard about the place It will be a high involvement decision because of the specific details that are looked into. 3. Starbucks expansion of offerings include : * Introduction of Wi-Fi services for laptops and personal digital assistants * In-store music service which enables the customer to choose from 250,000 tracks. The customers can order the tracks they like and have them burnt into a CD in the shop which in turn can be purchased. * A limited range of indulgent and healthy eating options. 4. Other locations for coffee bars can be outlets within offices and universities. 5. SWOT analysis Strengths * Large market share in the industry * Different kind of atmosphere | Weaknesses * Aggressive competition could cause other problems such as financial problems. | Opportunities * Sale of coffee packets in supermarkets. | Threats * High competition with other coffee chains. | PEST analysis Political Environment | Relationship between US and UK. | Economic Environment | The recent recession has affected starbucks and all the other chains. | Social...

Words: 349 - Pages: 2

Premium Essay

Strategic Planning

...Strategic Planning of Starbucks (Past Decisions, Current situation and Future Options) [pic] Student ID number: F1005899 Full name: Namrataben Govindbhai Panchasara Intake and group number: 8 Module Name: Strategic Planning Assignment Type: Individual Assignment Date: 04/11/2011 Executive Summery This report aims to strategically based evaluate Starbucks past and current situation and future position of this largely successful company. The analysis uses Michael five forces analysis, Starbucks’ Original Generic Strategy, Company success factor, SWOT, PEST and recommendation for future that Starbucks can organised Reward program Organised, Becoming more Environment Friendly, CD Burning, Install free wireless internet and Rent out meeting space, Increase connection with customers, Continually improve the coffee. At last conclusion and i use book of Michal Porter and some others and electronic articles and websites. Index |No. |Index |Page No. | |1. |Executive Summery |2 | |2. |Introduction of the company |4 ...

Words: 5074 - Pages: 21