Premium Essay

Pestel Analysis for Starbucks Coffee Company

In: Business and Management

Submitted By devilbloody
Words 2693
Pages 11
INTERNATIONAL UNIVERSITY COLLEGE
Sofia

PESTEL ANALYSIS FOR STARBUCKS COFFEE COMPANY

Coursework in Business Environment

Statement of originality
We, the undersigned, declare that this coursework is our own original work.

Student registration No: 101033 Signature: …………. 101047 Signature: ………….

Program: Business Administration, Level 1
Lecturer: Prof. M. Malinowska

The subject that we are going to focus on in the course work is a PESTEL Analysis on Starbucks Coffee Company. This analysis is aimed to familiarize the readers with the six types of factors that influence the activity of such a large and prosperous company as Starbucks. As we all know every business has its ups and downs but by taking into consideration what the influences are, better service and production could be achieved. The emphasis of this project is to discuss the major characteristics of a whole business and providing information about the way it functions. We will also talk about the reflection of Starbucks on the society all over the world.

POLITICAL FACTORS Starbucks was established in Seattle, Washington, USA on March, 30, 1971. This is the largest coffeehouse in the world. Since the opening of the first Starbucks store, 30 years ago it becomes more and more popular. Till today Starbucks Co. owns 17,009 stores in 55 countries, which makes it one of the most popular places for a coffee drink. The following chart illustrates some of the countries where coffee stores had been opened for a first time.

|Where? |When? |
|Tokyo |1996

Similar Documents

Premium Essay

Pestel Analysis for Starbucks Coffee Company

............................5 2. External Analysis ...................................................................................................5 2.1 Wider Macro-Environmental Analysis ............................................................5 2.2 Industry analysis .............................................................................................7 2.3 Industry Life cycle ..........................................................................................9 2.4 Competitor Analysis ..................................................................................... 10 2.5 Industry‟s Critical Success Factors ................................................................ 10 2.6 Opportunities & Threats................................................................................ 11 3. Internal Analysis .................................................................................................. 11 3.1 Starbucks‟s Strengths & Weaknesses ............................................................ 11 3.2 Evaluation of Starbucks‟ Main Capabilities .................................................. 12 3.3 Value Chain Analysis ................................................................................... 13 3.4 Starbucks‟ Main Internal Capabilities against industry‟s Critical Success Factors ......................................................................................................... 14 4. Starbucks‟ Current „Issue & Challenges‟ Diagnosis...

Words: 4800 - Pages: 20

Premium Essay

Starbucks

...------------------------------------------------- STARBUCKS MARKETING REPORT OF STARBUCKS Module code: D001 Module tutor: Moitaba Institution: Nottingham Trent International College Group: Group B T number: T0030643 Word count: 1679 words (-10/+10) 1: INTRODUCTION Starbucks Corporation, an American organization established in 1971 in Seattle, WA, is a head roaster, advertiser and retailer espresso (coffee) around world. Starbucks has around 182,000 representatives across over 19,767 organization worked and authorized stores in 62 nations. Their item blend incorporates roasted and carefully assembled high quality/premium valued espressos (coffee), an assortment of new nourishment things and different beverages. They likewise offer a variety of espresso (coffee) and tea items and permit their trademarks through different channels, for example, authorized stores, basic supply and national foodservice accounts. Starbucks additionally showcases its items blend with other brand names within its portfolio of organizations, which incorporate Teavana, Tazo, Seattle's Best Coffee, Starbucks VIA, Starbucks Refreshers, Evolution Fresh, La Boulange and Verismo. Starbucks had all out income of $14.89 billion as of September 29th, 2013.2. (Starbucks annual report, 2013). This report will analyse on this business organisation (Starbucks) stating its PESTELE, SWOT analysis, customer analysis and proving recommendation according to the marketing analysis provided in this report. 2: MARKETING ENVIRONMENTAL ANALYSIS PESTEL...

Words: 1787 - Pages: 8

Premium Essay

Marketing Communication

...summary “Third home”, it is concept created by Starbucks. This unique idea comes up because Starbucks understand consumer needs and wants. Starbucks is one of the most successful coffee shop chains with over 17000 stores in 52 countries. The company also employs 137 000 people, Starbucks is leader of coffee shop industry. Starbucks attracts various generations from teenager to senior citizen. But, their main target is office worker in middle and upper class who want “third home”. Surprisingly, nowadays their main competitor is fast food chain such as Mc Café and Dunkin’ Donuts. One of the strongest strength is cozy ambience of their shop where customer can feel comfortable. However, the reputation of Starbucks’ coffee taste is not so good despite of their success; this is their weakness to improve. Likewise, conducting Macro analysis allows Starbucks to grow more. From the PESTEL analysis, Singapore is ideal country to spread their product. It is because the economy of Singapore is much prospered and grows 4.1% in 2013. Moreover, westernization of Singaporean will enhance value of Starbucks. After analyzing external and internal environment, company need to make marketing strategy to suite their target market. Starbucks clearly segment its clientele on demographic bases. They focus its offer on the age of its customers, often between 25 and 40, but also on income since these are quite high wages. As mentioned, Starbucks targets on upper class and middle class people and...

Words: 3443 - Pages: 14

Premium Essay

Jjjjj

...[pic] content The first Starbucks opened in 1971 “Back then, the company was a single store in Seattle’s historic Pike Place Market. From just a narrow storefront, Starbucks offered some of the world’s finest fresh-roasted whole bean coffees. The name, inspired by Moby Dick, evoked the romance of the high seas and the seafaring tradition of the early coffee traders. In 1981, Howard Schultz (Starbucks chairman, president and chief executive officer) had first walked into a Starbucks store. From his first cup of Sumatra, Howard was drawn into Starbucks and joined a year later. A year later, in 1983, Howard traveled to Italy and became captivated with Italian coffee bars and the romance of the coffee experience. He had a vision to bring the Italian coffeehouse tradition back to the United States. A place for conversation and a sense of community. A third place between work and home. He left Starbucks for a short period of time to start his own Il Giornale coffeehouses and returned in August 1987 to purchase Starbucks with the help of local investors.” (Starbucks, 2012, para2) |Strength |Weakness | |Starbucks owns the most recognizable brand in the specialty coffee business |Starbucks products are more expensive than others competitor | |Starbucks offered some of the world’s finest fresh-roasted whole...

Words: 882 - Pages: 4

Premium Essay

Pestel Starbucks

...1. 10th October 2011 2. Team 3. ContentsI. Overview Starbucks -MilestonesII. PESTLE-Analysis • General Information • P – Political Issues • E – Economical Issues • S – Social Issues • T – Technological Issues • E – Environmental Issues • L – Legal IssuesIII. Conclusion 4. I. Company overview – Milestone (1)• Founded 1971 in Seattle‘s Pike Place Market• 1982: Howard Schultz becomes Director of Retail Ops; – Starbucks provides coffee to fine restaurants and espresso bars• 1984: First Starbucks Coffeehouse in Downtown Seattle• 1988: Full Health Benefits to employees• 1995: over 500 US-stores 5. Company Overview – Milestones (2)• 1998: starbucks.com• 2000: licencing agreement with TransFair USA to sell Fairtrade coffee in USA and Canada• 2009: East Africa Farmer Support Centre in Kigali /Rwanda; Social Engagement to save lives in Africa• 2010: Asia Farmer Support Centre in Yunnan, China• Total Stores: approximetely 17,000 6. II. PESTEL ANALYSIS Economical Political SocialTechnological Legal Use: Measuring the organization’s goals against influences and Environmental demands of environment 7. 1. Political issues - Issues: Stability of political environment, law, taxes, policies on economy, trading agreements, government’s view on culture and religion, terrorism  Example: Hong Kong, Thailand 8. 2. Economical issues The level of inflation. Interest rates. Income per capita. Long-term perspectives for the economy.  Stabilization  Unemployment rate 9. 3. Social issuesOur...

Words: 889 - Pages: 4

Premium Essay

Coffee Shop

...SITUATION ANALYSIS 4 2.1 PESTEL ANALYSIS 6 Political 6 Economic……………………………………………………………………………………………………………………………….6 Technology 7 Environmental/Ecosystem 7 2.2 PORTER’S FIVE FORCES ANALYSIS 8 High threat of new entrant to the market 9 Medium bargaining power of suppliers 9 Medium -high bargaining power of customers 9 Low threat of substitute products and high level of competition. 9 2.3 SWOT ANALYSIS 10 STRENGTHS 10 WEAKNESS 10 OPPORTUNITIES 10 THREATS 10 2.4 SWOT MATRIX 11 2.5 COMPETITION 12 MARKET LEADERS 12 3.0 KEY ISSUES IDENTIFIED 14 3.1 ASSUMPTIONS 15 4.0 OBJECTIVES TO BE PURSUED 15 4.1 The Keys to Success of the business 15 4.2 Mission Statement 16 4.3 Company Summary 16 4.4 Unique Selling point: 16 5.0 MARKET SEGMENTATION ,TARGETING AND POSITIONING. 17 1.0 EXECUTIVE SUMMARY The purpose of this report is to conduct a three years marketing plan for Fortune coffee and cake shop which is a family business. The family is interested in setting up a retail outlet at 200 King Street, Aberdeen because of the closeness to University of Aberdeen, Unite student hostel, Robert Gordon University student hostel and the presence of corporate offices like First Nation bus headquarters, Police Scotland office and others. The major sources of information and data are textbooks, journals, internet and personal interview. The marketing plan is divided into four sections: the situation analysis which comprises of the overview of the coffee industry...

Words: 3277 - Pages: 14

Premium Essay

Analysis

...Starbucks Strategy Analysis | Business Strategy | Assignement | 24/05/2010 | | | | “Making your organisation fit for purpose” Starbucks Coffe Company is the world leading brand in roasting and distributing coffee. The company owns now more than 15 000 coffee shops around the globe: it is settled in North America, Latin America, Europe, Middle-East and Asia. The diversity and depth of its offer (from smooth to extra roasted coffee, African, Arabian or Latin, and all the muffins, cookies and sandwiches) allow them to count on an international exposure that has last for many years. Still, their business tends to be flattening. And the number of competitors in their core-business market, even if the competition stays way back them, is growing constantly. Considering these facts, the objective of Starbucks is to strengthen its leadership on the market. We were then approached by Starbucks in this particular goal. In this folder, you will find an entire analysis of the external environment of Starbucks Coffee Company: the macro-environment, the competitors and market and the stakeholders’ expectations will lead to being aware of opportunities and threats. Then, we went on the study of the internal capabilities: the resources and competences, the sustained competitive advantage and the diagnosis of strategic capability that will permit us to define Starbucks’ strengths and weaknesses. [Thus, owing to the results obtained, we endeavour to recommend Starbucks some...

Words: 285 - Pages: 2

Premium Essay

Pestle of Starbucks Corp

... 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 consumption...

Words: 1434 - Pages: 6

Premium Essay

Bcc Strategic Priorities

...SUMMERY This paper is focused on the case study of Black Canyon Coffee in 2003, a coffee company that started operating in 1993 in Bangkok. His Founder and managerial director Pravit C, wanted to enter the coffee market with a western style of coffee shop in Thailand one of the most important markets in Asia. The success of the company can be measured with the 78 outlets, 1000 staffs and with 15% to 20% average annual growth. Also BCC’S strategy has succeeded in Thailand, differentiation its business from competitors, offering a wide range of products and facilities to coffee lover. The company during 1993 and 2003 has developed its strategy based on the internal and internal analysis so the following paragraphs will summarized what makes BCC so special and how the company has survived even after the crisis that stroked Asia in 1997. And concluding with the current strategy priorities of the company with the main objective of leading the Thai and Asian market and expand the business to Middle East, Europe and the Americas. This report is divided in three parts that will analysis the current situation of BCC and its strategy, the first part covers the external environment analysis of the company, the second part is related to strengths and weaknesses and how the company is responding to the eternal environment and the third part concerns about BCC’S strategy priority. This analysis determines which goals the company should pursue in following years, founder Pravit strongly believe...

Words: 1590 - Pages: 7

Premium Essay

Starbucks Case Study

...MNGT2001 Business Strategy Starbucks Case Analysis Endang Abu Bakar 3171895 Dagamac Janelle Tan 3156283 Nguyen Dinh Duy 3158495 Le Duc Anh 3159239 Sutthisiriwattana Pimchanok 3175067 Ye Xintao 3156684 Tutor: Dr. Ha Huong Tutorial Group: A4 Table of content I. Introduction 1 II. Strategic Analysis 1 A. Macroenvironmental Analysis 1 1. Opportunities 2 2. Threats 2 B. Microenvironmental Analysis 2 C. Strategic Competitive Advantage 3 III. Strategic directions 3 A. Mission and Vision 4 B. Strategic Objectives 4 IV. Business Level Strategy 4 A. Differentiation 5 B. Market Penetration 5 C. Product Development 6 1. Seasonal Products 6 2. New Products 6 D. Other Strategies 7 V. International Strategy 7 VI. Strategic Implementation 7 A. General Perspectives 8 1. Strategy 8 2. System 8 B. Strategic Implementation Issues 8 1. Economic risk 8 2. Environmental risk 9 3. Global risk 9 VII. Strategic Evaluation 9 VIII. Recommendation 9 A. Financial 10 B. Customer 10 C. Internal processes 10 D. Learning and growth 10 VIII. Recommendation 11 IX. Conclusion 11 Reference 12 Appendix 13 I. Introduction Market conditions all over the world have fostered an evolution in modern business practice (Obstfeld...

Words: 4609 - Pages: 19

Premium Essay

Coffee Industry Strategy

...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. Therefore, coffee enterprises...

Words: 3103 - Pages: 13

Premium Essay

Starbucks Strategy Analysis

...24/05/2010 | | | | “Making your organisation fit for purpose” Starbucks Coffe Company is the world leading brand in roasting and distributing coffee. The company owns now more than 15 000 coffee shops around the globe: it is settled in North America, Latin America, Europe, Middle-East and Asia. The diversity and depth of its offer (from smooth to extra roasted coffee, African, Arabian or Latin, and all the muffins, cookies and sandwiches) allow them to count on an international exposure that has last for many years. Still, their business tends to be flattening. And the number of competitors in their core-business market, even if the competition stays way back them, is growing constantly. Considering these facts, the objective of Starbucks is to strengthen its leadership on the market. We were then approached by Starbucks in this particular goal. In this folder, you will find an entire analysis of the external environment of Starbucks Coffee Company: the macro-environment, the competitors and market and the stakeholders’ expectations will lead to being aware of opportunities and threats. Then, we went on the study of the internal capabilities: the resources and competences, the sustained competitive advantage and the diagnosis of strategic capability that will permit us to define Starbucks’ strengths and weaknesses. [Thus, owing to the results obtained, we endeavour to recommend Starbucks some new and relevant elements for the future strategic direction of the...

Words: 8423 - Pages: 34

Premium Essay

Starbuck

...Background 4 Starbucks in Global 4 Starbucks in Hong Kong 4 PESTEL Analysis 6 Political Factors 6 Economic Factors 6 Socio-cultural Factors 6 Technological Factors 7 Environmetal Factors 7 Legal Factors 7 Competitor Analysis 9 Competitive rivalry in industry 9 Starbucks vs McCafe 9 SWOT ANALYSIS 11 Strengths 11 Weaknesses 11 Opportunities 12 Threats 12 Objectives and Goals 14 Marketing Strategy 15 Market segmentation 15 Positioning 15 Market mix: 7P’s 16 Action Plan 18 Provide training to the staff 18 Increase 10% profit rate 18 Acquisition of outlets and warehouse space 18 Setting up supply channels 18 Recruit employees 18 Creating Brand Awareness through advertising via Social Media and Billboards 18 Create new series of limited edition products 19 Official launch 19 Promoting the Starbucks products to the restaurant, bar and convenient store 19 Customizing Products to cater to local customer tastes 19 Opening 18 branches in overseas 19 Conclusion 20 Appendix A 21 References 21 Introduction In this marketing plan, the background information of Starbucks is reviewed. Standard marketing analysis is applied to analyse the performance and opportunities of Starbucks in Hong Kong. Recommendations are given in the view of increasing the annual revenue by 10%. Background Starbucks in Global Starbucks Corporation, generally known as Starbucks Coffee, is an American global coffee company and coffeehouse...

Words: 5145 - Pages: 21

Premium Essay

Business Perspectives

...Business Success in the New Normal - Analysis Techniques Business Perspectives GB 500 December 2013 1.Organizations are directly influenced by the constantly changing external factors that directly and indirectly impact their business decisions and performance. Doing an analysis opens a portal to more informed decision making and plans, even if the future is not predictable. PESTLE is generally used in workshops, meetings or groups where collective information is being shared. It analyzes the social impact of external factors. Each letter in PESTLE represents a component of the external operating environment. They stand for Political, Economic, Socio-cultural, Technological, Legal and Eco-environmental. This analysis will lead to an assessment of external opportunities and threats. PESTLE analysis find out where the business or product is in the context of what is happening outside. In 2011 Starbucks conducted a PESTEL analysis, below are the findings: Political- 1) Industry explicit rules and regulations 2) the level of relationships between USA and countries that produce coffee beans 3) level of political stability within a country Economics – 1) Buying Power of consumers 2)Local currency exchange rates 3)Local economic environment within each market Starbucks operates 4) Taxation levels Social – 1)Changing family patterns in USA and Europe 2) Consumer preferences 3) Changing work patterns 4)Change in lifestyles of population...

Words: 1230 - Pages: 5

Free Essay

Strategy

...• Subsidiaries: o Tazo Tea Company o Seattle’s Best Coffee o Torrefazione Italia o Ethos Water o Hear Music o Evolution Fresh • Key Executives: o Howard Schultz, Chairman, President and Chief Executive Officer o Cliff Burrows, President, Americas o John Culver, President, Starbucks Coffee China and Asia Pacific o Jeff Hansberry, President, Starbucks Channel Development and Seattle’s Best Coffee o Arthur Rubinfeld, President, Global Development o Michell Gass, President, Starbucks Europe, Middle East and Africa o Annie Young-Scrivner, Global Chief Marketing officer and President, Tazo o Troy Alstead, Chief Financial Officer, Chief Administrative Officer o Paula Boggs, Executive Vice President, general counsel and secretary o Peter Gibbons, Executive Vice President, Global Supply Chain Operations o Stephen Gillett, Chief Information Officer, Executive Vice President, Digital Ventures o Kalen Holmes, Executive Vice President, Human Resources o Vivek Varma, Executive Vice President, Public Affairs o Mary Egan, Senior Vice President, Global Strategy Company Direction The company’s mission is “to inspire and nurture the human spirit, one person, one cup and one neighborhood at a time” (Starbucks.com, 2012). In order to stay true to their statement, Starbucks has always pursued the perfect cup of coffee by buying the best beans and roasting them perfectly. Starbucks’ management team has also paid enormous attention to customer satisfaction through employees’...

Words: 1051 - Pages: 5