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External and Internal Environment

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External and Internal Environment

Organizations normally operate in a network and are not entirely independent because of the several environments that influence their activities and actions. Some examples of internal and external factors are micro and macro environment that could influence Starbucks are; suppliers, competitors, customers, finances, economic, political, social, environmental, as well as legislation (Starbucks, 2010).

Starbucks’ home market is based in the United States which is critical in understanding the internal and external surroundings that impact the organization and its growth. Statistics indicates that coffee sales has grown by 20% percent each year and 18% of it is contributed to the 18 billion dollar coffee market in the United States. At the end of 2011, coffee shops were expected to exceed well over $50,000 (e-importz.com, 2012). With that said, the growth of coffee consumption and potential maturity of the American coffee market may have influenced overcapacity and may have intensified the organizations growth plan.

Tariffs and International Trade regulations has contributed to some of the environmental factors for Starbucks; due to high tariffs the company would be compromised, the ability to source quality coffee beans would affect Starbucks reputation, global sales, and competitiveness. Economical Influences pertains to the exchange rate, Starbucks import coffee, sugar, and milk; with a weaker currency the cost will eventually increase (Starbucks, 2010).

Reference

E-imports, (2011). Coffee Statistics [Online]. Available from: Retrieved, February 3, 2012. http://www.e-imporz.com/Support/specialty_coffee.htm

Starbucks ,(2010). Company Profile [Online]. Retrieved, February 3, 2012.

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