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Starbucks Environment Factors

In: Business and Management

Submitted By tcjohns98
Words 1277
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Starbucks is an internationally known coffee shop that started in Seattle, Washington. Starbucks’ first international coffeehouse opened in Tokyo back in 1996, and it has grown in popularity in 59 additional countries. Since Hawaii is the only state in America able to grow coffee beans (The Huffington Post, 2013), Starbucks relies heavily on fair trade coffee beans to fulfill the coffee cravings millions of people have every day. Fair trade ensures the coffee beans are grown and harvested by international employees who responsibly grown and ethically trade beans. By 2015, Starbucks wants to ensure 100% of their coffee is ethically sourced, an increase from 86% in 2011 (Starbucks, n.d.).
Europe is one the 60 countries Starbucks operates in, and is the number one coffee consuming country (Ferdman, 2014). As an international company, Starbucks must follow trade practices and agreements for every country it resides in. Starbucks has several coffee shops in Europe, but the stores fail miserably compared to those in America and Asia. The coffee shop culture in Europe is extremely different. Americans commonly use coffee shops as a place to access the internet, business, or quickly grab a drink before work. Most of Starbuck’s profits come from grab-and-go customers (Alderman, 2012). Europeans use coffee shops as a place to relax and socialize. Coffee shops in Europe are usually up-scale establishments where people can relax. European Starbucks are attempting to appeal to the taste of locals after realizing the Americanized coffee shop is not desirable.
Unlike in Europe, Starbucks is surprisingly doing well in China. Market research determined appealing to the local taste is necessary to survive as a company in China. China, like Europe, does not generally follow the grab-and-go culture. Instead, the Chinese sit and drink tea over a friendly conversation.…...

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