Premium Essay

Starbucks Environment Factors

In: Business and Management

Submitted By tcjohns98
Words 1277
Pages 6
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.…...

Similar Documents

Premium Essay

Starbcuks

...A company must get to know about the targeted market environment before it decided to operate internationally. There are the macro-environment that affects Starbucks marketing decision, economic factors, socio-cultural factors, demographic factors, political factors, natural factors and also technology factors. Economics Factor Being a producer of first-rate and specialty coffees, Starbucks requires a market that able to withstand the demand for the coffee. Starbucks marketing decisions for an economy with high disposable income that leads to high quality of life country like US. It is an example of a developed country that has the high purchasing power and spending patterns which most of the citizen in US are willing to spend more in return for a quality product such as Starbucks coffee. It shown that economic factors affect the business function and largely alarm consumer purchasing power. This requires an important market research about economic and financial stability of a city before they move it in. http://www.ukessays.com/essays/marketing/internal-and-external-factors-affecting-starbucks-marketing-essay.php There are two economics factors that help a company to determine if the country would be a good market, which are the country’s industrial structure and income distribution. Country’s industrial structure is referring to industrial economy, raw material exporting economy or subsistence economy of a country. These show the employment, product and service needs......

Words: 916 - Pages: 4

Premium Essay

Environmental Factors

...Environmental Factors-Starbucks LaToya Mason MKT 421-Marketing March 26, 2012 Sheryl Joyner Environmental Factors All corporations both nationally and corporations must consider the mechanics of expansion. This factor is inclusive for the marketing plan to start. Organizations have to review the global landscape, and industry trends to determine if expanding to a global market would be the right choice for the organization. Other factors that needs to be considered is confirming the market niche, timing considerations and of course have a marketing plan for the campaign. Once a decision is made, the marketing strategy is determined by the political, economic, and cultural environment. The political environment will have a significant impact on a company’s international marketing activities (The Political Environment, 2012). So, the political climate in other countries must be monitored in order to ensure successful marketing internationally. The economic environment is part of the macroenvironment encompassing wealth, income, productivity, inflation, credit, and employment which will affect the company’s markets and opportunities (Economic Environment, 2012). All of these factors are considered in the economic environment. The cultural environment is best defined as institutions and other forces that affect a society’s basic values, perceptions, preferences, and behaviors (Cultural Environment, 2010). One company that has been success in both domestic and...

Words: 1225 - Pages: 5

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......

Words: 9092 - Pages: 37

Premium Essay

Starbucks: Environmental Factors

...Starbucks: Environmental Factors Dusti Snaith MKT/421 November 21, 2011 Creig Foster Starbucks: Environmental Factors Starbucks opened its first store in 1971 located in Seattle, Washington (Starbucks Corporation, 2011). The company quickly grew to the public company it is today. As of July 2011, Starbucks has more than 17,000 stores. With this growth has come environmental, social and ethical responsibility. Starbucks strives to continually do business in a socially, environmentally friendly, and ethically responsible way. Global & Domestic Environmental & Economic Factors Starbucks is affected by many high-level domestic and global environmental and economic factors. Making marketing decisions with these factors in mind help Starbucks succeed. Many people are suffering from job loss which has led to the loss of homes. Marketing in times of economic crisis needs to be sensitive to these situations. Starbucks is historically high priced, but since the economic crisis, they have made some pricing changes that help keep their customers. Starbucks is an international organization. Stock prices are falling and investors and lenders are increasingly conservative. As a publically traded company, Starbucks is required by law to disclose financial numbers. Investors are disappointed in falling sales and new investors are reluctant to buy stock. Starbucks is feeling the negative impacts of a down economy. Marketing in a down economy requires flexibility...

Words: 765 - Pages: 4

Premium Essay

Influence of Consumer Behavior on Business

...business Starbucks Corporation, based on Seattle, is the world’s largest coffeehouse with 20891 stores in 62 countries. (Starbucks- Annual report, 2012). From the very beginning, till 1971, Starbucks has been relentlessly trying to satiate customers thirst for high quality coffee with the touch of friendliness in its environment. Starbucks mission statement “To inspire and nurture the human spirit- one person, one cup, and one neighborhood at a time” also shows its commitment towards total customer experience rather than only a material taste of the coffee (Starbucks 2013). Throughout this whole report I tried to find out influence of consumers behavior over the activities of Starbucks. As the normal process of expansion Starbucks has expanded towards the South Asian region. On the basis of this initiative I assumed Starbucks would go further and invest in Bangladesh. And tried to analyze consumers’ behavior of Bangladesh and show its macro and micro factors’ influences over Starbucks present marketing practices. Starbucks SWOT analysis “SWOT analysis pursues and integrated approach that includes key variables from company and environment. The objective is the confrontation of the company’s internal strengths and its weaknesses, as well as, company-external business opportunities and threats in order to generate possible strategic options.” (Bohm, 2009, p.1) The SWOT analysis of Starbucks can......

Words: 3571 - Pages: 15

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......

Words: 2728 - Pages: 11

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......

Words: 1434 - Pages: 6

Premium Essay

Environmental Scanning

...Coffee Bean and Starbucks environmental scanning. Starbucks and The Coffee Bean are two of the most successful companies in there industry. They both provide some best coffee and tea to coffee drinkers. Both companies provide a very relaxing and classy environment for their clients to enjoy the smooth taste of their product. The Starbucks rich bold flavor was establish in Seattle WA. In 1971, while The Coffee Bean was establish in California in 1963. Environmental scanning is the process of which an organization uses to analyze and evaluate external and internal factors that affects their organization. When conducted effectively environmental scanning can help an organization understand whether or not the company is on right path to long term success. Environmental scanning also helps organization indentify the right skills and resources for each department within their company. The environmental scanning process requires a strategic strategy by management that includes the implementation of the SWOT the analysis. A detailed environmental analysis includes several factors: an evaluation of external and internal activities, understanding the latest and future business trends and identifying employees’ skills and knowledge to help the company to achieve its goals. The external factors for Starbucks and The Coffee Bean are very similar; they both includes external factors that focuses on what is causing change in the environment. The two external factors that both......

Words: 905 - Pages: 4

Premium Essay

Starbucks

...1.0 INTRODUCTION Name : Starbucks Corporation (NASDAQ: SBUX) Headquarters : Seattle, Washington, U.S. Employees : 176,000 in 2008 Revenue for 2008 : US$10.383 billion CEO : Howard Schultz (Founder of Starbucks coffeehouse) Starbucks Corporation is an international coffeehouse chain based in Seattle, Washington, United States. Starbucks is the largest coffeehouse company in the world, with 16,120 stores in 49 countries, including around 11,000 in the United States, followed by nearly 1,000 in Canada and more than 800 in Japan. Starbucks sells drip brewed coffee, espresso-based hot drinks, other hot and cold drinks, snacks, and items such as mugs and coffee beans. Through the Starbucks Entertainment division and Hear Music brand, the company also markets books, music, and film. Many of the company's products are seasonal or specific to the locality of the store. Starbucks-brand ice cream and coffee are also offered at grocery stores. Starbucks’ Italian style coffee, espresso beverages, teas, pastries and confections had made Starbucks one of the greatest retailing stories of recent history and world’s biggest specialty coffee chain. In 2003, Starbucks made the fortune 500. 1.1 BACKGROUND OF THE COMPANY 1.1.1 Era before Howard Schultz In 1971, three academics, English Teacher Jerry Baldwin, History Teacher Zel Siegel and writer Gordon Bowker opened Starbucks Coffee, Tea and Spice in Touristy Pikes Place Market in Seattle. The three were......

Words: 7365 - Pages: 30

Premium Essay

Strategic Management

...Table of Contents 1.0 Introduction 1 2.0 Introduction of Starbucks 1 3.0 Current situation and Performance 2 4.0 Strategic position 3 5.0 External Analysis 4 6.0 Internal Analysis and Core Competency 11 7.0 Current Strategic Choices 17 8.0 Appendices 18 1.0 INTRODUCTION Johnson, Scholes and Whittington (2006, p.9) defines strategy as, “strategy is the direction and scope of an organization over the long term; which achieves advantages for the organization through its configuration of resources within a challenging environment to meet the needs of markets and to fulfil stakeholders expectations. Strategic Planning is a management tool that guides an organization focus its energy, to ensure that members of the organization are working toward the same goals, to assess and adjust the organization's direction in response to a changing environment. In short, strategic planning is a disciplined effort to produce fundamental decisions and actions that shape and guide what an organization is, what it does, and why it does it, with a focus on the future. (Adapted from Bryson's Strategic Planning in Public and Non-profit Organizations). The Harvard Business School contended that strategy could be a potentially powerful tool for linking business functions and assessing a company's weaknesses and strengths in relationship to its competitors' strengths and weaknesses. This can be evaluated using various management analysis as such PESTLE, Porter’s Five Forces, SWOT, TOWS,......

Words: 1910 - Pages: 8

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

Free Essay

Mt302 Final Paper Unit 9

...organization. As a Starbucks employee for over two years I was able to identify many areas in which Starbucks applied various organizational behavior concepts in order to foster a positive work environment. Starbucks has successfully used three primary organizational behavior concepts in order to promote a positive work environment and strengthen the organization. These concepts include organizational culture, organizational motivation, and organizational structure. Implementing these concepts has not only created positivity and fostered a team environment between employees, but it has also created an environment where goals are reached, and customers are satisfied. One key component of Starbucks is the consistency both in product and service. Employees are friendly and customer oriented, and the standards for products held high. As an employee of Starbucks I was trained according to these standards, and new what would be expected of me as a customer service representative prior to being hired. Starbucks has applied the concept of organizational culture in order to foster consistency across the organization, no matter how many new stores open, or where they are located. Organizational culture is defined as a system of shared meaning held by members that distinguishes the organization from other organizations (Robbins, Judge, 2013). The organizational culture within Starbucks is very strong, and is maintained well by management and employees. Starbucks is a......

Words: 1591 - Pages: 7

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. ...

Words: 1787 - Pages: 8

Premium Essay

Marketing Planninb

... such as monitoring the marketing environment this can be done by market research. A SWOT analysis is an organized planning method used to evaluate the strengths, weaknesses, opportunities and threats involved in a project or in a business. The four elements that Starbucks marketing consist of are; product or service, place, price, promotion. When marketing a product or services there should be an established price that balances the other elements of the marketing mix. When setting a price, Starbucks must be aware of the customer supposed value for the product or service. There are various features of the marketing method for example: scanning the marketing environment, targeting strategy, segmentation and positioning. 1.2 The benefits and costs of a marketing orientation for Starbucks. The benefits of Starbucks is: quick services, making a profit, all partners receive Bean Stock, Pension Scheme, new products/services, quality (stable supply, fine bean coffee), takeaway cup/mug with personalized name , encourages referrals ,loyalty /rewards card and saves time and establishes trust with customers. Starbucks workers get to take home a pound of coffee beans each week or a box of other products, such as Tazo tea. They also get a 30% discount on Starbucks beverages and snacks. Whilst they are working, they can drink as many lattes as they want—most beverages are free for employees during breaks and lunchtime. The cost of Starbucks is: loyalty and rewards card,......

Words: 5747 - Pages: 23

Premium Essay

Starbucks Business Environment

...Foresight Exercise - W1 Assignment Company nominated: Starbucks Corporation (Starbucks) Outline what the Probable scenario might be in 3-5 years time. Then consider if you could predict the future by creating it; what would be the Preferred scenario? Outline what the gap between the two scenarios are and outline some strategies that could be used to bring the Probable outlook closer to your Preferred outlook, thereby gaining competitive advantage. The business environment is the internal and external conditions with legal, social, economical, political or technological character that affects the operation of organizations. Current Scenario: Starbucks Internal Environment: (based on 2008 to 2010 Starbucks’ information) * People: Highly trained Baristas. Employees are called “partners” and has power of making decisions at the stores * In 2009, the corporation had a significant restructure, review of stores portfolio (which included a closing of about 182 stores in 2010 and 659 in 2009), headcount reduction of non-store support, product waste reduction and stores labor efficiency. * Product & services: Launching and expansion strategy in 2009 of the “Seattle’s Best Coffee” coffee places and in 2010 the ready brew Starbucks VIA (instant coffee sold at Starbucks stores and grocery markets). There is a trends to keep launching on a quarterly basis new products, some of them different from coffee, such as Food (sandwiches, muffins, etc), and Tazos tea flavors ...

Words: 1089 - Pages: 5