The Singapore government forecast that economic growth will probably drop to between 1 percent and 3 percent in 2012 from 5 percent this year. In order to ensure consumers continue to make sustainable choices, Starbucks needs to make sure that their sustainable products are high performing and cost efficient.
For Starbucks, sustainable development means adopting business strategies and activities to meet needs of the Starbucks and its stakeholders today while protecting, sustaining and enhancing the human and natural resources that will be needed in the future.
The PEST analysis given below provides the information of coffee industry’s current situation, problems and opportunities which Starbucks respond effectively in relations to the changes of the marco environment.
The economic segment is characterized by the general economic conditions in the non-controllable environment that the coffee industry operates in Singapore. Rents of retail spaces in Singapore continue to increase in the recent years. According to Department of Statistics Singapore, Year 2011 shows an increase in disposable income per capita. However, going forward, the economic outlook looks more uncertain, economists are not ruling out a technical recession for Singapore.
Singapore provides a friendly business environment to Starbucks due to its political stability. Government is encouraging entrepreneurship and also an open market that welcome all foreign investors. Starbucks is required to comply with the rules and regulations by Agri-Food & Veterinary Authority of Singapore (AVA) for importing their coffee beans.
The social factors focused on how the consumers exert forces on the... [continues]
Cite This Essay
(2012, 06). Starbucks Competitor Analysis. StudyMode.com. Retrieved 06, 2012, from http://www.studymode.com/course-notes/Starbucks-Competitor-Analysis-1036522.html
"Starbucks Competitor Analysis" StudyMode.com. 06 2012. 2012. 06 2012 <http://www.studymode.com/course-notes/Starbucks-Competitor-Analysis-1036522.html>.
- MLA 7
"Starbucks Competitor Analysis." StudyMode.com. StudyMode.com, 06 2012. Web. 06 2012. <http://www.studymode.com/course-notes/Starbucks-Competitor-Analysis-1036522.html>.
"Starbucks Competitor Analysis." StudyMode.com. 06, 2012. Accessed 06, 2012. http://www.studymode.com/course-notes/Starbucks-Competitor-Analysis-1036522.html.