CPA 117

Case Scenario 3 Starbucks- Module2
1. Industry: is a global café and coffee shop industry.P7p2
2. Value chain: P7
3. Industry life cycle
Global:

Mature

P7p8

Australia

Mature

P16p8

US:

Mature

P8p2

China:

Growth

4. PESTEL
Global
Technology



The development of coffee machine forecasting the expansion in the home-brew market, which has negative impact in the revenues of coffee shop. [F/-] P9p1

Economic



Global industry profitability has come under pressure from a variety of sources, including rising coffee prices. [H/-] P7p7
The world price of coffee has risen sharply in the past few years due to growing demand and supply shortages. [H/-] P7p7
Key retailers in the industry have experienced the rising cost in wages, electricity and insurance. [F/-] P7p8
As coffee is a non-essential product, it was one of the first and hardest hit products due to the GFC impact. [H/-] P8p3
Global market has matured, the demand and expectation of high-quality coffee has fuelled competition. [H/-] P7p8






Overall: The economic environment has a negative impact in this industry as the increasing cost and supply shortages.



Social




The industry has benefited from social trends
 Busier lifestyles
 Heavier work loads
 Longer working hours
These factors have boosted demand for ready-made food and have presented opportunities for cafes serving. [H/+]] P7p4
Public concern about health and nutrition has leading to increased scrutiny of the amount of fat, sugar and salt in foods. [H/-] P7p5
The consumption of coffee has shifted towards more expensive, premium blends of coffee. [H/+] P7p7

Overall: The social trends and demand from customers will have a positive impact to lead the whole industry focus on innovation to capture the growth opportunities.
Environment Adverse weather in some of the world’s primary growing areas has also placed a strain on supply. [F/-] P7p7
Political,