In 1971 three partners Jerry Baldwin, Gordon Bowker and Zev Siegl opened up a small coffee shop called Pequod, but this name was rejected by some of the current stakeholders and renamed Starbucks.
Starbucks has since grown into a multinational super chain that occupies over 20,000 stores, across 61 different countries. The company’s main objective is to be the “worlds most recognized and respected brand across the globe”.
By working with this goal Starbucks has a strong, positive brand image, engaging customers with every sale, and making an impact on local communities, whilst expanding its product range and development to customers. Starbucks will have to improve their promotional methods as well as products in order to take control of more market share.
Environmental Analysis 2.0
Political issues 2.1a
Tariffs and International Trade regulations:
* Multinational companies such a Starbucks will still be affected as they operate in over 50 countries around the globe. * APEC, G20 and the CAIRNS Group for agriculture are aiming to find new methods in which they are able to reduce current tariffs * Importing from different countries. Thus effecting is sales around the globe.
* Introduce stores to the Middle East. They were then put under pressure to discontinue their sales due to disheartening boycotts.
* Rumor has caused for local economies and residents to lead violent situations involving their stores, employees and customers.
* Funding to the Israeli military for weapons against middle east.
Economical Influences 2.2a
* If the dollar falls due to an economic recession, effects such as rise in tariffs, (coffee beans, Sugar etc.) * Prices inflate thus affecting the consumers as extra costs may be added. * Customers may go to local competitor for cheaper more affordable coffee as they may source locally grown beans or cheaper quality product
Social Factors 2.3a
* Consumers want to see companies giving back to the environment. * Starbucks require all outside suppliers to meet their criteria to allow for sustainable development. * Starbucks has created partnerships with conservation international; Green teams in order to focus on protecting the planet and our living environment through waste reduction, company wide recycling, and energy and water conservation programs. * Starbucks were able to reduce their carbon Footprint of 1,006,954 Mtons in 2011 by 2.7% compared to that of 2011
Responsibly grown coffee
* 2009 Starbucks bought 367 million ponds of coffee. 80% (299) of this came from C.A.F.E Approved * Product Quality
* Economic Accountability
* Social Responsibility (Evaluated by Third Party)
* Environmental Leadership (Evaluated by Third Party)
* Starbucks Goal is to have 100% of their coffee certified or varied by an independent party by 2015. Fair Trade
* Help locally grown small-scale coffee farmers to increase their sales, through purchasing fair trade coffee beans. * Provides empowerment as they invest in farms and communities. * Starbucks has purchased over 40 million pounds meaning they are the largest purchaser of fair- trade coffee beans in the world. Technological Factors 2.4a
Starbucks and Apple
* Introducing a reward system that allows one to top up money as well as purchase Starbucks from ones iPhone or android * Free items based on their frequent visits and purchases. * Ecommerce
Legal Factors 2.5a
* Loop hole in UK law
* Starbucks pay 8.4 million in taxes over the past 14 years. * Other Firms may be discouraged from investing into the United Kingdom * Potential of being forced to pay non-obligated tax.
SWOT ANALYSIS 2.1b
Strengths: Internal / External
* Large Market share - 32%
* Takes advantage of opportunities
* Customer service