Starbucks, a key performer in the gourmet coffee sector and also in the specialty Eateries industry is segmented in the service industry. Starbucks was first introduced in Seattle, Washington USA in 1985, and then worldwide. Starbucks specialises in brewed coffee, hot chocolate, espresso – based drink, teas, frappuccinos and fruit smoothies. From 2008 onwards Starbucks owned over 16,226 stores worldwide, along with 11,434 stores located in the United States.
PESTLE analysis on Starbucks
The main challenges in the market environment that are likely to impact on the Starbucks brand would be as follows: The pestle aims to make a list of macro environmental factors impacting on your organisation. (Flexible, P et al 2005:105)
The political factors will consist of:
* The relationship between trading countries - Starbucks is one of the major exports of developing countries. Behind Oil, coffee is the second largest product in the world. As it is influential on the lives of people who are involved in coffee growing, trading and manufacturing. For those who are coffee growing it is absolutely vital they receive fair trade and price for their harvest in order to survive. * Political trends – in relation to civilizing and developing concerns towards coffee trading, there has been a political debate regarding this, and to generate relationships between developed countries. * Government policies- bringing in new initiatives for Starbucks can have an effect on their trading internationally. * Taxation- the government rising taxation can have a huge impact on Starbucks, this means Starbucks will be making less profit or to put their prices up.
* Due to the Global warming, Starbucks has taken under consideration of their management in production of raw materials as it could be disturbing the climate effect. This is where re-cycle cups are utilised to be environmentally friendly. * Therefore Starbucks has taken action by practicing a three year climate change Mitigation strategy as this is designed by purchasing renewable energy, focusing on energy conservation, and advocating for cooperative action. * To be environmentally friendly, Starbucks has bought 100% renewable energy certificates, balance 124million pounds of CO2. * They have been advance in buying new tools and machinery to be more energy efficient, also software is provided to all stores to control the energy consumption.
* Starbucks can to take under consideration the social aspects of their product or coffee, as coffee plays a significant role in people’s lives. * Demographic – “increasing average age via demographic change in many countries is reducing the market base” (Griffiths, A et al 2005:612) Where Target audience seemed to be more of young age group rather than the older age group. * Lifestyle patterns and changes – anti-obesity force is motivated on simple lifestyle and their food and drinks would have liked to be of low calories, people are less likely to purchase. * To create a better atmosphere, ‘idea’ stores are place in libraries and museum to sell their coffee with other products. * Ethnic and Religious difference – The same way many people look out for non-vegetarian and food that is not halal, coffee as a drink is associated similarly, where the coffee was tested in many religious places such as Mecca, they discovered that it was more of a “heretic” substance as much as wine was. Muslims used coffee as an intoxicant instead of wine. Therefore Starbucks could make their products suitable for all religions/cultures. * Increased in public awareness of corporate social responsibility....