Format: 19 Undertake A PESTLE Analysis of Your Business - Consider Both Domestic and International Factors If Applicable

FORMAT: 19
Undertake a PESTLE Analysis of your business – consider both domestic and international
factors if applicable
Current situation Likely changes in the future

Political  Starbucks need to follow rules and
 High taxation is been imposed on regulations of the government in the
farmers in the countries like brazil country where starbucks buys the raw
and columbia who produce coffee materials.
beans to starbucks which means  There has been regulatory pressures
that starbucks pay a higher price in the US itself so starbucks must
for coffee they purchase monitor the political stability within
 Trade restrictions also affects the country as well.
starbucks when exporting and
importing goods
Economic  A rise in interest rate results in fall  There might be a rapid increase in
in sales as investing and expansion labors cost in suppliers country which
plans are put off might affect the starbucks which
 If the growth is low in a particular leads to decrease in productivity and
country where there is a starbucks also employee turnover will be high
outlets then sales will immediately so starbucks must be aware of
fall then the consumer income will increase in labor cost.
also fall due to negative growth  The high economy growth of
 Starbucks is positioned as a developing countries and declining
premier and specialty coffee unemployment rates will create
house. This positioning impacts on opportunities for strabucks to gain
the pricing strategies of the more revenue from various markets
company. As the prices of its across the globe
products are generally high, many
people both in the developed and
developing countries may find it
hard to consume a cup of premium
coffee everyday due to their
financial limitations
Social Starbucks is highly dependent on upper  Starbucks aims to provide 100

class trend of buying from premium million trees to farmers by 2025 as
customer brands due to rise in part of commitment to one billion
consumeralism the nature of people coffee trees through the industry.
demand are highly volatile it may be Starbucks is taking intiative to
tough for brand to remain revelant remain support coffee farmers especially
unless the diversify their product range given that rising supply of coffee has
impacted the prices
 Starbucks can offer cheaper products
to customers it might have to
sacrifice the quality. Starbucks can
expand its customers base to middle
and lower income group people.
Starbucks has a huge opportunity to
increase the income of their company
because of increasing demand in
coffee as it can provide innovative
products to customer based on taste
and preference of the customers.
Technologic  The company has already  The company is introducing several
al introduced Wi-Fi capabilities in its new and improved benefits for its
outlets so that consumers can surf customers in US and canada where
the web and do their work while partners can subscribe to the app
sipping coffee. This is indeed an headspace for meditation and
added value to the Starbucks brand mindfulness due to increase in mental
and something, which enhances illness each year. So starbucks is
the consumer experience. committed in supporting its
 Mobile based online payment customers for a good mental health
methods have been enabled by and well being.
Starbucks to help ease the payment  We can expect mobile app and
process for customers. It is also payment to pay a much bigger role in
using the latest developments in future which leads to increasingly
agriculture to farm quality coffee digitalisation of world.
seeds in large quantities
Legal  These allegations by the customers

 Starbucks must ensure that it does will not affect the starbucks in near
not violate any laws and future but serious allegations
regulations in the home market regarding the quality of the product
and countries from where they buy may affect starbucks if it fails to
raw materials. maintain quality and customer
 In 2018 starbucks decided to close service.
almost 8000 cafes in US just to  starbucks has an opportunity to
reconnect with employees and improve its performance by satisfying
provide training on racism bias. product safety regulations and
There was also a accusations regulations on ingriedents from
against starbucks that customer generally modified organisms. There
sued starbucks for putting ice in are numerous regulations regarding
the iced drinks health and safety standards that the
company must abide.
Ecological  Starbucks is making stores as green
Starbucks customers create a lot of waste as possible by using building
as they often leave the shop with their cup materials and energy efficient designs
of coffee and then dispose of it in the to reduce environmental footprints
street. The packaging for this cup must be  They are trying to develop more
carefully considered to make it as environmental friendly cups and are
biologically degradable as possible. working hard to reduce the waste.
Certain other materials can be very
harmful to the natural environment

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FORMAT: 19

Current situation Likely changes in the future

Social Starbucks is highly dependent on upper  Starbucks aims to provide 100

Legal  These allegations by the customers

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