It attracted a lot of new customers, where they can work by sipping a hot cup of sweet coffee. Technological factors may help companies to reduce the number of barriers to entry a market or to minimize the intensity of a barrier. Thus, the technological external factors in this PESTEL/PESTLE analysis shows the importance of Starbucks products that effectively compete while addressing new and emerging technologies affecting the industry. If Starbucks utilizes the opportunities in a proper way, it will produce a massive profit for the company. The company is offering cheaper products with less quality to the price-conscious market, and premium products to the quality conscious customers. Also, the company can widen its array of more healthful products to attract health-conscious consumers to its coffeehouses and merchandise. The acronym stands for Political, Economic, Social, Technological, Legal, and Environmental factors. WebPESTLE analysis is a tool that is used to identify and analyse the key drivers of change in the strategic or business environment (De Costa, 2018). The PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand. The accurate execution of the developed plans will help Starbucks to reach to its target customers faster than their competitors and they will able to know the needs of their customers and to produce the products or services that will meet these needs before than their competitors. Weve updated our privacy policy so that we are compliant with changing global privacy regulations and to provide you with insight into the limited ways in which we use your data. Thus, the marketing unit of Starbucks is interrelated with other units of the organization. Starbucks is currently working with Apple to launch a mobile application for saving coupons. Starbucks has built approximately more than 31256 location points across the world and has made it a global brand since 1971. These activities can increase the production, sale and profit of Starbucks and can help them to be a competitive organization in the market. WebPESTLE Analysis of Starbucks in the UK. Operations of Starbucks: Starbucks is an America based coffee company and coffee chain. This analysis will list the 6 factors i.e. WebThis study will explain different marketing essentials of Starbucks with the help of SWOT analysis, PESTEL analysis and marketing mix of this company. 1970s The first Starbucks opens. Despite these opportunities, Starbucks faces threats linked to independent coffeehouse movements, which are sociocultural movements that favor small independent coffeehouses instead of large multinational chains. Free resources to assist you with your university studies! Starbucks started a new service of free and unlimited access to Wi-Fi in 2010. IndustryAnalysis. 
Market research and market analysis, these two marketing functions mainly have the responsibility to identify the needs of the customers, which are unfulfilled yet (Lehmann, 2017). West, D.C., Ford, J. and Ibrahim, E., 2015. Starbucks has started using the fuel-efficient tools to reduce greenhouse gas emissions. The interrelations of the marketing unit with another functional unit of Starbucks are represented below: Marketing and finance unit: Marketing and finance are so interrelated that the operations of one unit cannot be effective without others. A PESTEL/PESTLE analysis of Starbucks Coffee indicates that most of the external factors in the companys remote or macro-environment present opportunities. When the customer enters the store, the employee presents the menu card to him. Theyre out of the control of any company, but they have a great impact. 
After knowing these needs, they can produce the necessary products or services for satisfying these unfulfilled needs of the customers. Moreover, Starbucks can innovate to make its products more environment-friendly. For example, interest rates will affect the cost of capital and as a result the business grows and expands to a certain extent. For example, the company can increase the use of recyclable materials for packaging food products and other merchandise. This political external factor is a threat because it impedes the coffee companys business expansion, while possibly favoring local competitors that have extensive political connections. In this report, a complete marketing plan has been discussed. Following are some key elements that are significant for a company and its operations: Type of economic systems in different countries to operate, How efficient are the financial markets of a region, Exchange rate and how stable is the currency of host country, Government intervention at different times. By collecting customers feedback, it can learn its market strengths. Basically, PESTLE analysis is an extended form of PEST analysis. The Global recession has also made a huge impact on the sales of their premium coffees. Web20 Tax issues According to Mintel (2013c), Starbucks in the UK was emerging as the only company which had criticism about using the complex legal regulation of the European market to pay the income-tax less. Starbucks: In different popular places, Starbucks posted billboard, Kiosks, and lift let as well. They sell cups of coffee to its clients with their logo. Starbucks Corporation Report contains a full version of Starbucks PESTEL analysis. WebPESTLE The SWOT analysis for Starbucks is presented below: Sample Complete Report This is the sample complete report which will give you a glimpse of what your complete report will cover after purchase. In the pestle analysis of Starbucks, well study different macro-environmental factors like political, economic, socio-cultural, technological, legal, and environmental. Free Summary Report This report contains the table contents only. It would help the company to save time and other variable costs. Thus, the ecological factors in this PESTEL/PESTLE analysis show opportunities for strengthening Starbuckss corporate image based on the ecological impact of the business. For internal factors, checkout swot analysis of Starbucks Heres the pestle analysis of Starbucks; It can increase or decrease the purchasing power of customers and businesses. This component of the PESTEL/PESTLE analysis model refers to the economic conditions and trends that affect the coffee and food service business. Starbucks target market is affluent adults ages 18-40. It also makes it easier for the company to get the license and trade permission. Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Business strategy is a long term plan of action designed to achieve a particular goal or set of goals or objectives. The company exploited a great use of technology. An organization can make a SWOT analysis as a strategic course of action. This aspect of the PESTEL/PESTLE analysis framework shows the social conditions and trends influencing consumers and the coffeehouse business. Political environment: There are both advantage and disadvantage of the political environment and Starbucks is facing the same. The PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand. our group's presentation of Starbucks (Northumbria University - Newcastle Upon Tyne, UK). Besides, if UKs economic growth is good, it can have a positive effect on the business (Ayyagari, Demirg-Kunt and Maksimovic, 2018). Activate your 30 day free trialto continue reading. Starbucks: The company takes a reasonable price for using the high level of technology at the time of making coffee and tea (Pinar et al., 2016). The company also offers a home delivery service. Legal: Legal factors are comprised of equal opportunities, advertising standards, consumer rights and laws. Starbucks is a company which performs its marketing functions effectively can increase its sales, profit margin, can get a competitive advantage against its competitors and overall can achieve a strong position in the market. The two companies shared a common culture, focusing on a great commitment to customised coffee, similar company values and a mutual respect for people and the environment. Thats why trade laws and import taxes are very important to the company. Technological awareness has made it necessary for Starbucks to be politically involved. Starbucks is a multinational brand; and it has got hundreds of suppliers worldwide. We're here to answer any questions you have about our services. WebPESTLE The SWOT analysis for Starbucks is presented below: Sample Complete Report This is the sample complete report which will give you a glimpse of what your complete report will cover after purchase. You can read the details below. This threat is also identified in the SWOT Analysis of Starbucks Corporation. Marketing functions of Starbucks: Marketing functions refer to a set of interrelated actions which are performed by an organization for identifying the needs of the target customers of that organization, identifying proper offerings like products or services to fulfil the needs of the customers and making these offerings available for the customers (Weld, 2015). It is vital for Starbucks as it imports coffee beans from African countries. PESTLE Analysis of Starbucks examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental factors. Through proper planning for marketing and the accurate execution of the developed plans, Starbucks can ensure the chance of getting a competitive advantage better than its competitors. For the continuous growth and success of Starbucks and for remaining competitive in the industry, it is necessary for Starbucks to maintain all the units effectively because all the units are interrelated and the failure of one unit may create problems in other units. SWOT consists of four different trends and it stands for Strengths, Weaknesses, Opportunities and Threats. If the interest rate is high, then Starbucks has to analyse and make decisions accordingly . The report illustrates the application of the major analytical strategic frameworks in business studies such as SWOT, Porters Five Forces, Value Chain analysis, Ansoff Matrix and McKinsey 7S Model on Starbucks. Starbucks is an American multinational fast food and coffeehouse chain company. PESTLEAnalysis. Without the use of the human resource, the marketing functions of Starbucks like market research, market analysis and advertising cannot be possible. The primary operations of Starbucks are discussed below: The interrelation of the marketing unit with other functional units of Starbucks: Every business organizations have at least three or four units to perform their operations smoothly. The PESTEL/PESTLE analysis framework determines some of the most important external issues that the company must account for in its business strategies, to strengthen competitiveness against food service firms like Dunkin, Tim Hortons, and McDonalds McCaf, as well as consumer goods like Maxwell House from Kraft Heinz and Folgers from The J.M. It states that how businesses should be conducted to achieve the desired goals. Starbucks faces the following ecological/environmental external factors in its remote or macro-environment: The increasing availability of sustainable business processes is a trend that gives Starbucks the opportunity to enhance its sustainability standards and implementations. The firm sources much of its coffee beans from developing countries. Following are some factor that may influence a business or its products: To export a reference to this article please select a referencing stye below: If you are the original writer of this essay and no longer wish to have your work published on UKEssays.com then please: Our academic writing and marking services can help you! But the current COVID-19 pandemic and lock-downs all over the world has shook the company from its grounds. The main reason for this is the fact that it operates in the Food and Beverages space which means that despite the recession, consumers cut down on the consumption to a certain extent and not completely. These roles and responsibilities of marketing functions are explained below: Identifying market needs: The first and foremost role of the marketing functions of Starbucks is to identify the needs of the customers in the market. Marketing functions and mercantile organization. There are some other types of this analysis tool are PESTEL, STEEPLE, and STEEP. Dedicated to your worth and value as a human being! When our customers feel this sense of belonging, our stores become a haven, a break from the worries outside, a place where you can meet with friends. Starbucks follows the farmer equity protocol. If your specific country is not listed, please select the UK version of the site, as this is best suited to international visitors. The acronym stands for Political, Economic, Social, Technological, Legal, and Environmental factors. WebStarbucks - PESTLE ANALYSIS 1 of 20 Starbucks - PESTLE ANALYSIS Oct. 12, 2011 35 likes 184,448 views Download Now Download to read offline Business Technology Economy & Finance our group's presentation of Starbucks (Northumbria University - Newcastle Upon Tyne, UK) phongv Follow Advertisement Advertisement Recommended Starbucks Tuna Ta Disclaimer: This is an example of a student written essay.Click here for sample essays written by our professional writers. Tap here to review the details. WebPESTLE analysis is a tool that is used to identify and analyse the key drivers of change in the strategic or business environment (De Costa, 2018). In relation, responsible sourcing emphasizes corporate social responsibility, such as in Starbuckss supply chain. Corporate brand image and customer satisfaction on loyalty: An empirical study of Starbucks coffee in Taiwan. Costa: Costa coffee is spread all over the world with 3300 outlets in 31 countries and is mainly found in airports, malls and other premium places. Generation X and millennials are increasing. The company has several threats and opportunities as well. According to a report published by macrotrends.net, the annual profit of Starbucks is 23.518 billion dollars by the end of 2020. Web20 Tax issues According to Mintel (2013c), Starbucks in the UK was emerging as the only company which had criticism about using the complex legal regulation of the European market to pay the income-tax less. WebStarbucks - PESTLE ANALYSIS 1 of 20 Starbucks - PESTLE ANALYSIS Oct. 12, 2011 35 likes 184,448 views Download Now Download to read offline Business Technology Economy & Finance our group's presentation of Starbucks (Northumbria University - Newcastle Upon Tyne, UK) phongv Follow Advertisement Advertisement Recommended Starbucks Tuna Ta Starbucks is working on the latest biotechnology for the quick growth of the coffee plants. The legal factors in the PESTEL/PESTLE analysis model are laws and regulations that impose requirements on the coffee business. Utilizing the brand ecosystem framework in designing branding strategies for higher education. Most of the business profits are highly dependent on its coffee products, The company also facing an increasing number of competitors in this growing market, Starbucks is having less control over stores outside the US, Closing of a number of stores in different countries is giving hard time to the company, Protest from some environment protection groups or agencies is another problem, that the company is having in recent times, Advance technology options can be used for the business with a strong financial hold as compared to other names, Brand extension in global market would be a great opportunity for Starbucks, Co-branding with other manufacturers for different food items and drinks, may provide an opportunity to further expand the business and to capture some more share of the market, Launching of some new products in Asian countries looks attractive, Option to explore the market by introducing variety of products, The company may plan to offer some new products for its customers, The company may attract people with new packaging designs, As other business security is the key issue for Starbucks at different public places, New Competitors with better plans can be a huge threat to the company in these times, Volatile pricing of coffee in developing countries, Political and culture issues in foreign countries, Dissolving signs of potential coffee markets. If the identification of market needs goes wrong, then the rest of the works cannot be right. Political factors include government rules & regulations and other legal issue as well as both informal and formal rules, which the company has to follow. Threats identify what barriers a company can face, if the technology changes, either it will create a threat or not for its position, the company has any bad debts or not, the company has any quality standards problem or not. For example, when the govt. Here you can choose which regional hub you wish to view, providing you with the most relevant information we have for your specific region. WebThis detailed PESTEL analysis of Starbucks examines some of the macro-environmental factors that may impact on the operations of Starbucks globally. Because of technological advancement, people prefer to purchase coffee online, and technology is also needed for processing coffee. 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Market research and market analysis, these two marketing functions mainly have the responsibility to identify the needs of the customers, which are unfulfilled yet (Lehmann, 2017). West, D.C., Ford, J. and Ibrahim, E., 2015. Starbucks has started using the fuel-efficient tools to reduce greenhouse gas emissions. The interrelations of the marketing unit with another functional unit of Starbucks are represented below: Marketing and finance unit: Marketing and finance are so interrelated that the operations of one unit cannot be effective without others. A PESTEL/PESTLE analysis of Starbucks Coffee indicates that most of the external factors in the companys remote or macro-environment present opportunities. When the customer enters the store, the employee presents the menu card to him. Theyre out of the control of any company, but they have a great impact. After knowing these needs, they can produce the necessary products or services for satisfying these unfulfilled needs of the customers. Moreover, Starbucks can innovate to make its products more environment-friendly. For example, interest rates will affect the cost of capital and as a result the business grows and expands to a certain extent. For example, the company can increase the use of recyclable materials for packaging food products and other merchandise. This political external factor is a threat because it impedes the coffee companys business expansion, while possibly favoring local competitors that have extensive political connections. In this report, a complete marketing plan has been discussed. Following are some key elements that are significant for a company and its operations: Type of economic systems in different countries to operate, How efficient are the financial markets of a region, Exchange rate and how stable is the currency of host country, Government intervention at different times. By collecting customers feedback, it can learn its market strengths. Basically, PESTLE analysis is an extended form of PEST analysis. The Global recession has also made a huge impact on the sales of their premium coffees. Web20 Tax issues According to Mintel (2013c), Starbucks in the UK was emerging as the only company which had criticism about using the complex legal regulation of the European market to pay the income-tax less. Starbucks: In different popular places, Starbucks posted billboard, Kiosks, and lift let as well. They sell cups of coffee to its clients with their logo. Starbucks Corporation Report contains a full version of Starbucks PESTEL analysis. WebPESTLE The SWOT analysis for Starbucks is presented below: Sample Complete Report This is the sample complete report which will give you a glimpse of what your complete report will cover after purchase. In the pestle analysis of Starbucks, well study different macro-environmental factors like political, economic, socio-cultural, technological, legal, and environmental. Free Summary Report This report contains the table contents only. It would help the company to save time and other variable costs. Thus, the ecological factors in this PESTEL/PESTLE analysis show opportunities for strengthening Starbuckss corporate image based on the ecological impact of the business. For internal factors, checkout swot analysis of Starbucks Heres the pestle analysis of Starbucks; It can increase or decrease the purchasing power of customers and businesses. This component of the PESTEL/PESTLE analysis model refers to the economic conditions and trends that affect the coffee and food service business. Starbucks target market is affluent adults ages 18-40. It also makes it easier for the company to get the license and trade permission. Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Business strategy is a long term plan of action designed to achieve a particular goal or set of goals or objectives. The company exploited a great use of technology. An organization can make a SWOT analysis as a strategic course of action. This aspect of the PESTEL/PESTLE analysis framework shows the social conditions and trends influencing consumers and the coffeehouse business. Political environment: There are both advantage and disadvantage of the political environment and Starbucks is facing the same. The PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand. our group's presentation of Starbucks (Northumbria University - Newcastle Upon Tyne, UK). Besides, if UKs economic growth is good, it can have a positive effect on the business (Ayyagari, Demirg-Kunt and Maksimovic, 2018). Activate your 30 day free trialto continue reading. Starbucks: The company takes a reasonable price for using the high level of technology at the time of making coffee and tea (Pinar et al., 2016). The company also offers a home delivery service. Legal: Legal factors are comprised of equal opportunities, advertising standards, consumer rights and laws. Starbucks is a company which performs its marketing functions effectively can increase its sales, profit margin, can get a competitive advantage against its competitors and overall can achieve a strong position in the market. The two companies shared a common culture, focusing on a great commitment to customised coffee, similar company values and a mutual respect for people and the environment. Thats why trade laws and import taxes are very important to the company. Technological awareness has made it necessary for Starbucks to be politically involved. Starbucks is a multinational brand; and it has got hundreds of suppliers worldwide. We're here to answer any questions you have about our services. WebPESTLE The SWOT analysis for Starbucks is presented below: Sample Complete Report This is the sample complete report which will give you a glimpse of what your complete report will cover after purchase. You can read the details below. This threat is also identified in the SWOT Analysis of Starbucks Corporation. Marketing functions of Starbucks: Marketing functions refer to a set of interrelated actions which are performed by an organization for identifying the needs of the target customers of that organization, identifying proper offerings like products or services to fulfil the needs of the customers and making these offerings available for the customers (Weld, 2015). It is vital for Starbucks as it imports coffee beans from African countries. PESTLE Analysis of Starbucks examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental factors. Through proper planning for marketing and the accurate execution of the developed plans, Starbucks can ensure the chance of getting a competitive advantage better than its competitors. For the continuous growth and success of Starbucks and for remaining competitive in the industry, it is necessary for Starbucks to maintain all the units effectively because all the units are interrelated and the failure of one unit may create problems in other units. SWOT consists of four different trends and it stands for Strengths, Weaknesses, Opportunities and Threats. If the interest rate is high, then Starbucks has to analyse and make decisions accordingly . The report illustrates the application of the major analytical strategic frameworks in business studies such as SWOT, Porters Five Forces, Value Chain analysis, Ansoff Matrix and McKinsey 7S Model on Starbucks. Starbucks is an American multinational fast food and coffeehouse chain company. PESTLEAnalysis. Without the use of the human resource, the marketing functions of Starbucks like market research, market analysis and advertising cannot be possible. The primary operations of Starbucks are discussed below: The interrelation of the marketing unit with other functional units of Starbucks: Every business organizations have at least three or four units to perform their operations smoothly. The PESTEL/PESTLE analysis framework determines some of the most important external issues that the company must account for in its business strategies, to strengthen competitiveness against food service firms like Dunkin, Tim Hortons, and McDonalds McCaf, as well as consumer goods like Maxwell House from Kraft Heinz and Folgers from The J.M. It states that how businesses should be conducted to achieve the desired goals. Starbucks faces the following ecological/environmental external factors in its remote or macro-environment: The increasing availability of sustainable business processes is a trend that gives Starbucks the opportunity to enhance its sustainability standards and implementations. The firm sources much of its coffee beans from developing countries. Following are some factor that may influence a business or its products: To export a reference to this article please select a referencing stye below: If you are the original writer of this essay and no longer wish to have your work published on UKEssays.com then please: Our academic writing and marking services can help you! But the current COVID-19 pandemic and lock-downs all over the world has shook the company from its grounds. The main reason for this is the fact that it operates in the Food and Beverages space which means that despite the recession, consumers cut down on the consumption to a certain extent and not completely. These roles and responsibilities of marketing functions are explained below: Identifying market needs: The first and foremost role of the marketing functions of Starbucks is to identify the needs of the customers in the market. Marketing functions and mercantile organization. There are some other types of this analysis tool are PESTEL, STEEPLE, and STEEP. Dedicated to your worth and value as a human being! When our customers feel this sense of belonging, our stores become a haven, a break from the worries outside, a place where you can meet with friends. Starbucks follows the farmer equity protocol. If your specific country is not listed, please select the UK version of the site, as this is best suited to international visitors. The acronym stands for Political, Economic, Social, Technological, Legal, and Environmental factors. WebStarbucks - PESTLE ANALYSIS 1 of 20 Starbucks - PESTLE ANALYSIS Oct. 12, 2011 35 likes 184,448 views Download Now Download to read offline Business Technology Economy & Finance our group's presentation of Starbucks (Northumbria University - Newcastle Upon Tyne, UK) phongv Follow Advertisement Advertisement Recommended Starbucks Tuna Ta Disclaimer: This is an example of a student written essay.Click here for sample essays written by our professional writers. Tap here to review the details. WebPESTLE analysis is a tool that is used to identify and analyse the key drivers of change in the strategic or business environment (De Costa, 2018). In relation, responsible sourcing emphasizes corporate social responsibility, such as in Starbuckss supply chain. Corporate brand image and customer satisfaction on loyalty: An empirical study of Starbucks coffee in Taiwan. Costa: Costa coffee is spread all over the world with 3300 outlets in 31 countries and is mainly found in airports, malls and other premium places. Generation X and millennials are increasing. The company has several threats and opportunities as well. According to a report published by macrotrends.net, the annual profit of Starbucks is 23.518 billion dollars by the end of 2020. Web20 Tax issues According to Mintel (2013c), Starbucks in the UK was emerging as the only company which had criticism about using the complex legal regulation of the European market to pay the income-tax less. WebStarbucks - PESTLE ANALYSIS 1 of 20 Starbucks - PESTLE ANALYSIS Oct. 12, 2011 35 likes 184,448 views Download Now Download to read offline Business Technology Economy & Finance our group's presentation of Starbucks (Northumbria University - Newcastle Upon Tyne, UK) phongv Follow Advertisement Advertisement Recommended Starbucks Tuna Ta Starbucks is working on the latest biotechnology for the quick growth of the coffee plants. The legal factors in the PESTEL/PESTLE analysis model are laws and regulations that impose requirements on the coffee business. Utilizing the brand ecosystem framework in designing branding strategies for higher education. Most of the business profits are highly dependent on its coffee products, The company also facing an increasing number of competitors in this growing market, Starbucks is having less control over stores outside the US, Closing of a number of stores in different countries is giving hard time to the company, Protest from some environment protection groups or agencies is another problem, that the company is having in recent times, Advance technology options can be used for the business with a strong financial hold as compared to other names, Brand extension in global market would be a great opportunity for Starbucks, Co-branding with other manufacturers for different food items and drinks, may provide an opportunity to further expand the business and to capture some more share of the market, Launching of some new products in Asian countries looks attractive, Option to explore the market by introducing variety of products, The company may plan to offer some new products for its customers, The company may attract people with new packaging designs, As other business security is the key issue for Starbucks at different public places, New Competitors with better plans can be a huge threat to the company in these times, Volatile pricing of coffee in developing countries, Political and culture issues in foreign countries, Dissolving signs of potential coffee markets. If the identification of market needs goes wrong, then the rest of the works cannot be right. Political factors include government rules & regulations and other legal issue as well as both informal and formal rules, which the company has to follow. Threats identify what barriers a company can face, if the technology changes, either it will create a threat or not for its position, the company has any bad debts or not, the company has any quality standards problem or not. For example, when the govt. Here you can choose which regional hub you wish to view, providing you with the most relevant information we have for your specific region. WebThis detailed PESTEL analysis of Starbucks examines some of the macro-environmental factors that may impact on the operations of Starbucks globally. Because of technological advancement, people prefer to purchase coffee online, and technology is also needed for processing coffee. 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