PESTLE Analysis for Starbucks - By Jimit Patel

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PESTLE Analysis for Starbucks - By Jimit Patel

PESTLE Analysis for Starbucks
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Business environment of Starbucks

1. By Jimit Patel
PESTLE Analysis for
Presented by

2. Starbucks Corporation is an
American multinational chain of
coffeehouses and roastery
reserves headquartered in
Seattle, Washington. It is the
world's largest coffeehouse
chain. As of November 2021, the
company had around 33
thousand stores in 80 countries.

3. Political Economical Social
Technological Legal Environmental

4. POLITICAL
The other political imperative, which Starbucks faces, is the regulatory
pressures within its home market in the United States because of greater
scrutiny of the business processes that multinationals based in the US are
now subject to.
The political imperative that Starbucks
faces is the need to adhere to the
laws and regulations in the countries
from where it sources its raw
materials. This has been necessitated
because of activism and increased
political awareness in the developing
countries, which form the basis for
Starbucks’ sourcing strategies.

5. ECONOMICAL
Of course, the company still has to contend with rising operational and labor
costs as the inflationary macroeconomic environment coupled with the
falling profitability is squeezing the company from both ends of the
spectrum.
The foremost external economic driver
for Starbucks is the ongoing global
economic recession, which as explained
in the introduction has dented the
profitability of many companies.
However, studies have shown that
consumers instead of cutting down on
their coffee consumption are shifting to lower priced alternatives which is
an opportunity for Starbucks.

6. SOCIAL
As the demand of coffee is increasing,
which is due to a growing coffee culture
anda growing middle class around the
world, Starbucks can increase its
revenue.
Through providing health conscious
substances also they can increase their
sales.
But drifting of people towards other
drinks is threat for Starbucks.

7. Starbucks is in a good position to enjoy
benefits of the emerging mobile wave.
Its partnership with Apple to bring app
based discount coupons is helping it ride
the mobile wave easily.
They use Wifi capabilities in its outlet,
which increase their customer's
experience as the internet is too important
nowadays.
TECHNOLOGICAL
The company also has the opportunity to improve its supply chain efficiency
based on new technologies coffee farmers use.

8. LEGAL
Starbucks must ensure that it does not
violate any laws and regulations of any
country.
Product safety regulations
GMO regulations outside the United States
Introduction of stricter customs and trade
regulation
Increasing employment regulation
Licensing regulations related to the industry

9. ENVIRONMENTAL
International advocacy of natural products for preparing and serving coffee
and other product.
The climate condition also affects the production of coffee beans.
The business sustainability trend
focuses on business processes that
ensure minimal environmental impact.
Starbucks has opportunity to increase
its performance here.
Starbucks also has the opportunity to
offer more of its products in
recyclable packaging.

10. RESOURCES
https://www.managementstudyguide.com/pestle-analysis-of-starbucks.htm
https://pestleanalysis.com/pestle-analysis-of-starbucks/
https://www.edrawmax.com/article/starbucks-pestel-analysis.html
https://research-methodology.net/starbucks-pestel-analysis/
https://panmore.com/starbucks-coffee-pestel-pestle-analysis-
recommendations