Starbucks - PESTLE ANALYSIS
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Starbucks - PESTLE ANALYSIS

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our group's presentation of Starbucks (Northumbria University - Newcastle Upon Tyne, UK)

our group's presentation of Starbucks (Northumbria University - Newcastle Upon Tyne, UK)

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  • http://news.starbucks.com/article_display.cfm?article_id=200
  • ( How much value does the money have) ( How much does lend money cost?, influenced by 1)Unemployment is, at this, moment, one of the most dramatic problems Spain (20.09%). Even if the Basque Country is the Autonomous Community with less unemployment (10.4%) this amount has growth dramatically in the last 2 years (unemployment in 2008 was just 3.8%) (INE, 2010). Unemployment is a threat for Starbucks since affects consumption in a negative way directly.  After showing a great performance in the last years, the Spain is struggling with the consequences of the current international crisis since 2008 (INE, 2010). Oscar Vadillo (2010)STARBUCKS Growing in the Spanish Market http://www.coursework4you.co.uk/essays-and-dissertations/pest-analysis.php
  • [1] http://www.starbucks.com/about-us/company-information/mission-statement; 06/10/11, 1118hrsDescription of factor, scope of research / presentationAnalysisShift of consumer demand from coffee to other beveragescompany / CSR / Mission Statement (src=http://www.starbucks.com/about-us/company-information/mission-statement)GoalsachievementsindustryExampleshttp://www.starbucks.com/responsibility/learn-more/goals-and-progress/community; 05/10/11,1449hrs
  • http://technorati.com/technology/article/new-starbucks-pay-by-phone-will/
  • http://www.starbucks.com/responsibility/environment
  • http://www.starbucks.com/responsibility/environment
  • http://www.politico.com/news/stories/0311/51727.html#ixzz1aOXYdpe9

Starbucks - PESTLE ANALYSIS Starbucks - PESTLE ANALYSIS Presentation Transcript

  • 10th October 2011
  • Team
  • ContentsI. Overview Starbucks -MilestonesII. PESTLE-Analysis • General Information • P – Political Issues • E – Economical Issues • S – Social Issues • T – Technological Issues • E – Environmental Issues • L – Legal IssuesIII. Conclusion
  • I. Company overview – Milestone (1)• Founded 1971 in Seattle‘s Pike Place Market• 1982: Howard Schultz becomes Director of Retail Ops; – Starbucks provides coffee to fine restaurants and espresso bars• 1984: First Starbucks Coffeehouse in Downtown Seattle• 1988: Full Health Benefits to employees• 1995: over 500 US-stores
  • Company Overview – Milestones (2)• 1998: starbucks.com• 2000: licencing agreement with TransFair USA to sell Fairtrade coffee in USA and Canada• 2009: East Africa Farmer Support Centre in Kigali /Rwanda; Social Engagement to save lives in Africa• 2010: Asia Farmer Support Centre in Yunnan, China• Total Stores: approximetely 17,000
  • II. PESTEL ANALYSIS Economical Political SocialTechnological Legal Use: Measuring the organization’s goals against influences and Environmental demands of environment
  • 1. Political issues - Issues: Stability of political environment, law, taxes, policies on economy, trading agreements, government’s view on culture and religion, terrorism  Example: Hong Kong, Thailand
  • 2. Economical issues The level of inflation. Interest rates. Income per capita. Long-term perspectives for the economy.  Stabilization  Unemployment rate
  • 3. Social issuesOur Mission: to inspire and nurture the human spirit– one person, one cup and one neighborhood at a time.Goals: -Continious Improvement of Quality External Stakeholder (Customer) Satisfaction -„Business Endurance and thrive― -Ethical Sourcing Raising living standards in Production Areas
  • Social issues (2) Goals: -Promotion of Diversity and Respect  Internal Stakeholder Satisfaction -Integrating into the community (environment-orientated goals) -Responsibility „to be good neighbours― -Connection between value chain (suppliers, partners, customers) and community -Everyday contribution through positive action -Success in Business (organization-orientated goals)
  • Social issues (3) - Critizism  Defense Genetically modified - Fair Trade support ingrdients • LESS THAN 10% OF TOTAL Implications: PURCHASES!!! Financial - Only traditional Moral brewing Legal - Blaming on US Loss of reputation legislation
  • 4. Technological issues• Technology has been played a vital role in Starbucks  Example:  Starbucks card  Starbucks Pay-By-Phonehttp://www.techhog.com/featured/app-review-my-coffee-card-vs-starbucks-for-android/
  • 5. Environmental issues Recycling: Recycling in Stores, Reusable cups, Greener Cups. Composting of coffee ground. Energy:Reduce energy consumption by 25% by 2010. Purchase renewable energy equivalent to 50% of the electricity used by 2010 Water: continue to include water-saving technology in our equipment specifications and going to reduce water consumption by 25% by 2015
  • Environmental issues (2)  Green Building:create a system to certify retail stores and store prototypes.Beginning in December 2010, build all new, company-owned stores to achieve LEED® certification  Climate Change: implementing a climate change strategy since 2004, focusing on renewable energy, energy conservation, and collaboration and advocacy. ensure a long-term supply of high-quality coffee through responsible coffee purchasing practices and by investing in farmers and their communities. Source: Starbucks USA Homepage
  • 6. Legal issues Employment law: working time, age, minimum wage rate, etc. - Ex: Starbucks CEO’s announcement that he’s cutting his own salary from $1,2 million to $ 10.000 per year (Shawvalenza.blog, 2009) Health and safety regulations - Ex: Starbucks spend more on health insurance — $250 million — surmount its coffee bill (Chief executive Howard Schultz, 22/03/2011) Consumer protection: - Ex: Starbucks pay $225.000 to settle Consumer Protection case for gift card violations. (Santa Rosa, CA , 2009) - Ex: Stored-valued card: this is a prepaid card offer by Starbucks.
  • III. CONCLUSION Politics: Starbucks concerns about political issues in different countries Economics: constantly growing; raising market capital since 2009 (28bn USD, share value: 40,86 USD). Sales decline due to econ. crisis Society: Non-conformance with aims, loss of image and credibility Technology: state of the art tech. equipment integration in business processes Environment: focus on producing green products, conducting environmental campaign, climate change Law: favourable employee conditions, reasonable proportion of wages, consumer protection Adequate marketing activities essential for future development,focus on CSR and company image among the customers
  • References Oscar. V. (2010) Starbucks growing in the Spanish market, Oscarvadillo, [Online]. Available at: http://www.google.com.vn/url?sa=t&source=web&cd=1&ved=0CBkQFjAA&url=http%3A%2F%2Fwww.osca rvadillo.info%2Fuploads%2F6%2F5%2F2%2F6%2F6526599%2Fstarbucks_growing_in_the_spanish_market .pdf&rct=j&q=Oscar%20Vadillo%20(2010)STARBUCKS%20Growing%20in%20the%20Spanish%20Market% 20%09&ei=hVKTTsSnLsap8QPuouBB&usg=AFQjCNF37GL3TKwwHj0Qp5r5E1XSIyvT7g&cad=rja (Accessed: 09 October 2011). Oxford University Press (2010) PESTEL analysis of the macro-environment, Oxford University Press, [Online]. Available at: http://www.oup.com/uk/orc/bin/9780199296378/01student/additional/page_12.htm (Accessed: 10 October 2011). Politico (2011) ‘Starbucks CEO rethinks health law position, Politico, [Online]. Available at: <http://www.politico.com/news/stories/0311/51727.html#ixzz1aOXYdpe9> (Accessed: 09 October 2011). Starbucks (2009) ‘Annual report, Starbucks, [Online]. Available at: <http://media.corporate- ir.net/media_files/irol/99/99518/SBUX_AR.pdf> (Accessed: 10 October 2011). Starbucks (2011) ‘Facts about Starbucks in Middle East, Starbucks, [Online]. Available at: < http://news.starbucks.com/article_display.cfm?article_id=200> (Accessed: 09 October 2011). Starbucks (2011) ‘Mission Statement, Starbucks, [Online]. Available at: < http://www.starbucks.com/about- us/company-information/mission-statement> (Accessed: 09 October 2011). Starbucks (2011) Responsibility, Starbucks, [Online]. Available at: < http://www.starbucks.com/responsibility/environment> (Accessed: 09 October 2011). Technorati (2011) ‘Starbucks pay-by-phone, Technorati, [Online]. Available at: <http://technorati.com/technology/article/new-starbucks-pay-by-phone-will/> (Accessed: 09 October 2011).
  • Many thanks for your attention
  • Q&A P E S T E L