Describes a framework of macro-
environmental factor used in the
environmental scanning component of
By understanding external environment
one can take advantage of opportunities
and minimize threat
Earlier tools and techniques for ‘Scanning the
Business Environment’ appears to be by Francis
J. Aguilar (1967) who discusses ‘ETPS’.
Thereafter, this(ETPS) or ‘environmental
scanning analysis’ was modified yet again to
become a so-called STEPE analysis.
The model has recently been further extended to
STEEPLE and STEEPLED, adding Ethics and
What is Macro
The conditions that exist in the economy as a
whole, rather than in a particular sector or region.
It represents forces that affect all firms across all
Van Der Heijden a scenario planner identifies
three types of uncertainty :
Health & safety law
Industry specific regulation
The model's factors will vary in importance to a
given company based on its industry and the goods
it produces. For example, consumer and companies
tend to be more affected by the social factors, while
a global defense contractor would tend to be more
affected by political factors
Issues of concern
The main problem with these external PESTLE factors
is that they are continuously changing. Analysis of what
is affecting the organization or a project Now, and
what is likely to affect it in the Future is important.
The analysis may be based on assumptions
that prove to be unfounded.
Collecting large amount of information may
make it difficult.
Established in 1971
It offers world’s finest fresh roasted whole bean
Total stores – 22519 in 67 countries
Mission – To inspire and nurture the human
spirit- One person, One cup and one
neighborhood at a time.
The main political factor is about sourcing the raw
The ongoing global economic recession.
The company has to deal with rising labor and
Local currency exchange rates
Local economic environment in different markets
Socio Cultural Factor
Changing family patterns
Changing work patterns
Changes in lifestyles of population
The level of education of the population in local
Changing values among population
Emergence of innovative technology
Developments in agriculture
Environmental rules and regulations
Environmental disasters in countries which
produce coffee beans
Global warming and other environmental issues
in a global level
Introduction of stricter customs and trade
Licensing regulations related to the industry.
Policies and regulations by health authorities.
Conclusion of Case
The PESTLE analysis above proves that
Starbucks has a quite stable external
environment. The key reason behind this might
be because it operates in the Food and
Beverages industry. This means consumers
might reduce consumption partially but will not
stop buying completely.
So, as recession is the most important factor,
Starbucks has to lower costs and increase the
value. This way it can retain its consumer base
and also gain consumer loyalty.