The document provides a PESTLE analysis of Starbucks, summarizing key milestones and examining political, economic, social, technological, environmental, and legal issues affecting the company. It outlines Starbucks' growth since 1971 and goals around quality, ethics, and community. The analysis identifies issues like taxes, wages, and regulations in different markets. Starbucks aims to promote sustainability through recycling, energy reduction, and green building standards. The conclusion emphasizes the importance of marketing, corporate social responsibility, and maintaining a positive company image.
4. Contents
I. Overview Starbucks -Milestones
II. PESTLE-Analysis
• General Information
• P – Political Issues
• E – Economical Issues
• S – Social Issues
• T – Technological Issues
• E – Environmental Issues
• L – Legal Issues
III. Conclusion
5. 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
6. 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
7. II. PESTEL ANALYSIS
Use: Measuring
the organization’s
goals against
influences and
demands of
environment
Political
Environmental
Technological
Economical
Social
Legal
8. - Issues: Stability of
political environment,
law, taxes, policies
on economy, trading
agreements,
government’s view
on culture and
religion, terrorism
Example: Hong
Kong, Thailand
1. Political issues
9. 2. Economical issues
The level of inflation.
Interest rates.
Income per capita.
Long-term perspectives for the economy.
Stabilization
Unemployment rate
10. 3. Social issues
Goals:
-Continious Improvement of
Quality
External Stakeholder
(Customer) Satisfaction
-„Business Endurance and
thrive―
-Ethical Sourcing
Raising living standards
in Production Areas
Our Mission: to inspire and nurture the human spirit
– one person, one cup and one neighborhood at a time.
11. 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)
12. Social issues (3)
- Critizism
Genetically modified
ingrdients
Implications:
Financial
Moral
Legal
Loss of reputation
Defense
- Fair Trade support
• LESS THAN
10% OF TOTAL
PURCHASES!!!
- Only traditional
brewing
- Blaming on US
legislation
13. 4. Technological issues
• Technology has been played a vital role in Starbucks
Example:
Starbucks card
Starbucks Pay-By-Phone
http://www.techhog.com/featured/app-review-my-
coffee-card-vs-starbucks-for-android/
14. 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
15. 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
16. 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.
6. Legal issues
17. 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
18. 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).
( 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