Starbucks was founded in 1971 and has since expanded to over 17,000 stores globally. The document analyzes Starbucks using a PESTEL framework. It describes key milestones in Starbucks' history and growth. For each PESTEL factor - political, economic, social, technological, environmental, and legal - it outlines relevant issues and examples impacting Starbucks' business. The conclusion states that Starbucks must focus on corporate social responsibility and maintaining its brand image to ensure future success.

2. 10th October 2011

3. Team

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. 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

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
Our 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

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. 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.

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).

19. Many thanks for your attention

20. Q&A
P E S T E L