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10th October 2011
Team
Contents
I. Overview Starbucks -Milestones
II. PESTLE-Analysis
• General Information
• P – Political Issues
• E – Economic...
I. Company overview – Milestone (1)
• Founded 1971 in Seattle‘s Pike Place Market
• 1982: Howard Schultz becomes Director ...
Company Overview – Milestones (2)
• 1998: starbucks.com
• 2000: licencing agreement with TransFair USA to sell
Fairtrade c...
II. PESTEL ANALYSIS
Use: Measuring
the organization’s
goals against
influences and
demands of
environment
Political
Enviro...
- Issues: Stability of
political environment,
law, taxes, policies
on economy, trading
agreements,
government’s view
on cu...
2. Economical issues
 The level of inflation.
 Interest rates.
 Income per capita.
 Long-term perspectives for the eco...
3. Social issues
Goals:
-Continious Improvement of
Quality
External Stakeholder
(Customer) Satisfaction
-„Business Endura...
Social issues (2)
 Goals:
-Promotion of Diversity and Respect
 Internal Stakeholder Satisfaction
-Integrating into the c...
Social issues (3)
- Critizism
 Genetically modified
ingrdients
 Implications:
Financial
Moral
Legal
Loss of reputation
...
4. Technological issues
• Technology has been played a vital role in Starbucks
 Example:
 Starbucks card
 Starbucks Pay...
5. Environmental issues
 Recycling: Recycling in Stores, Reusable
cups, Greener Cups. Composting of coffee
ground.
 Ener...
Environmental issues (2)
 Green Building:create a system to
certify retail stores and store
prototypes.Beginning in Decem...
 Employment law: working time, age, minimum wage
rate, etc.
- Ex: Starbucks CEO’s announcement that he’s cutting his own
...
III. CONCLUSION
 Politics: Starbucks concerns about political issues in different
countries
 Economics: constantly growi...
References
 Oscar. V. (2010) 'Starbucks growing in the Spanish market', Oscarvadillo, [Online]. Available at:
http://www....
Many thanks for your attention
Q&A
P E S T LE
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  1. 1. 10th October 2011
  2. 2. Team
  3. 3. 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
  4. 4. 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
  5. 5. 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
  6. 6. II. PESTEL ANALYSIS Use: Measuring the organization’s goals against influences and demands of environment Political Environmental Technological Economical Social Legal
  7. 7. - 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
  8. 8. 2. Economical issues  The level of inflation.  Interest rates.  Income per capita.  Long-term perspectives for the economy.  Stabilization  Unemployment rate
  9. 9. 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.
  10. 10. 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)
  11. 11. 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
  12. 12. 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/
  13. 13. 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
  14. 14. 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
  15. 15.  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
  16. 16. 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
  17. 17. 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).
  18. 18. Many thanks for your attention
  19. 19. Q&A P E S T LE

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