Economic Factors On Starbucks

IMPACTS OF ECONOMIC FACTORS ON STARBUCKS The ongoing global economic recession is the prime external economic driver for Starbucks. As I already mentioned, this factor dented the profitability of Starbucks. This has convinced buyers to shift to cheaper alternatives. As they did not quit buying coffee, Starbucks should seek an opportunity here.The company has to deal with rising labor and operational costs. The inflationary environment and falling profitability is causing a lot of stress. Some other economic factors which can affect Starbucks are:  Local currency exchange rates  Local economic environment in different markets  Taxation level IMPACTS OF SOCIO-CULTURAL FACTORS ON STARBUCKS As already stated, Starbucks can offer cheaper products
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Even the consumers have expressed issues. So, the company should take these into account to continue holding consumers’ trust. Some of the other environmental factors Starbucks should worry about are:  Environmental rules and regulations  Environmental disasters in countries which produce coffee beans  Global warming and other environmental issues in a global level IMPACTS OF LEGAL FACTORS ON STARBUCKS Starbucks must ensure that it does not violate any laws and regulations in the home market and countries from where they buy raw materials. It should also stay alert about introduction of caffeine production and consumption related policies and regulations by health authorities. Others factors that might affect the company are:  Introduction of stricter customs and trade regulations  Licensing regulations related to the industry. 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
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Howard is well aware that develop a business successfully involves not only make use of impactful marketing strategy but also emphasis on manage an efficient operation management system as well. This is Howard long-term vision and he aims to lead a small coffee shop to walk toward around the world. It shows Howard possesses the drive traits, is a leader who has a relatively high desire for achievement attitude in leading his business.
Based on the efficiency business plan and useful organization functional plan, it help Starbucks create a nearly monopoly in the coffee industry. First, set objective and charting the organization path is an extremely essential primary step to achieve organization objective.
Howard and his partner apply path-goal theory in manage employees which means the effective leader clarify the path to help their followers get from where they are to the achievement of their work goals and make the journey along the path easier by reduce roadblock and pitfalls. This highly efficiency service performance tend to retain highly satisfy and trusting customer to Starbucks.
Howard is a leader has a democratic style which involves their employees in decision making, always encourages employee's participation in deciding work methods and goals. It means, employees at different department are allows to have a say in what is improper