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Pestel Analysis Of The Pestle Analysis On Starbucks

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PESTLE Analysis Political : Political factors internationally have effect on Starbucks businesses and their profits . Taxes to business environment is affected by politics, but the main political factor is about sourcing the raw materials and so it has gathered a lot of attention from politicians from the source countries. For the reason company wants to obey the social and environmental standards also there is a deep link between political and economic stability. More the politically stable the nation is the more economic environment. They also have tax policies and regulatory pressure on them. Aim is to take convenient decision on firm’s progress. Political decision affects the economic, social, environmental and technological issues Economic : The company has to deal with rising labor and operational costs. The inflation rate, Importing laws , Exchange rates and the Interest rates are the major economic factors which affects more. As Starbucks imports coffee from frequent countries they have to be aware of changing imports laws. And the Inflation rate affects a lot…show more content…
Strong brand identification or high capital requirements can minimize the threat for competitors. As a brand Starbucks holds very strong reputation in the market. For people Starbucks is like second home as when they get tired of being home or workplace they can sip a coffee there and feel relaxed, which can relate in a bad manner for the new entrants. For Starbucks the threat of new entrants is modest as they have their own standards that are very high to compete with by the other firm. Locally there are many other coffee shops that are developing. High capital requirements makes other firms suffer in the industry. This component needs high necessities for any other company for approaching in the competition with Starbucks. Barriers to success are high whereas entry barriers are
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