Pestle Analysis Of Starbucks

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1. CHOSEN COMPANY AND AREA
The company chosen for this analysis is Starbucks. This company was selected for its popularity and for being highly internationalized. Their products can be found virtually in every country around the world. Because of its global spread, the focused area for this analysis will be the United Kingdom.

2. UK PESTLE ANALYSIS
Political Factors:
The ways in which raw materials are acquired have changed to become a big political factor that directly influence businesses like Starbucks. In 2014 Starbucks image was damaged when the UK government revealed that, since the companies launch in the country, they did not pay corporate tax. In US the company also faced heavy scrutiny concerning an entirely different issue,
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Although, in recent years, Starbucks has opened more stores around the country. With the introduction of approximately 200 drive-in coffee shops in the UK, Starbucks allows consumers to purchase products at any time of the day. There are also pop-up shops for events or kiosks. Starbucks main focus is costumer experience. In their stores, customers can enjoy the comfortable and visually pleasing furniture, free Wi-Fi, Board information about the companies ' history and suppliers, etc. (Smith, 2014)
3.1. ANALYSE OF MARKETING
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Customers appreciate its ethical sourcing of raw materials and are happy to pay more for Starbucks products. Even though the company does not hold the first place in the UK market, which is held by Costa Coffee, they have acquired a strong customer base of students, as well as their normal target group of working class. Based on the findings from the Marketing Mix, Starbucks has successfully created value for their customers. (Shubber, 2015) They have succeeded in growing their cafes into experience and a place for people to meet to spend their time. In the recent years Starbucks has expanded their sales channels from cafes to smaller pop-up units inside shopping areas, bookstores, college campus and airports. They seem to be located where their trendy, traveling customers are. Many business people have taken Starbucks cafes as a place to either get their coffee to go, or a place to work while traveling or meeting

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