Political Factors Of Starbucks

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Part A. The primary externals influences to Starbucks PESTEL describes a framework of macro-environmental factors used in the environmental factors component of strategic management. PESTEL analysis includes some several factors: political, economic, social, technological, legal and environmental factors. This report analyzes the factors which have main impact on Starbucks. 1. Political factor Political factor is affected by the policies of local, national and international government. It looks at how government regulations and legal issues impact ability of company to be profitable and successful. It is also influenced by company policies and those of stakeholders, shareholders, managers, employees and trade unions. The checklist of issues of political factors include: tax policies, trade regulations, political stability, social and environmental policy, government and local government policies (Harrison, 2010). 2. Economic factor Economic factor examines the outside economic issues that can play a role in a company’s success. Economic factor has a significant influence on how company does business and how profitable they are. Items to consider include interest rate, exchange rate, economic growth, inflation, monetary policy, unemployment, income distribution, infrastructure costs and availability, consumer expenditure, foreign direct investment (Jeff, 2008). Economic factor impacts directly Starbucks performance through the income distribution in Vietnam market. The

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