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Starbucks Economic Factors

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Starbucks is a global company operating in coffee retail market since 1972 which sell premium coffee products. (Slide share) The first Starbucks opened in Seattle, Washington by three partners (Jerry Baldwin, Zev Siegl and Gordon Bowker). (Wikipedia) They were inspired by coffee roasting entrepreneur, Alfred Peet to sell premium coffee bean and equipment. (Wikipedia) The original owners sold the Starbucks chain to their former employee, Howard Schultz. (Wikipedia) Today, Starbucks is present in 66 countries and interiorities and has grown to become the world’s largest coffee house. (Wikipedia) Starbucks continue to lead the industry in sustainable business because of its ability to address the external factor such as social, economic and technological factor. (Panmore) Economic factor refer to the character and direction of the economic system within which the firm operates. (Reference for business) Economic …show more content…

(research-methodology) Starbucks was forced to pay more for its resources and increase its product price to cover these additional expenses during global financial crisis. But, Starbucks bear all the cost itself without increase the price because of the rise in interest rate and less spending power of customers in the market. (Academia) As a result, Starbucks forced to close 600 stores in July 2008. (page 151, Howard Schultz, 2011) After the 2008 financial crisis, Starbucks has to rebuild its customer relationship and show the world that it cared about quality and consistency. In March 2008, “My Starbucks Idea” was created for customers to exchange ideas with each other and directly with the company. It was able to reignite its brand trust by giving customers a chance to voice out their opinion on its brand and by responding to their opinions. (Business

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