The Pest Analysis Of The Pestle Analysis For Starbucks

The consumer preferences is a guide for Starbucks to make changes and adjustments to their products and services. Cultural trend is a double-edged sword. It impacts the company in both positive and negative ways. For example, if the cultural trend shifts to a healthier, less caffeine consuming diet, it will affects Starbucks’ sales. If the cultural trend changes to a coffee-consuming trend, this will highly boosts Starbucks’ sales.

This tool has helped Starbucks to find out where it lacks and what the reasons behind loss of customers are. By giving a lot of value to customer feedback Starbucks is able to mend its ways of working. It focuses on the suggestions and negative feedback of its customers so as to improve in the areas in which it lacks. Starbucks has always given more value to its customers because they understand that they are worth nothing without their customers. The CRM tool allows them to reduce costs which bother the customers.

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.

It will generate a significant social cost and thus is seen as illegal. Therefore, government regulator needs to examine closely and review it competition law to prevent any of such anti-competitive practices from occurring. Ethical Principles The actions of Starbucks are deemed to be unethical or ethical from the utilitarian benefits and self-interest theories. Utilitarian Benefits

Legal factors include discrimination law, consumer law, antitrust law, employment law, and health and safety law. These factors can affect how a company operates, its costs, and the demand for its products. The government legislation and policies have a direct impact on the performance of the organization. For example the legislation that introduced a new tax on advertising highly processed and fatty foods.

Ever since the Great Depression, the minimum wage has been in effect — in order to reduce poverty and solidify that employees are paid a reasonable sum. Although the minimum wage can be beneficial and advantageous for individuals and to our economy as a whole, it can also be detrimental to our nation’s finances. The federal government should not allow this to pass, but rather they should increase the citizens’ knowledge of the pernicious consequences and complications that will arise with a higher minimum wage, especially one as high as $15 per hour. Some of the resulting conflicts that will occur if this possible raise in the federal minimum wage takes effect are: job loss, business failure, higher consumer prices, and a lower demand for uneducated employees. Although it may appear as if increasing the federal minimum wage will help to lift families out of poverty, in

New entrants have ability against Calm Coffee because of the affordable costs of operation business and supply chain development. However, new entrants are difficult that to established brands completely like Calm Coffee because it is very expensive to develop a strong brand. So, this part of the 5 Forces analysis indicates that the threat of new entrants should put on a secondary priority in Calm Coffee’s

Rising prices of coffee beans and dairy products. Health conscious consumers Cases over illegal use of the Starbucks trademark Recommended Solutions / Actions Starbucks’ product pricing is expensive compared to their competitors. They should reduce their product prices by using cheaper beans to produce new type of coffees. Starbucks can offer promotions and special discounts to their customers as well. Such as buy one free one, or buy one and get 50% off for the second cup.

Corporate Social Responsibility Review Report on Starbucks and Second Cup Presented BY: SUBMITTED TO: Daljeet Grewal Wendy Thompson Harmesh Kaushal Navneet Kaur Rajinder Kaur Substance Introduction 2 Issues of espresso industry 2 CSR Priorities and Policies of Starbucks: 2 Target Analysis of Starbucks 2 Proposals for Starbucks 2 CSR needs and arrangements of Second Cup 2 Target investigation of Second Cup: 2 Proposals for Second Cup: 2 Individual statements 2

In this case, monitoring expenses incurred on promotional and marketing strategies remain vital in ensuring positive results are acquired. Improving on this ensures the company retains long-term business viability as a mechanism to increase profit margin. The contemporary orientation of Pepsi marketing focuses on customer-oriented marketing strategies and thus improvement is required for the company to focus on competitor-oriented marketing strategies. The adoption of the two marketing approach would enable the company to earn the loyalty of the customer and out-doing the competitor

Less people are preparing food because they believe it is easier for them to just buy processed food and they do not want to consider the negative effects it could have on them. Pollan provided valid points in his support to prove that his claim is