Starbucks and Tim Hortons Nowadays, the number of coffee drinkers are increasing. As the demand for coffee grows, the number of coffee chains is also increasing. Of that, the representative coffee chains in North America are Starbucks and Tim Hortons. Starbucks has the highest brand awareness amongst the world coffee chains. It started in Seattle, the United State in 1971.
IMPORTANCE OF EXTERNAL FACTORS AFFECTING BUSINESS Business of the organization is affected by many factors. There are some internal and external factors influencing the business. There are many internal and external factors affecting the business environment. Internal factors are related to the SWOT analysis whereas the PESTLE analysis is used to measure the external factors affecting the business. These factors includes • Political • Economical • Sociological • Technological • Legal • Environmental Political JLR has a choice to start a setup in the china; the political situation of china is quite stable, which is a good sign for a business.
1) Sources of capital to be included when estimating Harry Davis’s WACC: The WACC is primarily used for making long-term investment decisions that is capital budgeting. The WACC should include the types of capital used to pay for long-term assets like as long-term debt, preferred stock and common stock. Short-term capital consists of account payable, accruals, short-term debts and note payable.
Political • Growing demand and supply shortage has increased world coffee prices. • Favorable advantage to accessing raw material through supplier relationships. • Fair-trade practices include its Coffee and Farmers Equity (C.A.F.E.) program among other fair trade policies and agreements. • Starbucks adheres to local, national and international government laws and policies and tightly control labour practices, avoiding scrutiny and negative imagery from being a large corporation. Economic • High industry sensitivity to the macroeconomic factors affecting disposable income, a main industry driver.
Some of these aspects are cultural trends, demographics, population analytics, age distribution, employment levels, income statistics, cultural and social conventions. High trends in social factors affect the demand for a company’s product and how that company operates. For example increase in the health consciousness may affect the demand of a company’s product. As the average obesity in adults is 60.8% and children of 31.1%, people are becoming more health conscious and there is an increased focus on people to keep fit. Nike has seen the benefits from this as they have been an increase demand for fitness and sports related shoes and
Consumer Reports magazine reports that Costco is the leader and is the preferred retailer in the opinion of the readers based on factors such as product quality, value, friendliness of store and staff, ease of returning items, and overall service. Costco was also considered the value leader by providing the best bang for the buck. Walmart, Sam’s Club, and Target fell below Costco’s ranking in terms of popularity and value for consumers (Keshner, 2010). Psychographic characteristics typically go beyond the external focus and are not as easy to quantify but do identify why consumers buy a particular product or service (All Business,
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
The organization I work for, Starbucks is highly diversified. In my opinion, Starbucks successfully employs each of the seven diversity components: “authentic leadership commitment, clear organizational communication, inclusive recruitment practices, long-term retention strategies, incorporating diversity into main work of the organization, diversity management metrics, and expansive external relationships” (CanÌas, Sondak 2014). With that being said, Starbucks could improve by incorporating diversity into main work of the organization. One way Starbucks proves their commitment to diversity is authentic by holding a diverse board of directors. Of the seven board members, three are women and one of these women is of an African descent.
Secondly, the geographic location of Starbucks’ target audience is the urban city of Malaysia, where Starbucks outlets are often regarded as the third location besides their home and workplace for urban professionals to work or to spend some downtime alone or with their peers. Teenagers would spend time at Starbucks as well for meet-ups with friends and as a place to study. Thirdly, there are several psychographic and consumer insights involved.
Starbucks was founded in 1971. They have 18.850 stores in more than 40 countries which makes them the first coffee specialty retailer in the world. They operate most of their stores having only 50 franchises (as of 2017) as to keep strict control over quality. The success of Starbucks is based on their unique value proposition. They offer customer the finest coffee produced by themselves, with strong commitment on creating a global social impact, served in stores that promote a welcoming and warmth sphere where everyone can feel “like home”.
Most of them in the UK and the US are using apple Co. products from iPod to the iPhone. 3. Factor Influence Apple’s Consumer Buying Behaviour 3.1 PSYCHOLOGICAL FACTORS 3.1.1 One of the major factors that influence consumer buyer behaviour is psychological factors. Psychological factors can be distribute into five categories, that is motivation, perception, learning ,beliefs and attitudes and this all can influence a person’s buying choices.
Describe three of the environmental influences an organization faces. Provide one example of each and describe how an organization is impacted, either positively or negatively, by each: There are five main external environment forces which can influence an organization (Ashim gupta, 2009). They are technology, competition, resources, consumers, and laws and regulations. I am going to discuss consumers, competition, and resources. The first environmental influence is customers.
are all the economic factors. The ability of people or purchasing power of Apple products is targeted from medium to high class. Economic factors effect Apple Company’s business process as Apple is recognized internationally. The products components that the company gets from foreign suppliers play an important role because of the exchange rates and currency differences.
These may be internal as well as external, the external ones particularly hard to gauge and hence their impact on the product or the organization comparatively uncertain to
INTRODUCTION Performance management Performance management is an important part of the company. Companies based on criteria set by the partner for evaluation, so that company manger can knows the performance of employees. Also make the partner aware of their position in the company, pragmatic to complete the work. Background of Starbucks Starbucks is the world’s largest multinational coffee chain.
