Starbucks Pestle Analysis

These people mentioned above are those who have been directly contributing something in order to help achieve or provide something to the company in form of capital, inventory, and efforts.
*Internal: Within the organization.
*External: Outside the organization.

1. Employees. Starbucks company considers employees as one of its top stakeholders. The employees are the workers who invest all their efforts, ideas, and time in order to bring the company towards its mission and goals. The employee management of the Starbucks company is known as one of the best among the companies. Giving a wide range of perks such as bonuses and health coverage for those who works for at least 20 hours a week is their strategy to motivate their employees. By having

Competitors. Competitors are also considered as stakeholders because they can directly or indirectly give impacts to company’s performance. In this case, the main competitors of Starbucks are Mc Donald’s and Dunkin’ Donuts. As stakeholders, competitors mainly target the customers of Starbucks company.

3.2.2. PESTLE Analysis on Components of the External Environment of Starbucks
Pestle analysis, which is sometimes referred as PEST analysis, is a concept in marketing principles. Moreover, this concept is used as a tool by companies to track the environment they’re operating in or are planning to launch a new project/product/service (Pestle Analysis [No date]).
1. Political Factors. Political factors determine the extent to which a government may influence the economy of a certain industry. Political factors include government policies, legislation, and foreign influences. In 2010, Kraft and Starbucks engaged in billion-dollar legal fight because Starbucks decided to end their 12-year contract. As a result, Starbucks would have to obey to the government’ rules and pay a huge amounts of money to Kraft (Reynolds, 2010).

2. Economic

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.

4. Technological Factors
Technologies are a major factor for Starbucks. The current technological factors that are affecting Starbucks company are the improvement of mobile applications and the rising availability of coffee machines for home use. The recent improvement of mobile applications allows Starbucks to add its payment option and also allows Starbucks to expand its distribution channel with the food delivery applications. The availability of coffee machines for home use is a big threat for Starbucks because it will decrease the necessity for people to go to Starbucks to buy good quality coffees.

5. Ecological/Environmental