It is useful as strategic tool for understanding maket growth or decline, business position and direction for operations. This has convinced buyers to shift to cheaper alternatives. Starbucks, however, has taken the step a bit earlier by offering natural energy drinks and fresh handmade juices to the health-conscious customers. If the company does it, then it would have to lower its product quality. Starbucks follows the farmer equity protocol. Impacts of Political Factors on Starbucks, Impacts of Socio-Cultural Factors on Starbucks, Impacts of Technological Factors on Starbucks, Impacts of Environmental Factors on Starbucks, PESTLE Analysis: Business Environmental Analysis, SWOT Analysis for Restaurants Uncovers the Key to …, 3 Things to Do Before Launching an eCommerce …, Important drivers to Vietnam’s economic growth, Local economic environment in different markets, Changing family patterns in USA and Europe, The level of education of the population in local markets, Environmental disasters in countries which produce coffee beans, Global warming and other environmental issues in a global level, Introduction of stricter customs and trade regulations. It would help the company to save time and other variable costs. They can now surf the web and do work while sipping Starbucks coffee. Because a small increase in the exchange rate could cost the brand millions of dollars. I have divided and organized these issues according to the PESTLE factors. This joint venture also taught Starbucks to change its focus to the consumer-based retail coffee business. . The company introduced Wi-Fi capabilities in its outlets already. The factors are: In this article, I am discussing the PESTLE analysis of Starbucks. It was mainly due to the covid-19 pandemic and shut down of businesses. According to an estimate, the company is paying the amount of settle of approximately 18 million US dollars. The company is offering cheaper products with less quality to the price-conscious market, and premium products to the quality conscious customers. The key reason behind this might be because it operates in the Food and Beverages industry. As a result, the demand for coffee declines. The headquarters of this country is situated in Washington DC and it operates its business in different countries of the world. Multinationals based in the US are now subject to greater scrutiny of the business processes. Many other companies also followed the same trend later on. The headquarter of the company is situated in Seattle, Washington, USA. The main political factor is about sourcing the raw materials. Imports taxes on supplies of raw material and the exchange rate of different countries are a real headache to the company. It is an all-inclusive variant of the PEST method. Jerry Baldwin, Zev Seigl, and Gordon Bowker established Starbucks in March 1971. 1. These are the most obvious factors affecting the firm’s business. It is an extended version of PEST analysis. For this reason, the company wants to adhere to social and environmental norms. It was a great step for the company. It means the company should have to adopt new marketing strategies by targeting the younger generations. They also attempt co-branding and cross selling. Check out his videos on YouTube at https://www.youtube.com/c/shawaa If we analyze the earnings and profitability of the company from previous years, then it has decreased significantly. It should also stay alert about introduction of caffeine production and consumption related policies and regulations by health authorities. Precisely, ... but with regards PESTLE analysis example, I would cite an example of a real-life case study in which PepsiCo, a beverage giant carried out the PESTLE analysis over its brands. This means spending by older consumers will decrease. For instance, the annual revenue of Starbucks in 2019 was 26.509 billion US dollars, and in 2020 it is 23.518 billion US dollars. There’s one other option that Starbucks has chosen by offering two types of products to the customers. It will expand consumer base to include the buyers from the lower and the middle-income tiers. 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