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Transcript of starbucks
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Starbucks
Coffee Company
Macro- environmenta
l Analysis
10th October 2011
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Team
P. Nguyen,Li R., Ziqun L., M. SteinA. Le,
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Contents
I. Overview Starbucks -Milestones
II. PESTLE-Analysis
• General Information• P – Political Issues• E – Economical Issues• S – Social Issues• T – Technological Issues • E – Environmental Issues• L – Legal Issues
III. Conclusion
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I. Company overview – Milestone (1)
• Founded 1971 in Seattle‘s Pike Place Market
• 1982: Howard Schultz becomes Director of Retail
Ops;
– Starbucks provides coffee to fine restaurants
and espresso bars
• 1984: First Starbucks Coffeehouse in Downtown
Seattle
• 1988: Full Health Benefits to employees
• 1995: over 500 US-stores
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Company Overview – Milestones (2)
• 1998: starbucks.com
• 2000: licencing agreement with TransFair USA to
sell Fairtrade coffee in USA and Canada
• 2009: East Africa Farmer Support Centre in
Kigali /Rwanda; Social Engagement to save lives
in Africa
• 2010: Asia Farmer Support Centre in Yunnan,
China
• Total Stores: approximetely 17,000
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II. PESTEL ANALYSIS
Use: Measuring the organization’s goals against influences and demands of environment
Political
Environmental
Technological
Economical
Social
Legal
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- Issues: Stability of political environment, law, taxes, policies on economy, trading agreements, government’s view on culture and religion, terrorism
Example: Hong Kong, Thailand
1. Political issues
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2. Economical issues
The level of inflation.
Interest rates.
Income per capita.
Long-term perspectives for the economy. Stabilization Unemployment rate
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3. Social issues
Goals:- Continious Improvement
of Quality External Stakeholder (Customer) Satisfaction
- „Business Endurance and thrive“
- Ethical SourcingRaising living standards in Production Areas
Our Mission: to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.
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Social issues (2)
Goals:- Promotion of Diversity and Respect
Internal Stakeholder Satisfaction
- Integrating into the community (environment-orientated goals)
- Responsibility „to be good neighbours“- Connection between value chain (suppliers,
partners, customers) and community- Everyday contribution through positive action
- Success in Business (organization-orientated goals)
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Social issues (3) - Critizism
Genetically modified ingrdients
Implications:FinancialMoralLegalLoss of reputation
Defense- Fair Trade support• LESS THAN
10% OF TOTAL PURCHASES!!!
- Only traditional brewing- Blaming on US legislation
“A reputation is a lot easier
to lose than it is to gain“[3]
Labelling of such contents
now obligatory in Europe –
but still
not in the USA
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4. Technological issues• Technology has been played a vital role in Starbucks
Example:
Starbucks card
Starbucks Pay-By-Phone
http://www.techhog.com/featured/app-review-my-coffee-card-vs-starbucks-for-android/
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5. Environmental issues
Recycling: Recycling in Stores, Reusable cups, Greener Cups. Composting of coffee ground.
Energy:Reduce energy consumption by 25% by 2010. Purchase renewable energy equivalent to 50% of the electricity used by 2010
Water: continue to include water-saving technology in our equipment specifications and going to reduce water consumption by 25% by 2015
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Environmental issues (2) Green Building:create a system to
certify retail stores and store prototypes.Beginning in December 2010, build all new, company-owned stores to achieve LEED® certification
Climate Change: implementing a climate change strategy since 2004, focusing on renewable energy, energy conservation, and collaboration and advocacy. ensure a long-term supply of high-quality coffee through responsible coffee purchasing practices and by investing in farmers and their communities.
Source: Starbucks USA Homepage
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Employment law: working time, age, minimum wage rate, etc.
- Ex: Starbucks CEO’s announcement that he’s cutting his own salary from $1,2 million to $ 10.000 per year (Shawvalenza.blog, 2009)
Health and safety regulations - Ex: Starbucks spend more on health insurance — $250
million — surmount its coffee bill(Chief executive Howard Schultz, 22/03/2011)
Consumer protection: - Ex: Starbucks pay $225.000 to settle Consumer
Protection case for gift card violations. (Santa Rosa, CA , 2009)
- Ex: Stored-valued card: this is a prepaid card offer by Starbucks.
6. Legal issues
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III. CONCLUSION Politics: Starbucks concerns about political issues in different
countries Economics: constantly growing; raising market capital since 2009
(28bn USD, share value: 40,86 USD). Sales decline due to econ. crisis Society: Non-conformance with aims, loss of image and credibility Technology: state of the art tech. equipment integration in business
processes Environment: focus on producing green products, conducting
environmental campaign, climate change Law: favourable employee conditions, reasonable proportion of
wages, consumer protection
Adequate marketing activities essential for future development, focus on CSR and company image among the customers
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References Oscar. V. (2010) 'Starbucks growing in the Spanish market', Oscarvadillo, [Online]. Available at: http://www.google.com.vn/url?sa=t&source=web&cd=1&ved=0CBkQFjAA&url=http%3A%2F%2Fwww.oscarvadillo.info%2Fuploads%2F6%2F5%2F2%2F6%2F6526599%2Fstarbucks_growing_in_the_spanish_market.pdf&rct=j&q=Oscar%20Vadillo%20(2010)STARBUCKS%20Growing%20in%20the%20Spanish%20Market%20%09&ei=hVKTTsSnLsap8QPuouBB&usg=AFQjCNF37GL3TKwwHj0Qp5r5E1XSIyvT7g&cad=rja (Accessed: 09 October 2011).
Oxford University Press (2010) 'PESTEL analysis of the macro-environment', Oxford University Press, [Online]. Available at: http://www.oup.com/uk/orc/bin/9780199296378/01student/additional/page_12.htm (Accessed: 10 October 2011).
Politico (2011) ‘Starbucks CEO rethinks health law position', Politico, [Online]. Available at: <http://www.politico.com/news/stories/0311/51727.html#ixzz1aOXYdpe9> (Accessed: 09 October 2011).
Starbucks (2009) ‘Annual report', Starbucks, [Online]. Available at: <http://media.corporate-ir.net/media_files/irol/99/99518/SBUX_AR.pdf> (Accessed: 10 October 2011).
Starbucks (2011) ‘Facts about Starbucks in Middle East', Starbucks, [Online]. Available at: < http://news.starbucks.com/article_display.cfm?article_id=200> (Accessed: 09 October 2011).
Starbucks (2011) ‘Mission Statement', Starbucks, [Online]. Available at: < http://www.starbucks.com/about-us/company-information/mission-statement> (Accessed: 09 October 2011).
Starbucks (2011) 'Responsibility', Starbucks, [Online]. Available at: < http://www.starbucks.com/responsibility/environment> (Accessed: 09 October 2011).
Technorati (2011) ‘Starbucks pay-by-phone', Technorati, [Online]. Available at: <http://technorati.com/technology/article/new-starbucks-pay-by-phone-will/> (Accessed: 09 October 2011).
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Many thanks for your attention
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Q&A
P E S T LE