Enviornmental Factors

1043 WordsMay 3, 20125 Pages
Environmental Factors and Marketing Decisions: Starbucks Starbucks has wide range of business activity. These activities allow the company to use numerous channels of product distribution. With the company operating in many locations worldwide environmental factors play a major role in marketing decisions. Each distribution channel is affected differently and the company's flexibility in the marketing plan allows the company to adjust their strategies to meet the needs of the environmental factors. Starbucks is known as the premier company of the finest coffee in the world. They purchase and roast high quality whole bean coffee, sells them with fresh, rich-brewed Italian style espresso beverages, pastries, confections and…show more content…
Starbucks is expanding their international retail presence, primarily through company-operated retail stores. The company has recently moved into China as part of its plan to operate 500 stores in both Asia and Europe. In 1998, Starbucks acquired a London-based Seattle Coffee Company. This gave the company an immediate presence in the U.K. and laid a foundation for future expansion in the European market. Starbucks has been involved with overseas expansion along the Pacific Rim markets such as Japan, Hawaii, Singapore, New Zealand, Philippines, Korea, China, Hong Kong, Malaysia, Thailand and Taiwan. Starbucks expects non-U.S outlets will eventually outnumber domestic stores. Starbucks is positioning itself as a company independent of domestic growth constraints as evidenced by it becoming one of seven NASDAQ stocks listed on the Hong Kong stock market. The Wall Street Journal quoted company Chairman Howard Schultz as saying, "We are no longer building an American company. We are building an international one that is as relevant in Hong Kong as it is in Seattle" (Wall Street Journal, 2008). To develop a successful presence in any of these markets Starbucks must understand the environmental influences to the companies business. Some of the major factors that affect business the foreign markets are technology,
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