External Environmental Analysis of Starbucks and the Coffee Industry

Starbucks prides itself on making a commitment to ethics and sustainability. One of its efforts towards that commitment is creating the Shared Planet website, which focuses on Starbucks efforts environmental efforts along with community involvement. The site provides timelines and updates as the company achieves their social responsibility goals (Ferrell, Fraedrich, & Ferrell, 2015). Starbucks focus on business ethics and social responsibility has the ability to provide financial advantages for the company. In recent history, Starbucks set out a goal to ethically source 100% of its coffee by 2015 (Ritter, 2014). While these efforts have to be accurately accessed to ensure that it is not only socially and environmentally safe, all decisions

Starbucks had been rank as one of the World’s most principled companies around the world (Ethisphere, 2013). As the people are holding the corporation to the highest ethical and social responsibility, these are becoming the expectation of their consumers. Having all these responsibilities in mind, Starbucks is striving to enact its own Corporate Social Responsibility, guidelines for bettering stakeholders in its communities (Starbucks, 2013). Today the company not only focusing on the communities they are operating, but trying to make a huge impact globally. By doing so they are working with Non-governmental organization. Starbucks had been focusing on social responsibility since in 2009; one of the areas the company had been focusing is the Fair-Trade coffee selling. (Reis, 2009).

Starbucks should conduct marketing research and environmental scanning as it enters foreign markets. They have to take into account the importance of economic and political environment and how it can greatly influence the operation of its business. They should be aware of the economic situation of the market and assess how

Starbucks Corporation, generally known, as Starbucks Coffee is the leading retailer and a brand of world’s forte coffee in the world, with more than 15,000 retail locations in North America, Latin America, Europe, the Middle East and the Pacific Rim, wherever in this world where premium quality coffee is in demand. Starbucks is the largest coffeehouse company in the world ahead of UK rival Costa Coffee, with 20737 stores in 63 countries and territories, including 11910 in the United States, 1496 in China, 1442 in Canada, 1052 in Japan and 772 in the United Kingdom. The first Starbucks was open in 1970. The name was inspired from Herman Melville’s Moby Dick, a definitive American novel regarding the 19th century whaling industry. The nautical name matches seamlessly for a store that imports the world’s finest coffees to the cold thirsty people of Seattle. In May 1998, Starbucks have finally successfully entered the European market through its acquirement of 65 Coffee Company stores initially originated from Seattle in the UK. Both companies shared a common culture, focusing on a great commitment to customized coffee, similar company values and a mutual respect.

Starbucks desire as the leader in the specialty coffee industry is to be acknowledged for its responsibility to coffee farmers and their families to improve their well-being. The corporation’s primary stakeholders are broad organizations such as, coffee trade associations, suppliers, and groups with interest in sustainable coffee production. Including non-profit groups focused on human rights, social justice, and environmental issues. Other stakeholders include governmental agencies such as, U. S. AID (Starbucks Corporation, 2010).

The United States economy is starting to recover from the recent recession with a drop in the unemployment rate from 7.7% in 02/2013 to 6.7% in 02/2014 (Bureau of Labor Statistics). The American people are starting to have the additional .3% increase in disposable income. This additional income allows for people to enjoy the luxury of social outings, meals, entertainment, and larger purchases. Interest rates are still at an all-time low which allows for individuals that might not be previously in the position to make a large invest in buying a home, starting a business, or finance a long term goal the opportunity. Low interest rates also allow corporations the ability to open more franchises at a locked in lower

Starbucks is one of the most recognizable coffee retail chains in the world. Their brand focuses on high quality coffee using specialized roasting of beans from many countries around the world.

Internationally, Starbucks has a good reputation with working conditions. In Hong Kong, managers treat their partners with respect. Also, some store managers remain employed for 10 to 15 years. In order to improve the environment, Starbucks’ waste management program involves policies that convert unused coffee grounds and bakery food into household products, such as laundry detergent. This helps the environment because waste is not being dumped into rivers, oceans, landfills, etc.

nalyze the specialty coffee café industry using Porter’s Five Forces and Macroenvironmental Analysis. What are the key success factors in this industry?

The gourmet coffee industry has continued to grow for the Great Cups of Coffee company since it began in the year 1997. It seems that gourmet coffee has become in great demand for the American workforce and for people who love it. Coffee shops can serve as place to relax, read, socialize, work and study. Some coffee shops even provide wireless hot spots. The current trend seems to be spending five dollars on a cup of gourmet coffee. Some coffeehouse competitors of Great Cups of Coffee Company are Starbucks, Panera Bread, Dunkin Donuts and McDonalds.

Starbucks needs to find another strategy, one that continues to encourage conservation and farmer education, but also a strategy that would affect the industry as a whole. With this in mind Starbucks and CI decided to create coffee sourcing guidelines that would affect the suppliers of coffee. “Under Starbucks new system, introduced as a two year pilot program, suppliers of any size or location could earn up to 100 points for performance in three sustainability categories…if the suppliers me all the criteria, that is ,scored 100 points, it would become a preferred supplier and its coffee would receive priority in Starbucks’

Thus Starbucks has to treat the environment with respect to leave little waste for the environment to consume, have efficient processes, low energy costs, high degree of recycling, high product quality, high social standing and high levels of customer satisfaction. It becomes a Win-Win Strategy for the Starbucks enabling it to improve its environmental or cultural record while reducing costs and/or increasing competitiveness and productivity.

In general the coffeehouse industry in the United States was experiencing an increase in coffee consumption per capita due to the “Starbucks effect”. At this time Starbucks was operating approximately 20,000 stores in the United States and was living a fast expansion strategy worldwide.

As a part of environmental awareness coffee companies will have to be aware about the way their coffee beans are produced and the way to manufacture and sell their products. Design their supply chain

With the development of economic globalization, “fast food” becomes a more and more substantial industry in the business world, which adapts to the pace of people’s life. Each organization spares every effort to stand forward the competition due to the fierce competition. In this article, we focus on the “Starbucks”, a prevailing coffee manufacturer in recent years.