Factors Affecting Starbucks

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Producing coffee with high standards of quality and trading in a more ethical way by adhering to fair trade practices are two more important factors to do businesses effectively. Sourcing raw materials is one of the most important factors under analysis of political factors and Starbucks need to adhere to social and environmental laws and norms. Further Starbucks need to consider essential factors such as tax policies, employment laws and political awareness in developing countries to monitor business processes in US market since there is a high regulatory pressures within its local market in US. Starbucks is experiencing regional integration of segmented markets which has created opportunities for global expansion and also improvement in support of the government for infrastructure that has enabled them to access more markets or suppliers. Positive political, economic conditions and higher growth rates are few factors that enabled Starbucks to operate…show more content…
But it will generate more opportunities to expand its consumer base to add customers from the lower and the middle-income tiers. Starbucks has to focus on factors such as consumer preferences, changes in lifestyles, family and work patterns of the population in US. Growth in coffee culture which has created opportunities to increase revenues based on increasing demand for specialty coffee and also to attract health-conscious consumers because of increasing awareness on health are few identified components. Ethical approach towards its internal and external stakeholders has enabled Starbucks to operate effectively and efficiently. Adopting consistent business strategies as the sustainable leader in the market, Starbucks has been able to reach socio-cultural dimensions within markets. Further the company has implemented more coffee chains, brands, wide variety of flavors and also promoting canned ready-to-drink
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