Star Bucks Four Function of Management

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Starbucks is the premier roaster and retailer of specialty coffee in the world.Starbucks was formed in 1985 and its common Stocks trades on
NASDAQ Global Select market. Starbucks purchases and roast high quality whole bean coffees and sells them, along with fresh rich brewed coffees, Italian style espresso beverages, a variety of complementary food items, teas, and beverage related accessories and equipment. Starbucks also sells coffee and tea products and licenses its trademark through other channels such as licensed retail stores and through certain of its licenses and equity investees, they produces and sells a variety to drink beverages.
The company objective is to maintain Starbucks as one of the most recognized and respected brands
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The two major factors that can affect Starbucks are:

Economic environment- Economic factors are an important aspects that concern the nature and direction of the economy in which a firms operates.
For instance the situation of the world economy has a great relevance to how a firm operates. With a gloomy economy we are facing, people are losing jobs, reduction or no bonus, markets in a decline, this will definitely be a major factor affecting Starbucks as a business. Sales will drop due to less consumption.
Another example, which can show the importance of economic environment as a major factor is in the early 2000 when countries like Switzerland, Germany and japan, faces recession, sales fell sharply, revenue plunge.

Moreover an expectation of a huge recession coming due to the world financial crisis will definitely dampen ones spending habits and will lead to less consumption and affect Starbucks company result.

Political/Legal- the relation of the countries where its product of origin is from is very important. If two countries are hostile, this can lead to a boycott of goods and services from the host country. An example to highlight the importance will be in 2003 where US declare war on Iraq, Arab students declare a boycott of American goods and services, which involve Starbucks as part of the list. The tension can also caused security threats within the country it is located as people may protest
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