Starbucks: Culture and Environment

1461 Words Feb 4th, 2013 6 Pages
Starbucks: Culture and Environment

Starbucks is one of the largest coffee retailing companies in the world. It is spread across 42 countries and has 15,000 stores. In North America alone the company has thousands of outlets. Apart from being in the coffee business the company is also sells bottled coffee drinks and a line of super premium ice creams. The company also has a brand portfolio that sells a variety of items. There is a line of premium teas called Tazo Tea. The company also sells compact discs under the name of ‘Hear Music’. The company’s logo is one of the most recognized in America. The company also operates in such a way that the community surrounding it benefits from its operation socially,
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Starbucks also has been the company to be boycotted because of Howard Schultz and his alleged closeness to the Jewish Community. There were also two class action suits filed against the company. Carr vs. Starbucks and Sheilds Vs Starbucks are two such cases and even though the company has denied liability in these cases it has agreed to a settlement to avoid the protracted litigation (Khattab, Aziz, & Naguib, n.d)

Socio-cultural factors (changing demographics, shifting consumer buying patterns, recent trends or fads, etc.)

Technological factors: The Company has been quick to adapt to the internet. Its website enables customers to order the complete line up of their products online and get it delivered to their homes (Starbucks, 2011).

International factors: Starbucks imports all the coffee beans that it needs for its operation. If there is a change in the import laws it could affect the company. Numerous areas of production could be affected because if the coffee costs more it could result in the increase in price of the end product and this might lead to a decline in the consumption of coffee (Khattab, Aziz, & Naguib, n.d).

The chain has competition from several sources. Fast food chains have started to include coffee based drinks on their menus and this include McDonalds and Dunkin Donuts. Dunking Donuts was even labeled as ‘the hottest coffee chain’ according to a survey by ‘Brand Key’, a major marketing firm. With their huge customer
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