Starbucks Pest Analysis

Understanding the general environment of a certain business requires knowledge regarding the key factors and trends in broader society. PESTEL Analysis gives a business the ability to break down the general environment into six different categories: Political, Economic, Social, Technological, Environmental, and Legal. By analyzing and studying each area, a company can create a strategy that most benefits them. Sears and K-Mart are two retail businesses that can gain from understanding the general environment through PESTEL Analysis. They could use it bad. One way to take a step forward is by creating new innovative strategies and conducting a PESTEL analysis is a good place to start.

With coffee consumption being transformed into a habit, with active market growth, with Starbucks being a North America market leader the distance between company and its competitors was reduced.

These are all about how and to what extent a government mediates in the economy. This can incorporate – government policy, political steadiness or precariousness in foreign markets, foreign trade policy, tax policy, labor law, environmental law, trade restrictions and so on.

It is also important to consider the MACRO environment whilst planning for future areas for development as these factors can have an impact on possible training. PESTLE is a useful tool to enable us to do this. PESTLE assesses the market, including competitors, from the standpoint of a particular proposition or a business. PESTLE becomes more useful and relevant the larger and more complex the business or proposition, but even for a very small local business a PESTLE analysis can still throw up one or two very significant issues that might otherwise be missed.

Political factors is an external environment in which a business functions. This is a type of external constraint for a business and are related to actions of governments. This factors can affect how the business operates. Political factors include politicians, who make important decisions. These can be done at national level at the UK

starbucks Corp., an international coffee and coffeehouse chain based in Seattle, Washington, has expanded rapidly since its opening in 1971. These outrageous success was due to its well-developed strategy vision which lay out the company's strategic course in developing and strengthening its business. Starbucks is a global corporation that sells authentic coffee in 30 countries, reporting revenues of nearly $5.1 billion in 2006. The main goal of Starbucks is to embrace diversity by applying the highest standards of excellence. Starbucks strives to perfect the relationship with the working class by making the service as fast as possible because they believe that every customer has their own personal rate. One

Macro environment comprises external forces that organisation cannot directly control, instead organisation need to manage their macro environment in a way that benefits them ("The Macro Environment & Pest Analysis", 2016). The PESTLE analysis is the most widely recognized approach for considering the external business environment (Gupta, 2013). PESTLE analysis stands for Political, Economic, Social, and Technological, Legal and environmental analysis and describe a framework of macro environmental factors utilized as a part of the environmental scanning component of strategic management. Generally, all the PESTLE factors might not important for all types of industry its depends up industry nature or size. This PESTLE analysis is based on Accor Hotels in Australia which is a famous and globally recognise hospitality brand.

The political factors are the factors that is related to the governments policy which can have an effect on their business. Most businesses keep an eye on any political factors such as any new legislations which have been introduced or any old legislations which could have

Political factors include areas such as tax policy, employment laws, environmental regulations, trade restrictions and tariffs and political stability.

The PESTLE analysis can be used to assess the strategic relevance of the six principal components of the macro-environmental: political, economic, social, technological, environmental, and legal forces. It can be used as a tool by companies to better understand of the macro- environment they are operating in.

With this in mind, the PESTEL model was developed to give researchers and practitioners a framework in which to consider the broader business environment. PESTEL stands for Political, Economic, Social, Technological, Environmental and Legal. Furthermore, a PESTEL analysis is a technique that evaluates the potential impact of political, economic, social, technological, environmental, legal factors on an organization. This set of factors represents a broad set of industry and environmental considerations that any organization should make when designing strategic goals

business model may seem, there is plenty of hard work invested and financial risks taken to grow

• Looks at big picture: It helps Starbucks has consistent brand image around the world.

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.

PESTEL analysis is to identify and analyze the strategy and business environment, it is stand for Political, Economic, Social, Technological, Legal, and Environmental factors. This model is to assessing the current environment and potential changes. If