Starbucks USA: Business Analysis

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PESTLE ANALYSIS ON STARBUCK USA Political factors Taxation policy Environment laws High taxation imposed on coffee farmers makes the Starbucks to purchase coffee for a higher price making the company to face taxation fluctuations passed to the consumers. An employment laws such as reduction in licensing and permit costs lowers the farmers cost of production is then passed to the purchasers Economic factors Economic growth competitors pricing Globalization Exchange rates A negative growth in leads to fall in consumer income creating sales disposable income. High pricing from the competitors create a pricing war by driving down the profit margins when increasing the market share. Globalization affects the farmers' earnings, resulting to a decrease in the number of farmers thus a decrease in the profits and coffee supply by the Starbuck. Exchanging rates affect the Company when in the issues of international trading. When the value of the currency in USA falls, the Starbucks Company tends to get more when they import goods to their country given that the exchange rates usually changes across the world in today's market. Social factors Standard of education Education skills from the local people is required to enable the Starbucks in deciding upon the new premises, Proper education skills contributes to successful operation of the business. Technological factors Software upgrading, Rate of technology change Software upgrading

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