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Starbucks and Tips to Enhance its Business

Decent Essays
Introduction: Grabbing morning coffees and afternoon pick-ups are essential parts of the day for millions of people worldwide, providing an excuse to step outside and take a short walk. The thirst for caffeine is what attract the customers and make coffee such a huge and profitable business. In almost any civilized city today, a cup of coffee is never too far away and in urban environments, it’s hard to walk for five minutes without seeing a vendor. Its 41 years of existence makes it a pretty solid company in the grand scheme of coffee stores. The main person behind Starbucks and CEO of this company is Howard Schultz who bought a Seattle coffee company in 1987. He transformed the coffee stores into a national, publicly owned company with more than 25, 000 employees and over 1,300 stores. Nowadays despite the high profits of this well recognized brand, the organization needs to understand the external environment in which it operates. This is a method of examining the different factors which influence success and failure. PESTEL analysis are used to understand the importance of external factors which impact the company to plan. Political factors are used to define the political environment of a country. Before expanding to a new counntry Starbucks should look at the Taxation policy, The International Trade Regulations, Government Stability and employment law. Taxation policy is important for the farmers who produce coffee beans. Higher tax would lead to Starbucks paying
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