Starbucks and the Segments of the External Enviroment Essay

1949 Words8 Pages
Starbucks and The Seven Segments of the General Environment
RHanna

October 23, 2011

Starbucks and The Seven Segments of the General Environment

Starbucks is one of the most recognizable coffee retail chains in the world. Their brand focuses on high quality coffee using specialized roasting of beans from many countries around the world. The company began in 1971 in Seattle, Washington with one retail store and it grew to over 2,600 stores in 13 countries by the early 2000’s (Schultz, 2011). They now have operations and retails stores in more than 50 countries around the world (Harrer, 2011). The CEO, Howard Schultz, has developed a mission and guiding principles of how the corporation should handle their day
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Since, Starbucks has rebounded and in the 3rd quarter of 2011 has reported record sales and net revenues (www.Starbucks.com). The downward turn of the economy was definitely an uncontrollable event that caused a threat to the company. However, it also provided an opportunity for the stakeholders to re-examine their corporate structure and mission which forced them to make changes for the betterment of the company by increasing the customer experience. I believe Mr. Schultz did an outstanding job of turning the company around during this time. Had he not made the changes that he did, Starbucks may have failed. The political/legal segment focuses on the influences groups and organization has on the government and how the government influences them as well. While this country is still faced with a down economy, Starbucks CEO, Howard Schultz, wants to set a trend and “redefine the role of business in society” (Dolan, 2011). He is asking for companies to get involved in the education and training for society’s workforce in an effort to help decrease the unemployment rates and put people back to work. He believes it is the responsibility of the business community “to serve the communities where we do business by helping to improve, for example, the quality of citizens’ education, employment, healthcare, safety, and overall daily life….” ((Dolan, 2011). In addition, The Starbucks Foundation is partnering with

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