starbucks
DESCRIPTION
Starbucks PESTLETRANSCRIPT
Starbucks
Coffee Company
Macro- environmenta
l Analysis
10th October 2011
Team
P. Nguyen,Li R., Ziqun L., M. SteinA. Le,
Contents
I. Overview Starbucks -Milestones
II. PESTLE-Analysis
• General Information• P – Political Issues• E – Economical Issues• S – Social Issues• T – Technological Issues • E – Environmental Issues• L – Legal Issues
III. Conclusion
I. Company overview – Milestone (1)
• Founded 1971 in Seattle‘s Pike Place Market
• 1982: Howard Schultz becomes Director of Retail
Ops;
– Starbucks provides coffee to fine restaurants
and espresso bars
• 1984: First Starbucks Coffeehouse in Downtown
Seattle
• 1988: Full Health Benefits to employees
• 1995: over 500 US-stores
Company Overview – Milestones (2)
• 1998: starbucks.com
• 2000: licencing agreement with TransFair USA to
sell Fairtrade coffee in USA and Canada
• 2009: East Africa Farmer Support Centre in
Kigali /Rwanda; Social Engagement to save lives
in Africa
• 2010: Asia Farmer Support Centre in Yunnan,
China
• Total Stores: approximetely 17,000
II. PESTEL ANALYSIS
Use: Measuring the organization’s goals against influences and demands of environment
Political
Environmental
Technological
Economical
Social
Legal
- Issues: Stability of political environment, law, taxes, policies on economy, trading agreements, government’s view on culture and religion, terrorism
Example: Hong Kong, Thailand
1. Political issues
2. Economical issues
The level of inflation.
Interest rates.
Income per capita.
Long-term perspectives for the economy. Stabilization Unemployment rate
3. Social issues
Goals:- Continious Improvement
of Quality External Stakeholder (Customer) Satisfaction
- „Business Endurance and thrive“
- Ethical SourcingRaising living standards in Production Areas
Our Mission: to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.
Social issues (2)
Goals:- Promotion of Diversity and Respect
Internal Stakeholder Satisfaction
- Integrating into the community (environment-orientated goals)
- Responsibility „to be good neighbours“- Connection between value chain (suppliers,
partners, customers) and community- Everyday contribution through positive action
- Success in Business (organization-orientated goals)
Social issues (3) - Critizism
Genetically modified ingrdients
Implications:FinancialMoralLegalLoss of reputation
Defense- Fair Trade support• LESS THAN
10% OF TOTAL PURCHASES!!!
- Only traditional brewing- Blaming on US legislation
“A reputation is a lot easier
to lose than it is to gain“[3]
Labelling of such contents
now obligatory in Europe –
but still
not in the USA
4. Technological issues• Technology has been played a vital role in Starbucks
Example:
Starbucks card
Starbucks Pay-By-Phone
http://www.techhog.com/featured/app-review-my-coffee-card-vs-starbucks-for-android/
5. Environmental issues
Recycling: Recycling in Stores, Reusable cups, Greener Cups. Composting of coffee ground.
Energy:Reduce energy consumption by 25% by 2010. Purchase renewable energy equivalent to 50% of the electricity used by 2010
Water: continue to include water-saving technology in our equipment specifications and going to reduce water consumption by 25% by 2015
Environmental issues (2) Green Building:create a system to
certify retail stores and store prototypes.Beginning in December 2010, build all new, company-owned stores to achieve LEED® certification
Climate Change: implementing a climate change strategy since 2004, focusing on renewable energy, energy conservation, and collaboration and advocacy. ensure a long-term supply of high-quality coffee through responsible coffee purchasing practices and by investing in farmers and their communities.
Source: Starbucks USA Homepage
Employment law: working time, age, minimum wage rate, etc.
- Ex: Starbucks CEO’s announcement that he’s cutting his own salary from $1,2 million to $ 10.000 per year (Shawvalenza.blog, 2009)
Health and safety regulations - Ex: Starbucks spend more on health insurance — $250
million — surmount its coffee bill(Chief executive Howard Schultz, 22/03/2011)
Consumer protection: - Ex: Starbucks pay $225.000 to settle Consumer
Protection case for gift card violations. (Santa Rosa, CA , 2009)
- Ex: Stored-valued card: this is a prepaid card offer by Starbucks.
6. Legal issues
III. CONCLUSION Politics: Starbucks concerns about political issues in different
countries Economics: constantly growing; raising market capital since 2009
(28bn USD, share value: 40,86 USD). Sales decline due to econ. crisis Society: Non-conformance with aims, loss of image and credibility Technology: state of the art tech. equipment integration in business
processes Environment: focus on producing green products, conducting
environmental campaign, climate change Law: favourable employee conditions, reasonable proportion of
wages, consumer protection
Adequate marketing activities essential for future development, focus on CSR and company image among the customers
References Oscar. V. (2010) 'Starbucks growing in the Spanish market', Oscarvadillo, [Online]. Available at: http://www.google.com.vn/url?sa=t&source=web&cd=1&ved=0CBkQFjAA&url=http%3A%2F%2Fwww.oscarvadillo.info%2Fuploads%2F6%2F5%2F2%2F6%2F6526599%2Fstarbucks_growing_in_the_spanish_market.pdf&rct=j&q=Oscar%20Vadillo%20(2010)STARBUCKS%20Growing%20in%20the%20Spanish%20Market%20%09&ei=hVKTTsSnLsap8QPuouBB&usg=AFQjCNF37GL3TKwwHj0Qp5r5E1XSIyvT7g&cad=rja (Accessed: 09 October 2011).
Oxford University Press (2010) 'PESTEL analysis of the macro-environment', Oxford University Press, [Online]. Available at: http://www.oup.com/uk/orc/bin/9780199296378/01student/additional/page_12.htm (Accessed: 10 October 2011).
Politico (2011) ‘Starbucks CEO rethinks health law position', Politico, [Online]. Available at: <http://www.politico.com/news/stories/0311/51727.html#ixzz1aOXYdpe9> (Accessed: 09 October 2011).
Starbucks (2009) ‘Annual report', Starbucks, [Online]. Available at: <http://media.corporate-ir.net/media_files/irol/99/99518/SBUX_AR.pdf> (Accessed: 10 October 2011).
Starbucks (2011) ‘Facts about Starbucks in Middle East', Starbucks, [Online]. Available at: < http://news.starbucks.com/article_display.cfm?article_id=200> (Accessed: 09 October 2011).
Starbucks (2011) ‘Mission Statement', Starbucks, [Online]. Available at: < http://www.starbucks.com/about-us/company-information/mission-statement> (Accessed: 09 October 2011).
Starbucks (2011) 'Responsibility', Starbucks, [Online]. Available at: < http://www.starbucks.com/responsibility/environment> (Accessed: 09 October 2011).
Technorati (2011) ‘Starbucks pay-by-phone', Technorati, [Online]. Available at: <http://technorati.com/technology/article/new-starbucks-pay-by-phone-will/> (Accessed: 09 October 2011).
Many thanks for your attention
Q&A
P E S T LE