STARBUCKS

Starbucks PESTLE Analysis

Starbucks PESTLE Analysis

Introduction

This research is aimed at discussing the external influences that affect a company called Starbucks Corporation, employing PESTLE analysis as the framework model. Also the way changes in the macro environment of the UK impact the decision taken by the company to invest or otherwise in the UK. Prior to giving an overall view whether to invest or not in the UK, every letter of the acronym shall be considered in terms of the influences.

Background of Starbucks

Starbucks Corporation was established by a history teacher, Zev Siegel; an English teacher, Jerry Baldwin; and a writer Gordon Bowker. The three founders inaugurated a coffee shop together. Each of them made an investment of fifteen hundred dollars while an amount of five thousand dollars was taken as a loan from the bank. The coffee shop acquired popularity due to the efforts contributed by the three of them. In 1972, another branch of Starbucks was founded. There were total four stores of Starbucks Corporation at the onset of 1989s, while the revenues of the company continued to grow every year. Today Starbucks Corporation is quite well known in all parts of the world for introducing novel innovations and technologies. The report of year 2007 of Starbucks Corporation described that the company is dedicated to bring new flavors by bringing to the students, adults, businessman, females in homes and other individuals in societies. Starbucks Corporation is dedicated towards the protection of environment, as well as the health and safety of all employees who are operating around the globe. By performing operations and introducing new brands, Starbucks Corporation is dedicated to serve future generations. Starbucks Corporation is trying to show further and continuous improvement in beverages, coffee and drinks (Schultz & Jones, 1997, pp. 5-6).

Environmental Macro Factors Influencing Starbucks

There are a number of things in business which may be controlled, and still there are several factors which appear as being out of control. The past economic crisis is a living evidence of that, in spite of the warnings from the economists. The United Kingdom was a nation leading a high life. No one wanted to question what happens in the event that the whole nation is overextended. But everyone found out the hard way. There was an exorbitant impact of economy on businesses. Even the brands that are well established did feel shudders of the economic chaos and disorder which shook the stage of the world. However the question is, “what are the long standing impacts”? Starbucks has acquired a prominent position in the daily lives of not even the citizens of UK, rather of the people all over the world. It continues to be a part of the daily routine for innumerable individuals all across the globe even as the people tighten their spending belts.

From the very beginning of the economic crisis in the year 2008, lists have been prepared by the experts telling the customers about the way to reduce expenditures. Cutting out gourmet coffee, without fail, continues to be ...