Relate trends to issues At this stage, analysts should be able to identify the trends that will significantly play a role in helping or hindering the firm reaching its goals.
This way it can retain its consumer base and also gain consumer loyalty. Refresh A STEEP analysis is a tool commonly used in marketing to evaluate different external factors which impact an organization. Steep analysis starbucks, STEEP analysis is conducted when members are unsure about how the market will react to changes in particular elements.
The company must monitor political stability within the country as well. The company has come under fire in recent times for its procurement practices with many social and environmental activists pointing to the unethical procurement practices of coffee beans from impoverished third world farmers.
However, bureaucratic red tape persists in most countries. Impacts of Political Factors on Starbucks The main political factor is about sourcing the raw materials. With a billion consumers likely to join the pool of those who want instant coffee and breakfast in China and India, the company can expand into these countries and other emerging markets, which represents a lucrative opportunity for the taking.
Large non-profit companies, on the other hand, would perhaps be more concerned about the political factors. Legal Starbucks has to ensure that it does not run afoul of the laws and regulations in the countries from which it sources its raw materials as well as the home markets in the United States.
Without the correct information, companies can be fined and refused the right to operate in certain regions around the globe. Failure to understand and adapt to the political and legal environments will result in overcoming barriers which may be too costly to deal with, given the expected return on investment.
The company has a huge opportunity waiting for it as far as its expansion into the emerging markets is concerned. What is the nature of change in the trends you noticed? Further, the increase in the prices of dairy products impacts the company adversely leading to another threat to its profitability.
It has worked with Apple and introduced discounted coupons via iPhone apps.
However, it is important to follow some steps to get the best results in the time invested in executing the analysis. Its partnership with Apple to bring app based discount coupons is helping it ride the mobile wave easily.
The constant global economic recession has dented the macroeconomic environment which Starbucks operates in. The regulatory pressures within the home market in the US are also a factor. Times of information overload When there is a constant flow of information regarding the external environment for a firm, information overload can arise.
What are the conflicts between the trends? Companies which make use of natural resources in producing goods should devote a great amount of time examining the ecological environment of each country in which they are offering their goods and services.
The company has to deal with rising labor and operational costs. As they did not quit buying coffee, Starbucks should seek an opportunity here. Other socio-cultural factors to focus on are: Factors to be considered include political stability, regulation of monopolies, tax policies, price regulations consumer protection, jurisdiction and trade unions.
In relation, responsible sourcing emphasizes corporate social responsibility in the supply chain. It will provide a unique opportunity to make conclusions or decisions about the external environment. If conducted correctly, the results of the analysis can help firms focus on what should be done to reach strategic objectives.
The company can significantly expand its network of retail stores in the United States as part of its push towards greater market share and more consumer segments. However, studies have shown that consumers instead of cutting down on their coffee consumption are shifting to lower priced alternatives which is an opportunity for Starbucks.
Socio-Cultural Though Starbucks can offer cheaper alternatives as mentioned previously, it has to do so without sacrificing the quality and this is the key socio cultural challenge that the company faces as it expands its consumer base to include the consumers from the lower and the middle tiers of the income pyramid.
Consumers in the US are also becoming more and more conscious of ethics. The third political imperative, which Starbucks faces, is the regulatory pressures within its home market in the United States because of greater scrutiny of the business processes that multinationals based in the US are now subject to.
This is indeed an added value to the Starbucks brand and something, which enhances the consumer experience. Third, the retiring baby boomer generation means that spending by the older consumers is likely to taper off and hence, Starbucks would have to lookout for tapping the Gen X and the Millennials as part of its strategy.
T — Technological Industries that rely on technological advances to generate new products and services are prone to be affected by rapid changes in the environment.
The company introduced Wi-Fi capabilities in its outlets already. Please consider supporting us by disabling your ad blocker.
For this reason, the company wants to adhere to social and environmental norms. Internet is important to the consumers. As an analyst, you are expected to find out what the conflicts between the trends are and what the interrelationships between the trends are like.PEST Analysis of Starbucks in Hong Kong.
PEST & STEEP Analysis. A.
Political Factors. PEST & STEEP Analysis. Conclusion. The paper has provided a concise definition of PEST Analysis. It shows the advantages of making such environmental study for businesses.
Moreover, it allows has presented the environmental demands on which. SWOT Analysis of Starbucks.
Download PPT for Complete Course on SWOT Analysis. Total Slides: Starbucks is a globally recognized coffee and beverages brand that has rapidly made strides into all major markets of the world. The company has a lead over its nearest competitors including Barista and other emerging competitors.
Indeed. Starbucks PESTEL Analysis Starbucks is the leading Coffee house chain in the world with its more than 22, stores running worldwide. While it is the largest Coffee brand globally, it is also the most successful one.
The STEEP analysis tool is a framework to gauge how the external environment will impact a given company’s strategic plan to remain competitive. PESTEL is a strategic analytical tool and the acronym stands for political, economic, social, technological, environmental and legal factors.
Starbucks PESTEL analysis involves an analysis of potential impact of these factors on the bottom line and long-term growth prospects. Starbucks sales are. our group's presentation of Starbucks (Northumbria University - Newcastle Upon Tyne, UK).Download