Starbucks PESTEL Analysis

PESTEL stands for political, economic, social, technological, environmental and legal factors affecting the business and it is widely considered to be one of the most effective analytical tools used to analyze the impacts of external factors to the company (Dlabay et al, 2011). The following table represents PESTEL analysis conducted for Starbucks Corporation:

Political

Industry-specific rules and regulations The level of relationships between USA and countries that produce coffee beans The level of political stability within a country

Economic

Buying power of consumers Local currency exchange rates Local economic environment within each market Starbucks operates Taxation level

Social

Changing family patterns in USA and Europe Consumer preferences Changing work patterns Changes in lifestyles of population The level of education of population in local markets Changing values among population

Technological

Emergence of innovative technology Biotechnological developments Developments in agriculture

Environmental

Environmental rules and regulations Environmental disasters in countries producing coffee beans Global warming and other environmental issues in a global level

Legal

Introduction of policies and regulations by health authorities about caffeine production and consumption Introduction of tougher customs and trade regulations Licensing regulations related to the industry.
References Dlabay, L, Burrow, JL & Kleindl, B, 2011, Principles of Business, Cengage Learning

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