A.

PESTEL ANALYSIS
FACTOR ANALYSIS
POLITICAL The main political factor is about sourcing
the raw materials. For this reason, the
company wants to adhere to social and
environmental norms. Another impact is
the need to follow the laws and
regulations in the countries from where
Starbucks buys the raw materials. Also,
some other factors to consider are the tax
policies and employment laws.
ECONOMIC The company should deal with increasing
labor and operational costs. Some other
economic factors which can affect
Starbucks are local currency exchange
rates, economic environments and
different markets and its taxations.
SOCIAL  Starbucks can offer cheaper products, but
it might have to sacrifice the quality. This
is the main challenge that the start-up
faces. Other factors would include
consumer preferences, changes of values
among the population of community and
changes in lifestyle of the community.
TECHNOLOGICAL Starbucks is in a good position to be a
benefit of the emerging technology. The
company introduced Wi-Fi in its outlets.
Internet is important to the customers.
They can now use the web and do work
while drinking their Starbucks coffee. This
is an added value to the brand. It’s also the
emergence of new technologies.
ENVIRONMENTAL Starbucks should worry about
environmental rules and regulations,
environmental disasters in countries which
produce coffee beans, and global warming
and other environmental issues in a global
level if messed up, it would be a big
shortage for Starbucks to provide many as
they can.

LEGAL Starbucks must be sure that it does not

violate any laws and regulations in the
market and countries from where they buy
 their materials. Licensing of employees
are also included in the factors of legal
aspect in the business.

B. POLICY REVIEW
- Starbucks coffee is an American coffeehouse that emerged and were being franchised in
every country in the world. Its goal is to inspire everyone to meet their achievements and
accepts and is supportive of personal growth. They are committed to a resource-positive
future, that aims to cut the wastes by half. With its increasing popularity, the company is
getting bigger and bigger and new policies are yet being implemented. It aims to serve
people with their own coffee beans and recipes that makes a unique taste that no other
coffee shop company or business could do. These policies will make Starbucks a well-
organized, less chaotic company with aspiring goals and help the humanity move forward
with its uniqueness.