Group 1 - Starbucks

UNIVERSITY OF MAKATI
J.P. Rizal Extension, Brgy., West Rembo, Makati CIty

COLLEGE OF BUSINESS AND FINANCIAL SCIENCE
Bachelor of Science in Office Administration
College of Business and Financial Science

Doing business in “Seattle, Washington, USA.”

A Country Paper
A Topic Paper
Presented to the Faculty of the Course
INTERNET RESEARCH FOR BUSINESS
and to
DR. RUBI ANA A. SALUDARIO, DBA, PD-SML

Professor
In Partial Fulfillment of the Requirements for the Degree of

BACHELOR OF SCIENCE IN OFFICE ADMINISTRATION
_____________________________________
Leader: Pacalundo, Reham P.

Assistant Leader: Noya, Flory Mae P.
Member:
Dizon, Eugene M.
Elcarte, Marjorie C.
Marjes, Charisse Ann O.
Natapol, Grace Ann
Romero, Jenevie L.
January 2023

1st Semester - SY 2022-2023
Country Paper Research i
APPROVAL SHEET
This country paper entitled “Doing Business (Starbucks) in Seattle, Washington,
USA” prepared and submitted by Reham P. Pacalundo, Flory Mae P. Noya,
Eugene M. Dizon, Marjorie C. Elcarte, Charisse Ann O. Marjes, Grace Ann
Natapol, and Jenevie L. Romero was carefully evaluated, easing the prescribed
criteria.
DR. RUBI ANA A. SALUDARIO, DBA, PD-SML

Professor

Country Paper Research ii
ACKNOWLEDGEMENT
First and foremost, we would like to thank our parents for their moral
support and acknowledge our friends and classmates who gave us valuable
thoughts and ideas that significantly improved the paper.
We would like to express our gratitude to Professor. Dr. Rubi Ana A.
Saludario, Professor in Internet Research at the University of Makati, for
imparting his immense knowledge and wisdom throughout the making of this
research paper. She consistently expressed his willingness to motivate us, which
kept us productive and significantly impacted our project.
We are also grateful to our Heavenly Father, Almighty God, for providing
us with the knowledge, strength, guidance, and composure to finish our project
within the scheduled time.
We would also like to commend the members for their valuable
contributions and assistance in making this strategic management paper possible.

Country Paper Research iii
TABLE OF CONTENTS
Page
APPROVAL SHEET ii
ACKNOWLEDGEMENT iii
EXECUTIVE SUMMARY 1
I. INTRODUCTION 4
II. THE COUNTRY’S ENVIRONMENT

a. Political Factors 6
b. Economic Factors 6
c. Social Factors 8
d. Technological Factors 9
e. Environmental Factors 9
f. Legal Factors. 10
III. DOING BUSINESS

a. Proposed Company / Business 12
b. Product and Service Offerings 13
c. Competitive Advantage of the Company 14
d. Opportunities for International Trade 15
e. Potential Threats 17
f. Strategic Adjustments / Improvements 21
IV. CONCLUSION 25
V. BIBLIOGRAPHY 27

Country Paper Research iv
EXECUTIVE SUMMARY
Starbucks Corporation is the world's largest coffeehouse chain. It was
founded in 1971 by Jerry Baldwin, Zev Siegel, and Gordon Bowker in Seattle,
Washington. Howard Schultz was the key person who turned the company into
a huge success around the globe. Starbucks has faced many difficult challenges
since its inception, but it remains the best coffee shop in the world. Starbucks'
mission is to inspire and nourish the human spirit one person, one cup, and one
neighborhood at a time.
In 1971, Starbucks began on the cobblestone streets of Seattle's historic
Pike Place Market. Starbucks opened its first store in this location, offering
freshly roasted coffee beans, tea, and spices from around the world for their
customers to take home. Their name was inspired by the classic story "Moby-
Dick," which evokes the seafaring tradition of the early coffee traders.
Starbucks, headquartered in Seattle, Washington, operates 931 retail stores
and 75 major airport locations. The company aims to make Starbucks the world's
most well-known and respected coffee brand. To achieve this goal, the Company
will continue to rapidly expand its retail operations, expand its mail order and
specialty sales operations, and pursue other opportunities to leverage and grow

Country Paper Research 1
the Starbucks brand by introducing new products and developing new
distribution channels on a selective basis.
Starbucks strives to provide an environmentally safe products because it
believes that the well-being of people, plants, and products are inextricably
linked. Starbucks takes pride in being a "good citizen" locally and in coffee-
producing countries. They contribute significantly to local charities that benefit
children, the environment, the homeless, and AIDS research/support.
Moreover, Starbucks intends to provide an individual experience for their
customers in their stores while also producing excellent coffee and positively
impacting the communities in which they operate. According to this viewpoint,
the company provides the primary benefit of customized and tailor-made
beverages, pre-packaged food items, hot and cold sandwiches, and pastries. In
addition, tea, instant drinks, and fresh juice are available in their stores.
In line with that, Starbucks has an estimated workforce of 300,000, known
as partners, due to the adopted concept of equality and shared goals. Although
the organization does not disclose customer traffic by the time of the day, the
morning and evening hours are the busiest. Notably, Starbucks has an elaborate
and continually growing year-on-year budgeting allocation for its marketing

activities, which it conducts through a wide array of channels, such as strategic
television adverts, seasonal offers, and menus.
Financially, Starbucks has had strong financial returns and earnings. The
Company has maintained healthy operations while producing enough public
cash to finance store expansion even though it is still in the fast-growth stage.
The business is growing its empire abroad.

Part I.
INTRODUCTION
Starbucks was founded by Jerry Baldwin, Gordon Bowker, and Zev Siegl
and debuted its first location in 1971, next to Seattle's famed Pike Place Market.
The three founders of Starbucks had two things in common: they were all
academics who enjoyed coffee and tea. They made an investment and took out a
loan to start the first Starbucks in Seattle, giving it the name of the first mate in
Herman Melville's well-known book Moby Dick, Starbucks.
The businessman and coffee roaster Alfred Peet was a major source of
inspiration for the Starbucks founders. In the 1950s, Peet, a Dutch immigrant,
started bringing high-quality arabica coffees into the country. In Berkeley,
California, he established a tiny shop called Peet's Coffee and Tea in 1966 that
focused on importing premium coffees and teas. Peet's success inspired the
Starbucks founders to build their company around selling premium coffee beans
and supplies, and Peet's started out as Starbucks' primary source of green coffee
beans. To develop their own blends and flavors, Baldwin and Bowker
experimented with Alfred Peet's roasting methods after the partners had bought
a used roaster from Holland.
Ten years later, Howard Schultz, a young New Yorker, entered through
these doors and fell in love with Starbucks after taking his first sip.

coffee. A different cobblestone route would take him to another discovery once
he joined the organization in 1982. The first time Howard visited an Italian coffee
shop was in Milan in 1983. Upon his return to Seattle, he was inspired to infuse
Starbucks with the friendliness and creativity of Italian coffee culture. By 1987,
we had switched from brown to green aprons and were starting a new chapter as
a coffee shop.
Starbucks would soon expand to Chicago and Vancouver, Canada, and
then on to California, Washington, D.C., and New York. By 1996, we would cross
the Pacific to open our first store in Japan, followed by Europe in 1998 and China
in 1999. Over the next two decades, we would grow to welcome millions of
customers each week and become a part of the fabric of tens of thousands of
neighborhoods worldwide. In everything we do, we are always dedicated to Our
Mission: to inspire and nurture the human spirit – one person, one cup, and one

Part II.
THE COUNTRY’S ENVIRONMENT
A. POLITICAL FACTORS
The USA has a strong democratic setup and an effective rule of law, with
fair and transparent elections. The country enjoys massive political and economic
influence over national and global policymaking and is recognized as the leading
superpower in the world. However, the country faces international criticism for
its interventionist policies regarding the ‘War on Terror, which is souring foreign
relations, and at the same time, fueling terrorist groups, increasing the threat of
terrorism.
B. ECONOMIC FACTORS
The well-developed economic system gains its strength from the
manufacturing and service sectors. The recession in 2009 and the alarmingly high
unemployment rates negatively impacted the US economy. But due to increased
consumer and business spending, the economy grew by about 4% of the total in
the 3rd quarter of 2014. However, the growing budget deficit seriously
jeopardizes the country's economic prosperity, which is currently staggering at
$506 million.

America has the largest and fastest-growing economy and is the top trader
in the world. The growth of American prosperity has been significantly
influenced by opening global markets and boosting trade, which was started by
the US in 1934 and consistently remained after the end of World War II. U.S.
incomes are increased by increasing the production of the nation's most
competitive fields and goods through exports. Moving production into the most
competitive sectors of our economy can increase the output of the typical
American worker and their income.
Investment in our growing export industries is encouraged by our
capacity to serve a world market, and the increasing volume of output lowers
average production costs. Such effects strengthen the economic growth rate in
America. Additionally, imports broaden the options available to consumers and
contribute to low prices, increasing their purchasing power. Furthermore,
imports give American businesses high-quality inputs that help businesses and
their American workers become or maintain high levels of competitiveness in
both domestic and international markets.

C. SOCIAL FACTORS
The United States, like most advanced countries, is dealing with the issue
of an aging population, which could eventually result in a severe shortage of
workers and rising tax rates. However, the country has one of the world's best
healthcare and education systems. The majority of citizens have liberal attitudes;
growing racial hatred is a major concern. Since over 11.7 million people are living
illegally in the US, raising illegal immigration is also a cause for concern as it
raises the possibility of racial discrimination. Other grave issues include infant
mortality rates, murder, and police brutality.
Despite the fact that a large number of individuals are concerned about
their own health, the fast food sector has increased the country's risk of becoming
obese and some other illnesses. Although most people have liberal attitudes,
current race issues in the country have reminded many of the challenging times
the country went through after World War II. From 1950 to 1980, socioeconomic
accessibility in the USA increased; however, some studies claim that it has since
begun to decline. The migration of people from a social or economic status is
called socioeconomic development.

D. TECHNOLOGICAL FACTORS
The USA is the global leader in science and technology. Americans have a
longstanding fascination for technology, and companies such as Apple,
Microsoft, Google, Facebook, and many others have addressed the technological
needs of Americans and people around the world. And in doing so, they have
become global leaders in their respective fields.
The USA has been at the forefront of adapting and applying technologies
in a wide variety of fields. Technologies have changed the way many things are
done. Many jobs have been transferred from the USA to other countries, and
production facilities have been relocated. While this has helped companies
reduce production costs, it has also upset many Americans.
The rate of technological innovation and change is extremely rapid in the
USA. However, the country faces strong challenges from a number of countries,
e.g., China, South Korea, and India.
E. ENVIRONMENTAL FACTORS
The USA has an extremely diverse geography, climate, and wildlife. This
diversity, coupled with other factors such as breathtaking natural attractions,
charming little towns, and vibrant cities, has driven millions of tourists to the
country. 79.26 million international visitors came to the U.S. in 2019 (Lock, 2021).

Canada, Mexico, the United Kingdom, Japan, Brazil, & China are the top six
countries sending tourists to the USA.
However, the USA faces some of the toughest weather conditions in the
world. The country has sustained over 220 weather and climate disasters since
1980. In 2017 alone, there were 15 weather and climate disasters with losses
exceeding $1 billion each. Apart from financial damages, these disasters also
cause disruption to everyday life in the most technologically developed country
in the world.
F. LEGAL FACTORS
Several legal factors can impact the United States in a significant and
lasting way. The country was ranked 17th out of 180 nations in the ‘Index of
Economic Freedom 2020’ and enjoyed high levels of business, labor, investment,
and financial freedom.
However, The US has an inefficient taxation system, which has performed
poorly with respect to equity, resulting in widening income disparities. New
regulations on the protection of consumers and their personal data are perhaps
the most notable state requirements affecting business in the United States

proliferating throughout the country. The California Consumer Privacy Act
(CCPA) imposed various compliance requirements. In January 2023, three new
additional state privacy laws will come into effect: the Colorado Privacy Act
(CoLoPA); the California Privacy Rights Act (CPRA); the Virginia Consumer
Data Protection Act (VCDPA); and the Colorado Privacy Act (CoLoPA), which
will extend and amend the CCPA. Lastly, due to the Multiplicity of business
laws across states, firms operating in the US must adhere to many federal and
state regulations. The rules in different states are not uniform, which makes it
more difficult for businesses to meet the requirements of the various states in
which they may operate.

Part III.
DOING BUSINESS
A. PROPOSED COMPANY/BUSINESS
From the beginning, Starbucks set out to be a different kind of company.
One that celebrated not only coffee but also connection. We’re a neighborhood
gathering place, a part of your daily routine. Get to know us, and you’ll see: we
are so much more than what we brew. We call our employees partners because
we are all partners in shared success. We make sure everything we do is through
the lens of humanity—from our commitment to the highest-quality coffee in the
world to how we engage with our customers and communities to do business
responsibly.
OUR MISSION
● To inspire and nurture the human spirit - one person, one cup, and one

OUR VALUES
● With our partners, our coffee, and our customers at our core, we live these
values:
● Creating a culture of warmth and belonging where everyone is welcome.
● Delivering our very best in all we do, holding ourselves accountable for
results.
● Acting with courage, challenging the status quo, and finding new ways to
grow our company and each other.
● Being present, connecting with transparency, dignity, and respect.
● We are performance-driven through the lens of humanity.
B. PRODUCT AND SERVICE OFFERINGS
Starbucks offer more. If you're seeking something new to warm your mug,
figuring out how to brew your favorite blend, or exploring our rarest deals,
you've come to the right place. Choose one of the rarest, most amazing coffees
Starbucks offers as your go-to at-home beverage. It is handcrafted, expertly
roasted at Starbucks Reserve® Roasteries, and sourced according to season.
When young New Yorker Howard Schultz came through these doors, he
took a sip and was instantly enthralled by Starbucks coffee. After he joined the

group in 1982, a new cobblestone path would lead him to another discovery.
When Howard first encountered an Italian coffee shop in Milan in 1983, he was
motivated to bring the friendliness and innovation of Italian coffee culture to
Starbucks upon his return to Seattle. In 1987, we changed our brown aprons to
green ones and began a new chapter as a coffee business.
C. COMPETITIVE ADVANTAGE OF THE COMPANY
Starbucks is one of the Fortune 500 companies in the US that has survived
past inflation crises and sustains market share to be only second to MacDonald’s
of Illinois. This multinational company possesses strong competitive advantages
that enable it to withstand the volatile beverage food industry (Starbucks, 2015.)
Starbucks focuses on superior customer care within its coffee beverage outlets to
ensure that a positive customer experience sells it to potential customers. Most
importantly, Starbucks has had many business alliances, acquisitions, and
partnerships that have strengthened its internal and external capabilities, thereby
driving growth (Jianfei, 2014).
Starbucks' diversification plans follow products, markets by region, and
service varieties. For products, the company steadily increases its beverage
portfolio by introducing tea and other fresh drinks to supplement its main line of

coffee. As a result, it increases its sales volume as consumers, who do not take
coffee, find alternative products that suit their needs (Nandakumar et al., 2010).
Consequently, the revenue level improves in line with profitability. Similarly,
Starbucks engages in geographical diversification, especially into the fresh
markets of South America, South Asia, and Africa, to ensure that its market
penetration rate and consumer base increase to boost sales and revenue.
Moreover, the mix of locations, such as high-traffic streets with high-end low-
traffic ones, ensures that every market segment is reached with its products
(Wang, 2010). Lastly, Starbucks manages to diversify its services by the category
of markets it caters to, thereby serving premium customers and normal
counterparts at their respective expectations.
D. OPPORTUNITIES FOR INTERNATIONAL TRADE
Starbucks has become one of the world's largest companies, with over
15,000 stores in 50 countries. Since 1971, Starbucks has been offering some of the
best coffee in the world for anyone who wants to pay the price of a cup.
Starbucks has expanded into many markets recently and succeeded greatly in
doing so. The main motivation that pushes Starbucks to expand its business
internationally is to gain access to larger markets. Howard Schultz, the director

of retail operations and marketing in 1987, began looking globally for business
early on in his business. He encouraged and helped to open the first international
Starbucks in Vancouver, British Columbia (“Company Timeline,” 2008).
Starbucks utilized many alliances and joint ventures to expand its market
control outside the United States and Canada (“International Development,”
2009). The alliances and joint ventures allow Starbucks to expand its product
ranges and understand the markets it encounters. In the 1996 North American
Coffee Partnership between Starbucks and Pepsi-cola, the two companies were
able to start selling Starbucks’ products in bottled form at grocery stores and
other various convenience stores (”Company Profile,” 2008).
This is one of the few joint ventures that allowed the products and
capabilities of Starbucks to expand. Starbucks had to expand its company
globally to expand its market cap and continue to grow its business. Because of
the need for a greater and stronger market, Starbucks has expanded into 43
countries (“Company Factsheet,” 2008).
The internationalization strategy of Starbucks involves using three
approaches: wholly owned subsidiaries, joint ventures, and licensing. The
licensing procedure is used when Starbucks wants quick expansion in a
particular country. Starbucks uses a joint venture strategy to initiate its business

practices in the local market. The wholly owned subsidiaries technique is used
when Starbucks has the market knowledge of the market it’s operating in, for
example, the U.S. and Canadian markets. Starbucks first does test marketing
with a few stores, and local baristas are trained in Seattle. Partnering with Sazaby
Inc. was Starbucks' strategy for entering the Japanese market. Starbucks
maintained its business practices like no smoking tenets, which appealed to
young Japanese ladies and became successful in Japan (Schouten, 2018).
Starbucks learned to become culturally mindful and aware of the global
markets and their principles (Trefis, 2016). Starbucks is well-known in America
for its takeaway espresso, incorporating the third spot for interfacing. The stores
are structured comparably with different stores in America. In China, individuals
drink tea with conventional desserts.
E. POTENTIAL THREATS
Starbucks faces threats in its quest for continued growth and the status
of the world’s largest coffeehouse chain. They are;

Supply chain problems
- Several factors could later affect the supply chain, such as failing coffee
bean crops, severe weather events, or even strikes at third-party providers.
- This leaves the company vulnerable to minor tweaks anywhere along
the supply chain, from the bean production to the brewing process in the
restaurant. Starbucks should look for ways to reduce potential deficits
whenever possible.
- Coffee prices are projected to climb due to crop shortages caused by
weather.
Competition from low-cost coffee retailers
- The prices for a typical cup of coffee at other breakfast food franchises
are substantially lower than at Starbucks.
- These chains pose a significant danger to a company that feeds on
higher-priced sales, whether owing to reduced profit margins or a modest
decline in quality.
- Many coffee shops sell their wares at reasonable prices. There is a risk
that Starbucks, whose prices are higher, will become financially
vulnerable.

Global Recession
- The company may also be affected by other national and international
recessions, despite its “high-end” brand image.
- A cup of expensive coffee may become one of the first items cut from
customers’ budgets if they want to cut back on extras. It may be possible
for Starbucks to offer more affordable options to avoid this type of loss in
its customer base.
- According to experts, the current recession will be worse than previous
recessions. Starbucks’ income has already begun to decline.
- The pandemic has resulted in a 5% decline in revenue in quarter two of
2020, while 38% fell in quarter three. The global economy is expected to
contract by 5.2 percent this year.
Local Coffee Shops
- A smaller, locally-owned coffee shop promoting community ties or a
“sho[ local” philosophy is at the opposite end of the spectrum.
- There will be a bad taste in the mouths of consumers who see a bigger
restaurant chain displacing a small business, and Starbucks needs to be

aware of this niche, which has even more loyal supporters among some
community members.
- The number of coffee and tea establishments in the United States has
decreased by 7.3 percent.
Rise in raw coffee bean prices
- The prices of unroasted Arabica coffee beans (representing 60% of
global production) fluctuated dramatically throughout the pandemic over
concerns about availability, hoarding, and supply chain disruption.
- The financial health of Starbucks is adversely affected by every
additional dollar spent on costly raw coffee beans.
In 2003, Starbucks quickly expanded into overseas markets and began to
develop into the global company we know today. Countries are beginning to
experience the Starbucks Impact, the constant emergence of new competitors
with superior business models that force companies to reconsider the feasibility
of what they have always done. In short – if your company can’t keep up with
the efficiency of Americans, it won’t work. Since globalization helped establish
Starbucks as an international

company, the company faced problems. These problems arose internally, within
the company’s international business model, and abroad in the form of external
competition. Competing cafes began to copy Starbucks’ business practices,
names, and even company logos. Starbucks had to use intellectual property laws
to dispel customer confusion with competitors.
F. STRATEGIC ADJUSTMENTS/IMPROVEMENTS
As it implements its reinvention strategy, Starbucks plans to build
roughly 2,000 new U.S. stores between fiscal 2023 and 2025, accelerating its
development strategy. By the end of fiscal 2025, it plans to have 45,000 locations
worldwide.
Starbucks will also start buying back shares beginning its next fiscal year,
which starts in October. Schultz suspended the buyback program in April, using
those funds instead to invest in the business.
The company outlined its plans to expand its loyalty program and speed
up service at its cafes with new coffee-making equipment and automation. The
changes are intended to address how Starbucks’ business has transformed in
recent years. Its menu has expanded, and cold coffee drinks that often include
add-ons now account for 60% of orders year-round. Rather than going to the

counter, more customers are going through the drive-thru or using its mobile
app.
In its fiscal 2023, Starbucks plans to invest roughly $450 million to
upgrade its cafes with new equipment that will simplify operations and speed up
operations.“Our physical stores were built for a different era, and we have to
modernize to meet this moment,” outgoing Chief Operating Officer John Culver
told investors.
With its new cold beverage system, for example, baristas will no longer
have to scoop ice, pour milk from a gallon jug or bend down for whipped cream
when making drinks. The new system uses dispensers and cuts down the time to
create a Mocha Frappuccino from 86 seconds to 35 seconds. It’s been tested in a
store, and a second test is planned for January after making improvements based
on feedback.

Starbucks is also streamlining its process for making cold brew coffee,
which is now a $1.2 billion business for the company. The current process
requires more than 20 hours of brewing, with more than 20 steps. The new
process automatically grinds and presses the coffee beans and reduces waste by
15%. And instead of having baristas batch brew hot coffee every half hour, a
machine that grinds and brews a single cup in 30 seconds will roll out next year.
Even as cold drinks take over, the company sees 15 million customers every
month who order brewed coffee.
Food preparation is also changing. Items like Starbucks’ premade
sandwiches and egg bites will now be batch cooked and placed in packaging that
retains humidity.
Automated ordering will roll out as well in U.S. stores in the next few
years, according to Culver. The company said the shift toward automation is
meant to give employees more time to interact with customers and relieve them
of the more mundane parts of the job.
A quarter of Starbucks transactions now come from mobile app orders,
driven by the company’s loyalty program. The U.S. version of Starbucks
Rewards had 27.4 million active members as of July 3, and they account for more
than half of the company’s orders.

Starbucks has extended its loyalty program technology to licensed cafes,
which include locations in airports and retailers like Barnes & Noble, to keep
growing its loyal customers. Roughly 20% of its roughly 7,000 U.S. licensed
stores are using the technology already. Additionally, Starbucks will link its
rewards program to outside loyalty programs, like those for airlines and retailers.
Consumers can earn “stars” by shopping elsewhere or turning their rewards
points into airline miles.

Part IV.
CONCLUSION
Starbucks Company differentiates itself from the coffee industry's
competitors due to the aforementioned strategic controls, effective innovation
and entrepreneurship, and best practices in marketing management. Starbucks
needs to use a combination of agility and customer-focused strategies to keep its
position at the top of this market, which is still one of the most competitive and
dynamic in the country. It currently has a score for its management strategies
that are above average.
And fostering the organization's demand for the brand and the company's
moral beliefs are key components of Starbucks Corporation's new growth plan.
Starbucks is a multinational enterprise that meets the global demand for
innovation. Starbucks continues to broaden its global presence as a result. It is a
client-focused company that continues to be among the best in the coffee
industry. Starbucks possesses the creative thinking needed to accomplish its
goals and objectives; its successes are founded on ideas and strategies it has
employed to overcome challenges in both the home and foreign markets. While
the firm has more than 700 sites in Southeast Asia, including those in Indonesia,
the Philippines, Singapore, Thailand, and, most recently, Vietnam, there are 141
Starbucks stores in Malaysia.

So that's one of the most successful companies globally, not just in the
coffee market. Because it was able to change people's opinions about coffee shops
and the prevalence of consuming coffee outside the home, it has been so effective.

Part V.
BIBLIOGRAPHY
We would like to give credit to the following sites because without this. We
cannot get any information for this country paper:
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Facts. Encyclopedia Britannica.
https://www.britannica.com/topic/Starbucks
● About Us: Starbucks Coffee Company. (n.d.). Starbucks.
https://www.starbucks.com/about-us/
● Detailed PESTEL Analysis of Starbucks | EdrawMax Online. (n.d.).
Edrawsoft. https://www.edrawmax.com/article/starbucks-pestel-
analysis.html
● Detailed PESTEL Analysis of Starbucks | EdrawMax Online. (n.d.-b).
Edrawsoft. https://www.edrawmax.com/article/starbucks-pestel-
analysis.html
● The Best Coffee from Starbucks Coffee: Starbucks Coffee Company. (n.d.).
Starbucks. https://www.starbucks.com/coffee/
● Starbucks hikes long-term financial forecast as it unveils reinvention
plan. CNBC. (2022, October 4). Retrieved from

https://www.cnbc.com/2022/09/13/starbucks-projects-long-term-
earnings-revenue-growth-in-double-digits-as-it-implements-new-
strategy.html
● Starbucks SWOT analysis 2022. SEOAves. (2022, January 1). Retrieved
November 26, 2022, from https://seoaves.com/starbucks-swot-analysis/
● The globalization of Starbucks and its effect on the world - free essay example.
Edubirdie. (n.d.). Retrieved November 26, 2022, from
https://edubirdie.com/examples/the-globalization-of-starbucks-and-its-
effect-on-the-world/
● Nyandat, C. (2019, September 21). Starbucks International Strategy.
GRIN. Retrieved November 26, 2022, from
https://www.grin.com/document/502243
● Strehle, P., & Cruickshank, M. (2004, November 30). Starbucks.International
Business Concept and Starbucks in Germany. GRIN. Retrieved November 26,
2022, from https://www.grin.com/document/32098
● The globalization of Starbucks and its effect on the world - free essay example.
Edubirdie. (n.d.). Retrieved November 26, 2022, from

https://edubirdie.com/examples/the-globalization-of-starbucks-and-its-
effect-on-the-world/
● HowandWhat.net, & David, J. (2021, March 15). Pestel analysis of the USA
(USA country profile). howandwhat. Retrieved December 12, 2022, from
https://howandwhat.net/pestel-analysis-usa/
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USA. International Comparative Legal Guides International Business
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● University of Central Florida. (n.d.). Retrieved December 12, 2022, from
https://guides.ucf.edu/ld.php?content_id=63823411









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UNIVERSITY OF MAKATI

J.P. Rizal Extension, Brgy., West Rembo, Makati CIty

College of Business and Financial Science

Doing business in “Seattle, Washington, USA.”

DR. RUBI ANA A. SALUDARIO, DBA, PD-SML

In Partial Fulfillment of the Requirements for the Degree of

Leader: Pacalundo, Reham P.

INTERNET RESEARCH FOR BUSINESS

This country paper entitled “Doing Business (Starbucks) in Seattle, Washington,

USA” prepared and submitted by Reham P. Pacalundo, Flory Mae P. Noya,

Eugene M. Dizon, Marjorie C. Elcarte, Charisse Ann O. Marjes, Grace Ann

DR. RUBI ANA A. SALUDARIO, DBA, PD-SML

INTERNET RESEARCH FOR BUSINESS

thoughts and ideas that significantly improved the paper.

We would like to express our gratitude to Professor. Dr. Rubi Ana A.

Saludario, Professor in Internet Research at the University of Makati, for

kept us productive and significantly impacted our project.

within the scheduled time.

We would also like to commend the members for their valuable

contributions and assistance in making this strategic management paper possible.

INTERNET RESEARCH FOR BUSINESS

II. THE COUNTRY’S ENVIRONMENT

III. DOING BUSINESS

INTERNET RESEARCH FOR BUSINESS

Starbucks Corporation is the world's largest coffeehouse chain. It was

In 1971, Starbucks began on the cobblestone streets of Seattle's historic

Starbucks, headquartered in Seattle, Washington, operates 931 retail stores

INTERNET RESEARCH FOR BUSINESS

the Starbucks brand by introducing new products and developing new

distribution channels on a selective basis.

Starbucks strives to provide an environmentally safe products because it

producing countries. They contribute significantly to local charities that benefit

children, the environment, the homeless, and AIDS research/support.

Moreover, Starbucks intends to provide an individual experience for their

impacting the communities in which they operate. According to this viewpoint,

the company provides the primary benefit of customized and tailor-made

In line with that, Starbucks has an estimated workforce of 300,000, known

and continually growing year-on-year budgeting allocation for its marketing

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activities, which it conducts through a wide array of channels, such as strategic

television adverts, seasonal offers, and menus.

Company has maintained healthy operations while producing enough public

The business is growing its empire abroad.

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Herman Melville's well-known book Moby Dick, Starbucks.

started bringing high-quality arabica coffees into the country. In Berkeley,

a used roaster from Holland.

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Starbucks would soon expand to Chicago and Vancouver, Canada, and

neighborhoods worldwide. In everything we do, we are always dedicated to Our

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The well-developed economic system gains its strength from the

unemployment rates negatively impacted the US economy. But due to increased

jeopardizes the country's economic prosperity, which is currently staggering at

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in the world. The growth of American prosperity has been significantly

incomes are increased by increasing the production of the nation's most

American worker and their income.

Investment in our growing export industries is encouraged by our

America. Additionally, imports broaden the options available to consumers and

contribute to low prices, increasing their purchasing power. Furthermore,

their American workers become or maintain high levels of competitiveness in

both domestic and international markets.