10th October 2011

Team

Contents
I. Overview Starbucks -Milestones II. PESTLE-Analysis General Information P Political Issues E Economical Issues S Social Issues T Technological Issues E Environmental Issues L Legal Issues

III. Conclusion

I. Company overview Milestone (1)

Founded 1971 in Seattles Pike Place Market 1982: Howard Schultz becomes Director of Retail Ops; Starbucks provides coffee to fine restaurants and espresso bars 1984: First Starbucks Coffeehouse in Downtown Seattle

1988: Full Health Benefits to employees

1995: over 500 US-stores

Company Overview Milestones (2)

1998: starbucks.com
2000: licencing agreement with TransFair USA to sell Fairtrade coffee in USA and Canada 2009: East Africa Farmer Support Centre in Kigali /Rwanda; Social Engagement to save lives in Africa

2010: Asia Farmer Support Centre in Yunnan, China

Total Stores: approximetely 17,000

II. PESTEL ANALYSIS

Economical

Political

Social

Technological

Legal

Environmental

Use: Measuring the organizations goals against influences and demands of environment

1. Political issues
- Issues: Stability of political environment, law, taxes, policies on economy, trading

agreements, governments view on culture and religion, terrorism

Example:

Hong Kong, Thailand

2. Economical issues
The level of inflation.

Interest rates.
Income per capita. Long-term perspectives for the economy. Stabilization Unemployment rate

3. Social issues
Our Mission: to inspire and nurture the human spirit one person, one cup and one neighborhood at a time.
Goals: -Continious Improvement of Quality External Stakeholder (Customer) Satisfaction -Business Endurance and thrive -Ethical Sourcing Raising living standards in Production Areas

Social issues (2)

Goals: -Promotion of Diversity and Respect Internal Stakeholder Satisfaction

-Integrating into the community (environment-orientated goals) -Responsibility to be good neighbours -Connection between value chain (suppliers, partners, customers) and community -Everyday contribution through positive action
-Success in Business (organization-orientated goals)

Social issues (3) - Critizism

Defense - Fair Trade support LESS THAN 10% OF TOTAL PURCHASES!!! - Only traditional brewing - Blaming on US legislation

Genetically modified ingrdients Implications: Financial Moral Legal Loss of reputation

4. Technological issues
Technology has been played a vital role in Starbucks
Example:
Starbucks card Starbucks Pay-By-Phone

http://www.techhog.com/featured/app-review-mycoffee-card-vs-starbucks-for-android/

5. Environmental issues
Recycling: Recycling in Stores, Reusable cups, Greener Cups. Composting of coffee ground. Energy:Reduce energy consumption by 25% by 2010. Purchase renewable energy equivalent to 50% of the electricity used by 2010 Water: continue to include water-saving technology in our equipment specifications and going to reduce water consumption by 25% by 2015

Environmental issues (2)

Green Building:create a system to certify retail stores and store prototypes.Beginning in December 2010, build all new, company-owned stores to achieve LEED certification Climate Change: implementing a climate change strategy since 2004, focusing on renewable energy, energy conservation, and collaboration and advocacy. ensure a long-term supply of high-quality coffee through responsible coffee purchasing practices and by investing in farmers and their communities.
Source: Starbucks USA Homepage

6. Legal issues

rate, etc. - Ex: Starbucks CEOs announcement that hes cutting his own
salary from $1,2 million (Shawvalenza.blog, 2009) to $ 10.000 per

Employment law: working time, age, minimum wage

year

- Ex: Starbucks spend more on health insurance $250 million

surmount its coffee (Chief executive Howard Schultz, 22/03/2011)

Health and safety regulations

bill

- Ex: Stored-valued card: this is a prepaid card offer by Starbucks.

- Ex: Starbucks pay $225.000 to settle Consumer Protection case for gift card violations. (Santa Rosa, CA , 2009)

Consumer protection:

III. CONCLUSION
Politics: Starbucks concerns about political issues in different countries Economics: constantly growing; raising market capital since 2009 (28bn USD, share value: 40,86 USD). Sales decline due to econ. crisis Society: Non-conformance with aims, loss of image and credibility Technology: state of the art tech. equipment integration in business processes Environment: focus on producing green products, conducting environmental campaign, climate change Law: favourable employee conditions, reasonable proportion of wages, consumer protection Adequate marketing activities essential for future development, focus on CSR and company image among the customers

References
Oscar. V. (2010) 'Starbucks growing in the Spanish market', Oscarvadillo, [Online]. Available at: http://www.google.com.vn/url?sa=t&source=web&cd=1&ved=0CBkQFjAA&url=http%3A%2F%2Fwww.osca rvadillo.info%2Fuploads%2F6%2F5%2F2%2F6%2F6526599%2Fstarbucks_growing_in_the_spanish_market .pdf&rct=j&q=Oscar%20Vadillo%20(2010)STARBUCKS%20Growing%20in%20the%20Spanish%20Market% 20%09&ei=hVKTTsSnLsap8QPuouBB&usg=AFQjCNF37GL3TKwwHj0Qp5r5E1XSIyvT7g&cad=rja (Accessed: 09 October 2011). Oxford University Press (2010) 'PESTEL analysis of the macro-environment', Oxford University Press, [Online]. Available at: http://www.oup.com/uk/orc/bin/9780199296378/01student/additional/page_12.htm (Accessed: 10 October 2011). Politico (2011) Starbucks CEO rethinks health law position', Politico, [Online]. Available at: <http://www.politico.com/news/stories/0311/51727.html#ixzz1aOXYdpe9> (Accessed: 09 October 2011). Starbucks (2009) Annual report', Starbucks, [Online]. Available at: ir.net/media_files/irol/99/99518/SBUX_AR.pdf> (Accessed: 10 October 2011). <http://media.corporate-

Starbucks (2011) Facts about Starbucks in Middle East', Starbucks, [Online]. Available at: < http://news.starbucks.com/article_display.cfm?article_id=200> (Accessed: 09 October 2011). Starbucks (2011) Mission Statement', Starbucks, [Online]. Available at: < http://www.starbucks.com/aboutus/company-information/mission-statement> (Accessed: 09 October 2011). Starbucks (2011) 'Responsibility', Starbucks, [Online]. Available http://www.starbucks.com/responsibility/environment> (Accessed: 09 October 2011). at: <

Technorati (2011) Starbucks pay-by-phone', Technorati, [Online]. Available at: <http://technorati.com/technology/article/new-starbucks-pay-by-phone-will/> (Accessed: 09 October 2011).

Many thanks for your attention

Q&A

P E S T E L