PESTLE Analysis

for
Starbucks Corporation is an
American multinational chain of
coffeehouses and roastery
reserves headquartered in
Seattle, Washington. I t is the
world's largest coffeehouse
chain. As of November 2021,
the company had around 33
thousand stores in 80
countries.
Political Economical Social

Technological Legal Environmental

POLITICAL
The politi cal imperati ve that Starbucks
fa c e s is the n e e d to a dh ere to the
laws a n d regulati ons in the countries
from where it sources its raw
materials. This has b e e n necessitated
b e ca u s e of acti vism a n d increased
politi cal awareness in the developing
countries, which form the basis for
Starbucks’ sourcing strategies.

The other politi cal imperati ve, which Starbucks faces, is the regulatory
pressures within its home market in the United States b e ca u s e of greater
scrutiny of the business processes that multinationals b a s e d in the US a re
now subject to.
ECONOMICAL
The foremost external economic driver
for Starbucks is the ongoing g l o b a l
economic recession, which a s explained
in the introducti on has dented the
profi tability of many companies.

However, studies have shown that

consumers instead of cutti ng down on
their coff ee consumpti on a re shifting to lower pr ic e d alternati ves which is
a n opportunity for Starbucks.

O f course, the company still has to contend with rising operati onal a n d labor
costs a s the infl ati onary macroeconomic environment coupled with the falling
profi tability is squeezing the company from both ends of the spectrum.
SOCIAL
As the d e m a n d of coff ee is increasing,
which is due to a growing coff ee culture
a n d a growing middle class around the
world, Starbucks c a n increase its
revenue.

Through providing health conscious

substances also they c a n increase their
sales.

But drift ing of p e op l e towards other

drinks is threat for Starbucks.
TECHNOLOGICAL
Starbucks is in a g o o d positi on to enjoy
benefi ts of the emerging mobile wave.

Its partnership with Apple to bring a p p

b a s e d discount coupons is helping it ride
the mobile wave easily.

They use Wifi capabiliti es in its outlet,

which increase their customer's
experience a s the internet is too important
nowadays.

The company also has the opportunity to improve its supply chain effi ciency
b a s e d on new technologies coff ee farmers use.
LEGAL
Starbucks must ensure that it does not
violate any laws a n d regulati ons of any
country.

Product safety regulati ons

G M O regulati ons outside the United

States

Introducti on of stricter customs a n d trade

regulati on

Increasing employment regulati on

Licensing regulati ons related to the industry

ENVIRONMENTAL
The business sustainability trend
focuses on business processes that
ensure minimal environmental impact.
Starbucks has opportunity to increase
its performance here.

Starbucks also has the opportunity to

offer more of its products in
re c yc la ble p a c ka g i n g .

Internati onal a d v o c a c y of natural products for preparing a n d serving coff ee

a n d other product.

The climate conditi on also aff ects the producti on of coff ee beans.
RESOURCES
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