Starbucks Analysis: PESTLE and Porter's Five Forces

Running head: STARBUCKS ANALYSIS
STARBUCKS ANALYSIS
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1STARBUCKS ANALYSIS
Executive summary
The aim of this report is to discuss the management of a popular coffee chain Starbucks. In
order to work successfully in the market of Singapore, the company needs to check the
possibilities and opportunities in the market. Based on this the company can make strategies
to flourish in this highly potential Asian market. This report has analysed the PESTLE as well
as Porter’s Five Forces so that it can act according to the demand of the customers and the
market. Through this the company will be able to judge the specific units which can support
their business. The report concludes with the recommendation on management strategies so
that small changes can be made and utilised by Starbucks.

2STARBUCKS ANALYSIS
Table of Contents
Introduction:...............................................................................................................................3
PESTEL analysis of the company..............................................................................................3
Porter’s five forces analysis:......................................................................................................5
Issue analysis:.............................................................................................................................8
Strategic management recommendation:...................................................................................9
Conclusion:..............................................................................................................................10

3STARBUCKS ANALYSIS
Introduction:
The aim of this report is to analyse the market situation of an international company
Starbucks Corporation. This is a Seattle based company which was established in 1972.
Starbucks is a premier roaster retailer as well as a provider of speciality coffee in
international market. More than 180,000 employees are working in more than 62 countries in
the world. The company has 19,767 licensed and operated stores operating internationally
(Starbucks.in, 2018). The product mix of this company are basically handcrafted roasted
premium tea and coffee including variety of food items as well as beverages. The company
focusses to spread its outlet in more countries of the world especially in he developed
national. This report discusses the PESTLE analysis of the country so that the company
understands the external environment of the country which will give opportunities to this
company (Susanty & Kenny, 2015). On the other hand, through Porter’s five Forces will help
it to understand the market strength and the presence of the competitors.
PESTEL analysis of the company
Political factors: the political risks in Singapore is very low as it is a democratic
country and a single party state. This is why the country has a stable government which aims
to increase foreign investment in Singapore (Gov.uk, 2018). Political stability has led to have
peace and granted to provide a high standard of living. Hence Starbucks can get an improved
business opportunity in this country. The stable government has assented to many
international agreements which has created the country a secured place for business
(Taecharungroj, 2017). This government of Singapore is also initiated to support the issues of
public welfare, society, laws and other supporting factors in the growth of business as well as
industries.