PESTEL and SWOT Analysis of Starbucks Coffee in UK

This report provides an analysis of the internal and external factors affecting the performance and productivity of Starbucks Coffee in the UK. It includes a PESTEL analysis of political, economic, social, technological, environmental, and legal factors, as well as a SWOT analysis summarizing the company's strengths, weaknesses, opportunities, and threats. The report concludes with recommendations for the effective use of technology to overcome the issues faced by the company.

Principles of Marketing [MARKETING]
(L4) - Feb2022 UK (MS4UK410)
Assesment1
Individual report
Environmental and SWOT analysis of
Starbucks Coffee
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Table of Contents
Principles of Marketing [MARKETING] (L4) - Feb2022 UK (MS4UK410)................................1
INTRDUCTION..............................................................................................................................3
TASK...............................................................................................................................................3
Analysis of internal factors.........................................................................................................3
Analysis of external factors.........................................................................................................4
SWOT analysis to summarise the issues in the external and internal analysis...........................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8
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INTRDUCTION
Marketing is basically a method which is used by organization for popularising and
promoting their products in various locations. In this process various types marketing strategies
are used by company for increasing the awareness of their product in short duration. Strategies
includes online advertising, digital marketing, use of social media, personal selling, email
marketing and others. The chosen company is Starbucks Coffee and is headquartered in United
Kingdom. The company was established in 1971 and it is basically a coffee and soft drink shop.
It is the largest coffee house chain in UK and their products are highly popular between
customers especially young generations. There main products are soft drink and variety of coffee
and tea products. This report will cover vision, mission, and objectives of company (AL-
AZZAM and Al-Mizeed, 2021). It also covers the internal and external analysis factors, SWOT
analysis to summarise the issues in the external and internal analysis. Due to the use of digital
marketing organization are able to maintain positive communication with all categories of
consumers in long term.
TASK
Analysis of internal factors
Management issues -
It refer to those issues which is occurred during the time of managing whole
organizational activities and lower level workers. Those problems includes lack of
communication, sustaining productivity, time management etc. Due to this senior management
are not able to deliver quality service and product to customers in for long time and not able to
complete their job roles and responsibilities effectively. Due to this productivity and work
efficiency of Starbucks Coffee shop are easily increased at large level. Due to this type of issue
the coordination between all levels of employees is not effectively sustained in long term.
Therefore, for overcoming these type of issue Starbucks Coffee shop management must use
advanced software, equipment, and various apps. Due to using this facility employees easily
finish their task in time (Sundjaja, Savina and Hardianto, 2022).
Vision and Mission -
The vision of Starbucks coffee is to facilitate premium purveyor of the finest coffee to all
customer segments. Due to facilitating this type of coffee to consumers their productivity is
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easily increased at large scale. But the mission of this company is to increase the spirit of all
human beings with help of refreshing their minds. For fulfilling these desires and wants of
consumers, management must always maintain quality and innovation in their services and
products by using various equipment's. Due to the use of various equipment company easily
maintained good relations with users effectively. Due to applying these components effectively
reach of their services are easily enhanced at international level.
Analysis of external factors
External factors are defined as those factors which effects the company internally. The
factors which are responsible for the company's growth and success are described below -
 Political – It refer to those factors which effects the performance and productivity of
company in political manner (Ali and Anwar, 2021). It includes rules and regulations,
government policies and others. In context to Starbucks Coffee shop, authority must they
must produce or facilitate their products and services according to the rules, regulations
and current trend of that particular country. It leads to increase their good relations
between government and organization in long term.
 Economic – It is concerned with those factors which effects the performance of
organization directly which includes salaries of employees, interest rates, inflation etc. In
context to Starbucks Coffee shop, due to inflation authorities are faced lot of problems to
sell their product in various locations. Due to this management are used various pricing
strategies such as competitive prices, discount offers etc. Therefore, it is necessary for
firm that they must keep valuable or low price in their product at initial stage which leads
to attract the consumers in large number.
 Social – It is concerned with those factors which are responsible for influencing change
in the behaviour and attitudes of customers easily (Dash, Kiefer and Paul, 2021). It
includes social class, subculture and culture, family, and others. In context to Starbucks
Coffee shop, it is one of the company healthy, tasty and flavoured coffee and other soft
drinks to consumers according to their taste and preferences. But in aspect of digital
marketing management must use social media for introducing wide range of flavours in
their drinking products between customers.
 Technological – It refer to utilization of various apps, software, and equipment for
increasing company productivity and convenience of users effectively. In context to
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Starbucks Coffee shop, authority must always maintain their equipment, software and
apps updated. In today's time technology is highly consumed by all customer segments
for achieving different types of information within low time. Due to the use of updated
technology convenience of customers are highly increased in both online and offline
modes.
 Environment – It refers to those factors which effects the company in natural way, and it
includes temperature, food, pollution, and populations density. In context to Starbucks
Coffee shop, management must use effective plan for decreasing the waste in workplace
area where employee is doing their work. Due to decreasing waste in their workplace
area resources of company are effectively utilized by employee's which leads to increase
their productivity at maximum level.
 Legal - In context to Starbucks Coffee shop, authority must follow employment laws in
effective manner. Because according to employment law it is necessary for organization,
that they must facilitate security and safety to their employees. In aspect of legal aspect it
is also mandatory for management that they must run their business with transparency.
Due to this the good relation between government and company for long time.
SWOT analysis to summarise the issues in the external and internal analysis
SWOT analysis is basically a technique which is utilized by organization for enhancing
their work efficiency and productivity in long term (Purwanti, 2021). Due to using this technique
effectively company easily gained the competitive advantage in market for long time.
Strength -
 In context to Starbucks Coffee shop, they already have a goodwill or reputation in
market or between all customer segments. The main reason is that they always facilitate
the best quality drinking and food products to customers according to their desires and
wants.
 In context to Starbucks Coffee shop, management always deliver their services and
products to consumers in fast manner through both online and offline mode. Due to
providing services and products quickly to users, trust or loyalty of company are easily
sustained in minds of consumers for long time.
Weakness -
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 In context to Starbucks Coffee shop, due to keeping high price in their drinking and
other products, there customers are easily reduced at maximum level. Due to this
goodwill and performance of organization are easily reduced in market.
 In context to Starbucks Coffee shop, when management did not follow the policies of UK
government in effective manner. Then the services of company are not worked in smooth
manner which leads to decrease the satisfaction level of customers at higher rate.
Opportunities -
 In context to Starbucks Coffee shop, management must target those customers who
liked their drinking products very much which includes ice tea, cold coffee and others.
Due to targeting those type of customers their business are easily expand in other
locations within low time.
 Effective use of technology – In context to Starbucks Coffee shop, management must
use AI technology and digital platform effectively for increasing the availability of their
product in various locations. It leads to increase the customer convenience at higher rate.
Threat -
 In context to Starbucks Coffee shop, due to heavy competition in market sometimes
organization facilitate their services and products to customers in time (Sheth, 2021). In
competition, competitors are also facilitating same product to all customer segments.
From the analysis of above data effective utilization of technology is suggested to the
organization for overcoming the various issues which is faced by them for selling the product.
Because with help of technology proper coordination between all levels of employees are
effectively developed. Due to this vision, mission and objectives of the company are also
maintained in market for long time.
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CONCLUSION
From the analysis of above data, it is concluded that digital marketing or marketing
process plays the important role for enhancing the productivity of company. It also helps to
maintain proper communication between employer and employee or employee and customer
effectively. Marketing also helps the organization to identify the needs and desires of the
customers in low time. It leads to increase the positive word of mouth from customers towards
company in long term. The main advantage for running this type of business is that consumers
are easily attracted in large number for buying various fast food, coffees and soft drinks at any
cost. In this way the popularity of the organization and their products are easily increased at
maximum level through online mode in various locations.
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REFERENCES
Books and Journals
AL-AZZAM, A. F. and Al-Mizeed, K., 2021. The effect of digital marketing on purchasing
decisions: A case study in Jordan. The Journal of Asian Finance, Economics and
Business, 8(5) pp.455-463.
Ali, B. J. and Anwar, G., 2021. Marketing Strategy: Pricing strategies and its influence on
consumer purchasing decision. Ali, BJ, & Anwar, G.(2021). Marketing Strategy:
Pricing strategies and its influence on consumer purchasing decision. International
journal of Rural Development, Environment and Health Research, 5(2) pp.26-39.
Dash, G., Kiefer, K. and Paul, J., 2021. Marketing-to-Millennials: Marketing 4.0, customer
satisfaction and purchase intention. Journal of business research, 122 pp.608-620.
Purwanti, Y., 2021. The Influence of Digital Marketing & Innovasion on The School
Performance. Turkish Journal of Computer and Mathematics Education
(TURCOMAT), 12(7) pp.118-127.
Sheth, J., 2021. New areas of research in marketing strategy, consumer behaviour, and marketing
analytics: the future is bright. Journal of Marketing Theory and Practice, 29(1). pp.3-12.
Troise, C. and Camilleri, M. A., 2021. The use of digital media for marketing, CSR
communication and stakeholder engagement. In Strategic corporate communication in
the digital age. Emerald Publishing Limited.
Sundjaja, A. M., Savina, G. and Hardianto, T., 2022. The Moderating Effect of Gamification on
Loyalty Program Usage in Indonesian E-Commerce. Binus Business Review, 13(1),
pp.19-29.
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