Starbucks and Its Environment: An Analysis of Internal and External Factors

Introduction
Internal factors are such factors that affect everything in
the organization and are controlled by the organization,
whether they are substitutable or tangible. External factors
are factors in which the organization create their decision
that are cannot control or manage. The management
consider in this report is Starbucks. It is a multinational
organization that are established in United Kingdom.
Starbucks provides its consumers with a variety of coffees
and beverages to gain high set of profitability.
Starbucks And Its Environment
Name of the Student
External Environment
Political factors – As because Starbucks operates in several
countries. This is one of the largest companies in the world, so it is
clear that the organization must comply with various political
approaches to ensure compliance and protection of its coffee and
drinks.
Economic factors - The diversity of coffee and beverages that
Starbucks offers to their consumer. By this economic factors it plays
an essential role in the creation of coffee and beverages and a varied
range of coffees and beverages.
Social factors - Due to individual’s taste and their needs, it is based
on tendencies and bulk purchases of fresher coffee and beverages.
Technological Factors – At present time, tendencies are changing
very fast. Therefore, it is very essential for organizations to provide
the best consumer services as knowledge that will continuously
change and adapt high set of technologies.
Legal factors - Changes in government policies and regulations have
a direct effects on the functions and actions of the management.
Environmental factors - The Starbucks organization has taken a
number of initiatives to increase the environment and create a high
sustainable society.
How the company impact its context External
Environment
Organizations can influence the external environment
and external factors in various ways. As there are
various managerial plan of actions that are developed by
Starbucks such as market penetration that will termed as
effective strategy to support the managerial growth and
advancement of the beverages, foods, and products to
maximize revenue in the existing market. The
organization will also uses some effective policies and
regulations that will have an impact on the external
environment but will not have an impact on Brexit. In
addition, the organization is using some differentiation
strategies, which will have an impact on the
environment and external factors.Internal Factors
Strength:The organization has biggest grocery retailer in
the United Kingdom which create more opportunities for
the organization. They has higher sales and revenue
instead of the Other market chain.
Weakness:They have low cost strategy which create
impact on their profit margin. The low-cost strategy can
reduce the profit margin of the organization.
Opportunities:Is the joint venture creating use fortunately
for the organization. The Starbucks stores are
underperforming and the joint venture provide market
knowledge that help the organization to improve their
performance in such regions.
Threats:If the organization is operating on the
multinational level so the competition level create used
impact on the organization and become major threat for
the company.
References
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Noh, J. and Zhou, D., 2021. Executives’ Blaming
External Factors and Market Reactions: Evidence from
Earnings Conference Calls.