A Comprehensive PESTEL Analysis of Starbucks in the Global Market

This report provides a PESTEL analysis of Starbucks, a major coffee chain, to assess the impact of various external factors on its global business environment. The analysis covers political factors, such as taxation and regulations, impacting raw material sourcing and international expansion. Economic factors, including global recession and labor costs, are examined in relation to profitability and operational expenses. Social factors, such as changing consumer preferences and lifestyle trends, are discussed in the context of coffee culture and market opportunities. Technological factors, including advancements in mobile purchasing and home coffee machines, are analyzed for their impact on sales and customer behavior. Environmental factors, such as waste disposal and global warming, are considered in terms of packaging decisions. Finally, legal factors, including trade laws and employment regulations, are evaluated for their influence on Starbucks' operations and human resource management. The conclusion highlights the overall impact of the PESTEL factors on the company's performance and strategic decision-making.

GLOBAL BUSINSS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
The PESTEL analysis.................................................................................................................1
CONCLUSION................................................................................................................................2
REFERENCES................................................................................................................................3

INTRODUCTION
Global business environment is important for the business. The present study is based on
the “Starbucks” which is established largest coffee chain. The study lays emphasis on the
PESTEL analysis the firm environment, structure and operation and understanding the impact of
changes in business environment.
MAIN BODY
The PESTEL analysis.
The PESTEL analysis is help to analysis those factors which impact to the business and it
growth globally and locally which are as follows:
Political factor
The main political factors is source of raw material. The high taxation is imposed on
farmers in those country producing the coffee bean. In that manager have to pat extra pay for
purchasing coffee (Nguyen, 2016). This follow the laws and regulation in the country from
Starbucks. The regional integration is a current trend and external factor that create to
opportunity for Starbucks to globally expand the business. This impact to the business
environment and help to understand impact of its.
Economic factor
The global economic recession is the external economic factor which help to analysis the
business environment and also to understand the impact of it on company. This factor explained
the introduction dented the profitability of many companies like Starbucks (Greer, 2018). This
impact to business environment like rising labour cost in that the economic condition of country
is good then manager is able to hire other employees for work in Starbucks.
Social factor
The social factor is considers a lifestyle and changes taste or preference of customers.
This shows a social condition and trends which are influencing customers and Starbucks. This
includes the change preference and work patterns (PESTEL analysis, 2017). Like customer
preference is changed in that Starbucks face the problem but coffee culture increase opportunity
because now days coffee culture growing. This help to understand the change and impact of
social culture and environment which is give impact on the Starbucks.
Technological factor
1

Technological factor impact to the business and its growth. Now days the technology are
highly advanced and grow in the sector by this impact to the Starbucks and its environment. Like
rising mobile purchase increase opportunity for the business but rising availability of speciality
coffee machine for home use (Curuksu, 2018). This can impact to the business environment of
Starbucks because customers are use machine to make coffee at home by this it decrease sales of
coffee at marketplace. This factor help to understand the impact of technology on business and
its environment of Starbucks.
Environmental factor
The environmental factor is impact to the business environment by including
environmental rules and regulation, global warming or other environmental issues in in a global
level. The customers are create the lots of wastage from there cup of coffee and then dispose in
the street anywhere (SHTAL and et.al., 2018). by this global warming is increase then impact to
the Starbucks. This impact to the Starbucks and its environment because in that manager have to
make decision about packaging of cup. They can use biologically degradable as possible. By this
it not impact to the Starbucks.
Legal factor
The legal factor impact to the business and its growth by making laws changes. Here is
Starbucks need to aware about the trade law which is in various country they occupy for do their
business. Product safety regulations are impact in positive way because as per this rule manager
have to give best product service to customers (SG, 2019). But increasing employment law are
impact to the Starbucks and its environment because manager make their all decision which are
related to this law. By this Starbucks face various problems and changes. This impact to the
Starbucks by increasing spending for human resource.
CONCLUSION
From the above study it had been concluded that the PESTEL analysis has impact to the
business and its environment. Political factors affect to the business by increasing taxation,
economic factor impact by rising the labour rate, technological factor impact by rising purchases
of coffee machine by peoples. Other hand the social factor has impact to the company by change
in preference of customers.
2

REFERENCES
Books and journals
Nguyen, D. L., 2016. Vietnamese coffee in the path of International Integration: The United
States export market analysis.
SHTAL, T. V. and et.al., 2018. Methods of analysis of the external environment of business
activities. Revista ESPACIOS. 39(12).
SG, W.Y.X.N., 2019. WECHAT AND GLOBAL PRESENCE. Qualitative and Quantitative
Research Review. 3(3).
Curuksu, J. D., 2018. Principles of Strategy: Primer. In Data Driven (pp. 129-152). Springer,
Cham.
Greer, G., 2018. Win in India: An Analysis of Market Entry Strategy Into India’s Food and
Beverage Industry.
ONLINE
PESTEL analysis. 2017. [Online]. Available through: <https://pestleanalysis.com/pestle-
analysis-of-starbucks/>
3