Comprehensive PESTLE Analysis Report: Starbucks and Its Environment

This report provides a PESTLE analysis of Starbucks, a vital tool for understanding the external factors influencing its business performance. The analysis examines six key areas: Political, Economic, Social, Technological, Legal, and Environmental factors. Each element is explored in detail, illustrating its impact on Starbucks' operations, revenue, and strategic planning. The report highlights how political factors, such as government regulations and taxes, can directly affect the company's financial outcomes. Economic conditions, including inflation and consumer purchasing power, are shown to influence pricing and demand. Social trends, technological innovations, legal frameworks, and environmental concerns are also thoroughly analyzed. The conclusion emphasizes the significance of PESTLE analysis in identifying areas for improvement and formulating effective business strategies, enabling organizations like Starbucks to achieve their objectives.

PESTLE ANALYSIS

Table of Contents
PESTLE ANALYSIS............................................................................................................................1
INTRODUCTION................................................................................................................................3
TASK-1.................................................................................................................................................4
a) PESTLE ANALYSIS...................................................................................................................4
CONCLUSION....................................................................................................................................5
REFERENCES.....................................................................................................................................6
Books and Journals..........................................................................................................................6

INTRODUCTION
It is important for the organisation to determine out all the external factors
which is essentially important for the business because these certain factors affect the business
performances directly and indirectly. These are those factors which the organisation don't have any
control and it is essential important for the company to determined those factors and perform it
accordingly so that which helps them to achieve down growth and also raising its objectives.
TASK-1
a) PESTLE ANALYSIS
The PESTLE analysis is also referred as the PEST analysis and it is a concept
of marketing principles. The concept of PESTLE Analysis is used as a technique by various
organisation to analyse the environment in which they are operating or functioning(Sadgrove,2016).
The PESTLE analysis is used in order to focus on the various elements and factors in the business
environment which can affect the planning to launch any new product or services. There are various
important questions which needed to be considered and keep in mind such as -
 What is the current political condition of a country and how it can affect an organisation or
industry.
 Importance of culture in the markets.
 What innovation in technology are going to be introduced and can affect the market
structure.
 What are the environmental issue for the organisation.
 Are there any legislations that affect the organisation or is there any chances of change in
these legislations(Aithal,2016).
In the term PESTLE there are six elements according to the six alphabets -
P – Political
E – Economics
S – Social
T – Technological
L – Legal
E – Environmental
In order to understand PESTLE Analysis in brief we need to focus on each of the
element with context to the Starbucks -
 Political – The political factors determines the point to which the government may affect the
economy of the Starbucks. Such as imposing of a new tax by the government can
completely change the revenue generating composition of an organisation. These are
political factors which has a high impact on Starbucks.
 Economic – The economic factors determines the economic condition of an organisation
which has a great impact on an organisation. For example – rise in inflation or deflation rate
of an economy has a great impact on the pricing of the products or services within the
Starbucks. As the change in economy directly affect the purchasing power of the people and
leads to change in the supply and demand of the products within the Starbucks(Khan,Alam

and Alam,2015).
 Social – These factors refers to the social environment of a market. The elements like
cultural trends, population, demographic etc. For example change in the cultural trends and
preferences can change the demand of the products which can affect the Starbucks.
 Technological – These factor refers to the development or innovation that may have an
impact on the Starbucks. It also refers to the research and development and the technological
awareness in the market.
 Legal – The Starbucks may get affected by the legal factors, externally as well as internally.
The laws imposed by the government may have a great impact on any organisation. The
Starbucks needs to follow certain rules and laws by the government which can affect the
business.
 Environmental – The environmental factors refer to all the factors which can affect the
Starbucks within the surrounding environment. The environmental factors like weather,
global changes etc can have a great impact on the operations within Starbucks(Kew and
Stredwick,2017).
CONCLUSION
From the above report it can conclude that the PESTLE analysis is vital tool
in terms of organisation perspective because it helps down organisation in analysing their business
performance and also tells them that what are the areas under business which essentially required
improvements and by using that analysis company can forming their plans and policies and
implement it accordingly to raise down objectives.

REFERENCES
Books and Journals
Sadgrove, K., 2016. The complete guide to business risk management. Routledge.
Kew, J. and Stredwick, J., 2017. Business environment: managing in a strategic context. Kogan
Page Publishers.
Khan, U.A., Alam, M.N. and Alam, S., 2015. A Critical Analysis of Internal and External
Environment of Apple Inc. International Journal of Economics, Commerce and Management, 3(6),
pp.955-961.
Aithal, P.S., 2016. Study on ABCD analysis technique for business models, business strategies,
operating concepts & business systems. Browser Download This Paper.