Report: Starbucks' External & Internal Environment Analysis and Impact

This report provides a comprehensive analysis of Starbucks' business environment, focusing on both internal and external factors. It begins with an introduction and then delves into the impact of the macro-environment on Starbucks, examining political, economic, social, technological, legal, and environmental factors. A SWOT analysis is presented to identify the company's strengths, weaknesses, opportunities, and threats. The report then explores the interrelationship between the internal and external environments, discussing how these factors interact and influence Starbucks' operations. The report concludes with a summary of the key findings and a list of references. The analysis considers the UK market and its influence on Starbucks' strategic decisions, including the impact of factors like the Employment Act and the Environment Protection Act. The report emphasizes the importance of a strong brand image and the challenges posed by competition and economic fluctuations.

Business and Business
Environment

Table of Content
• Introduction
• Impact of Macro Environment on Starbucks
• Internal SWOT Analysis
• Interrelationship of Internal and External Environment
• Conclusion
• References

External and Internal Business environment of a company contains several factors
that influence the firm's operations and functions. Starbucks is planning to enhance
its operations within the UK. For this purpose, following is the external and internal
analysis of the company.
Introduction

Macro Environment of a business contains several
external pointers that have a major impact on the
business environment of an organization. Hence,
below are the external factors related to Starbucks.
Impact of Macro Environment on Starbucks

 Political Factor: This factor is related to the political performance and scenario
within an economy. In context of Starbucks, United Kingdom's political
environment is quite favorable for the company in supporting its expansion.
 Economical Factor: This includes the economic environment of a nation which
contributes in shaping up the operational function of Starbucks. As for positive
side, the United Kingdom is 5th largest economy of the company, which would be
contributing towards its effectiveness.
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 Social Factor: It is associated with factors related to customer trends. The market
of the UK is preferring healthier lifestyle and food that is an opportunity for
Starbucks.
 Technological Factor: With advancements like Automation and AI, the
organization has an opportunity to use these technologies within different functions
of the company.
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 Legal Factor: Acts like Employment Act, 2010, would be presenting opportunities
for the firm to ensure inclusion of creative and more effective individuals
irrespective of their social backgrounds.
 Environmental Factor: Due to environment concerns and laws under Environment
Protection Act, 1990, the firm would be gaining a pathway for effective
performance.
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Internal SWOT Analysis
STRENGTHS WEAKNESSES
 Strong Brand Image
 Supply Chain Management is quite
effective
 High Priced Offerings
 Product Generalisation
OPPORTUNITIES THREATS
 International market development
 Technological Advancements like
Automation and AI.
 Strong Competition with firms like
Greggs.
 Threat to brand image due to
Philadelphia arrests.

 Political: Due to its supply chain management, threat of unstable political
environment could be overcame by the company.
 Economical: High priced commodities could lead to disadvantages for the
company due to slowed economy within the country.
Interrelationship of Internal and External
Environment

 Social: The firm's brand image took a hit due to wrongful arrests of two
Philadelphia males and hence it could take a toll on customer preferences as well.
 Technological: The company has high opportunities when it comes to technology
as Automation and AI could be used in variety of its functions.
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 Legal: Brand image of Starbucks could improvise due to adhering to acts like the
Equality Act.
 Environmental: Food items within the firm must include effective and essential
organic items that must be associated with environmental protection.
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Hence, it is concluded that external and internal environment of the organization is
highly essential to be analyzed and interrelated which includes appropriate and
effective insight onto the impacts of these environmental factors on the company.
Conclusion