Starbucks External & Internal Environmental Analysis

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Starbucks External & Internal Environmental Analysis This paper evaluates factors that influence Starbucks’ external and internal environments. The external analysis involves a closer look at the remote, industry and operating settings. The operational context reveals Starbucks’ competitive position in the coffee industry. The internal assessment comprises of an interpretation of the company’s strengths and weaknesses; resources, possibilities and organizational structure. External Environment Remote Environment Economic There are various national and international economic factors that influence the operation of Starbucks. One of the most leading economic factors in the Starbucks industry is the consumers’ buying power. Consumer buying behavior fluctuates with the state of the economy. For example, Starbucks experienced challenges during the economic crisis of 2007-2009 because consumers were not spending their money. Pay rates vary across the national and international levels that Starbucks performs. The exchange rate between U.S. dollars and currencies in the international market are always changing as well. Tax rates in the United States and global markets pose significant monetary leverage, too, (Dudovskiy, 2015). Social Starbucks faces the circumstances that social elements pose on the firm’s productivity. Such social elements begin with shifting consumer preferences. The changing preferences are subject to the varying work patterns, and values of the consumer. Educational status also plays a considerable role. Health matters challenge Starbucks ability to ramp up profits. Society is self-conscious about caffeine and sugar intake, which is often pushed by the media, (Dudovskiy, 2015). Political The political arena affects Starbucks’ affairs around the world. The company maintains relationships with countries

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