1. – Introduction
1.1 – Company history:
– Starbucks Coffee Company,
founded in 1971, The first opened in Seattle, Washington, on March 30,
1971, by three people that met at the University of San Francisco: Two teachers:
Jerry Baldwin, Zev Siegl, and writer: Gordon Bowker. Starbucks become larger to an
international brand. As the world’s biggest coffeehouse company, Starbucks keep
going to lead the industry in sustainable business and innovation.
– 1986 the founders of Starbucks will sell their assets to Schultz to focus on Peet’s stores. To provide the $ 3.8 million needed for the buyout of Starbucks, Schultz benefited from the financial support of William Henri Gates II.
1.2 – In International:
– Starbucks is the largest coffee company in the world,
with more than 16,858 stores in 50 countries, including over 11,000 in the
United States, more than 1,000 in Canada and over 700 in the United Kingdom.
to better understand the sector on which Starbucks is located – (The coffee market),
we will use the PESTEL model.
allows to have an overview of the political, legal, economic, sociological,
technological and environmental factors that can influence the company present on
2.1 – Micro environment:
Micro environment includes raw material suppliers (in the case of Starbucks, coffee
suppliers) who supply the company (and sometimes its competitors) who
themselves provide distributors who end up selling their products to consumers.
2.2 – Macro environment:
price of coffee is very volatile (eg: in Brazil the price of coffee has jumped
dramatically due to weather problems in the main exporting countries).
is therefore forced to align its prices with the market price to avoid storing
too much loss.
is a development of fair trade between the countries of the North and the countries
of the South).
number of coffee exporting countries, including underdeveloped countries often
in conflict (Colombia, Cuba, Ethiopia, Nigeria)
some conflicts between exporting and importing countries are taking place, such
as Ethiopia asking that the origin of coffee be registered on their product,
which could lead to a boycott of Starbucks products.
– legal constraints:
uses fair-trade coffee in all establishments, it must use a specific “fairtrade:
Max Havelaar” label and must respect certain constraints such as passing
in front of the administrative council of Max Havelaar and before the administrative
board of the FLO (Fairtrade Lebeling Organization .)
Starbucks is not only a company that produces some kinds of coffee already
existing, it creates its own products so it must file different patents to protect
its inventions and innovations.