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 aninternational brand. As the world’s biggest coffeehouse company, Starbucks keepgoing 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 theUnited States, more than 1,000 in Canada and over 700 in the United Kingdom. 2. –Analysis In orderto better understand the sector on which Starbucks is located – (The coffee market),we will use the PESTEL model.This toolallows to have an overview of the political, legal, economic, sociological,technological and environmental factors that can influence the company present onthe market. 2.
1 – Micro environment: TheMicro environment includes raw material suppliers (in the case of Starbucks, coffeesuppliers) who supply the company (and sometimes its competitors) whothemselves provide distributors who end up selling their products to consumers. 2.2 – Macro environment: 2.2.1 –Economicconstraints:Theprice of coffee is very volatile (eg: in Brazil the price of coffee has jumpeddramatically due to weather problems in the main exporting countries).
Starbucksis therefore forced to align its prices with the market price to avoid storingtoo much loss.(thereis a development of fair trade between the countries of the North and the countriesof the South). 2.2.2-Political constraints:A largenumber of coffee exporting countries, including underdeveloped countries oftenin conflict (Colombia, Cuba, Ethiopia, Nigeria)In addition,some conflicts between exporting and importing countries are taking place, suchas Ethiopia asking that the origin of coffee be registered on their product,which could lead to a boycott of Starbucks products.2.2.3- legal constraints:Starbucksuses fair-trade coffee in all establishments, it must use a specific “fairtrade:Max Havelaar” label and must respect certain constraints such as passingin front of the administrative council of Max Havelaar and before the administrativeboard of the FLO (Fairtrade Lebeling Organization .)In additionStarbucks is not only a company that produces some kinds of coffee alreadyexisting, it creates its own products so it must file different patents to protectits inventions and innovations.