My Analysis of Starbucks

I choose the coffee giant Starbucks coming in at #5 on the Most Admired list.

Demographic Forces.

Starbucks has broken down demographic walls across the world. With over 27 thousand locations worldwide, there are very few demographic’s that Starbucks doesn’t appeal to. Whether enjoying coffee or seeking employment, the company is transparent in who they serve and who they higher. Last year, Starbucks committed to employing 10K refugees in the next five years. The company believes that everyone deserves a fair shot, have even partnered with Arizona State University to offer college programs for all their employees.

Natural Forces.

Starbucks partnered with the U.S. Green Building Council (USGBC) collaborated to reducing waste and energy from an environmental standpoint. They developed Leadership in Energy and Environmental Design (LEED). Some of the goals of LEED include energy and water conservation, recycling, and renewable energy. Starbucks has over one thousand LEED stores worldwide showcasing revolutionary ideas, including LED lighting reducing energy use by 45 percent and coffee table tops made from reused coffee grounds. Starbucks plans to open several new LEED locations in the future.

Economic Forces.

There are areas that don’t do as well as others for Starbucks. The stores in Great Britain, for example, only produced $1.5M in sales in 2017. Compared to over 10 Billion in profit made by the company worldwide for the whole year. This is only .015% in sales. Another example is Colombia. World renowned for the Arabic coffee bean that is produced and exported from that country, surprisingly many Colombians don’t drink coffee. Starbucks only has 11 stores currently in Colombia and still has plans to open another 50 by 2019.

Political Forces.

Starbucks initiative to higher 10k refugees has put the company in the political spotlight.  This plan to higher refugees goes directly against the Trump Administration and the executive order signed by the president rejecting the entrance of refugees into the United States. While this doesn’t sit well with some lawmakers and other businesses within the U.S., Starbucks is expected to show much favor on the international markets by standing up to policy and reform while upholding their core values.

Cultural Forces.

A cultural force that has been identified by Starbucks is a change in generations. Baby Boomers are retiring and Starbucks now faces new challenges with appealing to customers of the Gen-X and Millennial era. Also, with individuals still climbing out of the recession and a shift in education and job opportunities, more people are looking to spend less. Starbucks faces the challenge of producing the same quality products at a lower price.

Technological Forces.

Starbucks efforts in technological resulted in a vast rewards program. Some of the features include order-ahead, pay by phone, special events and offers for members only, two for one deal’s, and free in-store refills just to name a few. Starbucks has also partnered with Microsoft and Apple to provide more online features to make Starbucks available almost anywhere at any time.

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