Bìa NEU
Bìa NEU
Bìa NEU
BUSINESS SCHOOL
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OPERATION MANAGEMENT
STARBUCKS COFFEE
Instructor: Vu Thanh Hung
Class: E-BDB 3 – Group 3
Name Student ID
● Economic:
Starbucks faces the following economic external factors in the remote or macro-
environment:
The growth of developing countries and the declining unemployment rates create
opportunities for Starbucks to gain more revenues from various markets around the
world. However, the rising labor cost in developing countries is an external factor that
threatens Starbucks because it increases the company’s spending for ingredients. The
firm sources much of its coffee beans from developing countries.
● Political:
Starbucks must address the following legal external factors in its remote or macro-
environment:
● Sociocultural:
Starbucks must address the following sociocultural external factors in its
macro-environment:
Starbucks has opportunities to increase its revenues based on increasing demand for
specialty coffee, which is due to the growing coffee culture and growing middle-class
populations around the world. Also, the company can widen its array of more
healthful products to attract health-conscious consumers to its coffeehouse. Despite
these opportunities, Starbucks faces threats linked to independent coffeehouse
movements, which are sociocultural movements that favor small independent coffee
houses instead of large multinational chains.
● Technological
Starbucks experiences the following technological external factors in the remote or
macro-environment:
● Physical environment
Starbucks faces the following environmental external factors in its remote or macro-
environment:
● Global Segment
Starbucks' global segment includes its operations outside of the United States, with
over 10,000 stores in more than 80 countries. Some strengths of the global segment
include
● Adaptation to local markets
● Sustainability and ethical sourcing:
● Growth opportunities
- Opportunities:
1. Starbucks has the opportunity to expand its global presence by entering new
markets and opening new stores in existing markets.
2. The increasing demand for specialty coffee and tea in emerging markets
presents significant growth opportunities for Starbucks.
- Threats:
1. Global economic uncertainty and currency fluctuations can impact Starbucks'
revenues and profits.
2. The increasing competition from local and international coffee chains and other
beverage companies can threaten Starbucks' market share and profitability
- Opportunities:
1. Expansion into new markets, such as emerging economies, can provide
growth opportunities for Starbucks.
2. The increasing popularity of specialty coffee and tea products can help
Starbucks diversify its product offerings and attract new customers.
3. The growing trend of healthy eating and drinking can be an opportunity
for Starbucks to expand its healthy menu options.
- Threats:
1. Intense competition from established and emerging coffee chains, as
well as fast-food chains and convenience stores, can threaten Starbucks'
market share.
2. Changes in consumer preferences and trends can affect Starbucks' sales
and profitability.
3. The price sensitivity of consumers may impact Starbucks' pricing
strategy, which could affect the company's revenue and profits.
IV. Finalize
1. Economic Environment:
- Opportunities: Increasing consumer spending in developing economies =>
opportunity for Starbucks to expand its presence; The rise of middle-class
consumers=> more likely to purchase specialty coffee; The availability of low-
cost capital=> to finance expansion plans.
- Threats: Economic downturns and recession=> reduce consumer spending and
lead to lower sales; Fluctuating exchange rates=>impact Starbucks' profits.
2. Technological Environment:
- Opportunities: The adoption of mobile and digital technologies=> enhance the
customer experience and increase sales; The development of sustainable and eco-
friendly technologies => reduce Starbucks' environmental impact and attract
environmentally conscious consumers.
- Threats: The risk of cyberattacks and data breaches => damage the brand and lead
to financial losses; The rapid pace of technological change => difficult to keep up
with competitors.
3. Socio-Cultural Environment:
- Opportunities: Growing awareness and demand for healthier food and beverage
options => opportunity for Starbucks to expand its offerings; Increasing interest in
fair trade and ethical sourcing => aligns with Starbucks' values and can attract
socially conscious consumers.
- Threats: Changing consumer preferences and tastes => lead to a decline in sales if
Starbucks does not adapt; Social and cultural differences in different markets,
which can pose challenges for Starbucks' expansion plans.
4. Political/Legal Environment:
- Opportunities: The adoption of policies and regulations that promote sustainability
and environmental protection, which aligns with Starbucks' values; The
availability of government incentives and support for small businesses => expand
its presence.
- Threats: Political instability and conflicts in different markets => can disrupt
Starbucks' operations and affect its profitability; The risk of lawsuits and legal
disputes => damage the brand and lead to financial losses.
5. Competitive Environment:
- Opportunities: Starbucks has the opportunity to expand its product offerings and
differentiate itself from competitors. The growth of specialty coffee and tea
markets => provides opportunities for Starbucks to increase market share.
- Threats: Intense competition from local and international coffee chains and other
beverage companies => threaten Starbucks' market share and profitability;
Changing consumer preferences and trends => lead to a decline in sales if
Starbucks does not adapt.