PESTLE Analysis And Pestle Analysis For Starbucks

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4.4.0 Target Market
4.4.1 Adults (Aged 25-44)
Starbucks targets this group as a majority of them have a high income and professional careers. Starbucks makes it a point to provide this group with a unique and relaxing experience so they will treat Starbucks as their third home, after their home and workplace. This will then encourage them to relax and spend their time at Starbucks when they are not busy at work, or resting at home.

4.4.2 Young Adults (Aged 18-24)
Starbucks targets this group as they can be a form of advertising for the company. Word-of-mouth is a really powerful and free marketing tactic and since Starbucks position themselves as a place for college students to study, hang out with friends and meet new people, it would be
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The company wants to adhere to the social and environmental norms and is willing to follow the various sourcing methods; like having responsible purchasing practices, supporting farmer loans and joining forest conservation programs to promote the importance of fair trade practices.

Another factor is the laws and regulations in the countries that Starbucks get their raw materials from. Some examples are tax policies and employment laws. It is also important to promote political awareness so that all laws are abide. Starbucks take ethical sourcing very seriously and is committed to 100% ethical sourcing.

Starbucks believe that by practicing ethical sourcing, it helps foster a better future for the farmers (their suppliers for their coffee beans), a more stable climate for the planet and a long-term supply of high-quality coffee beans.

5.1.2 Economical Factors
The on-going global recession is the main reason why the profitability of Starbucks has went down. Other than that, there is a change in the local currency exchange rates. For example, the currency exchange rate for Malaysian Ringgit (MYR) AS OF January 1, 2016 is 3.05. This means one Singapore dollar is equivalent to MYR$3.05. Hence, this shows that the local currency exchange rate affects the price of Starbucks in various
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This is to maintain strong relationships with their suppliers and get a long-term supply of their high quality coffee beans. They should always stay alert on related policies and regulations that were implemented by health authorities to continue a smooth business.

5.1.6 Environmental Factors
There were several concerns that were brought up by their customers regarding the business practices of Starbucks. In order for the company to continue getting the trust of their consumers, they are required to take the concerns that were raised into account.

Other environmental factors that Starbucks should be worried about is natural disasters that might happen or have happened in countries where they get their coffee bean from. This will affect their business as the coffee bean plantation might get destroyed and they would not get their supply of coffee beans that they need to continue a smooth business.

Hence, it is important for Starbucks to have a “backup” supplier so they can still continue their business even when natural disasters occur.


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