Starbucks Destep

Management Principles

Assignment for week 4: Environment of organizations

Keywords: environmental influences, DESTEP factors, environmental scanning

Analyse the external factors for one of the following companies:

-Hilton
-ISS
-Starbucks
-British Airways

Each group is supposed to prepare a short ppt (on usb-stick) and present the outcomes in next week’s class.

Starbucks

Environmental influences:

Starbucks internationally recognized brand
icon for globalization
External and internal market
Known for high prices- financial crisis: Starbucks forced to change its prices, continue to have high cost drinks, but offer low cost alternatives.
“Comfy place”- feel at home in Starbucks- authors go there to write, students to study.
High quality coffee- Reliant on its coffee bean suppliers (international suppliers)


Demographics:

Age- Starbucks is aimed more towards adults and teenagers since their main product is coffee. They also offer alternatives such as tea and cake which is also aimed at a younger market. Aimed at both males and females.

Known for being high-priced, therefore not affordable for everyone - - However, they do offer low cost alternatives to their expensive products making it more appealing to those with lower income.

They offer “special offers”:

Plastic cups, save 10c/coffee, better for the environment
Starbucks App- As of a certain amount of purchases you receive a free drink
Flat rate Coffee (in certain countries): Pay per month, drink unlimited.

Economic:

Starbucks is a globally recognized brand, and has long since become a symbol for international globalization.
Starbucks has to carefully analyse a country before beginning their business there:

The Industrial Structure
The Income Structure

Is a country stable enough to begin a business there?
Is there enough disposable income available so that people will buy the product, regardless of the price.

The market in the United States is more...