Political Issues In The Starbucks Company

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A. Environment
A.1 Economic conditions and trends
Although Starbucks company is a very successful company, in 2008, Starbucks Company took the hit during the economic slowdown and customers opted for cheaper coffee options for their everyday coffee. Additionally, their stock price fell from $36 to $18 per share that year and was forced to shut 600 shops that were not making any profit.
A.2 Cultural and social values and trends
There is a study that there are over 166 million coffee drinkers in the United States. Additionally, most people aged 25-29 increased their out-of-home coffee consumption raised from 42-66 percent while aged 30-59 from 33 to 46 percent. It sure enough that out-of-home segment was the biggest increase and Starbucks has …show more content…

With that said, I will consider outsourcing raw materials as one of the major political factors. Starbucks need to consider the country’s political awareness, social and environmental norms to focus in giving fair trade practice. Additionally, it is important that Starbucks ensure that it does not violate any laws especially when it comes to licensing agreements and regulations in the home market, as well as the countries where they buy raw …show more content…

According to their 2008 fiscal report, Starbucks Company relies heavily on its relationships with coffee producers, outside trading companies, and exporters for its supply green coffee. They do believed based on relationship they have established with their suppliers, the risks of non-delivery on any purchase commitments are remote. B.6 Analysis of buyers
There are plenty of options for consumers and allows them to pick whatever they want to drink. With coffee shops all over the world and almost every corner, in addition to growing number of Starbucks stores, it may not be as special to consumers as it once was. Buyers have the power to choice between low cost or high quality, which forces companies to choose a strong and consistent strategy. B.7 Summary of industry opportunities and

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