Question

External environment of Starbucks and two objective that must be measureable

Answer 1

Starbucks is an American coffee making company started in Seattle in 1971by Howard Schultz. It is the fifth largest food chain in the world and has stores in over 75 countries. The external environment of starbucks consist of following:

1) Political environment:

As Starbucks is a international food chain store, it has presence in almost every country in the world and so it is most affected by political environment not only of United States but also of every major country in the world. Government stability, employment laws, taxation policies affects it's prices and hence it's competitiveness in the market.

2) Social environment:

Starbucks need to identify their potential customer so that they can manufacture as per their needs and grow. Being an international environment it is very important to analyze the cultural diversity of the place and adhere to it.

3) Technological environment:

The one thing that is changing it's pace faster than anything else in the world is technology and in order to match up to that level it's very important to train and empower employees to adapt and embrace the new technology.

4) Economic environment:

Like in every sector, this sector as well as prone to inflation I the economy, competitive pricing etc which in turn affects it's pricing policy and other promotional policy.

5) Legal environment:

Legal environment comprises of laws and regulation making body, as it has presence over 75 countries, the regulation of each country are different and thus it is important to abide by the laws in order to function effectively.

The two objectives of Starbucks are:

1) To increase the market share in order to get the maximum return on shareholders wealth.

2) To increase the number of stores and open the new market in the countries which they are yet to explore.