Essay about Economic Conditions And Trends Of Starbucks

Essay about Economic Conditions And Trends Of Starbucks

Length: 1030 words (2.9 double-spaced pages)

Rating: Better Essays

Open Document

Essay Preview

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 made coffee drinking a social phenomenon. However, because of the economic shutdown as well as specialty coffee is not considered as a necessity, people decided that it no longer fits in their budget and look for different options for their coffee.
A.3 Political and legal issues
Although there isn’t a lot of information about the political and legal issues in the book, the Starbucks Company was still considered as the world’s largest coffee retailer and has continued it success in 2008. 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 materials.
A.4 Summary of environmental opportunities and threats
In ...

... middle of paper ...

..., Starbucks will have a hard time to maintain its price as well as the quality of its coffee. Second biggest threat is having big companies like McDonalds and Dunkin Donuts continually competing for business. Third will be the buyers, were they can choose if they want to buy expensive, cheap coffee or other beverages. Least threat will be the substitutes, because having avid coffee consumers will not be torn away by a substitute product such as tea or energy drink.
B.8 Implications for strategy development
Starbucks refocused their strategy to compete with the new entrants. They added variety of products as well as faster service to consumers. They even added a card that is very successful in the first quarter of 2008 alone. Nonetheless, Starbucks leverages its customer loyalty, premium quality coffee, and the homey atmosphere of its stores to fend off competition.

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

The Effects of Economic Trends on Society Essay

- Were the founding fathers aware of the impact their words would have on the future. One of the rights afforded to all men in the Declaration of Independence is “… the pursuit of Happiness.”(Hancock). This deceptively simple phrase has played a vital role in shaping the society of the United States. In order to understand what the founding fathers intended to convey we would have to consider the cultural period. However, it is possible to understand their purpose through the following excerpt from the Declaration: But when a long train of abuses and usurpations, pursuing invariably the same Object evinces a design to reduce them under absolute Despotism, it is their right, it is their duty, t...   [tags: Economics]

Better Essays
1417 words (4 pages)

Essay on Recent Trends in Economic Variables

- In order to assess the current state of the economy, the examination of important economic indicators or variables has always played a vital role in the understanding of the complex economic systems we live in. The analysis of these economic variables studied by many, not only has served as a tool to evaluate the current economic performance of a country, but also has allowed experts to envisage and continue the pavement of an economy's road. Currently, some economic variables have had favorable improvements indicating a general good outlook for the economy for the following months, requiring a further individual analysis and comparisons in order to foresee crisis or successes....   [tags: economic system, price index, gdp, pmi]

Better Essays
724 words (2.1 pages)

Essay on How Recent Economic Trends Influence Business

- How recent economic trends are influencing the business A firm and its management are affected by many factors present in its environment and this because a business can not operate in vacuum. The factors existing in a business’ environment are beyond control by a firm and the factors affects how a business operates and performs in the market (Li, 2008). Other macro environmental factors besides economic that affect business performance include political factors, social, demographic or ecological, and technology....   [tags: Economics]

Better Essays
1604 words (4.6 pages)

Essay on Starbucks in the Australian Market

- Starbucks is an American coffee company based in Seattle, it was founded in 1971. Starbucks use twin-tailed mermaid as their logo, the reason behind it is because, according to a greek mythology the twin-tailed mermaid used to seduce mariners into jumping out of the boat in to the water, it just simply means that it is irresistible. Today, Starbucks is one of the largest coffeehouse industry in the world. They provided high quality coffee, pastries and snacks. Regardless of its expensive price customers are still willing to pay for its quality....   [tags: Starbucks Analysis]

Free Essays
1319 words (3.8 pages)

Essay on Economic Conditions

- Economic Conditions There are many different countries throughout the world, with each country possessing its own approach to economics. Countries can be broken down into three categories of development, the three being industrialized, developing, and less-developed. The three countries that I have chosen to show these comparisons are Italy, Thailand, and Somalia. Italy is the industrialized nation, Thailand is developing, and Somalia is less-developed. The economic system of a country is the basis for all economic decisions....   [tags: Economics ]

Better Essays
891 words (2.5 pages)

Current Industrial And Economic Conditions Essay

- Economists use several indicators to help forecast future economic trends through extensive analysis of current industrial and economic conditions. One of the primary indicators that are used by economists to help determine the health of a country’s economy is its gross domestic product (GDP). GDP can be defined as “the market value of all final goods and services produced in a country during a period of time, typically one year”(Hubbard and O’Brien, 2013). In the United States, the Bureau of Economic Analysis (BEA), which is part of the Department of Commerce, calculates the GDP by adding the total personal consumption expenditures of consumers (includes durable and nondurable goods as well...   [tags: Gross domestic product, Macroeconomics]

Better Essays
1209 words (3.5 pages)

Analysis Of Starbucks Essay

- Starbucks Size the segment (how big entire market). Starbucks is a worldwide coffee house series founded in the United States. Starbucks is one of the biggest coffee house company in the world with more than thirteen thousand stores situated in the US and more than twenty thousand stores in 62 countries. Starbucks divides their shops by phase, sex, revenue, cultural context and domestic lifestyle. For example, demographically, Starbucks is usually found in expensive areas, near workplaces, and near college grounds....   [tags: Coffee, Starbucks, Coffeehouse, Customer]

Better Essays
979 words (2.8 pages)

Essay about Analysis Of Starbucks

- In 1971, the first Starbucks store opened in Seattle’s renowned Pike Place Market. In the beginning they made only one guarantee to their customers: Expect More Than Coffee (Starbucks, 2017). It is on that guarantee that they have built a connection with their customers that has solidified their success in a saturated market. Now they have more than 24,000 retail stores in 70 countries (Starbucks, 2017). Their extensive brand portfolio now includes the following: Starbucks Coffee, Seattle’s Best Coffee, Teavana, Tazo, Evolution Fresh, La Boulange, Ethos Water and Torrefazione Italia Coffee....   [tags: Starbucks, Coffee, Coffeehouse, Espresso]

Better Essays
1077 words (3.1 pages)

Trends in the Hospitality Indus Essay

- Trends in the Hospitality Industry Nowadays trends are everywhere. You can find them in every industry and they play a huge role. The retro trend in clothing, the SUV trend in the car industry, but nowhere else are trends more important than in the hospitality industry. But what exactly is a trend. A trend describes usually the time measurable course of a development into a certain quantitative and/or qualitative direction. In economics, trends are changes of the behavior of the society. In marketing research this describes the change and development of the consumerism and consumption behavior....   [tags: Industry Trends]

Better Essays
1440 words (4.1 pages)

Essay on Economic Conditions of Japan

- Economic Conditions of Japan Japan is currently in an economic recession. We can see that the value of the yen is falling; unemployment is rising, and purchasing of durable goods is down. This unhealthy state of economy has progressively become bleaker over the years. Many believe that the start of the slump was due to the economic bubble in the late 1980’s when low rates encouraged an inordinately large amount of investment. When a country has an elevated investment rate, large amounts of capital stock are purchased....   [tags: Business Economics Globalization]

Free Essays
680 words (1.9 pages)