Economic Starbuck Company collaborated with third party associations to

Economic

Starbuck
Company most of the revenue come from operation store and some revenue come
from licensing store. If the global and local economic is not stable to cause
increase rate of unemployment, rate of inflations and the price of change will
influence the revenue of the company. That customer will change to another
brand of the coffee shop, which is more expensive than the Starbuck coffee. If the economics
risk is persisting long period and have not solved by government and some
organization, customer will change their behavior to change their spending
power.

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Social

Starbuck
Company have more than 24,000 at 70 centuries, it have good image at the global
public from their store. Thus, Starbuck Company cans operations at foreign, due
to distance, difference language, and cultural difference with affect the
managing operation.

 

Environment

Starbuck
store set a goal for want to build the Greener Store to achieve the LEED (Leadership in Energy and Environmental Design)
certification. The Starbuck store provides comfortable, enjoyable place to
learning, chat, and enjoy the high quality coffee. The basic of the LEED
standard is  Conserving energy by allowing
air-conditioned stores to reach 24°C instead of 22°C on warm days, saving water
by using high-blast nozzles to clean jugs instead of running water,  improving lighting efficiency and using
recycled flooring tiles. Starbuck company will take care about the environment
of the planted for example coffee bean, tea and cocoa. Starbuck company
measures in place to manage waste, protect water quality, conserve water and
energy, preserve biodiversity and reduce agrochemical use. This action is want
that plant produce good quality product for example the Starbuck company might
sure that coffee bean is good quality basis at a premium above the
“C” price.

 

 

Technological

Starbuck
Company collaborated with third party associations to improve the technology of
the company, such as the web, mobile application platform, online and mobile
payment, reward program system and administrative function. That action is more
secure our customer information when using online payment or card payment. The
action also include to protect that all information about the Starbuck Company,
which include the financial information, account information, business plan and
all of the privacy about the company. If
Starbuck company technological failed to protect secret information will affect
company reputation and brand. Starbuck company investments in
technology, third party services and personnel to develop and implement systems
and processes that designed to anticipate cyber-attacks and to prevent or
minimize breaches of our information technology systems or data loss, but these
security measures cannot provide assurance that we will be successful in
preventing such breaches or data loss.

 

Information

Starbuck
company provide a web site, who wants to get information about the whole year
financial or quarterly result or seasonality result. Investor can go the
investor.starbuck.com to get the annual report or quarterly report for decide
to invest their company. That information will show the fiscal information
about the company and the risk factors of their facing in that year.

 

Legal

Starbuck
Company is International Company, which have licensed store and company-operated
stores at other countries. Each country has their legal such as the employee benefit,
applicable trade, labour, healthcare, privacy, food and beverage, labelling,
anti-bribery and corruption and merchandise laws. Starbuck Company may be litigation
by foreign government if their violation of the regulations. This action will
influence reputation and brand if Starbuck company and their partner to comply
with the various laws and regulations, if the problem is serious will occur civil
and criminal liability, damages, fines and penalties, increased cost of
regulatory compliance and restatements of our financial statements.

 

Political

Political is most directly affecting the
revenue of the company. Every change by the government will influence the
company such as political situation of local and foreign. The annual report of
the Starbuck Company mentioned restrictive actions of foreign or U.S.
governmental authorities affecting trade and foreign investment, especially
during periods of heightened tension between the U.S. and such foreign
governmental authorities, including protective measures such as export and
customs duties and tariffs, government intervention favouring local
competitors, and restrictions on the level of foreign ownership?

 

Power OF Suppliers

Starbuck Company provided many suppliers, but there
has good strategies for handler that power of suppliers to become not powerful
of them. Starbuck Company make a condition and contract with their suppliers,
which include the Arabica coffee bean, food, drink, paper cup, cutlery and
several components to support the operation of the retail store and company
store. Most of the suppliers were agree the fixed price condition provide by
Starbuck Company to support them for long period. The Half of Arabica coffee
bean supplier haven’t agree the fixed price condition because the price of the
coffee bean is volatility, which including weather, natural disasters, crop
disease, general increase in farm inputs and costs of production, inventory
levels and political and economic conditions. That suppliers were not to agree
will reduce the Starbuck revenue. Thus, Starbuck Company operates eight farmer support centers
The farmer support centers staffed with agronomists and
sustainability experts who work with coffee farming communities to promote best
practices in coffee production designed to improve both coffee quality and
yields. The switching between
substitutions of suppliers is low, because Starbuck maintain fair trade coffee
standard.

 

Threat of Substitutions

Threat of substitutions is high, which mean that
product substitutions are same like the Starbuck store environment and same
product to sell at the market. That competitive was many, which include fast
food restaurant, coffee shop and packaged coffee and tea and single-serve and
ready-to-drink coffee beverage.  That
also provide a good environment for chat, drink coffee, enjoyable that
comfortable air with air conditional. That advantage of the substitutions
product is on the price of coffee, but the loyal customer knows the Starbuck
coffee is better than other is. Although, the loyal customer will continue buy
the Starbuck product, but the behavior of the customer and consumer preference
for other products give a negative effect to the Starbuck Company. The
switching cost is low for the customer to switch from Starbuck to another
company coffee, because that substitution produce cost is low than Starbuck
product.

 

Threat of New Entrants

Threat of New Entrants
also is moderate, the new entrants want establishing a huge coffee shop or
quick-service restaurant require a huge investment. The loyalty of the customer
also requires a long period time to accumulate. However, small coffee shops are
more focus on the customer basis of product quality, service and convenience,
as well as price.  The market of the
supplier is more, because many small coffee shop purchase the second hand
coffee mechanic, cake suppliers and coffee bean is find their local suppliers.
Starbuck coffee is use the Arabica coffee bean is better than other that suppliers,
but the foreign customer behavior and preference is difference, that can be preference
their local coffee bean. 

 

Power of Buyers

Rate of power of buyers is low. Buyer are well
information  and know their choices,
which can based on price of coffee, environment of the coffee shop, quality of
the coffee and loyalty of the product. That buyers can easily switching to
another similar product with a low cost, because certain consumer sensitive on
the price of the product, if the product attempt to increase, their will switch
to another product. These products is not necessary for every day of the
consumer because it can be high cost of the total spent on month for the middle
and low income consumer. Consumer only spent small cost per transaction on the
store.

 

Rivalry of Competitors

 

The rate of rivalry
of competitors is high because rivalry among existing firms is fierce. Starbuck Company has many competitors such as
Costa, Caribou Coffee, McDonald’s, Dunkin Donuts and another small coffee shop.
Starbuck Company depends by their brand loyalty of customer and better coffee
or chairs that are more comfortable. Such as their coffee is use the Arabica in
premier “C” standard and environment is good. Starbuck Company also provides
seasons drink to meet to the coming season to attractive customer.