Starbucks coffee company was started in 1971 as a coffee selling company, and has grown as an international brand and world’s biggest and most popular coffeehouse company. It strives to operate as an innovative and sustainable business within the coffee selling industry, even though it is heavily guided by the ongoing global economic recession. However, recent market case study shows that there has not been a decline in though rate of consumption of coffee within the steady customers of Starbucks, thus making it intriguing for the analysts and researchers to dig deeper into the internal and external environmental analysis of the brand and find out how it has stood the test of time and global recession, especially now during the COVID-19 pandemic.
The key political factor that influences a brand is its quest for sourcing raw materials in any given Geographical location. Australia provides for cooperative and steady supply of raw materials along with an encouraging political environment for steady business growth. Government policies in terms of fair-trade practises, cutting down on unfair competitive business strategies, anti-dumping policies along with its choice of political philosophy which is majorly Indicating to be a capitalist economy heavily contributes towards an environment of business flourishment and development. Its free trade area agreement with a number of countries also helps to boost businesses sprawling from such regions. However, certain regulatory pressures could negatively impact business activities along with political agendas of the oppositions who strive to criticise the actions of the ruling party. Bureaucratic red tapism is another negative aspect of the political background that the brand might have to face in spreading its business in Australia. Assignmenthelp.us is offering Starbucks case study help.
The latest data provided by business analyst companies and statistical bureaus have shown that Australia has experienced an economic growth of 1.11%, which was -0.95% in the last quarter. It thus shows that the country has been coping up with the global recession, thereby maintaining a steady rate in terms of consumptions made by the consumers in respect to different industries. A stable GDP is a positive contribution to the business growth of the brand, positively impacting the purchasing power of the consumers that shall not challenge the brand's revenue collection even during the global economic recession. However certain economic aspects that needs to be ensured by the brand that could affect it are:
The growing coffee culture in the country could be the most positive aspect of the social factor that influences the brand in Australia. In addition, the purchasing power of the people and the growing middle-class section of the country is also an added benefit. The growing demand for specialty coffee could boost Starbucks' revenue thereby giving it the opportunity to widen its business. Also, the increasing health consciousness of the people could need the brand to come out with more calorie conscious drinks for the health-conscious consumers, thereby widening its consumer base as well in Australia. Lastly the changing work patterns and strenuous work schedules along with the changing lifestyle increases the demand of caffeine-based products.
Advancement of technology requires excessive use of mobile phones and dependence on software applications, thereby demanding the brands as well as the consumers to be more tech savvy. Consumers now could order their favourite Starbucks drinks from their official websites and mobile applications from the comfort of their home, without having to go out and queue up in the stores. This kind of facility definitely boosts the sales of the brand along with providing a comfortable consumer facility. From a wider perspective, biotechnological developments and development in agricultural aspects helps the brand to receive better quality of coffee beans or More flavours of drinks, thereby widening its variety of beverages and alluring more consumers. Improved supply chain efficiency which are heavily based on improved and advanced technologies are now helping coffee farmers to grow and supply raw materials to the brand. However, increasing production of coffee from the genetically modified plants which is a sign of advanced technology could be threatening for Starbucks as it leads to the rising number of new coffeehouse ventures that may even offer specialty coffees of good quality at a cheaper rate.
Food and beverage safety regulations of Australia shall majorly impact the legal factors that shall influence the business. Strict customs and trade regulations of the country shall also have certain impacts on the business along with the licencing regulations of the industry. Steep labour laws, which are however good for the working class of people, could affect the business from freely accessing human resources and building labour policies for its employees. Laws relating to supply chain management and basic corporate laws of Australia shall also have an effect on Starbucks's business within the territory. Our law assignment help services will help you in legal problems.
Environmental sustainability is the key to developing business in modern times in any given geographical area, especially with stringent environmental awareness and risk of climatic change. The brand shall have to make sure to source its supplies responsibly keeping the balance of nature in mind, thereby respecting environmental impacts. Starbucks shall be liable to support environmentally friendly products, which shall certainly open its doors towards environmentally conscious consumers, thereby helping it expand its business further. For example, recyclable packaging, seeking consumer contribution to bring back glass bottles on their next purchases, raise funds for environmental sustainability, et cetera could be an opportunity for the business to make sustainable changes to its business model in Australia.
The aggregate evaluation of those SWOT and PESTLE analysis thus concludes for a positive opportunity for Starbucks to spread its business across Australia, which is offering a stable external environment for the brand. Moreover, its international brand value is the biggest USP to spread across different regions despite a global economic recession, in addition to the fact that people would rarely lower their consumption of caffeine products given the stressful time of COVID 19 pandemic. You can get study help.
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