1 Jul 2022

178

Environmental Factors Affecting Starbucks

Format: APA

Academic level: High School

Paper type: Research Paper

Words: 520

Pages: 2

Downloads: 0

At the beginning of a trading period, organizations set goals expected to be met through an organized set of plans and workforce. Starbucks is a corporation renown for the sale of good quality coffee. The quality of service is another factor that brings in more customers to purchase at Starbucks. Satisfied customers are the best tool of marketing as their share their experience from the coffeehouse. Moreover, there are factors outside the business culture that positively as well as negatively influence the business.

An increase in capital available in the economy provides the potential for growth and exploitation of the labor in the market. The U.S economy has recorded a steady economic growth of 3.2%. This signifies an increase in money circulation available for creativity in technological infrastructure development that enables efficient and effective production. The utilization of the presented opportunity is expected to increase sales by 26%.

It’s time to jumpstart your paper!

Delegate your assignment to our experts and they will do the rest.

Get custom essay

Market cycles are bound to recur. The length of time cannot be predicted with certainty. However, the pendulum is always swinging between booming trends characterized by investors willing to invest in future growth expectations and an inverted yield curve that shows an impending recession with reduced economic activities whereby investors are shying off and selling invest in safe deposits such as long-term Treasury Bills. Investing in bills and bonds are safe investment instruments in bad economic times that offer little interest (Haskova, 2015) . However, the long-term goal is to raise capital and strategize as Starbucks patiently waits on the appropriate time to reinvest in the opening of new stores or methodology of goods and service delivery.

Starbucks is the leading brand in the U.S for offering coffee and beverage products. The success in the U.S has made it possible to expand to European, Asian, and Australian economic zones (Azriuddin, et al., 2020) . The rate of growth in the U.S is increasing as new outlets offering substantial returns. The income and expenses in Europe and America according to the statements of financial positions concur. The environment in both economic regions has laws and regulations that have created an enabling environment to promote business activities.

One of Starbucks' main competitors, Dunkin' Donuts, has been offering various products, focusing on donuts and coffee to gain an edge on the beverage and food processing industry. Dunkin' Donuts strategies have offered healthy competition to Starbucks that have considerately raised their income over time. Although, the economies of scale accrued by Starbucks as it has approximately 14,000 locations in the U.S generates more than a thousand times of revenue generated by Dunkin' Donuts.

McDonald a corporation that has predominantly been in the food processing industry for years and recently diversified its product catalog as a strategic move aimed at attracting customers and gain a competitive advantage against its peers. Starbucks' promotional products that are purposeful for attracting customers in the afternoon have not been fruitful (Haskova, 2015) . McCafe, a coffee product cheaper than Starbucks, has been competitive in attracting consumers to McDonald's, especially in the afternoon when the customer is cost-conscious.

Customers shopping at Starbucks obtain reward points according to the value of money spent. More money spent corresponds to higher reward points. The points are redeemable for discounted prices. This strategy is effective in improving customer loyalty. Moreover, partnering with Uber eats enables us to identify consumer patterns and offer custom deals through emails and downloadable applications.

References 

Azriuddin, M., Kee, D. M., Hafizuddin, M., Fitri, M., Zakwan, M. A., AlSanousi, D., & Kurniawan, O. (2020). Becoming an International Brand: A Case Study of Starbucks. Journal of the community development in Asia , 33-43.

Haskova, K. (2015). Starbucks marketing analysis. CRIS-Bulletin of the Centre for Research and Interdisciplinary Study , 11-29.

Illustration
Cite this page

Select style:

Reference

StudyBounty. (2023, September 15). Environmental Factors Affecting Starbucks.
https://studybounty.com/environmental-factors-affecting-starbucks-research-paper

illustration

Related essays

We post free essay examples for college on a regular basis. Stay in the know!

How AI Can Help Retailers Solve Business Problems

The global marketplace is currently more integrated than ever before. This situation presents a never-before experienced opportunity for retailers. Multinational organizations whose sole basis is the internet have...

Words: 2700

Pages: 5

Views: 138

The Natural Organizational Model and the Informal Groups

The nature of an organization is based on different factors such as the environment it is set up in. also, the type of activity it undertakes. This paper will examine the natural organizational model, the informal...

Words: 3009

Pages: 10

Views: 239

Why Pinkberry should focus on making orange and yellow the two prevailing colours

The fact that Pinkberry has evolved from a storefront to a nationally recognized brand makes this franchise of frozen dessert yogurt shops an example to be followed. Yes, the personality of a brand created a platform...

Words: 582

Pages: 2

Views: 93

Ford Motors: Board Presentation For Electric and Hybrid cars Production

Executive Summary The motor vehicle industry in America and worldwide is highly competitive with major players no longer enjoying the dominance that they had had before. Innovation and identification of trends...

Words: 1088

Pages: 4

Views: 130

Home Remodel Project Plan

Project Overview Home remodeling is one of the notable key projects undertake through project management, as a project manager is expected to come up with a clear plan that would help in meeting the expected...

Words: 2152

Pages: 8

Views: 68

How Airbnb Achieved Success

Hospitality industry includes firms that provide lodging and dining services for customers. Many of the businesses in the travel and hospitality industry offer customers with prepared meals, accommodation, snacks,...

Words: 906

Pages: 3

Views: 63

illustration

Running out of time?

Entrust your assignment to proficient writers and receive TOP-quality paper before the deadline is over.

Illustration