Fast Serve Coffee External Analysis Marketing Activity Report Topic: Fast Serve Coffee (NO Plagiarism/ NO Grammar errors / NO incoherent sentences) Wr

Fast Serve Coffee External Analysis Marketing Activity Report Topic: Fast Serve Coffee

(NO Plagiarism/ NO Grammar errors / NO incoherent sentences)

Writing an external analysis for fast-serve coffee to profile for the Marketing Activity Report.

For each of the main external business environments (Political, Economic, Social, and Legal):

1.identify the key trends that will either positively or negatively impact the industry sector identified

2.estimate the size of the impact (small, medium, or large)

3.timeframe (short term, medium term, or long term) of when the impact will affect the industry.

4. If there are specific industry brands that need to be used in the analysis, you can use the following four brands: starbucks, Tim Hortons, McDonald’s and Common Ground

The paper should be minimum 3 pages (full), APA Format, with up to date references.

I attached to this message a SAMPLE essay and outline ( what I expect to receive). DO NOT COPY this sample as its only purpose is to show you how I would like the final paper to be organized (the sample is about Starbucks company BUT in my paper we will discuss about fast serve coffee,not directly referred to a company). Starbucks External Analysis
Introduction
•
Starbucks Incorporation is an American Company that began its operation in 1971 in
Seattle.
•
The company employs more than 19,750 branches across the globe, employing more than
200 000 employees.
•
The products of Starbucks Company comprises of roasted and handcrafted premiumpriced coffee, tea, a variety of fresh food and beverages.
External business environment
Political environment
•
The main political factor affecting Starbucks business environment is the sourcing of raw
materials, which gathers attention from political leaders in the West and from the
countries where Starbucks get materials.
•
The company is keen on observing social and environmental standards and the sourcing
strategies that are appropriate in different counties.
•
This has been facilitated by increased political awareness and activism in developing
countries that are the main source of raw materials for Starbucks.
Economic Factors
•
The key trends of economic factors that affect the operations of Starbucks include the
economic recession, increased cost of labor and operational costs, and reduced
consumption of Starbucks coffee.
•
The global economic recessions dented the profit and the sales of Starbucks Company
because, in time of recession, buyers tend to shift to cheap alternatives.
OUTLINE
•
2
The impact of switching to low priced coffee is small because the company has an
opportunity of serving coffee at lower prices.
Socio-cultural factors
•
Starbucks Company has the capacity to offer low priced products, but it will have to
sacrifice the quality of its products.
•
Reducing the quality of Starbucks coffee is one of the socio-cultural challenges that the
company faces as it tries to expand its consumer base by including low and middle
customers.
•
The size of the impact is small because Starbucks has an opportunity of tapping the
potential in Gen X and the millennial to be part of its consumers.
Legal factors
•
Starbucks Company needs to ensure that it does not go against laws and regulations in
countries where it gets raw materials and the home market in the US.
•
The company is required to remain alert on the introduction of policies related to the
production and consumption of coffee, and adhere to safety and health regulations.
•
Other legal factors that will affect the company in the long-term include trade regulations
and strict customs, and licensing regulations from the US.
Conclusion
•
The external analysis of Starbucks has shown that the company is operating under a
moderately stable external environment.
•
The main reason for a stable external environment is because the company operates in
food and beverage industry, which means, despite the economic recession, consumes
only cut down their consumption to some extent but not completely.
Running head: EXTERNAL ANALYSIS OF STARBUCKS COMPANY
External Analysis of Starbucks Company
Student’s Name
Institution Analysis
EXTERNAL ANALYSIS OF STARBUCKS COMPANY
2
Introduction
Starbucks Incorporation is an American Company that began its operation in 1971 in
Seattle. The company has maintained the position of the biggest coffee chain in the world
through innovative strategies. The company employs more than 19,750 branches across the
globe, employing more than 200 000 employees. The products of Starbucks Company comprises
of roasted and handcrafted premium-priced coffee, tea, a variety of fresh food and beverages.
Besides, the company sells coffee and tea products, and license their trademarks through
channels such as grocery and foodservice accounts. The analysis focuses on the external business
environment of Starbucks, trends and impacts.
External business environment
Political environment
The main political factor affecting Starbucks business environment is the sourcing of raw
materials, which gathers attention from political leaders in the West and from the countries
where Starbucks get materials. The company is keen on observing social and environmental
standards and the sourcing strategies that are appropriate in different counties. The other political
factor facing Starbucks Company is the need to adhere to laws and regulations from the countries
it obtains raw materials (Haskova, 2015). This has been facilitated by increases political
awareness and activism in developing countries that are the main source of raw materials for
Starbucks. Finally, the company faces the regulatory pressures within the US market due to high
scrutiny of business processes of multinational companies. The impact of the identified political
factors tend are large because these factors range from the local and international market where
the company needs to adhere to the regulatory standards (Koehn, 2012). The timeframe of the
political impacts will be long-term for the time that the company will be sourcing raw materials
from developing countries.
EXTERNAL ANALYSIS OF STARBUCKS COMPANY
3
Economic Factors
The key trends of economic factors that affect the operations of Starbucks include the
economic recession, increased cost of labor and operational costs, and reduced consumption of
Starbucks coffee. The global economic recessions dented the profit and the sales of Starbucks
Company because, in time of recession, buyers tend to shift to cheap alternatives. The size of the
impact of the global economic recession was large because it led to the closure of some
Starbucks stores, which affected the profitability and sales revenue of the company (Haskova,
2015). Studies have indicated that rather than Starbucks customers cutting down the
consumption of coffee, they shifted to alternatives that are low priced coffee. The impact of
switching to low priced coffee is small because the company has an opportunity of serving
coffee at lower prices. The timeframe for switching to low priced coffee was short-run; hence,
the impact on the profitability and sales of the company was not large.
Socio-cultural factors
Starbucks Company can offer low priced products, but it will have to sacrifice the quality
of its products. Reducing the quality of Starbucks coffee is one of the socio-cultural challenges
that the company faces as it tries to expand its consumer base by including low and middle
customers. The size of the impact will be large because the company will be required to produce
low quality coffee in large quantity to serve the huge consumers’ bases, which could affect their
band in long-term (Smithson, 2017). The baby boomer generation in the market is retiring;
therefore, spending on coffee by the older consumers will decline, which will affect the profit
and sales negatively. The size of the impact is small because Starbucks has an opportunity of
tapping the potential in Gen X and the millennial to be part of its consumers. The timeframe of
the impact is short-term because the company will be producing low priced coffee to attract more
consumes from the millennial generation.
EXTERNAL ANALYSIS OF STARBUCKS COMPANY
4
Legal factors
Starbucks Company needs to ensure that it does not go against laws and regulations in
countries where it gets raw materials and the home market in the US. The company is required to
remain alert on the introduction of policies related to the production and consumption of coffee,
and adhere to safety and health regulations (Smithson, 2017). The size of the impact will be
small because all along, the company has been adhering to government laws and regulations of
the home country and those of counties where it imports raw materials. The timeframe of the
impact will be long-term because the company will be required to obey all laws and regulations
and adhere to all health regulations in its processes (Koehn, 2012). Other legal factors that will
affect the company in the long-term include trade regulations and strict customs, and licensing
regulations from the US.
Conclusion
The external analysis of Starbucks has shown that the company is operating under a
moderately stable external environment. For instance, the political and legal environment of the
company is not so strict because the company is only required to adhere to set rules and
standards to ensure that its operations are smooth. The main reason for a stable external
environment is because the company operates in food and beverage industry, which means,
despite the economic recession, consumes only cut down their consumption to some extent but
not completely. Therefore, the only duty before the Starbucks Company is to adhere to
regulations of countries where raw materials are obtained and those of host country lower the
cost of the coffee and increase its value to retain its competitiveness in the market.
EXTERNAL ANALYSIS OF STARBUCKS COMPANY
5
References
Haskova, K. (2015). Starbucks marketing analysis. CRIS-Bulletin of the Centre for Research and
Interdisciplinary Study, 2015(1), 11-29.
Koehn, N. F. (2012). Howard Schultz and Starbucks Coffee Company. Harvard Business School.
Smithson, N. (2017, January 31). Starbucks coffee PESTEL/PESTLE analysis &
Recommendations. Panmore Institute. https://panmore.com/starbucks-coffee-pestelpestle-analysis-recommendations

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