Unlike the micro environment of a retail store, companies in the retail industry usually cannot influence or change the macro environment and must adapt to changes as they arise. The macro environment includes economic, technological, societal and governmental influences.
Public Domain Starbucks Coffee Company, founded inhas grown to an international brand. Despite its current industry leadership, Starbucks must continue monitoring its remote or macro-environment.
Regional integration of markets opportunity Improving governmental support for infrastructure opportunity Bureaucratic red tape in developing countries threat Regional integration is a current trend and external factor that presents an opportunity for Starbucks to globally expand.
Also, most governments around the world are improving infrastructure, which creates the opportunity for Starbucks to access more markets or suppliers. However, bureaucratic red tape persists in most countries. This external factor is a threat because it makes business expansion more difficult for Starbucks, especially in developing countries.
Starbucks faces the following economic external factors in its remote or macro-environment: The firm sources much of its coffee beans from developing countries. Growing coffee culture opportunity Increasing health consciousness opportunity Growing middle class opportunity Starbucks has opportunity to increase its revenues based on increasing demand for specialty coffee, which is due to a growing coffee culture and a growing middle class around the world.
Rising mobile purchases opportunity Technology transfers to coffee farmers opportunity Rising availability of specialty coffee machines for home use threat Starbucks has the opportunity to improve its mobile apps and linked services to gain more revenues through mobile purchases.
The company also has the opportunity to improve its supply chain efficiency based on new technologies coffee farmers use. However, the rising availability of home-use specialty coffee machines is a threat to Starbucks because it increases the availability of substitutes to Starbucks products.
Business sustainability trend opportunity Growing popular support for responsible sourcing opportunity Growing popular support for environmentally friendly products opportunity The business sustainability trend focuses on business processes that ensure minimal environmental impact.
In relation, responsible sourcing emphasizes corporate social responsibility in the supply chain. Starbucks has opportunities to enhance its performance in these areas. Note that the company already has responsible sourcing policies.
Starbucks also has the opportunity to offer more of its products in recyclable packaging. Product safety regulations opportunity GMO regulations outside the United States opportunity Increasing employment regulation threat Starbucks has opportunities to improve its performance by satisfying product safety regulations and regulations on ingredients from genetically modified organisms GMOs.
Starbucks is already performing well in these aspects. This external factor also impacts Starbucks through increased spending for human resources.
However, the company must work to address the identified threats, especially the threat of substitution linked to the increased availability of home-use specialty coffee machines.
On the other hand, Starbucks cannot do much but to avoid the threat of bureaucratic red tape. Housing Industry Association Howard Schultz and Starbucks Coffee Company. Starbucks Coffee Company Company Information — Starbucks Coffee Company. Copyright by Panmore Institute - All rights reserved.
Educators, Researchers, and Students:The primary difference between micro and macro environment is that the micro environmental factors are controllable by the business, however, the macroeconomic variables are uncontrollable. The following are the major difference between micro and macro environment: Conversely, PESTLE Analysis is a study of the macro environment.
Conclusion. To do macro environment analysis, it’s wise to utilize accurate tools which are built for this specific study. In this case, it’s PEST analysis. PEST analysis examines the influences of political, economic, social, and technological factors of a business.
A PESTLE Analysis can be used to identify and study the key influences in any environment and how these components will react to change.
This guide explains what a PESTLE Analysis is - including a list of its components - and how it is used in project management. PESTLE - Macro Environmental Analysis. The PESTLE Analysis is a framework used to scan the organization’s external macro environment. Legal needs to be complied with whereas Political may represent influences, restrictions or opportunities, but they are not mandatory.
The PESTEL/PESTLE analysis framework indicates the most significant influences on Starbucks based on characteristics of the remote or macro-environment. Despite its current industry leadership, Starbucks must continue monitoring its remote or macro-environment. A PEST analysis is an analysis of the external macro-environment that affects all firms. P.E.S.T. is an acronym for the Political, Economic, Social, and Technological factors of the external macro-environment. PESTLE Analysis is an analytical tool for strategic business planning. It is a strategic framework for understanding external influences on a business. PESTLE is a strategic framework for understanding external influences on a business. Take a Peek. There are many macro-environment factors that effect strategic planning: New laws, tax.
PEST or PESTEL analysis is a simple and effective tool used in situation analysis to identify the key external (macro environment level) forces that . Dec 30, · Political macro environment factors include things like tax policies, government-issued safety regulations, the availability of government contracts, and even shifts in the controlling political party.
environmental problems, you can minimize their damage. Businesses with god leadership will recognize threats through analysis.