Starbucks: A PESTEL Analysis Case Study by Kien

Starbucks: A PESTEL Analysis
A PESTEL analysis of Starbucks and a look at its implications on the company's human resource strategies.
# 153558 | 2,180 words | 8 sources | APA | 2013 | KE
Published on Jun 13, 2013 in Business (Companies) , Business (Human Resources)

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This paper provides a PESTEL analysis that addresses the political, sociological, economic, technological and legal factors that affect Starbucks and its business strategies. The paper considers the implications of this analysis on the company's human resource strategies, and shows how the business goals and objectives at Starbucks greatly influence the people strategies that the firm employs.

Implications on Human Resource Strategies

From the Paper:

"A PESTEL analysis will help to understand the internal and external environments of Starbucks coffee house. This tool has been used to analyze the political, sociological, economical, technological, legal factors that affect business strategies that the coffee house adopts. To begin with, Starbucks is affected by political factors not only in the country it operates in but also in the countries from which it imports coffee from. This usually takes the form of tariffs, duties and taxes that governments in coffee producing countries impose on coffee exports. For instance, fluctuation on coffee import duties and taxes in Brazil would implicate negatively on the firm as these added costs would be passed on to the consumers of the firms products (Workman, 2010). Similarly, if the governments in the countries the company operates in introduced higher duty on coffee products being imported from other countries, the company would be adversely affected. Nevertheless, a reduction in the same charges on imports and exports would be beneficial to the organization.
"Secondly, political factors such as regulation and deregulation by the government would also affect business strategies that Starbucks adopts. For instance, following the collapse of the International Coffee Agreement which ended government regulation of coffee prices, Starbucks has benefited greatly from the reduced coffee prices. This has defined its business strategies to suit the prevailing coffee market environment."

Sample of Sources Used:

  • Baertlein, L. (2010, November 4). Special Report: Frappuccino flippers? Reuters .
  • Jeffrey, P. (2003, February 7). Depressed coffee prices yield suffering in poor countries. Global Exchange .
  • Jung, H. (2003, April 20). Lattes for all: Starbucks plans global expansion. Global Exchange .
  • Maher, M. (2010, January 17). Starbucks' policy grinds farmers and ignores Fair Trade guidelines. The Hawk .
  • Simon, B. (2009). Everything but the coffee:learning about America from Starbucks. LA: University of California Press.

Cite this Case Study:

APA Format

Starbucks: A PESTEL Analysis (2013, June 13) Retrieved February 22, 2024, from

MLA Format

"Starbucks: A PESTEL Analysis" 13 June 2013. Web. 22 February. 2024. <>