What Forces from the Environment Are Affecting Starbucks? How Is Starbucks Responding to These Forces? Does the Environment Present More Opportunities or More Threats for Starbucks? Explain

Coffee industry is in crisis and as results many coffee farms are going out of business. Coffee farms are overproducing the coffee. As stated in the video : “ It’s not the coffee we buy it , it does not affect the Starbucks but it does effect the farmers globally”. One of the forces from the environment that is affecting Starbucks is increased social awareness. In the area of Internet there is more access to the information of what is happening behind the scenes before final products gets on the shelf.

Starbucks is aware of the problems that various societies and communities deal with every day, they are conscious of the difficulties of society. They dedicated themselves to earning the trust and respect of their customers and partners. Starbucks provide great work environment and treat everyone with respect and dignity. The main goal of Starbucks is to embrace diversity by applying the highest standards of excellence. Starbucks embrace diversity as an essential component it the way they do business. They search the world to find the best finest coffee. They buy from the same farmers. They know the farmers and they build relationship with them. Starbucks also work with the government because they influence the social condition and what the law is for the country.

The environment presents both – opportunities and threats for Starbucks. One of the opportunities is brand recognition. These days brand recognition is more important than ever. Brand recognition is one of the most important factors for any company wanting to have success in its industry. Generation Y is more ethical and environmental conscious. They are willing to pay more for environmentally friendly, service and products (coffee).

The world economy is becoming a single market place resulting to intense competition among companies. In the area of global competition a threat of new competitors is constant. Starbucks is facing a threat of substitution from other companies that have the same...