As the discussion declares Starbucks has successfully entered in several potential international market places with proper realization and understanding of the impact of external environment factors on the business practices. In order to reveal the impact of several external environment factors on the business operation of Starbucks in global market, a PESTLE analysis has been undertaken.
This paper stresses that the political stability of a country is very much important for a global business organization in order to run the business successfully. It has evidenced that; the organization has chosen every single international market place after understanding and examining the political stability of each and every specific country. Moreover, the organization has effectively followed specific industry regulations and rules in every foreign country apart from USA in order to avoid the international political business threat. It has evidenced that, Strabucks has maintained high-level relationship with the government of every business operation and coffee beans producing country. The European financial crisis in 2008-09 and global recession in 2007-08 has affected the global economy drastically. The condition of global economy has suffered from several reasons, such as high taxation level, reduced consumer buying power, low exchange rate of currency in global market place, economic slowdown of several developed and developing country and low disposable income of middle class people. However, several developing countries, such as BRICK Countries has not affected much from the affects of Recession and Financial crisis due to sufficient natural resources and highly controlled administration. Presently, the global economy is recovering from the effect of these economic downturns. The local economic situation and environment within each operation country is shifting towards growth. Therefore, the business output of strabucks is gradually increasing. Social It is becoming global trend to have the taste of coffee in a coffee chain. Moreover, the changing of family patterns in UK, USA and Asian countries have influenced the buyers to consume high quality coffee. Due to high customer preference, the organization is effectively doing their business practices.