Starbucks: Expo 2021, PESTL Analysis and Coronavirus

Starbucks is a famous café world wide you could find it almost everywhere in the world. Starbucks was founded in March 31, 1971 and was founded by 3 people named Gordon Bowker, Zev Siegl, and Jerry Baldwin. Most people love their coffee and usually like to start their mornings with a beverage from Starbucks.

FACTORS OF PRODUCTION

Starbucks need all four factors of production which are Labor, Capital, Land, and Entrepreneurship. They need land for their stores to sell their product and to grow the coffee and the materials they use also to build the factories that will be supplying and shipping the stocks to the branches. Capital to pay off their baristas, janitors, cashiers, managers, stock managers, branch managers, etc... And to also pay the factories for the product production and shipping. And they need labor to sell their products and keep each one of their stores active and running they need a team in each branch so the store branch can run efficiently. And finally, they need an entrepreneur to lead them and manage their production and help the chain get sponsorships with other brands and assigning the work in each branch equally and distributing the capital they make on their workers.

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HOW WOULD EXPO 2021 HELP STARBUCKS

In expo 2021 Starbucks will be having their 50th anniversary which as they mention on their story website that they will be working harder and releasing new drinks that everyone will like. And the company is aspiring to become a resource positive storing more carbon than it emits and eliminating wastes also providing their customers with cleaner freshwater. The company also mentions that they would be focusing on making partnerships with others to take care of the planet we all live in. And things they intend to be doing during expo 2021 are: -

• Making more plant-based options to choose from so they can have a more environmentally friendly menu.
• Start using reusable packaging instead of one time use packaging.
• Developing a more economically friendly stores and services.

So overall they’d be focusing mainly on keeping our environment clean and waste free.

PESTL ANALYSIS

• POLITICAL: Starbucks had when first opened in UAE had to adapt to the political environment and had to focus on the laws and regulations of the UAE to satisfy the UAE law needs and political needs the company had to make many changes in their chain before opening. For example, adapting to the health and authority regulations and adapting to the consumer rights in the UAE. Starbucks has overcome all those challenges and currently has many shops and branches all across the UAE.
• ECONOMICAL: As Starbucks arrives to the UAE in the year 2000 which was a great year to arrive in since the UAE faced a huge growth in both domestic and foreign invested coffee brands. Which would really help the company in achieving growth within the community and gain customers. UAE is known for its passion for coffee with Starbucks opening in the right time you best know that the company’s winnings went up.
• SOCIAL: Of course, after the opening of any company they have to look at the customers interest to grow in fame and love by the economy they open in. Starbucks once opened in the UAE they focused on what the customers wanted and requested of course not all the requests were able to be made into reality since not all of them abided by the local health authority regulations. When customers saw that most of their requests were turning into reality they grew in love with the company and word started to come out and Starbucks grew in fame and love by their economy.
• TECHNOLOGICAL: Starbucks tends to use the latest brewing technology and always keeps their technology up to date. They try to maintain a perfectly updated cashiers, brewing machines, blenders, ovens and general kitchen supplies. By maintaining the up to date technology this will keep their customers satisfied with a perfectly brewed coffee, blended drink, backed material or even fast cashier service.
• LEGAL: Every company that grows fast or any upcoming company would have the public or legal eye focused on to it. Since Starbuck’s fast growth in the UAE the government have been keeping an eye on them to make sure the satisfy the consumer rights in the UAE. And in addition to safety measures and health regulation to keep customers and employees safe at all times. The company had to adapt to a big change in their product since the UAE doesn’t allow the trade with none halal items in cafes or restaurants. So, they had to adapt with the change of pork with smoked turkey breast slices in their sandwiches and the use of halal beef bacon in all their sandwiches.

HOW COVID-19 EFFECTED STARBUCKS

COVID-19 has caused many businesses to shutdown or lessen their production. Starbucks focused on keeping the environment safe from the virus and mentioned that after the lockdown is over, they will return to satisfying our cravings and while lockdown was on, Starbucks focused more on the environment and started sanitizing their branches and working on updating their team and technology so once their customers return they’d be satisfied with the perfect service. Starbucks worked on improving their social skills and their customer supports skills and worked on developing a better customer service to satisfy their customers with great services. Starbucks also kept on looking at what the future retail chart is going to look like and how it intends to navigate threw the phases of this pandemic. Also, after their reopening they have required all customers and employees to wear masks in the store nationwide. The demand supply of the company went down after the lockdown has reached, but after the lockdown was finished, they managed to get their demand supply back up but it wasn’t as before.