Starbucks has over 9,000 stores worldwide selling coffee, tea and other beverages and food items. Their strategy focuses on rapid expansion, both domestically and internationally. They emphasize employee training and store design. Starbucks also pursues strategic coffee purchasing and promotes fair trade and sustainability. Political, economic, social and technological factors are considered in Starbucks' PEST analysis.

1. Starbucks’
S TRATEGY AND
PES T ANALYSIS
NEVROZ
GÖS TER İ C İ

2. Overview
 Established in 1971 at Seattle, Washington
 Famous for its quality fresh-roasted coffee beans
and stylish atmosphere.
 Over 9,000 stores worldwide
 Product lines include :
− beverages (coffee, Tazo tea, soda, juices)
− pastries
− whole coffee beans
− coffee-related hardware and equipment
− merchandise (mug, CDs)

3. Starbucks’ Strategy
 Rapid store expansion strategy
• Domestic store expansion
• International store expansion
• Employee Training and Recognition
• Real Estate, Store Design, Planning, and Construction
• Store ambience
 Product Line
 Coffee purchasing strategy

4. Starbucks’ Strategy
Rapid store expansion strategy
• Domestic store expansion
− A three-year expansion strategy
− “Starbucks everywhere” approach
• International store expansion
− Company-owned and company-operated stores or licensing
− Created a new subsidiary, Starbucks Coffee International
− Expanded its consumer products channel in South Pacific region

5. Starbucks’ Strategy
• Employee Training and Recognition
− Systems to recruit, hire and train baristas and
store managers
 screening
 training programs
 awards for partners
• Real Estate, Store Design, Planning, and Construction
− A broad range of store formats (the right image and character)
− A “stores of the future” project team
− High-traffic, high-visibility store locations
− Control of average store opening costs
− Wi-Fi availability at stores

6. Starbucks’ Strategy
• Store ambience
− The concept of “everything matters”
− Assessment of standards

7. Starbucks’ Strategy
Product Line
•Wide range of products choices
•Special product promotion
•Selling music CDs
•Joint ventures
PepsiCo
Dreyer’s Grand Ice Cream
 Jim Beam Brands
•Acquisitions
 Hear Music
 Ethos Water
•Starbucks Cards
•Partnership with Bank One

8. Starbucks’ Strategy
Coffee purchasing strategy
• Building relationship with growers and exporters, checking on
agricultural conditions and crop yields, and searching out varieties
and sources that would meet Starbucks’ standards.
• Using fixed-price purchase commitment and purchasing coffee
future contracts
• Contributing to the sustainability of coffee growers and helping
environment conservation
• Purchasing and marketing Fair Trade Certified coffee
• Promoting coffee cultivation methods that protected biodiversity and
maintained a healthy environment

9. PEST Analysis
Political Influences
− Relationships between U.S. and countries producing coffee
beans
− Environmental regulations
− Industry-specific regulations
Economic Influences
− Demand for food and beverages
− Customers’ buying power
− Exchange rate & taxation

10. PEST Analysis
Social Influences
− Trend
− Consumer preferences
− Changes in lifestyle and occupation
− Education
Technological Influences
− advances in manufacture
− biotech and agricultural development
− IT developments