Essay - Case Analysis for Starbucks I. Situational Analysis A. Environment Important...

CASE ANALYSIS FOR STARBUCKS

I. SITUATIONAL *****

*****. ENVIRONMENT

Important environmental factors relating to a firm include economic, cultural and social values, current values and trends, political and legal factors, and environmental threats or opportunities. These elements may impact or otherwise threaten a firm's success ***** opportunities for improving a firm's situ*****tion. With respect to the economic situation, both ***** United States and foreign economies are presently facing some degree of economic uncertainty. In addition to dealing with the recent downturn in the dot-com/high- technology *****dustry, the United ***** is also experiencing a general economic downturn that has resulted in nearly every single large corporation eliminating and/or otherw*****e reducing its workforce. Likewise, the ***** States is still recovering with the emotional and financial impacts ***** ramifications caused by ***** September 11, 2001 terrorist attacks.

The United States is not alone in ***** economic uncertainty right now. Asia, Europe, and Latin America have all had financial difficulties of one form or another during the past few years. In addition, Asia, Europe, and ***** America have traditionally been (and still are to some degree) dependent upon the ***** States f***** at least a portion of their economic stability and support. However, with the United States reeling from the September 11, 2001 terror*****t attacks, the dot-com downturn, ***** Enron scandal, sending military troops ***** Afghanistan, and other events, ***** countries are not exactly in an ideal position to expect *****d/or look to the ***** States to re-ignite ***** economies.

In addition to economic *****, current trends in cultural and social ***** may affect ***** *****dustry, firm, or marketing strategy. Evidence indicates that coffee growers in develop*****g countries (where Starbucks and most of their competit*****s purchase their coffee beans) *****ly receive only 30-50 cents per pound of coffee, while middle men pocket the rest of the $1-2 per ***** paid by companies such as Starbucks. In addition to ***** economic disparity of this situation, such fact does not bode well for Starbucks and ***** gourmet and specialty c*****fee retailers who pride themselves on being socially conscious, socially responsible, ***** on taking care of their employees by adequately compensating them for their labor.

Current or pending federal, local, ***** state legislati***** may change or impact an industry, firm, or marketing *****. In ***** *****, ***** and other gourmet and specialty coffee retailers ***** faced incre*****ing pressure to begin and continue purchasing Fair Trade Certified coffee ***** marketing it in their retail outlets and on their internet sites. Under an agreement reached with a fair trade *****ganization, Starbucks ***** other proprietors of gourmet and specialty coffees will buy Fair ***** coffee from certified importers who ensure that they have paid coffee farmers a fair and reasonable price for ***** coffee beans. In addition to ensuring that a greater ***** of the money goes into the pocket ***** the individual ***** farmers, such an agreement will enable Starbucks and other gourmet ***** specialty coffee retailers to improve the quality of coffee and the ***** of life *****