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 ***** ***** trends, political and legal *****, and environmental threats or opportunities. These elements may impact or otherwise threaten a firm's success or opportunities for improving a ***** situ*****tion. With respect to the ***** situation, both the 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 s*****gle large corporation eliminating and/or otherwise reducing its workforce. Likewise, the United States is still recovering with the emotional and financial impacts and ramifications caused by ***** September 11, 2001 terror*****t attacks.

The ***** States is not alone in experiencing 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 Latin America ***** traditionally been (and still ***** to some *****) dependent upon the United States for at least a portion of their economic stability and support. However, with the United States reeling from the September 11, 2001 terrorist attacks, ***** dot-com downturn, the Enron scandal, sending military troops to Afghanistan, and other events, ***** countries are not exactly in an ideal position to expect *****d/or look to the United States to re-ignite *****ir economies.

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

Current or pending federal, local, or state legislati***** may change or impact an industry, firm, or marketing *****. ***** recent *****, ***** and other gourmet and specialty coffee retailers have faced incre*****ing pressure to begin ***** continue purchasing Fair Trade Certified ***** and marketing it in their retail outlets and on their *****ternet 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 ***** paid coffee farmers a fair and reasonable price ***** ***** coffee beans. In addition to ensuring that a greater ***** of the money goes in***** the ***** ***** the *****dividual ***** farmers, such an agreement will enable ***** and ***** gourmet ***** specialty coffee *****ers to improve ***** quality of coffee and the ***** of life for