The PESTEL analysis was applied to evaluate the macro environment to which Starbucks is
exposed. It helps the company to better determine external factors that might have an
influence on the company’s performance in the global coffee market. Originally, the PESTEL
analysis has been designed to evaluate macro-environmental influences on industries in
certain countries. However, since Starbucks is operating in a global environment, the PESTEL
analysis was fine-tuned to determine the macro-environmental influences on the coffee
industry within a global context. The analysis evaluates six macro-environmental variables:
1. Political Environment: are there any governmental regulations that would inhibit
Starbucks in the global coffee market?
2. Economic Environment: has the recent economic crisis had any effect on disposable
income of customers?
3. Social Environment: how has the social attitude towards coffee changed over the
years? How far developed is the coffee culture?
4. Technological Environment: what key technological changes in the production and
consumption of coffee have taken place over the years?
5. Ecological Environment: how