WITH REFERENCE TO A BUSINESS ORGANIZATION THAT YOU HAVE

STUDIED EXAMINE HOW CHANGES IN ANY OF THE STEEPLE FACTORS CAN

AFFECT THE OBJECTIVES AND STRATEGY OF A BUSINESS ORGANIZATION.
(THE STUDENTS SHOULD TRY TO LOOK AT STEEPLE FACTORS WHICH THEY
HAVE NOT COVERED IN THEIR PREVIOUS CUEGIS)

CUEGIS on Starbucks
Thar Lun Naing

This is my CUEGIS report on a global company named Starbucks which is famous for their great
taste of coffee.

CUEGIS

Thar Lun Naing

13 November 2015

Starbucks
Starbucks Corporation, doing business as Starbucks Coffee, is an American coffee company and
coffeehouse chain based in Seattle, Washington. Starbucks was founded in 1971 by Jerry
Baldwin, Zev Siegl and Gordon Bowker in Seattle: and, since then it has been expanding rapidly
to the global scale. Starbucks is now the largest coffeehouse company in the world with 22,766
stores in 65 countries and territories. Starbucks offers the varieties of coffee and beverages in
every coffeehouse: moreover, through the Starbucks Entertainment division and Hear Music
brand, the company also markets books, music, and film.

Change
Due to the continuous changing external and internal factors, change should be managed within
businesses if they are to move forward and remain competitive. These factors come from various
backgrounds. Those include the population change, culture change, objectives change and
etc...The importance of these factors determines whether the change should take place or not.
Sometimes, changes are made. However, not all changes favor the businesses, but also give
negative impacts on the business as the changes made do not always guarantee for the business
profit. Hence, the businesses should be aware of the surrounding changes in the external
environment and need to adapt to the new situation quickly not to be left behind in the business
world.

Changes in external environment of the business

External environment of the business refers to the issues and factors which are out of the
business control. Occasionally, numerous changes are made in the area where the business
operates which sometimes brings opportunities and threats to the business. Of course, managers
and CEO will always try to adapt the new business environment using the STEEPLE analysis
even though it is very hard to balance the factors. One of them is the change in the societies
(social).

1. The change in social

Social refers to the external business environment where the business is dealing with the
societies. Social and cultural factors can directly affect the activities of a business. When there
are changes in social demographics, it can affect the business largely by bring the opportunities
as well as threats. Some of them include religion, population, culture and etc

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13 November 2015

2. The change in Technologies

Technologies refer to the techniques that a business uses to get its own maximum performance. It
is constantly changing everyday and presenting the businesses with the benefits and threats for
different types of business. Today, it is very important that the businesses need to cope with the
changes in technologies environment as it becomes the core to all business functions.

3. The changes in legal process and laws

Legal process and those laws are imposed by the government to ensure that the general public is
protected from the negative aspects of business activities. It is very unpredictable as it usually
depends on the country economy. The changes in these legislations can bring us business
opportunities; however, it can also challenge the business with the regulations.

Business objectives
The business objectives simply refer to the short to medium term specific goals of the
organization, based on its aim. Usually, objectives are measurable. There are various objectives
such as ethical objective, tactical objective, and strategic objective.

Analysis
Starbucks has been operating in more than 65 countries which have got different
background culture and societies. So, Starbucks is fully aware of the local culture and their
perspectives on coffee. Hence, their objectives are clear and they were based on that time and
needed to be adjusting in order to survive in the coffee market. However, there are still some
threats to the Starbucks from the changes in social.
The price of one cup of coffee is becoming expensive compared to the old days. The
coffee price of Starbucks in America may be reasonable as their customer income is adaptable
whereas in the poorer world, it is extremely high for the majorities of the coffee lovers. Their
price is often criticized and the customers views toward Starbucks are changing as they get other
choices which are reasonable for them. This is a threat to the Starbucks and this has suggested
that they need to adjust their business objectives in order to maintain their customers from the
rivals.
The changes in technologies of purchasing products are really fast these days. The online
payments are improving and Starbucks is on it. It has made a good news for those who just want
to sit and surf internet while sipping coffee. They just need to order and pay it online so that the
customer saves time and enjoys with the Starbucks services. In fact, Starbucks is trying to
introduce a new idea through technologies to promote their objectives.

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13 November 2015

Increasing health concern amongst population in relation to caffeine and sugar

consumption is potential threat to the Starbucks. Today, more than 1.4 billion cups of coffee are
consumed daily and scientific researches on the negative aspects of excessive coffee
consumptions are published to public for the awareness. So, some governments have set new
legislations and laws to protect from the business negative outputs. Some customer protection
laws are set that Starbucks has to follow these unfavorable standards to continue their business.
Starbucks has to cope with a solution for that matter as it is becoming a concern for some
communities, mainly in America where more than half population daily drink coffee.
So, Starbucks has to let their customers know about their coffee contents and suggest that
they keep a healthy limit on every of their services and products. It is not a very good choice for
Starbucks that they have to adjust their objectives a bit because of the changes in the social.

Summary
From interpreting the analysis and the written information, the changes in factors in the
external environment of the business are constant and it has affected Starbucks objectives. Some
of the changes in factors present the opportunities while some poses threats to the objectives of
Starbucks. Hence, Starbucks has to use STEEPLE analysis to analyze the impacts of the factors
to make a best choice for the maximum profit, achieving objectives and better survivals.