Discussion Reply Example Hi Classmate

Hi Classmate, Please see my analysis for Starbucks belowStarbucks’ External environmentIntroductionThe external environment refers to factors outside the organization that affects the business by providing opportunities or threats to the business or the industry as a whole. These factors can be broadly classified into the micro and macro environment. PESTEL analysis is among the tools available for managers to assess the external environment of the business, to enable proper decision making. The six letters stand for Political, Economic, Social, Technological, Legal and Environmental. This document presents the external analysis of Starbucks using PESTEL. Impacts of Economic FactorsThe economy affects the attractiveness of a market. Coffee restaurants thrive in markets with a large middle-income population. Traditionally, this meant North America and Europe. However, Latin America, Asia, Africa and the Middle East are increasingly becoming attractive for business, attracting international brands like Starbucks, McDonald, and KFC (Ahmed & Zlate, 2014). However, in the recent past, the world was hit by a recession which was felt in many developed countries. Starbucks affected as the consumers shifted to cheaper coffee. The major recipient of the shift was Starbucks main competitor McDonald’s MacCoffee. However, this presents an opportunity to Starbucks. The