Essays Political And Legal Environment In Australia

Essays Political And Legal Environment In Australia-70
Recent market research reflects that consumers have not cut down on their coffee consumption.

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The company has to deal with rising labor and operational costs.

The inflationary environment and falling profitability is causing a lot of stress.

They fret about social and environmental costs of the brands. Now, Starbucks will have to tap the Gen X and the Millennials as customers.

Other socio-cultural factors to focus on are: Starbucks is in a good position to enjoy benefits of the emerging mobile wave. They are testing this in pilot locations in the US.

So, as recession is the most important factor, Starbucks has to lower costs and increase the value.

This way it can retain its consumer base and also gain consumer loyalty.

The factors are: The constant global economic recession has dented the macroeconomic environment which Starbucks operates in.

The recession has hurt the consumer’s purchasing power.

Some other economic factors which can affect Starbucks are: As already stated, Starbucks can offer cheaper products but it might have to sacrifice the quality.

This is the main socio-cultural challenge that the start-up faces.

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