Micro/marco Environmental

Module                        :        629B2 Marketing Strategy (2015/16)

Student                        :        Ma Ka Yin Nicki

Assignment for                :        Environmental Study

Target Company        :         Starbucks HK

Background info

Starbucks was a single store in Seattle (US), where offered world’s finest fresh-roasted whole bean coffees. In the early 80s, they inspired by Italian coffee bars and coffee experience, they bought this style back to US. A place for conversation, a sense of community and a third place between work and home. From the beginning, Starbucks operated quite differently which celebrated coffee, rich tradition and also perform a feeling of connection.

Today, they have 17,400 stores locates in 60 countries and still at a stable growth. Starbucks has becomes the premier roaster and retailer of specialty coffee in the world.

Preface

As Starbucks is growing drastically in the past 3 years and covered most of the location in Hong Kong. In view of it, we would like to study the Micro and Marco environmental factors that are affecting its operation in HK.

Microenvironment refers direct contract of business organization and has influence firm’s performance and daily operations. Elements are suppliers, competitors, marketing intermediaries, customers & the firm.

Macro-environment constitutes external forces beyond the firm’s control and with powerful impact on the firm’s functioning. Elements are Demographic, Economic, Cultural, Technological, Political and Natural.

The said marketing cover the overall environment of business and these environments factors help to know the strength, weakness, opportunity and threat of business (Surbhi 2015)

Microenvironment:-

In order to grant his success, Starbuck has put lot of effort in improving the business model in which will maintain his customer satisfaction and will further lead to his success.

1. The Company

Since Starbucks is an international branded outlet, he can enhance a Global brand image before coming to HK market, can also facilities the Marketing strategy for promotion in HK market.

1. The Suppliers

With his sizes of business, he can enjoy the benefit of Economy of Scale in the business operations. Especially, they can have a wider choice of suppliers as well as better cost to support marketing side for more flexibility in different promotion and wider selection of product such as different coffee bean from different countries to end customer.