Pest or P.E.S.T.?

pestEvidence of pest activity on the premises of a pub, bar or restaurant could seriously jeopardise its reputation and even get it shut down.

Alternatively, P.E.S.T is an acronym for the analysis of external macro-environment factors, that affect restaurants and all other businesses (Net MBA, 2010). By better understanding P.E.S.T. factors businesses are exposed to, they are able to overcome threats and take advantage of the opportunities that are presented (Mind Tools, 2016).

What To Watch Out For

Below, are individual examples of potential opportunities and threats in each aspect of P.E.S.T.

Political: Tax policy, wage legislation and product labelling requirements.

Economic: Economic growth, unemployment rate and inflation.
identifying-opportunities-and-threats
Socio-Cultural: Population growth, health and education, culture and social welfare.

Technological: Technological developments, digital revolution and wireless/mobile communications.

(Blythe, 2012)

P.E.S.T. Control

While Starbucks has had a few pest issues within their restaurants this year, there are many P.E.S.T. factors that affect the business and how it uses e-marketing strategies. Further reading on Starbucks P.E.S.T. be found here and here.

Political

  1.  UK tax scandal in 2014
  2. Stance on gun control in USA

Economic

  1. Sales throughout ongoing global economic recession
  2. Rising labour costs in suppliers countries

Socio-Culture

  1. Green and Ethical Chic” consumer generation
  2. Growing coffee culture

Technological

  1. Partnership with Apple Pay
  2. Personal Coffee Machines available at home

 

Overall, consumers are loyal and they may cut down on consumption to a certain extent, but not completely. The company’s online presence and e-marketing strategies have proven more successful than ever, by pulling through the global economic recession and continuing to grow in business.

 


References:

Blythe, J., 2012. Essentials of Marketing. 5th Edition. Essex: Pearson Education Limited.

Brown, H., 2016. Has Britain Replaced the Pub with the Coffee Shop? [online]. Available from: http://www.novaloca.com/blog/index.php/2016/05/11/britain-replaced-pub-coffee-shop/ [Accessed: 14 December 2016].

Davies, R., 2015. Starbucks Pays UK Corporation Tax of £8.1m [online]. Available from: https://www.theguardian.com/business/2015/dec/15/starbucks-pays-uk-corporation-tax-8-million-pounds [Accessed: 13 December 2016].

Dudovskiy, J., 2015. Starbucks PESTEL Analysis [online]. Available from: http://research-methodology.net/starbucks-pestel-analysis/ [Accessed: 13 December 2016].

Hernandez, V., 2016. Starbucks Customer Complains Finding Dead Mouse in Coffee [online]. Available from: http://www.ibtimes.com.au/starbucks-customer-complains-finding-dead-mouse-coffee-1502615 [Accessed: 13 December 2016].

Horovitz, B., 2013. First Take: Starbucks Enters the Gun Debate [online]. Available from: http://www.usatoday.com/story/money/business/2013/09/18/first-take-starbucks-guns-gun-control/2830107/ [Accessed: 13 December 2016].

Husain, S., Khan, F. and Mirza, W., 2014. Brewing Innovation [online]. Available from: http://www.businesstoday.in/magazine/lbs-case-study/how-starbucks-survived-the-financial-meltdown-of-2008/story/210059.html [Accessed: 13 December 2016].

Ian Johnson, 2013. Strategic Planning: PEST Analysis and Contingency Planning [online video]. 15 May 2013. Available from: https://www.youtube.com/watch?v=tg2dlgtgCy8 [Accessed: 13 December 2016].

Lozanova, S., 2009. Starbucks Coffee: Green or Greenwashed? [online]. Available from: https://www.greenbiz.com/blog/2009/06/10/starbucks-coffee-green-or-greenwashed [Accessed: 13 December 2016].

Mind Tools, 2016. PEST Analysis: Identifying “Big Picture” Opportunities and Threats [onlne]. Available from: https://www.mindtools.com/pages/article/newTMC_09.htm [Accessed: 13 December 2016].

Net MBA, 2010. PEST Analysis [online]. Available from: http://www.netmba.com/strategy/pest/ [Accessed: 13 December 2016].

Ryan, P., 2015. How Starbucks Rewards Will Work Through Apple Pay [online]. Available from: http://bankinnovation.net/2015/10/how-starbucks-rewards-will-work-through-apple-pay/ [Accessed: 13 December 2016].

Smithson, N., 2015. Starbucks Coffee PESTEL.PESTLE Analysis and Recommendations [online]. Available from: http://panmore.com/starbucks-coffee-pestel-pestle-analysis-recommendations [Accessed: 13 December 2016].

Which, 2015. Coffee Machines that Spell the End for Your Starbucks? [online]. Available from: http://www.which.co.uk/news/2015/02/coffee-machines-that-spell-the-end-for-your-starbucks-395041/ [Accessed: 13 December 2016].

Advertisements