The main political factor is the purchase of raw materials
The main political factor is the purchase of raw materials. This has attracted a lot of attention from western politicians and countries of origin. For that reason, the company wants to comply with social and environmental norms. It is willing to follow a procurement strategy. It values fair trade practices.
The ongoing global recession is a major external economic driver for starbucks. This factor undermines starbucks’ profitability. That has led buyers to switch to cheaper alternatives.
As mentioned earlier, starbucks can offer cheaper products, but it may have to sacrifice quality. This is a major socio-cultural challenge for start-ups. It will expand the consumer base to include buyers from low – and middle-income groups.