• Starbucks in the UK; A Case Study

    Pages: 5

    This 5 page paper is a examination of Starbucks in the UK. The paper begins with a PEST analysis, looking at the political, economic, social and technological influences on the chain. The writer then considers how business may be increased during the slack periods and also looks at branding and positioning.

    File: TS14_TEstarb1.rtf

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    Sample Text:
    detail we can look at a PEST analysis. The political situation in the UK is very favourable for development of business, especially American brands. The political relationship between the  US and the UK is very good, and this reflects in the way that American brands are perceived. In terms of the development of the stores there are some current  increases in costs due to political moves. The government has recently increase the employers rate of National Insurance by 1%, this increased the cost employing staff. When we look  at the ability to open stores the local government framework is simple and usually it has been easy to gain planning permission. Overall the political situation is stable, one that  is encouraging to growth. The economic environment is also encouraging. Interest rates are low, and the inflation rate is stable. However, although Sterling is seen as strong, the dollar  is stronger, with $1.46 dollars to the ?1 (3rd May 2002). The effect of this is that the process paid to import goods for the US into the UK will  be more expensive, which will then be reflected in the coffee process. AS coffee process are relatively low this may mean companies who import form other countries may have  a cost advantage. The good economic conditions may also be seen as encouraging of growth due to the low cost of borrowing money as interest rates are low. Therefore,  the funds required to set up by franchises may be more attractive in terms of repayments. However, property process have also been increasing over the last few years, and in  the last twelve months this has been at a higher rate than inflation. This also means that the locations that will be sought by Starbucks in the UK, the city 

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