Introduction and company overview

Starbucks in Malaysia is operated under Berjaya xStarbucks Coffee Company

Sdn Bhd a licensee of Starbucks Coffee International. Their first store is opening in
Kuala Lumpur on 17 December 1998, they have expanded to Sabah and Sarawak in
March 2015. Now is into their 16th year of operation, Starbucks has grown not only as
a favourite coffee place for Malaysians, but also as a productive member community
across the country. Starbucks Malaysia has been named as Malaysia’s best employer
at the Aon Hewitt Best Employers in 2015.They are receiving the title Best of the
Best. In 2014, Starbucks Malaysia has awarded the Malaysia Human Resources Best
Practice Gold Award.

Starbucks Coffee’s mission is “to inspire and nurture the human spirit – one
person, one cup and one neighborhood at a time.” To address this part of its mission
statement, the company maintains a small company culture in which harmony and
enthusiasm are important. At the same time, this is part of the company's mission,
which means that Starbucks Coffee plans to grow its business continuously, one place
at a time, or one community. Next are product and service by Starbucks. Starbucks
offers an excellent range of products that customers can enjoy in their stores, at home
or on the go.

The primary product of Starbucks is coffee, handcraft beverages, merchandise

and fresh food. They also have consumer products available where groceries sold
such as coffee and tea and also ready-to-drink. Where handcraft coffee has become
the primary product is because that in Starbucks, they only provided with the high
quality of coffee to the customer. Before the coffee have been crafted to the customer,
where the coffee is required to go through several process, which included, the
selection of coffee bean until the trained personnel. In Starbucks they have more than
30 blends and single-origin premium coffees. Starbucks they also have handcrafted
beverages. The service of Starbucks is more on repeat customer. For customer, when
they are fully engaged, they will stay in touch with them, laughing together and
improving their lives, even for just a few moments. Of course, it starts with the
promise of making the perfect drink, but our work goes well beyond that. This is
actually a question of interpersonal relationships.
Macroenvironment Analysis

For the macroenvironment, Starbucks need to be focusing on 6 environments,

which is political environment, economic environment, technology environment,
cultural environment, demographic environment and natural environment.

Starbucks’s sales will be influenced by political environment, directly or

indirectly. The main factor is the way in which purchases raw materials that have a
significant political impact on their business. Countries such as Costa Rica, Tanzania,
and Rwanda, where Starbucks bought coffee and other raw materials, are vulnerable
to natural disasters, such as earthquakes, tsunamis, and war. Therefore, if Starbucks
faces uncertainty, it will not be able to sell any coffee beans at its receiving point.
Starbucks focuses on social and environmental norms to protect brand behavior, from
providing living wages paid directly to individual farmers to monitoring low-pollution
production technologies, protecting its brand image from the start. This is essential for
fair trade practices. Another important point of political considerations is that
Starbucks must comply with laws and regulations from the countries where it buys
raw materials. The growing political and operational awareness in developing
countries makes this crucial. Most countries are upgrading their infrastructure, which
creates opportunities for Starbucks to gain more resources and markets. However,
external factors such as bureaucratic tapes still pose a threat to Starbucks because it
prevents Starbucks from entering Malaysia.

For the economic environment, before considering global expansion, Starbucks

should study economic growth and unemployment in Malaysia in order to create
opportunities for Starbucks to earn more income. Starbucks must deal with growing
labor and operating costs as it seeks global expansion. Other factors that may affect
Starbucks include the local currency exchange rate, the local economic environment
in different markets, and tax levels. Overall, the country's economic growth reflects
the purchasing power of consumers that determine Starbucks' profitability.

Next, technology environment also an important for Starbucks. Technology

enhances minimal use of the environment. This coincides with one of Starbucks
missions: "Develop innovative and flexible solutions to achieve change." The
company is well positioned to create applications on smartphone with Apple and
Android systems. Customers can use their phone as a card, which allows them to scan
QR codes and store customer details. In addition, since 2011, Starbucks has made a
breakthrough in brewing coffee, which has the same aroma and flavor as Starbucks
Instant Coffee Starbucks VIA. It took the team 20 years to make a breakthrough, and
ultimately enabled Starbucks' loyal customers to drink the same coffee anytime,
anywhere. In addition, the company has installed Wi-Fi at each exit to make
customers feel comfortable, so they can enjoy a cup of Starbucks coffee while
learning and studying online. Other than that, in nowadays where big data analysis
have become a trend for most of the company, where by using the big data analysis,
where Starbucks are able to know more about the customer preference and provide
drinks and dessert that are based on the customer need. Where by predicting the
customer flavor through data analysis enable Starbucks to become the market leader
in café industry.

The next environment is cultural environment. In Malaysia, the increase of

cafes, the coffee culture of Malaysians is also developing. Malaysians begin to
develop the habit of drinking coffee. Where according to Statista show that in 2019,
the regular beverage that Malaysian are consume, where coffee is ranked number 2.
Where this show that demand of coffee is increasing in Malaysia. Therefore,
Starbucks has the opportunity to increase its revenue. In addition, Starbucks caters to
health-conscious consumers by offering a range of healthy products such as
homemade granola, banana packaging, fruit juices and personalized beverages.
Consumers can request their favorite beverages, such as whole milk, or they can
request low-fat milk or soy milk, according to their preferences. The services
provided by Starbucks indirectly give consumers the feeling of creating drinks on
their own where this will also let the customer to have a feeling that they are
controlling on their own decision.

For demographic environment is a target market determined by the population

and will be explored. Starbucks has built its image to achieve the desired goal. Where
Starbucks are targeting the customer which is office worker as well as student. The
reason is that Starbucks beverage price are average higher than other competitor
where the reason is that Starbuck are not focus on the beverage but the unique selling
proposition for Starbuck is the environment. Where Starbucks provides a venue for
informal business meetings when infrastructure is lacking or more relaxed atmosphere
is needed. People often see high school and middle school students studying and just
drinking coffee with friends. At Starbucks, they will play music and allow light to
enter, creating a best atmosphere for customers.

For the natural environment, Starbucks is committed to drastically reducing and

moving waste from stores, and recycling is just one way they do it. While recycling
may seem like a simple, straightforward plan, but it is actually very challenging. In
many cities, not only are municipal barriers to successful recycling, but major changes
in behavior can make recycling right. An incorrect item in the recycle bin can make
the whole box of garbage unusable by the transporter. Local municipalities, landlords,
customers, baristas, and even neighboring businesses must work together to exclude
recyclable materials from landfills. By 2015, they plan to provide recycling in all their
stores where they control waste collection and 5% of drinks in reusable cups. Despite
the many challenges Starbucks face, Starbucks have been addressing recycling and
waste reduction in many ways. Where the most effective ways are that when the
customer are using the reusable cup, where customer are able to get discount on the
drink they purchased (Appendix 1). They also having water conservation. Water is a
precious natural resource, and its responsible use is critical to the continued success of
their company. The large amounts of water that they use in their stores are used to
make coffee and tea drinks, as well as for "home back door" operations, such as
running dishwashers and ice makers. They are working to better understand how they
use water and how to use it more responsibly. We have made great strides in reducing
water use in stores, such as removing all "Hokutotsui" and replacing them with
manual taps These waters. 15% less water. In many markets, they use high-pressure
water jets to clean mixing tanks instead of using open taps. They have also
programmed the espresso machine to dispense less water when washing the espresso
glass. They also train their partners to keep the refrigeration coils on the ice machine
clean to reduce the latent heat of the ice machine and minimize the melting of ice.