Political factors of coffee business in china

Taobao is the largest local e-commerce website, and many people spend a lot of their things from the site.

Political factors of coffee business in china

Many people claim that the political force is the most unsettled force. Companies will benefit if they can understand the external macro-environment in which they function and will operate in the future.

coffee market in china: trends & consumer strategies

The growth rate is impressive, but it can slow down. Legal issues The legal framework for e-commerce is still in its early stage.

political stability in china for business

For some multinational chains, exchange rates in the country would also be a concern, as this would affect their pricing strategies. For the coffee industry, these issues are especially problematic since the chain of production extends across several countries and therefore there are many legal, economic and political problems to contend with.

China political environment for business

Political Factors Political factors which impact China are: Government regulations Both formal and informal rules, which firms must abide by, impact the country. However, there is still a group who wish to avoid the perceived risk associated with online shopping. However, chains such as Starbucks are consistently under fire for promoting obesity in many countries. As a result, those concerned with weight loss will increase their consumption of coffee, thereby increasing sales. It will, though, have a negative effect on cafes and chains which sell pre-manufactured coffee, for example Starbucks. Development in coffee machines also means that coffee manufacturing is not limited to larger companies. They prefer physical shopping and like the face to face contact. A higher exchange will make the imports more expensive, which may force these companies to increase their prices so that their profits are not affected. Sociological One sociological factor that may affect consumption of coffee is consideration for health. The main ones are described in this section. Boston Consulting Group predicts that the volume will increase in near future. Some cultures, particularly in the East, are more inclined to consume tea rather than coffee.

However, there is still a group who wish to avoid the perceived risk associated with online shopping. Some factors which might help are: Sigh rate of savings More export business Potential urban growth Any economic development could have a major impact on the SMEs and their actions.

Not only are these issues varied, the extent to which they can affect the coffee industry differs from one country to another.

Environmental factors affecting business in china

On the other hand, many individuals consume coffee to keep themselves warm in winter. All of these create uncertainties and challenges to the market players. This is because of their heavy promotion of flavors rich in cream, full-fat milk and sugar. E-commerce has changed how local consumers see shopping. Other factors which can be assessed are Environmental and Legal factors. There are some who are able to consume coffee all year around, regardless of the weather. Not only are these issues varied, the extent to which they can affect the coffee industry differs from one country to another. Social Factors The social and cultural aspect of China plays an important role as the demographics constantly change. It will, though, have a negative effect on cafes and chains which sell pre-manufactured coffee, for example Starbucks. For the coffee industry, these issues are especially problematic since the chain of production extends across several countries and therefore there are many legal, economic and political problems to contend with. Poor harvest All these affect the harvest and therefore the quantity of coffee beans available, which in turns affects the supply of coffee. Other social factors are consumer lifestyles, education, religion, and emigration. It allows smaller companies to brew their own coffee, which in turn increases competition within the industry while at the same time offers customers a wider range of alternatives to choose from. What is more, based on the perspective of Ortolani there had been only 1 percent credit card penetration in China suggesting that the most widely used payment method had low acceptance in China and the payment system to support online credit card transaction is also facing low usage.
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PEST Analysis of Starbuck in China Coursework Example