The importance of economic indicators to the strategic planning process in any organization is the ability to benchmark economic conditions that contribute to improve profitability, business growth and market size. Starbucks strategy is expanding market globally to provide high quality coffee in convenient and visibility locations. Starbucks continuing to innovate and extend the business with imaginative new ready-to-drink beverages and expanded packaged coffee offerings (Starbucks Financial release, 2007). Starbucks Corporation has established an increasing amount of success by purchasing high quality coffee beans and selling the customers along with a variety a specialty drinks and food. "Part of the strategic planning process involves monitoring specific trends, which are of interest to a firm. A firm uses forecasting to predict the future of those trends and then sets organizational objectives in response to their forecasts" (Morrison, 1987). Next, the firm implements operational plans based upon their objectives, while monitoring the effects of their plans on those selected trends and issues.
However, they must recognize the need to monitor continuously the external environment and adapt their strategy as necessary (White, Waddy, Santico, Snead and Jones, 2008).
Starbucks have succeeded several economic factors as well as price elasticity of demand. The company should consider household income that people are willing to spend more on food and beverages when household income increases. Starbucks innovation in joint ventures has opened new markets and opportunities increasing product use among different demographics. Starbucks proves to be highly innovative in business culture that offers prepaid cards. Joint ventures with Pepsi Company, Dreyer's Grand Ice Cream Inc and inspiring entertainment with the launch of "Hear Music" have developed Starbucks with much success. Starbucks has shown their values, leveraging market power, resources, and capabilities to achieve returns higher than their competition (Investment Group, 2001).
Social and CultureThe social factors that...