Pestle impact on human resource

This article throws light upon the six major external factors affecting HR resources of an organisation. The external factors are: Social and Cultural Factors 4. Economic factors include all those economic forces which affect the HR function.

Pestle impact on human resource

Public Domain Starbucks Coffee Company, founded inhas grown to an international brand. Despite its current industry leadership, Starbucks must continue monitoring its remote or macro-environment. Regional integration of markets opportunity Improving governmental support for infrastructure opportunity Bureaucratic red tape in developing countries threat Regional integration is a current trend and external factor that presents an opportunity for Starbucks to globally expand.

Also, most governments around the world are improving infrastructure, which creates the opportunity for Starbucks to access more markets or suppliers. However, bureaucratic red tape persists in most countries.

This external factor is a threat because it makes business expansion more difficult for Starbucks, especially in developing countries. Starbucks faces the following economic external factors in its remote or macro-environment: The firm sources much of its coffee beans from developing countries.

Growing coffee culture opportunity Increasing health consciousness opportunity Growing middle class opportunity Starbucks has opportunity to increase its revenues based on increasing demand for specialty coffee, which is due to a growing coffee culture and a growing middle class around the world.

Rising mobile purchases opportunity Technology transfers to coffee farmers opportunity Rising availability of specialty coffee machines for home use threat Starbucks has the opportunity to improve its mobile apps and linked services to gain more revenues through mobile purchases.

The company also has the opportunity to improve its supply chain efficiency based on new technologies coffee farmers use. However, the rising availability of home-use specialty coffee machines is a threat to Starbucks because it increases the availability of substitutes to Starbucks products.

Business sustainability trend opportunity Growing popular support for responsible sourcing opportunity Growing popular support for environmentally friendly products opportunity The business sustainability trend focuses on business processes that ensure minimal environmental impact.

In relation, responsible sourcing emphasizes corporate social responsibility in the supply chain. Starbucks has opportunities to enhance its performance in these areas. Note that the company already has responsible sourcing policies.

Starbucks also has the opportunity to offer more of its products in recyclable packaging. Product safety regulations opportunity GMO regulations outside the United States opportunity Increasing employment regulation threat Starbucks has opportunities to improve its performance by satisfying product safety regulations and regulations on ingredients from genetically modified organisms GMOs.

Starbucks is already performing well in these aspects.

Search form

This external factor also impacts Starbucks through increased spending for human resources. However, the company must work to address the identified threats, especially the threat of substitution linked to the increased availability of home-use specialty coffee machines. On the other hand, Starbucks cannot do much but to avoid the threat of bureaucratic red tape.

Housing Industry Association Howard Schultz and Starbucks Coffee Company. Starbucks Coffee Company Company Information — Starbucks Coffee Company.Human Resource Management (HRM) has a very positive impact on organisational performance.

HRM in all organisations is the management of all personnel in the organisation in terms of recruitment and selection, training and welfare. This external factor also impacts Starbucks through increased spending for human resources.

Thus, in this aspect of the PESTEL/PESTLE analysis model, the identified external factors present mostly opportunities for Starbucks Coffee. When it comes to human resource management there are several factors that affect day-to-day operations.


Adapting in this field is important because at a moments notice new legislation can be passed with an immediate effective date or corporate polices are changed where human resources feels the brunt. The Impact of the Public Service Reform Programme on Human Resource Development.

Words Mar 28th, 47 Pages. CHAPTER ONE INTRODUCTION 1.

Pestle impact on human resource

HISTORICAL BACKGROUND OF THE PUBLIC SERVICE REFORM PROGRAMME Pestle Impact on Human Resource Words | 6 Pages.  Human Resource Management 04/26/ Human Resources Human resource management (HRM) entails the effective utilization of human resources within an organization by managing people or employee-related activities.

HRM is a comprehensive and strategic approach for managing employees and the work place environment and culture. The most carefully laid human resource plans can be affected by internal and external change anytime, so forecasting and flexibility are essential for effective planning and adapting as required.

PESTLE Analysis | Factsheets | CIPD