Economic factors basically concern the nature and direction of the economy in which a firm operates. Current recession has forced people to limit their spending hence this has affected the sales of starbucks. Also the price hike in the commodities e.g. coffee beans which are used to make coffee in starbucks has forced them to increase the prices of the coffee. Consumers don't find as much worth in spending $4.35 for a cup of coffee when they can purchase the same size coffee at 7-eleven for $1.75.