Costa Coffee Essay Example for Free

costa Coffee EssayThe remote environment comprises factors that originate beyond and usually regardless and out of costa Coffees control. Economic factors Since costa Coffee is a multinational business, top-level managers mustiness consider the frugal situations on both the National (Egypt) and International levels. Currencies exchange rate (Forex) affects costa Coffees final products prices as well as operation costs. Costa Coffee imports high quality chocolate beans from rainforest farms where it births for in topical anaesthetic currency, and sells as coffee in a nonher country with its local country. Hence, when the Egyptian Pound depreciates, the cost of beans comparatively increases therefore, causing a fall in profit margin and vice versa. If depreciation is too much, accordingly Costa might increase its selling prices. Moreover, interest rate is vital for a business considering blowup as Costa Coffee. As interest rates increase, Costa Coffees ability and will ingness to disperse or open new branches decreases due to the high cost of capital. Furthermore, the stock market plays a squ ar role in encouraging investors to invest in Costa Coffee due to the increasing get and the right(a) reputation.Finally, high economic growth rate of a country leads people to increase their employment of Costa Coffees products since they have more income. Social Factors Egyptians culture and lifestyle has dramatically changed in the last 10 years. People are more willing to go to cafes for lunch, dinner or simply a snack. Considering the Egyptian demographics of lifestyle and age groups, most of the Egyptian population falls in the youth age group. Hence, Costa Coffee plays music and offers an atmosphere that is convenient for all ages with special attention to youth.Costa Coffee view the religion of each nation in which it operates. To clarify, Costa Coffee neither sells alcoholic drinks nor pork-containing food. In addition, Costa Coffees menu is wr itten in both English and Arabic languages. English is the most widely communicate language, and Egypt is known as a touristic attraction. Plus, Egyptians like to come across a menu written in their own language for simplicity and showing cultural respect. Also, many people nowadays are concerned with their health Costa Coffee is providing low-calorie food, a variety of fresh salads, sandwiches, and fresh fruit juice.Political Factors political rules and regulations could affect the firms suppliers and the price of the affectionate materials. Imposed taxes or tariffs on the imported coffee beans add to raw materials cost. Rules regarding social insurance add to labor costs. Political instability and strikes do affect labor and consumers of Costa Coffee. Technological Factors Advanced machines affect the firms performance and efficiency through producing tasty coffee as fast(a) as possible. High quality and speed of service affects customer satisfaction and loyalty.Costa Coffee uses highly advanced brewers and coffee makers for the best coffee cup. Besides, the use of the Internet to facilitate transactions between Costa and its suppliers lowers transaction costs and decreases lead time. As a result, stakeholders are more satisfied with increased salary and lower costs. Ecological Factors Costa Coffee uses recyclable paper bags and paper cups. And, it tries to reduce its energy utilization as steps towards a greener environment. It also ensures adherence to responsible farming practices, so that natural habitats are protected thereby reducing deforestation and carbon emissions.Furthermore, Costa is working to deliver green (LEED) certificate for new stores beginning later this year and is working closely with its suppliers to develop more environmentally sociable packaging. Industry Environment Operating Environment A firms operating environment is cogitate to environmental factors that directly affect the firm and its success in obtaining necessary r esources. Yet, they are still factors beyond its area of control. 1. Competitors Costa coffee in Egypt faces high direct competition where around almost all corner in the cities, a coffee shop exists.Therefore, product differentiation is a must, and persistent high-quality is the course to keeping customers. Whichever Costa Coffee shop you enter, you are greeted the same, indulge in the same taste and pay what you see in the menu. Menu prices are tax inclusive which is different than most of other coffee shops. Competitors include, but are not limited to, Starbucks Coffee, Cilantro and Beanos cafe. Creditors Costas recent payment records and working capital position are the main attributes affecting creditors decisions. Considering the Egyptian markets, banks are not rare to find.Costa might be dealing with several(prenominal) banks, and may be granted loans from several areas. Hence, creditors have little leverage since interest rates are controlled by central bank of Egypt as w ell. Customers Costa coffee is a service firm. Therefore, its utmost goal is customer satisfaction and loyalty to outlet profits. Constantly monitoring Egypts demographics is essential in keeping a convenient atmosphere. For instance, Costa must always recognise what the youth are listening to these days to be able to play the best collection of songs in its branches while abiding by the brands image.Accessibility of location and place spaces are of the main issues regarded by people when deciding on their hang-outs. And, the customer buyer behaviour of whether they pick out more salads and sandwiches rather than desserts affects how much of each should be available at Costas branches. perseverance Costas reputation and image is kept through its workers. Costa has to respect labor rights curiously now that people are more aware of the rights than ever before. Also, Costa has to be selective in its waiters and baristas to keep the brands image and reputation.As a result of Cost as reputation, highly-qualified workers assume for jobs at Costa Coffee. Suppliers Supplier relationships are as important as customer relationships. A good supplier relationships decreases yield time and enhances firms productivity. In Costas case, supplier power is not high as Costa has multiple suppliers, with low switching costs. However, supplier relationships are well-attended to at Costa Coffee as part of its social responsibility towards coffee-growing countries.