Costa Coffee Essay

The remote environment comprises factors that originate beyond and usually irrespective and pop out of rib deep browns control. Economic factors Since rib java is a multinational business, top-level managers must consider the economic situations on both the National (Egypt) and international levels. Currencies exchange rate (Forex) affects costa deep browns final products prices as well as operation costs. Costa Coffee imports high quality coffee beans from rainforest farms where it pays for in local currency, and sells as coffee in an separate country with its local country.Hence, when the Egyptian Pound depreciates, the cost of beans relatively increases therefore, causing a fall in profit margin and vice versa. If depreciation is too much, then Costa might increase its selling prices. Moreover, interest rate is rattling for a business considering expansion as Costa Coffee. As interest rates increase, Costa Coffees ability and willingness to expand or make new branches dec reases due to the high cost of capital. Furthermore, the stock market plays a significant role in encouraging investors to invest in Costa Coffee due to the increasing profits and the good reputation.Finally, high economic growth rate of a country leads people to increase their consumption of Costa Coffees products since they have more income. Social Factors Egyptians culture and lifestyle has dramatically changed in the last 10 years. People be more willing to go to cafes for lunch, dinner or simply a snack. Considering the Egyptian demographics of lifestyle and age groups, closely 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 respects 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 written in both English and Arabic lan guages. English is the most widely spoken language, and Egypt is known as a touristic attraction. Plus, Egyptians like to come across a menu written in their own language for simpleness 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 product juice.Political Factors Governmental rules and regulations could affect the steadfasts providers and the price of the raw materials. Imposed taxes or tariffs on the imported coffee beans add to raw materials cost. Rules regarding kind insurance add to labor costs. Political instability and strikes do affect labor and consumers of Costa Coffee. Technological Factors Advanced machines affect the firms feat and efficiency through producing tasty coffee as quick as possible. High quality and speed of divine service affects customer satisfaction and loyalty.Costa Coffee uses highly advanced brewers and coffee make rs 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 profits and lower costs. Ecological Factors Costa Coffee uses recyclable paper bags and paper cups. And, it tries to reduce its get-up-and-go consumption 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) certification for new stores beginning later this year and is working closely with its suppliers to develop more environmentally friendly packaging. Industry Environment Operating Environment A firms operating environment is related to environmental factors that directly affect the firm and its success in obtaining necessary resources. Yet, they are still factors beyond its area of control. 1. Competitors Costa coffee in Egypt faces high direct competition where around closely every corner in the cities, a coffee grass exists.Therefore, product differentiation is a must, and persistent high-quality is the way 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 past payment records and working capital prepare are the main attributes affecting creditors decisions. Considering the Egyptian markets, banks are not rare to find.Costa might be dealing with several banks, and may be disposed(p) loans from several areas. Hence, creditors have little leverage since interest rates are controlled by central bank of Egypt as well. Customers Costa coffee is a service firm. T herefore, its utmost goal is customer satisfaction and loyalty to yield 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 optimum collection of songs in its branches while invariable by the brands frame.Accessibility of location and parking spaces are of the main issues regarded by people when deciding on their hang-outs. And, the customer buyer demeanour of whether they prefer more salads and sandwiches rather than desserts affects how much of each should be available at Costas branches. Labor Costas reputation and image is kept through its workers. Costa has to respect labor rights especially now that people are more aware of the rights than ever before. Also, Costa has to be discriminating in its waiters and baristas to keep the brands image and reputation.As a result of Costas reputation, highly-qualified workers apply 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 spell of its social responsibility towards coffee-growing countries.