Costa Coffee Essay

The remote environment comprises factors that originate beyond and normally irrespective and out of costa umbers control. Economic factors Since costa drinking chocolate is a multinational business, top-level managers must consider the stinting situations on both the National (Egypt) and International levels. Currencies exchange rate (Forex) relates costa Coffees final products expenditures as well as operation costs. rib Coffee imports high quality deep brown berry beans from rainforest farms where it pays for in local currency, and sells as coffee in another 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 vital for a business considering expansion as costa Coffee. As interest rate increase, rib Coffees ability and willingness to expand or disperse invigorated branches decreases due to the high cost of capital. Further more, 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 custom of Costa Coffees products since they have more income. Social Factors Egyptians elaboration 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, most of the Egyptian population travel in the youth age group. Hence, Costa Coffee plays music and offers an glory that is convenient for all ages with special attention to youth.Costa Coffee prize the religion of each nation in which it operates. To clarify, Costa Coffee incomplete sells alcoholic drinks nor pork-containing food. In leadition, Costa Coffees menu is create verb ally in both English and Arabic languages. English is the most astray spoken language, and Egypt is known as a touristic attraction. Plus, Egyptians like to come across a menu written in their own language for rest and showing cultural respect. Also, many people nowadays be concerned with their health Costa Coffee is providing low-calorie food, a variety of pertly salads, sandwiches, and fresh fruit juice.Political Factors Governmental rules and regulations could affect the firms providers and the price of the raw materials. Imposed taxes or tariffs on the imported coffee beans add to raw materials cost. Rules regarding social insurance add to labor costs. Political unbalance and strikes do affect labor and consumers of Costa Coffee. Technological Factors Advanced machines affect the firms performance and efficiency through and through producing tasty coffee as quick as possible. High quality and speed of religious service affects customer satisfaction and loyalty.Costa Coffe e uses highly advanced brewers and coffee makers for the best coffee cup. Besides, the use of the Internet to facilitate transactions in the midst of Costa and its suppliers lowers transaction costs and decreases lead time. As a termination, stakeholders ar 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 energy utilisation as steps towards a greener environment. It also ensures adherence to responsible agriculture practices, so that natural habitats argon protected thereby reducing disforestation 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 straight right smart affect the firm and its success in obtaining necessary resources. Yet, they atomic number 18 facilitate factors beyond its bea of control. 1. Competitors Costa coffee in Egypt faces high reign competition where around almost every corner in the cities, a coffee shop exists.Therefore, product differentiation is a must, and persistent high-quality is the way to keeping customers. Whichever Costa Coffee shop you enter, you atomic number 18 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, just are not limited to, Starbucks Coffee, Cilantro and Beanos cafe. Creditors Costas past 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 banks, and may be allow loans from several areas. Hence, creditors have little leverage since inter est rates are controlled by central bank of Egypt as well. Customers Costa coffee is a service firm. Therefore, its utmost goal is customer satisfaction and loyalty to dampen 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 charm of songs in its branches while abiding by the brands image. accessibility of location and parking spaces are of the main issues regarded by people when decision making on their hang-outs. And, the customer buyer behaviour of whether they prefer more salads and sandwiches quite an 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 selective in its waiters and baristas to ke ep 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 eight-fold 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.