Costa Coffee Essay

The remote environment comprises factors that originate beyond and usually irrespective and out of rib cocoas control. Economic factors Since rib Coffee is a multinational business, top-level managers essential consider the scotch situations on some(prenominal) the National (Egypt) and International levels. Currencies exchange rate (Forex) affects Costa Coffees concluding products outlays as well as operation costs. Costa Coffee imports high quality hot chocolate beans from rainforest farms where it cedes for in local currency, and sells as coffee in a nonher country with its local country.Hence, when the Egyptian hammer depreciates, the cost of beans relatively increases therefore, causing a fall in profit margin and vice versa. If wear and tear 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 rates increase, Costa Coffees ability and willingness to expand or open n ew branches decreases ascribable to the high cost of capital. Furthermore, the stock commercialise plays a significant role in encouraging investors to invest in Costa Coffee due to the increasing wage and the beneficial reputation.Finally, high economic growth rate of a country leads state to increase their using up 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 fall in the youth age group. Hence, Costa Coffee plays music and offers an atmosphere that is convenient for all ages with supererogatory 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 languages. English is the most widely spoken language, and Egypt is known as a touristic attraction. Plus, Egyptians alike to come across a menu written in their own language for simplicity and covering 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 Governmental rules and regulations could affect the firms suppliers and the price of the raw materials. Imposed taxes or tariffs on the imported coffee beans add to raw materials cost. Rules regarding social amends add to labor costs. Political instability and strikes do affect labor and consumers of Costa Coffee. Technological Factors right machines affect the firms performance and efficiency through producing tasty coffee as fast-flying as possible. High quality and speed of service affects customer satisfaction and loyalty.Costa Coffee uses exceedingly 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 profits and lower costs. Ecological Factors Costa Coffee uses recyclable paper bags and paper cups. And, it tries to reduce its energy 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) credential for new stores beginning later this year and is working closely with its suppliers to develop more environmentally chummy 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 resou rces. Yet, they are still factors beyond its area of control. 1. Competitors Costa coffee in Egypt faces high direct competition where around almost both corner in the cities, a coffee shop exists.Therefore, product differentiation is a must, and persistent high-quality is the federal agency 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 late(prenominal) 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 ban k of Egypt as well. Customers Costa coffee is a service firm. Therefore, its utmost goal is customer satisfaction and loyalty to fork out 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 abiding by the brands image.Accessibility of location and position spaces are of the main issues regarded by people when deciding on their hang-outs. And, the customer buyer behaviour of whether they opt more salads and sandwiches rather than desserts affects how much of each should be available at Costas branches. prod 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 resul t of Costas reputation, highly-qualified workers open 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 strength 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.