Costa Coffee Essay

The remote control environment comprises factors that originate beyond and usually irrespective and out of costa deep browns control. Economic factors Since costa deep brown is a multi body political business, top-level man get alongrs must consider the economic situations on both the National (Egypt) and planetary levels. Currencies exchange rate (Forex) affects rib Coffees final increases prices as well as operation cost. rib Coffee imports amply whole step coffee beans from rainforest farms where it overcompensates 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 frailty versa. If depreciation is too much, then Costa might increase its sell prices. Moreover, interest rate is vital for a business considering expansion as Costa Coffee. As interest rates increase, Costa Coffees ability and willingness to e xpand or open new branches decreases 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 increase 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 socio-economic classs. People atomic number 18 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 picky 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 create verbally in both slope and Arabic languages. 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 simplicity and showing cultural respect. Also, many a(prenominal) people nowadays atomic number 18 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 homes providers and the price of the raw materials. Imposed taxes or tariffs on the imported coffee beans add to raw materials cost. Rules regarding well-disposed amends add to crowd costs. Political instability and strikes do affect labour party and consumers of Costa Coffee. Technological Factors Advanced machines affect the firms act and efficiency through producing tasty coffee as quick as possible. High quality and speed of service affects c ustomer satisfaction and loyalty.Costa Coffee usances 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 increase profits and lower costs. Ecological Factors Costa Coffee uses recyclable theme 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 on the job(p) 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. labor Environment Operating Environment A firms operating(a) environment is related to environmental factors that directly a ffect the firm and its supremacy 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 more or less incessantlyy corner in the cities, a coffee shop exists.Therefore, product oppositeiation 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 check to, Starbucks Coffee, Cilantro and Beanos cafe. Creditors Costas past salary 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 relations with several banks, and may be granted loans from several areas. Hence, creditors have pocket-sized leverage since interest rates are controlled by central bank of Egypt as well. Customers Costa coffee is a service firm. Therefore, its utmost tendency 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 abiding by the brands image.Accessibility of location and parking spaces are of the main issues regarded by people when deciding on their hang-outs. And, the customer vendee behaviour 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 selective in its waiters and baris tas to keep the brands image and reputation.As a result of Costas reputation, highly-qualified workers sustain 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.