Strategic Management Executive Summary 2022

Running Head: Strategic Management 1

Running Head: Strategic Management 2
Executive Summary
Coffee Costa (CC) is a worldwide continually expanding coffee company. The business goal
represents the continuous quality of all coffee producers to ensure that the organization’s ethical
obligations are taken into account. They are socially conscious of their policy. Established in
London in 1971, the Costa Coffee was wholesaled to caterers and specialized Italian cafes with
roasted coffee from two brothers Bruno and Sergio Costa. In 2019 the company was acquired by
Whitbread, a wholesaler with 3,401 stores in 31 countries and 18,412 staff, with the Coca-Cola
Company for a gross offer with £ 3.9 billion. In the competitive market, the company is required
to diversifying its business to compete them in an effective manner. Costa Coffee manages
transformational leadership style that made healthy organizationalculture in the workplace. It
will help in efficiently diversify the business. Costa Coffee can extend its business to restaurant
that can help them to expand the target market. Costa Coffee Culture Review reveals that famous
companies have no extreme cultural backgrounds, but rather work for seeking the right balance
to create a successful culture. Costa Coffee has developed a lively, highly interconnected
corporate culture, which is universally embraced by its diverse employees.When the philosophy,
vision and business approach of the corporation is fully harmonized, and a fluid link between
basic values, core concepts and observable processes understood, corporate culture can be used
to build strategic advantages. Costa Coffee is an example of how companies in the
hypercompetitiveness market with a strong working culture protect their place. It has an
important influence on strategic execution.

Running Head: Strategic Management 3
Contents
Introduction................................................................................................................ 3
Advice for Diversification............................................................................................ 3
Alternative strategies................................................................................................. 6
Lowering Prices....................................................................................................... 6
Promoting the Brand............................................................................................... 7
Differentiation......................................................................................................... 7
Horizontal Diversification........................................................................................ 7
Comparison............................................................................................................. 7
Culture and Leadership and Their impact...................................................................8
Impact of such culture on Strategic management....................................................10
Conclusion................................................................................................................ 10
References............................................................................................................... 12

Running Head: Strategic Management 4
Introduction
Costa Coffee (CC) is a steadily growing coffee company worldwide. The corporate goal reflects
on the consistency of the products of all coffee companies, which ensuring that the organization
is mindful of its social responsibilities. Their strategy is environmentally conscious. Established
in 1971 in London, Costa Coffee was wholesale by two of the Brothers Bruno and Sergio Costa
to supply caterers and specialist Italian cafes with roasted coffee. In 2019, the company was sold
to The Coca-Cola Company in an deal worth £ 3,9 billion, purchased by Whitbread, which went
up to 3,401 outlets in 31 countries which 18,412 employees. In the fiscal year ending on
February 28, 2019, Costa limited posted sales of $1.34 billion, up from $1.29 billion in the year
before. The corporation was bought from the holding company Whitbread in January 2019 by a
division of the Coca-Cola Group. The business has 2,121 UK pubs, more than 6,000 Costa
Express outlets and 1,280 outlets in other countries. The word "good coffee" reflects this feeling
of duty. The second largest company in the world is now in Costa Coffee. This will be worth
over £ 1 billion if it is used as the basis of the company. The business is currently working to
establish regional brands, where foreign coffee drinkers can catch the attention of local cultures
and moods at Costa Coffee Shops.Costa's comparable revenue growth was nearly three times the
expected rise of some economists, following the exceeding of the consumer price index (CPI),
which exceeded 5.2 percent in September. The company has strong presence in UK (Ansoff et al,
2018).
In the following part there will be detailed analysis of the market where the company can
successfully diversify its business to earn more revenue from the global market in an effective
and efficient manner. Furthermore, the leadership style will be also covered that can help the
company to apply strategies in its business to the certain extent (Bartolo, 2016).
Advice for Diversification
Management and management has a close link in each corner of a good company, they cannot
separate each other as each have to balance each other in several respects.Many writers and