Situational Analysis of Single Origin Roasters: PEST and SWOT Analysis

ADVANCE MARKETING

Contents
Introduction...........................................................................................................................................3
PEST analysis........................................................................................................................................3
SWOT analysis-....................................................................................................................................6
Marketing strategies-.............................................................................................................................8
Conclusion...........................................................................................................................................12
References...........................................................................................................................................13

Introduction
This report has a discussion on situational analysis of both internal and external analysis.
Certain framework are undertaken to analyse the organisation`s environment such as SWOT
analysis and PEST analysis of Single Origin Roasters, Sydney. A SWOT analysis is a visual
representation of business understanding of the environment in which it operates. This report
elaborate the issues related to supply chain. Single Origin Roasters is cornerstone of Sydney
speciality that provides coffee according to the taste of people living around. This coffee
house uses coffee that is roasted in-house (Broadsheet, 2018). The company sells its retail
packs form next door to espresso bar. The company started operating in 2003 in the Surry
Hills and it induces the few customers with a twirled taste by blending the fruit (SINGLE O,
2019). The company has a stellar and small array of undertaking that named as botany roast
works where the company roasts for passionate hospitality. Single` O has its origination with
the roasted beans such as Boris (Broadsheet, 2018). A business has to focus on changing the
threats into its opportunities and strengths by deriving solution.
PEST analysis
Political factors- Single Origin Roasters operations are vulnerable to several political risks of
Australia. The political trend includes Food safety regulations, NAFTA regulations, and trade
regulations. A coffee manufacturer looks for coffee producing countries so that they can
import their raw material. The way coffee houses are producing coffee that have become
more and more submitted to the high standards of the quality. Even a small coffee shop faces
pressure of trading in an ethical way. As there are huge number of people who ask for fair
trade coffee and it is a considerable way for coffee houses to different themselves with the
help of fair pricing. In order to ensure the quality in Australia, a coffee house has to go
through key certification schemes that includes rainforest Alliance and Australian certified

organic. The trend of coffee has changed after world war-II because the Australian
government controlled the import of coffee and the government brought new immigration
program. This resulted into launching of Italian-style coffee lounges.
Economic factors- Single Origin Roasters is exposed to several economical risks such as
volatility in the commodity prices, market prices, natural disasters, foreign exchange rate of
importing the raw material for coffee, and union unrest. With the estimated population of
24.281 million in 2016 and it is expected to increase toll 26.425 million until 2022. The GDP
of the Australia is around AUD 1677.47 billion in 2016 where the nominal GDP in 2016 was
AUD 1692.43 billion. The purchasing power of people based on per capita GDP is USD
1187.32. The industry statistics reports that the coffee industry generates a revenue of $10
billion with an annual growth of 2.2% and it employs 139091 employees (IBIS World, 2018).
(Source: SCUTT, 2016)
Social factors- Australia has a unique culture of coffee, which is highly influenced by large
Italian immigrant population. The country has experienced a boom in the number of local