Analyzing the Business Performance of Coffeecom in Australia using PESTLE and SWOT Analysis
Added on 2023-04-23
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Running head: BUSINESS EXPANSION
BUSINESS EXPANSION
Name of the Student:
Name of the University:
Author Note:
BUSINESS EXPANSION
Name of the Student:
Name of the University:
Author Note:
1
BUSINESS EXPANSION
Part 2B:
The various analytical tools which would provide substratum to the analysis of the
current business performance of Coffeecom would be PESTLE and SWOT. These two
analytical tools would provide grounds against which the given case study of Coffeecom would
be judged.
PESTEL of Australia:
The following is the PESTEL analysis of Australia:
Political and legal:
The following are the political factors which would be considered while measuring the
market performance of Coffeecom:
Political stability:
The country of Australia is politically stable with the executive powers resting in the
hands of the Prime Minister and his cabinet. Queen Elizabeth II is the nominal head of the state
with representatives both in the central level and state level. The Government of Australia is
stable and makes policies which form the base of the industrial operations within the country.
The state governments make laws at the state levels while the local levels. The government
bodies makes laws which the companies have to comply with (Australia.gov.au. 2019). Some
laws like the environmental and consumer protection laws apply for all the business
organizations while other laws like the food related laws apply to the companies operating in the
food industry. This political stability of Australia has led to development of both product and
services offering industries. This industrial development of Australia has also encouraged growth
of supporting or allied industries to provide support to the manufacturing and services offering
BUSINESS EXPANSION
Part 2B:
The various analytical tools which would provide substratum to the analysis of the
current business performance of Coffeecom would be PESTLE and SWOT. These two
analytical tools would provide grounds against which the given case study of Coffeecom would
be judged.
PESTEL of Australia:
The following is the PESTEL analysis of Australia:
Political and legal:
The following are the political factors which would be considered while measuring the
market performance of Coffeecom:
Political stability:
The country of Australia is politically stable with the executive powers resting in the
hands of the Prime Minister and his cabinet. Queen Elizabeth II is the nominal head of the state
with representatives both in the central level and state level. The Government of Australia is
stable and makes policies which form the base of the industrial operations within the country.
The state governments make laws at the state levels while the local levels. The government
bodies makes laws which the companies have to comply with (Australia.gov.au. 2019). Some
laws like the environmental and consumer protection laws apply for all the business
organizations while other laws like the food related laws apply to the companies operating in the
food industry. This political stability of Australia has led to development of both product and
services offering industries. This industrial development of Australia has also encouraged growth
of supporting or allied industries to provide support to the manufacturing and services offering
2
BUSINESS EXPANSION
industries. This development of mainstream and allied industries have transformed Australia into
an industrial giant. However, it can also be pointed out that the political stability of the Australia
has also attracted several foreign companies (Aph.gov.au. 2019). For example, as far as coffee
vending machine industry is concerned, Australia is already one of the most fiercely protected
markets of leading American multinational companies like Starbucks. These companies
manufacture highly sophisticated coffee vending machines which easily gain acceptance among
the leading hospitality groups. As mentioned in the case study, Coffeecom provides coffee
vending machines to top hospitality organisations. Thus, in this respect it can be pointed out that
foreign companies like Starbucks easily surpass the local companies like Coffeecom. Thus, it can
be inferred from the description that the political stability of Australia is both a driving factor and
a challenge for the resident business organsiations.
Bilateral relationships:
The Government of Australia has strong bilateral relationships with several countries like
New Zealand, the United States, the United Kingdom and the European Union. The country also
has strong bilateral relationships with the leading Asian countries like China, India, Singapore
and Malaysia. The country is a members to several international bodies like the United Nations
(Australia.gov.au. 2019). These strong bilateral relationships have several advantages to the
resident companies of Australia. The Australian companies are able to expand into foreign
countries to get access to the resources of those countries. This access to resources encourages
innovations in the companies in Australia. The Australian companies are able to invest in the
financial markets of other countries and are able to take the advantage of the differing rates of
interests to earn high ROI. The table below shows that different regions of the world gives
different ROIs. For example, Africa gives back 138 percent while East Asia and Pacific gives
BUSINESS EXPANSION
industries. This development of mainstream and allied industries have transformed Australia into
an industrial giant. However, it can also be pointed out that the political stability of the Australia
has also attracted several foreign companies (Aph.gov.au. 2019). For example, as far as coffee
vending machine industry is concerned, Australia is already one of the most fiercely protected
markets of leading American multinational companies like Starbucks. These companies
manufacture highly sophisticated coffee vending machines which easily gain acceptance among
the leading hospitality groups. As mentioned in the case study, Coffeecom provides coffee
vending machines to top hospitality organisations. Thus, in this respect it can be pointed out that
foreign companies like Starbucks easily surpass the local companies like Coffeecom. Thus, it can
be inferred from the description that the political stability of Australia is both a driving factor and
a challenge for the resident business organsiations.
Bilateral relationships:
The Government of Australia has strong bilateral relationships with several countries like
New Zealand, the United States, the United Kingdom and the European Union. The country also
has strong bilateral relationships with the leading Asian countries like China, India, Singapore
and Malaysia. The country is a members to several international bodies like the United Nations
(Australia.gov.au. 2019). These strong bilateral relationships have several advantages to the
resident companies of Australia. The Australian companies are able to expand into foreign
countries to get access to the resources of those countries. This access to resources encourages
innovations in the companies in Australia. The Australian companies are able to invest in the
financial markets of other countries and are able to take the advantage of the differing rates of
interests to earn high ROI. The table below shows that different regions of the world gives
different ROIs. For example, Africa gives back 138 percent while East Asia and Pacific gives
3
BUSINESS EXPANSION
171 percent as on 1994-2003. This means that the Australian companies can invest in African
capital market to earn higher rates of returns on investments. This enables the companies to
diversify the investment risks which they may incur due to fall the economic conditions in the
resident economic market namely Australia in this case.
Figure 1. Median economic rates of return of World Bank evaluated operations
(Source: Dalgaard and Hansen 2015)
BUSINESS EXPANSION
171 percent as on 1994-2003. This means that the Australian companies can invest in African
capital market to earn higher rates of returns on investments. This enables the companies to
diversify the investment risks which they may incur due to fall the economic conditions in the
resident economic market namely Australia in this case.
Figure 1. Median economic rates of return of World Bank evaluated operations
(Source: Dalgaard and Hansen 2015)
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