Global Business Expansion Strategies and Analysis: Cafe Pod Coffee Co.

This report provides a comprehensive analysis of Cafe Pod Coffee Co.'s business expansion strategies, focusing on the impact of globalization and the company's approach to entering new markets. It begins with an introduction to the company and its mission, followed by an examination of how globalization affects businesses, including information transfer, interconnectedness, policy changes, and increased efficiency. The report then delves into a SWOT analysis, identifying the company's strengths, weaknesses, opportunities, and threats. A PESTLE analysis is conducted to assess the political, economic, social, technological, legal, and environmental factors influencing expansion. The report explores marketing strategies and recommends various expansion strategies such as mergers and acquisitions, tie-ups, franchises, and online selling. The analysis includes a specific focus on the Brazilian market, considering its political stability, economic conditions, social dynamics, technological advancements, legal framework, and environmental factors. The report concludes with a summary of findings and recommendations for Cafe Pod Coffee Co.'s future growth.

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Student’s details

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Contents
Introduction......................................................................................................................................1
Impact of globalization: Cafe Pod Coffee Co.................................................................................2
Information transfer.....................................................................................................................2
Interconnectedness.......................................................................................................................2
Policies changes...........................................................................................................................2
Increased Efficiency.....................................................................................................................3
Increasing trends and cultural diversity.......................................................................................3
SWOT analysis for business expansion...........................................................................................4
Strengths.......................................................................................................................................4
Weaknesses..................................................................................................................................4
Opportunities................................................................................................................................5
Threats..........................................................................................................................................5
PESTLE analysis for business expansion........................................................................................5
Political........................................................................................................................................6
Economic.....................................................................................................................................6
Social............................................................................................................................................6
Technological...............................................................................................................................7
Legal.............................................................................................................................................7
Environment.................................................................................................................................7
Marketing Strategy..........................................................................................................................8
Recommended expansion Strategies...............................................................................................9
Merger and acquisition.................................................................................................................9
Tie up.........................................................................................................................................10
Franchises...................................................................................................................................10
Online selling.............................................................................................................................11
Conclusion.....................................................................................................................................11
Bibliography..................................................................................................................................13

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Introduction
The growth and success of a company widely depend on the quality of the products offered by
the company and the demand for the product enjoyed by the company from different markets.
The Café pod coffee co. has been adopted many strategies to developed an independent coffee
café company which is founded in South London (Cafe pod coffee co., 2020).
The organizational vision of the company is to provide strong and exciting coffee for the people
who love adventurous coffee. Towards the fulfillment of the vision of the company, the company
is aiming to provide high-quality coffee to develop and increase the effectiveness of
organizational operation and increase the harmony with the wants and needs of the consumers.
The Café pod coffee co. was founded by Peter Grainger and Brent Hadfield in South London.
The mission of the company is to empower the people to do great by the premium taste of coffee
that has been developed by the organization. Thus, the mission of the organization comprises the
empowerment of employees, community upliftment and innovations to provide exceptional
experiences to the customers (Cafe pod coffee co., 2020). In the year 2018, the total revenue of
the company was $ 6 million which shows the popularity and market hold of the company. The
company is offering a diverse range of products to targets a wide range of coffee drinkers
(Endole, 2020).
This discussion covers business development and expansion strategies for the Café pod coffee co
with analyzing of marketing Strategies, SWOT and PESTLE analysis of the company.

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Impact of globalization: Cafe Pod Coffee Co.
Globalization is a frequently used term in today's business environment which refers to increased
interaction and integration of people, trades, and government of the various countries throughout
the globe. The increased interaction of people and trade through communication technology,
flexible trade policies, and development in transportation create immense opportunities for the
business and trade and economic growth of many countries around the world (Gulmez, 2017).
Thus it is notable that in the growth of any business organization globalization plays a significant
role including café pod coffee co.
Information transfer
With the concept of globalization and technology advancement in information technology also
has been developed. This advanced information technology enables business organizations to do
business deals beyond boundaries. This globalization and technology advancement provided new
channels to the company to make the easy transfer of the information on the global platform
(Aslam et al., 2018).
Interconnectedness
Free immigrants and free trade increased the interconnectedness of people and countries in the
world, which opened new global markets for business organizations. The concept of
globalization opened up many new markets for the company by increasing communication and
business awareness around the globe (Lund et al., 2019). The globalization is helping the
company by developing new connections with customers day by day. Besides, many countries
across the globe are investing and creating a partnership within the business.

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Policies changes
Globalization brought too many changes and modifications in policies and regulations related to
international trades in various countries including the UK. Trade policies of the country allow
business managers or companies to expand their business beyond the national boundaries which
were restricted before the evolution of the concept of globalization. The concept of globalization
or global villages forced the governments of the various countries to allow free trade and
movement of people. The free trade policy is a very important concept for the company to
expand its operations worldwide (GMU, 2020).
Increased Efficiency
For the business expansion and development money transfer technology, technology
advancement in financial services and developed financial services also play a crucial role for
companies including Café pod coffee co. Entrepreneur system planning (ERP) systems are
helped to increase global trade efficiency. The technology advancement and innovation push
efficient environment for global trade. Technology advancement empowers business efficiency
in global trades and facilities to Café pod coffee co in cost minimization and profit
maximization, which is the ultimate goal of any business organization (Module Trade, 2018).
Increasing trends and cultural diversity
This concept of globalization led mixed up of many cultures throughout various countries in the
world which increase the demand of certain business or products which belongs to their native
culture or country in another culture and country (Hong & Cheon, 2017 ). For example, people
who belong to London and had developed the taste of the products of Café pod coffee co. will
seek the same taste in another country when the traveled or moved to another country. Hence it is
a greater opportunity for the company to expand the business at the global platform to serve the
initial customers and to develop new customers.

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SWOT analysis for business expansion
To enter the global market and for global business, the business managers need to identify
internal affecting factors such as strength, weakness, opportunities, and challenges for the
company. It is also important for business managers to formulate business strategies according to
the SWOT analysis of the organization for the success of the operations (Ommani, 2011). Here
we discuss SWOT analysis of café pod coffee co. for the global business expansions of the
company.
Strengths
In the UK's coffee café line café pod coffee is one of the most renowned names. The company
offers a wide range of products and has a vast market capitalization in the country.
Organizational vision and vision statements effectively resemble the progressive measures of the
organization. The vision of the company indicates that the company is intended to maximize the
market share and want to grab the top position in the café market (Cafe pod coffee co., 2020).
Also, the organizational mission is focused on providing high-quality products or coffee to the
customers. The company also uses LML technology in the operations which is helpful to
improve the quality of the products offered by the company (Cafepod, 2020).
Weaknesses
Apart from many strengths and advantages, the company also suffering some weaknesses. It has
been identified that the company does not have a good relationship with some stakeholders such
as suppliers which results in severe irregularities in operations and production. Apart from
operations, research and development department of the company is also suffering from a
shortage of raw material. The decision-making process in the company is also highly centralized
in the hands of top managers. Thus, this practice reduces employee's participation in decision
making which leads employee's dissatisfaction and low morale. It also has been identified that

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the company has a lack of technology advancement which directly affects the business of Café
pod Coffee Co (Joshi et al., 2018).
Opportunities
Although the café pod coffee company has some weakness that effect's company's business
growth, but some positive measures also have been identified that they may be helpful for the
growth of the company. The coffee market in the world is very dynamic and growing especially
the coffee industry of the UK. It is an economical rule that huge demand for the product creates
huge opportunities for concerned business organizations (Menke, 2018 ). Thus this increasing
demand for the coffee market is an opportunity for café pod coffee co. Continuous improvement
in technology is also a great opportunity for the company. Effective innovation in blending and
roasting the coffee is helpful to enrich the quality of the coffee (Cafepod, 2020).
Threats
The major threat for the café pod coffee co. is high competitiveness in the coffee market of the
country. Increasing demand for coffee in the country attract new players in the industry. Besides,
the government and trade union is also a threat to the freedom of operating the business in the
country. Also, the uncertain weather of the country is challenging in the procurement operations
of the country (Namugenyi et al., 2019).
PESTLE analysis for business expansion
With the evaluation of internal environment assessment of the external environment is also
imperative for business growth and expression. The global expansion of the PESTLE analysis
has been done to identify the suitability of the business operations related to business expansions
in Brazil.

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Political
The company is planning to move to the Brazilian market thus, the political stability of Brazil is
also important for the company. Brazil is one of the most powerful countries in South America.
With good political stability, the country is a member of several international trade organizations
such as the World Trade Organization, G20, United Nations, and BRICS. However the country is
facing some internal challenges like corruption is the biggest challenge in the country
(Economictimes, 2019). Hence, the decision of the company is for business operations in Brazil
may lead fruitful results yet company needs to develop strategies to come over corruption issues
while formulating business expansion strategies.
Economic
At the measure of GDP growth, Brazil is a country that obtained a place in the 10 largest
economies in the world. However, in the past year's company had an economic and recovered in
the next year only. As per the economist's economic growth of the country will be increased in
the coming years. Besides, the employment rate is also increasing in-country which affects
disposable income of people and creates new customers and potential customer pool. Notably,
the country is on the top position in the list of top ten coffee producing nations of the world
(Santandertrade, 2020). This is an important parameter for the company which provides an
abundance of opportunities for the café pod coffee company.
Social
Brazil is a country that comprises a diverse culture and known as the most diverse cultural
country in the world. The country has around 208 million populations by the year 2018. From the
last certain year's social-economic status of the people in the country is continuously increasing
but gaps between poor and rich still lie in the country. Besides the country is also facing
increasing crime rate challenges which lead to social instability in the country and has a direct

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impact on business operations of the café pod coffee company (Santiagotimes, 2019). However
putting these challenges aside, the company has a significant economic growth rate in the
middle-class population.
Technological
The recent technology boom can be seen in Brazil, especially in web, software, and mobile
development. The Brazilian population has a significant rate of social media users. According to
a report around 50 % population of the country is engaged in online activates. The country
recognized the fifth largest population with having a population of mobile and internet users.
This technology advancement specifically in the area of information technology is a great
opportunity for the company to business operations in the country. Advancement in information
technology will be useful for global communication including publicity and promotion through
social media (Stanford, 2020).
Legal
The legal environment of any country is the most affecting factor that has a direct impact on
business global operations of a business organization. The legal environment of a country
includes some legal common practices related to employment, and written contracts. As per the
Brazilian laws, there is no need for much contract documentation regarding employment. With
the effect of globalization, the country has many policies and laws that encourage foreign direct
investment (Dourado et al., 2020). Thus, it is a huge opportunity for the café pod coffee company
to entre in Brazilian market easily and expand business operations in the country.
Environment
Brazil is one of the beautiful countries in the world. Geographical characteristics of the country
enhance the beauty of the country. In the geographical characteristics, the country encompasses

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the Amazon river, 62 national parks, Iguacu, rainforest and around 2000 beaches. This scenic
beauty of the country attracts a tourist pool throughout the world. This tourist pool has a direct
impact on countries' economies as well as global business operations of the company by playing
a role in increment in the sales of the company (Leung et al., 2018). Besides, geographical
location and characteristics of the country provide rich agriculture in which is one of the most
important factors for the business development of the country because the raw material of the
company is based on coffee farming and agriculture.
However, the country is facing some environmental challenges including air pollution, water
pollution, land degradation, severe oil spills, and deforestation has a direct and indirect impact on
the expansion strategies of the company.
Marketing Strategy
To grow the business consumer's preference is important for the Café Pod Coffee Co. To survive
and development of the business in a competitive environment enhancing and maintaining the
quality of the product and services, price, reliability, brand image, reputation, geographical
location, presentation, and reliability is important for the Café Pod Coffee Co. For example to
satisfied consumers need and requirement towards the uniqueness of the product, the company
need to be associated with innovation in products diversification of products. To improve the
quality of the product diversification company is offering a wide range of products including
Nespress compatible capsules with huge verities such as Brooklyn Hustle, Las Vegas all in
Ristretto, Diablo and many more (Cafepod, 2020).
Similarly, pricing is also an important dimension of the marketing strategy of the company
which leaves a direct impact on consumer's choice. Thus, the company has offered the product in

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various pricing categories. Although the main focus of the company is quality aspect therefore to
avoid quality compromises, the company had adapted premium and moderate pricing strategy. In
this concern, it can be said that Cafepod Coffee Co. promotes serious concern regarding the
product offered by the company’s consumers. The company is highly concerned to provide
quality products and services thus, charging high prices. (Cafe pod coffee co., 2020) To increase
the reach of the products company also dealing with online methods and providing the products
through home delivery methods.
Recommended expansion Strategies
Café pod Coffee Co is successfully running the business operations in the UK by maintaining
quality standards at high pricing strategies. Yet the company does not have much global
expansion of the business. The Café pod Coffee Co is facing challenges regarding restricted
business expansions of the company in different regions and countries.
As the above discussion of SWOT analysis, PESTEL analysis and marketing strategies of the
company allow the company for global expansions and overseas operations. The company has
some limitations for global moves like financial limitations, cultural holds, and human resources
issues. The organisation may take steps to penetrate the new market through various strategies
such as merger and acquisition, tie-ups, physical stores & franchises, and online selling.
Merger and acquisition
Merger and acquisition is an effective corporate strategy which is a helpful tool for business
expansion without putting much effort into human resources and infrastructure. In the mergers
and acquisitions strategy company deals with buying and combing two or more companies to
accomplish a goal. Merger and acquisition strategies lead to the rapid growth of a business

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organization. For the global operations and business expansions of café, pod coffee companies
can go for the Merger and acquisition strategy (Chui, 2017). To penetrate in Brazilian Market
Company can adopt this strategy by creating mergers and acquisitions with existing coffee café
companies in Brazil. This strategy requires less financial and human resources assets for the
business growth of café pod coffee co.
Tie up
To create a wider presence of a business organization, companies have agreements with another
organization to be business partners. In this type of business expansion strategies, both the
partners have to put equal efforts and resources and enjoy equal profits. In this type of business
expansion strategies, two companies agree to divide their investment and profits to achieve
shared common goals and growth of the organization (Veh et al., 2019).
To expend the business in Brazil, the café pod coffee company can set tie-ups with other
business organizations that are already operating in the country. In such strategies, a company
can create its market expansion in less financial and infrastructure resources.
Franchises
Franchising is also an important marketing concept which is an effective strategy of business
expansions. Under these strategies, business managers operate their business under the big
umbrella brand name of the company. In the business expansion strategy of the café pod coffee
company, the company can provide a license to business companies to use their brand name to
sell products (Jannett & Esther, 2019). In this strategy, the concerned company will follow the
set rules, producers and intellectual property set by the parent company that is café pod coffee
company.