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Business Health Check Assessment

   

Added on  2021-02-20

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Business DevelopmentLeadership ManagementProfessional DevelopmentHealthcare and Research
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Business Health Check
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Table of ContentsINTRODUCTION...........................................................................................................................3TASK 1............................................................................................................................................31.1 Objectives of businesses...................................................................................................31.2 Factors which affect the process of business....................................................................41.3 Improvement and changes to the business operations and processes...............................7M1 SMART objectives .........................................................................................................8D1 Analyse how Ansoff Growth Matrix helps in business improvements............................8TASK 2 ...........................................................................................................................................82.1Effectiveness of the business.............................................................................................82.2 Develop plans for improving business and defining the value ........................................9M2 Evaluate the impact of business areas of the organisation.............................................10D2 Critically analyse development of plan in improving the business ..............................10TASK 3..........................................................................................................................................113.1Evaluation of current skills of the management and staff...............................................113.2 Plans for the development of skills for management and staff......................................12M3 Analyse the current experience, abilities and skills of management and staff .............14D3 Methods that can used for developing skills of management and staff .........................15CONCLUSION..............................................................................................................................16RECOMMENDATION.................................................................................................................16REFERENCES..............................................................................................................................17
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INTRODUCTIONBusiness health check is the way of analysing and examining both external and internalenvironment by business organisation as this can help in making business sustainable andsuccessful (Abdelhak, 2014). It is related to process of monitoring where all necessary factors ofcompany are being evaluated which lay down negative impact upon growth, success, cash flowand profitability. In present report the base company is Costa Coffee which is BritishMultinational coffee house company situated in Dunstable. It was founded in 1971 by Bruno andSergio Costa. This present assessment includes objectives of business along with differentexternal and internal factors of business operations. It has been discussed about requirement ofpotential improvement with the objective to make some modifications in operational functions oforganisation. Along with this level of effectiveness is been examined to know about necessity offormulation of development plans for company. Lastly, this report covers discussion concernedwith current skills of employees by which organisation can be successful in competitive businessenvironment. TASK 11.1 Objectives of businessesThe mission of Costa coffee is to save world from mediocre coffee and become worldssuccessful coffee business in terms of customer preference and increased return on investment(Arntz-Gray, 2016). The company Costa coffee offers products and services at international levelso they focuses on product development and market development so that there is increase inprofit and sustainability. The revenue of company is £1.167 billion and parent company is Coca-Cola. It captures 39% market share and target high and medium class people. Also their aim is toleave long term positive impression on customer's. The objectives of Costa Coffee are listedbelow:-Expand product offerings in China, Middle east region and India. Increasing level of awareness among public related to social issues in developingcountries with the help of Costa Foundation. Focus on expanding markets outside UK and continuously focusing on offering betterloyalty and reward programmes
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1.2 Factors which affect the process of businessTheir are various factors which impact business processes. To identify and analyse thesefactors different tools can be utilised which are as follows:- PESTEL Analysis of Costa CoffeePolitical Factors- There is great influence of political environment on performance ofCosta Coffee. Their is increase in prices of products offered by Costa Coffee because ofhigh rate income tax (Brown, and et. al., 2014). As Costa coffee produces good qualityof coffee and producers earn increased profits from fair trade practices. Costa isexpanding its business at global level by opening new coffee shops which leads topromotion of economy and provide employment opportunities to local people. Economical Factors- The various economic factors includes inflation rate, employmentrate and national income of country. Due to rate of unemployment the purchasing powerof customer's goes down as there is decrease in level of their income which leads todecrease in sales for Costa Coffee. Also to remain in market aim of Costa is to offerquality of products and services by reducing their prices and this help company to beleading coffee brand in UK and international level. Social Factors- There is rise in demand for products of Costa as there is increase instandard of living of people of UK (Chadwick, and et. al., 2012). Consumers are nowbecoming aware and consider many social factors so Costa Coffee must focus onfulfilling corporate social responsibility as this will help to attract and retain customer'sfor long term. Also, there is increase in sales of coffee because now customer's havedecrease consumption of Alcohol. Technological Factors- The introduction of latest technology and software has provideassistance to make innovations in their production and services. These factors help CostaCoffee to create competitive edge by implementation of techniques and tools which willhelp in increasing both productivity and efficiency. The company has enhanced their saleby adoption of e-commerce methods and updates selling strategy. Also, management ofCosta has utilised technology with execution of electronic point of sales system (EPOS)
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Environmental Factors- This factors is very much important for Costa Coffee as thishelps in long term growth and development. As there is more emphasis is given to protectenvironment so, paper cups of Costa are prepared from sustainable wood pulp fromforest of Europe. Also, it has achieved first international environmental accreditation forcoffee roastery in 2012. along with this focus is given of reducing carbon emissions ascoffee machines automatically goes to sleep when not required which shows environmentconcern of Costa Coffee (Chang, , and et. al., 2016). Legal Factors- All necessary patterns of business regulations are followed by CostaCoffee. Also, they emphasis on continuous improvement of security and well- being ofconsumer's and employees. This company produces healthy food products as it hassigned agreement with Food Standard Agency. PORTER'S FIVE FORCES MODELCompetitive Rivalry- Their is fierce competition which is faced by Costa Coffee in foodservice and coffee house industry. It helps company to identify about level of competitionfor Costa coffee at marketplace. The company face high degree of competition as theirmany competitors which are Starbucks, Dunkin Donuts and Mc cafe. Bargaining power of Costa Coffee Buyers- Customer's have strong influence ininternational market as they have strong bargaining power. The various factors affectingbusiness of Costa coffee includes low switching cost, small size of individual customer'sand more substitutes are available to customer's. Bargaining power of Costa Coffee Suppliers- Costa Coffee has weak bargaining poweras it has medium size of suppliers and considered as external factor for company(Ghaddar, and et. al., 2012). To compete against competitor’s suppliers frame and usedifferent strategies and competencies with various companies. Threat of substitution of Costa Coffee Products- This factor lay down major impact onprofitability of company as there are many substitutes available to customer's atmarketplace. Their is high threat for Costa Coffee as there are many close substitutesavailable in market. Some of variants for Costa coffee products are drinks, instantbeverages, energy drinks and many more.
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Threat of new entrants and new entry- for every business organisation there is threat ofnew entrant and substitute. In context of Costa Coffee, there are many companies whichhave ability to take over this company so there is high degree of threat and competiton..Major competitors of Costa Coffee at international level are Starbucks, McDonald's, CafeCoffee Day, Mc Cafe and KFC (Goins, 2013). SWOT Analysis of Costa CoffeeStrengthsIt has strong presence at global level asit is 2 largest coffee chain with 3401stores in 31 countries.Costa coffee offers wide range ofproducts as compared to its competitors(Hyppönen, 2015).The company has strong brand imageand visibility in market. WeaknessesThe market strategy of costa coffee isinefficient and ineffective.The prices charged by Costa Coffee areexpensive so not affordable bycategories of all people. Costa coffee has low degree ofsustainability in case of competitiveadvantage.OpportunitiesCosta coffee has opportunity to pursueaggressive marketing strategy forexpansion. This company can also focus ondeveloping healthier and low caffeineproducts. It is enjoying competitive advantagefrom its new parent company that isCoca Cola.Threats There is threat to increase in prices ofraw material for coffee beans. Now, customer's consider coffee asunhealthy beverage.Also there is increase in indirectcompetition for Costa Coffee.
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