A Case Overview of Café Nero is an Italian Coffee Shop

London, England-based Caffè Nero is an Italian-inspired coffeehouse chain with locations across the globe. Gerry Ford started the business in 1997, and it now has over 1,000 coffee shops in eleven countries, including the United Kingdom, Ireland, Sweden, Poland, Cyprus, Croatia, Turkey, the United Arab Emirates, Oman, and the United States.

Caffe Nero
Question 1- Case Overview
Introduction
London, England-based Caffè Nero is an Italian-
inspired coffeehouse chain with locations across
the globe. Gerry Ford started the business in
1997, and it now has over 1,000 coffee shops in
eleven countries, including the United Kingdom,
Ireland, Sweden, Poland, Cyprus, Croatia,
Turkey, the United Arab Emirates, Oman, and
the United States. Caffè Nero purchased and
established its very own coffee business in
Battersea, south London, in 2009, which also
provides coffee to most of its coffee shops
globally. Nero Group Holdings Ltd (UK) and
Rome Intermediate Holdings Sarl (Luxembourg)
are held by Gerry Ford, who is the largest shareholder of Caffè Nero Ltd.
After a corporate takeover effort even during the COVID-19 epidemic, the corporation won.
Caffe Nero's sales were up by even more than about over the six months from May to
November of 2021, only when the COVID epidemic had a significant impact on the company's
sales. It provides various types of coffee such as cappuccino, coffee as the main product. Italian wraps
are also included in their range of products.
Current status of Caffe Nero
After Starbucks Coffee Company and Costa Coffee, Caffè Nero Group PLC is one of the three
main espresso cafe franchises in the United Kingdom. Caffè Nero has approximately 150 sites in
the UK, ranging from Brighton, England to Glasgow, Scotland. Although the firm works to give
the chain a cohesive, branded personality, it also strives to adapt each store to the specifics of
each location. Caffè Nero intends to rapidly increase its store count by opening stores in both
major cities and rural places around the world. Furthermore, the company plans to expand into
France. Coffe Nero Company operates 263 coffee shop in more than 50 cities in the UK. It is
classified as a large-scale enterprise and employs more than 1960 people.

Question 2-Analysis of the business
SWOT Analysis Caffe Nero
SWOT analysis is a tool used to assess
a company's position in the market by
identifying its assets, liabilities,
strengths, weaknesses, opportunities,
and threats. The SWOT analysis is a
useful tool for companies in
understanding all of the facets
involved in making a business
decision. In the 1960s, Albert
Humphrey of the Stanford Research
Institute developed this method to
investigate the reasons why business
planning was unsuccessful. When it
comes to establishing and expanding
their businesses, one of the most
helpful tools for company owners is
the SWOT analysis.
Source: Internet
Strengths
Pricing is less expensive than that of competitors (Costa Coffee, Starbucks). Starbucks charges
$2 for a small coffee, Costa Coffee $1.79 for a small cappuccino, and Caffè Nero $1.55 for a
small cappuccino. According to the official website, food sales make up approximately a third of
the company's total sales. The company's strategy is based on its ability to establish a strong
brand as a European-style coffee shop chain in the local market. Intensive and aggressive
marketing techniques (e.g. loyalty cards for customers). One of Caffè Nero's main selling points
is its Continental-style menu, which contrasts with the American selections offered by Starbucks
and Costa Coffee. Caffè Nero can save money by renting instead of purchasing the space it
needs.

Weaknesses
The placement of Caffè Nero's units - a scarcity of sites in Central London and a prevalence of
locations in the British provinces as a result of the saturation of cafes and bars on UK High
Streets.
Caffè Nero has no past international expertise; as a result, entering new markets in other
nations may prove difficult for the company.
Opportunities
Expanding Opportunity across the Subcontinent, Commencing with West Europe As a
consequence of working closely with the Royal Bank of Scotland, we were able to get a credit
line of four million pounds, which will be used to fund new ventures and business growth.
Threats
The United Kingdom, which is the country's principal
market, is susceptible to a high danger of being struck
by terrorist strikes. There was a reduction in the
overall number of visitors that came to the UK as a
direct result of the terrorist attacks that took place in
July of 2005. (the domestic market). Because it is not
difficult for new companies to create an identical
image, the level of competition that already exists in
the market is likely to increase as a direct consequence
of this fact.
As a result of the continued growth in the cost of renting a property, which has been larger
than 30 percent over the preceding year, there is a likelihood that rental rates could go up in
the future. This rise in rental costs will likely have an effect.
While there are many positive aspects of Caffè Nero Group's current situation that are reflected
in the SWOT analysis, the company's high potential for international expansion into Europe is
evident in the company's cost-cutting strategies, strong brand positioning, and intensive
marketing campaigns, all of which are reflected in the SWOT analysis. The lack of international
experience could cause problems when entering new markets, but there are other

shortcomings as well. It is impossible to control all of the external threats. But based on their
high level of profitability and large market share in the domestic market, the researchers think
that the company is ready to go abroad at this moment.
Costa Coffee and Starbucks are only two of the many chained coffee shops in the UK. There is
potential for saturation of branded coffee shops in London, although the coffee retail industry
appears to be experiencing exponential growth - 37% in the past five years, according to Caffè
Nero Group PLC's financial report for May 2003.
PEST analysis of Caffe Nero
PEST is an acronym that stands for
"political, economic, social, and
technological" analysis. This type of
analysis is conducted from the outside
and looks at the indicators of a
country's economy, government, and
society.
The United Kingdom of Great Britain
and Northern Ireland is a country that
spans a total land area of 244,820 km2
and is home to a total population of
60,587,300 individuals. It can be found
in the far northwestern corner of the European landmass.
Source: Internet
Political Factors
The United Kingdom became a member of what is now known as the European Union in 1973.
However, the United Kingdom is not a member of the European Monetary Union at this time.
There is a possibility that terrorist attacks will be carried out in Iraq as a result of the
involvement of the United Kingdom in the military operation that is being conducted in Iraq by
the United States, as well as Iraq's economic and political significance on a worldwide scale.
Economic Forces

UK's $1.6 trillion GDP ranks 7th globally. Datamonitor shows annual growth of 0.7% attributable
to service sector growth of 0.8%. (2007) the UK still employs the pound sterling, which is strong
relative to the euro and dollar. The pound (£2.099493) has increased against the dollar for the
first time since 1981.2002–2006, the UK's economy grew 2.6%, thus it's not dependent on
domestic demand. After April 2008, the personal income tax was reduced from 22% to 20%,
and the corporate tax was reduced from 30% to 28%. Inflation rose 0.2% in 2007 from 2006 due
to increasing food and transportation costs.
Social Factors
Numerous immigrants contribute to the domestic market in the UK. 7-8 % in the United
Kingdom, or 2.32 million individuals, are foreign-born.
Since the United Kingdom entered the European Union in 1973, and particularly since the 12
additional members joined in May 2004, there have been several racial and linguistic groups.
9.9 percent of the British population is non-white.
Technological Factors
The United Kingdom is considered to be rather proactive when it comes to technology;
nevertheless, the nation's high level of public debt, combined with its low level of public
investment, prevents it from sourcing research and development in revolutionary forms of
technology.
Recommendations
After performing both an outside and an inside study of the Caffè Nero Group, it is necessary to
propose that a significant amount of wealth be allocated to preserve the high reputation in the
home economy. This advice must be made immediately. This is because the positioning of the
brand is the driving force behind the business model of the organization.
I will be able to make assertive choices concerning specific prospects and safeguard your
business share in the domestic market if you conduct an environmental scan to determine the
severity of the competition and new entrants into the market field. This can be accomplished by
conducting an environmental scan. This is another piece of guidance.
Whenever it meets the following criteria of localization, the company needs to recruit investors
is required to be allowed to cover all of the expenses involved with market entry and plan.
In addition, the ties between franchisors and franchisees constitute the fundamental elements
of the company's strategy for international expansion. These connections contain the highest
potential with either successes or failures for the organization as a whole because the

franchisor's ability to run an effective business is based on the incentive of the franchisee to do
well in business.
Question 3- Teamwork
The quality and success of a presentation partly depend on Skilled team members. As we are
the more than 5 members of our team firstly have looked up at a company which is growing
rapidly by competing with other companies. And then each member's task is divided According
to the topic of the presentation. We, the members have different skills in PowerPoint, Word,
and typing so every single member took some responsibility according to our skills in our
presentation task.
Team forming process:
This is where the teammates first meet. Captains must assist with descriptions
and emphasize each participant's education and experience. The teammates are
also given information about the project and their responsibilities.
Before forming a team we go through some factors like:
Responsibility and accountability
Students with responsibility and accountability to work have taken as a member of our group.
The success of a group presentation is dependent on accountability to the task. Because groups
share a foundation of interests and principles, each team may be given the same treatment.
Diverse perspectives and experiences
Teams with the largest diversity of experiences and opinions have the best chance of success
because variety stimulates creativity and invention.
Clear Communication
The most effective teams discuss potential ideas, keep each other updated on
progress, and finish their work.
Knowledge of a topic

In-depth knowledge of various topics makes the presentation group stronger than
another groups. Students with high knowledge of various topics have taken as
group members.
Interest
Students with a common interest are likely to be the best group for presentation.
Dissent with a different opinion will create a chaotic situation among group
members
The efficiency of teamwork and Contribution to career development:
Teamwork refers to the cooperative effort made by several individuals toward the
accomplishment of a common objective or objective(s). Work achieves greater
degrees of success, and the outcomes can have a significant impact when every
individual voluntarily and purposefully considers the group's objectives and aims
their top priority.
By working with a team we can achieve some crucial things that will help for our
better future like:
More personal growth
Achieving most goals takes individual effort, even while working together. More peer
cooperation may change job approaches and competencies.
Peer-to-peer learning can improve careers and lives. Team members acquire reflective
listening, communication, empathy, and adaptability even while not cross-training.
More diversity
An effective collaboration structure encourages ideas, knowledge, training,
culture, and competence diversity. In a collaboration setting, users are likely to
lead with their abilities. To encourage teamwork at work, you may need to allow
positive conflict between team members.
More communication

Trusting teammates interact honestly and efficiently, boosting collaboration. Everyone shares
their skills and knowledge in collaborative cooperation. Team members must communicate
individually to do this.
Less fear
Solo inventors are unusual. Thomas Edison invented the light bulb but first created a fearless
workplace. He left notebooks throughout the office requesting note-sharing and task
reassignment. Here, world-changing ideas emerged.
Question 4- Presentation Experience
Caffe Nero, a British coffee company, was the subject of my group's presentation.
In total, there were five sections. I utilized PowerPoint slides with concise
explanations for each section. To maintain the audience's interest, I avoided
putting too many words on the slides and instead incorporated images, tables,
and quotes. In the final segment, we aimed to interest the audience by exhibiting
a video as opposed to providing repetitive verbal explanations.
During my presentation, I was overwhelmed with nervousness. When I stood in
front of roughly seventy children, I could not stop my hands and legs from
shaking. To mask my anxiety and deliver a successful presentation, I tried to
unwind and pretended there was no audience in the classroom.
Example: Talking in front of people was a new experience and situation for me. As
I never had a chance to talk this way that’s why I panicked and learned too from
this presentation. I was confident but nervousness struck me that time very badly.
But It is impossible to overestimate the value of a speaking experience. Employers
nowadays prefer candidates who have excellent pronunciation and presenting
skills. A university education will help a graduate advance in their career by
providing them with excellent presentation skills, which exhibit academic
proficiency in a variety of intellectual and empirical examples of how a job can be
done
What Did I Know Before This Regarding My Presentation Skills?

I was conscious that even when it came to speaking in front of audiences, I had
certain challenges, even though I had given once before given a presentation in
front of a large audience. Even though I had never done anything like this before,
it turned out that this was the case. There were times when I would blank out in
the middle of a discussion, at which point I would pause for a lengthy amount of
time before picking up where I left off with what I was saying. When it came time
for me to deliver a presentation in front of a larger audience, I dreaded that I
would once again let all of these characteristics get the better of me, but I was
determined not to let that happen.
What did I get out of this presentation, and what kind of feedback did I get?
For the sake of providing the best possible presentation to the students, I made
certain to incorporate pertinent graphics and audio elements in my Powerpoint
slide show. I didn't put any text on the slides since I'd seen that worried people
would read directly off the slides, which detracted from the overall presentation
in past presentations. To provide my presentation, I used various images on each
slide as a guide.
I needed to rehearse my presentation multiple times due to the lack of text on my
slides. Despite multiple repetitions of my prepared statements, I found myself
stumbling and stalling a few times. Presenting in front of the class was more
nerve-wracking than presenting to a random audience. Stressed up about making
a mistake in front of other students made me anxious.
Even though I did my best in trying to include all the essential components of a
strong presentation, I found myself becoming overly preoccupied with my words
and my body language, which hindered the presentation's natural progression.
The class's suggestions and criticisms were quite helpful to me. It was usual for
me to talk over the music clips I played, gaze at the computer screen when it
wasn't necessary, and not include any text on the slides. My nervousness and
unease throughout the presentation led to all of the foregoing problems.

Question 5- Common Theme
Comparative Analysis between two companies
After the marketing strategies of Starbucks and Caffe Nero have been examined, a comparison
will be made to see how they differ from one another.
1. When it comes to coffee, you can get a better deal at Caffe Nero than at Starbucks.
2. Caffe Nero has a much greater assortment of food and beverage options than Starbucks,
which sets it apart.
3. Caffe Nero is a European-style coffee shop, whereas Starbucks is an American-style
coffee store. Caffe Nero wants to distinguish itself from Starbucks by emphasizing a
continental-style coffeehouse significantly more prominently than does the national
chain.
4. Although it has opened a few shops in Turkey and the Middle East, Caffe Nero has just
recently expanded its global reach.
5. Caffe Nero has fewer central London outlets than Starbucks.
6. Caffe Nero's distinctive selling points, including its Eu authenticity, allow it to grow at a
rapid pace.
Opportunities that companies face during their growth
A corporation can benefit from its environment. Whether a company succeeds in
its target market depends on whether its business strengths match or exceed
competitors'. A Tesco store may open in China.
Some ways Caffè Nero can examine its external surroundings. If Caffè Nero Group
LTD. uses this opportunity, the company will earn many benefits.
1. Selling the brand name may bring in extra cash by franchising.
2. Contract or invest directly in poor countries that grow tea, coffee, or food,
and offer competitive prices.

3. The growth in coffee and sandwich establishments in the UK brings in more
money.
4. By opening stores in the Middle East and East Asia, trade barriers can be
removed.
Challenges that companies during their growth
Environment-related factors that have the potential to thwart an organization's
efforts to achieve its goals and objectives are referred to as challenges.
An example of an environmental challenge is a threat that is posed by an
unfavorable trend or development that, in the absence of defensive marketing
action, would lead to a deterioration in sales or profits. In this scenario, the lack of
defensive marketing action would lead to a decline in sales or profits.
When assessing the seriousness of danger, it is important to take into account the
possibility that the threat will come to pass.
The following are some instances of potential dangers:
1. Competitors
2. The recently put into effect policies and taxation of the government
3. Unrest on the political front, including things like wars and other conflicts,
etc.
4. Massive competitors such as McDonald's, Starbucks, Costa Coffee, BB's
Coffee, and Subway. For instance, the United Kingdom is currently
experiencing both an economic and a financial crisis at the same time.
5. Constant conflict with several other competitors regarding aspects such as
price, quality, and the environment around them, amongst other things.

References
Ivoryresearch.com. 2022. Situation Analysis of the Caffè Nero Group Ltd | Ivory
Research. [online] Available at:
<https://www.ivoryresearch.com/samples/situation-analysis-of-the-caffe-nero-
group-ltd/> [Accessed 16 May 2022]
Medium. 2022. A Comparative Marketing Strategy Analysis Between Starbucks
and Caffe Nero. [online] Available at: <https://medium.com/@cooldesserts/a-
comparative-marketing-strategy-analysis-between-starbucks-and-caffe-nero-
88d2ece4c981#:~:text=CAFFE%20NERO'S%20USP%3A,caf%C3%A9%20cum
%20bar%20and%20restaurant.> [Accessed 17 May 2022].