Caffe Nero: SWOT and PEST Analysis for Expansion in Finland

Running head: BUSINESS AND THE BUSINESS ENVIRONMENT
Caffe Nero
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1BUSINESS AND THE BUSINESS ENVIRONMENT
Table of Contents
Introduction......................................................................................................................................2
Background of the Caffe Nero.........................................................................................................2
SWOT analysis................................................................................................................................3
PEST analysis..................................................................................................................................5
Technological environment.............................................................................................................7
Conclusion.......................................................................................................................................7

2BUSINESS AND THE BUSINESS ENVIRONMENT
Introduction
Caffe Nero Group Ltd or Caffe Nero is a coffee brand which is headquartered in London.
The company was founded by Garry Ford in the year 1997, the initial branch of this company
was located in the Brompton Road, South Kensington. Worldwide 825 coffee houses are found
which is located in 8 different countries: United States of America, United Arab Emirates,
Turkey, Croatia, Cyprus, Poland, Ireland, and United Kingdom. Considering the presence of
Coffee Nero in the eight different countries, expanding in country like Finland will provide a
bigger market and more market opportunities (Caffè Nero 2018). Media reports suggest that
coffee consumption in Finland is one of the largest in the world, which is 12kg per capita per
year. This study is based on the UK based company Caffe Nero and its expansion into country
like Finland (The Telegraph 2018). The report will also present a SWOT analysis of the
company and a PEST analysis of Finland which will help to analyze the business environment
for Caffe Nero in Finland.
Background of the Caffe Nero
Caffe Nero was first opened in the year 1997, in the South Kensington area of London.
Caffe Nero Group is one of the largest espresso operator shops in UK, which is trailing behind
Costa Coffee and Starbucks Corporation. Caffe Nero operates more than 150 shops in United
Kingdom in over 50 cities. The several sites where the shops are located include Scotland,
Glasgow, England, and Brighton. Caffe Nero also endeavor in to tailor making each of the shops
in accordance with the peculiarity of the region. Caffe Nero plans to increase the number of
stores in the small regional markets and even in the large metropolitan cities. The company also
plans to open different stores outside and inside the mainland Europe. The company has a simple

3BUSINESS AND THE BUSINESS ENVIRONMENT
Strengths
Rapid growth
High profitability
Big market share
Number of outlets
Strong brand name
Geographical location
Partnership with other brands
Weakness
Dependence on a single supplier
Lack of adaptability in case of change
In UK only, majority of the outlets are
located
Opportunities
Internet café
Expansion plans in future
Diversified product line
More stores will be opened up in
Europe
Threats
Exchange rate of currencies
15,000 outlets of Starbucks
Bargaining power of the suppliers
High price rise of coffee
Pressure groups emphasizing on fair
trade
Change in trend in coffee drinking
SWOT Analysis
philosophy- food, atmosphere, coffee and service. The company promotes these elements and
strives to achieve excellence in the four areas (Caffè Nero 2018).
SWOT analysis
SWOT analysis is an identification of the strengths, weakness, opportunity and threats of
any specific company. This helps in to understanding the external and internal factors that will
effectively impact the viability of an undertaken project.