Case Study (FY028) Inquiry Based Learning
Added on 2023-04-26
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INQUIRY BASED LEARNING
MODULE: (FY028)
CASE STUDY - CAFFÈ NERO
Student’s Name: Henrique Raphael Coleto
Student ID: 22101507
MODULE: (FY028)
CASE STUDY - CAFFÈ NERO
Student’s Name: Henrique Raphael Coleto
Student ID: 22101507
1
Contents
Introduction ..................................................................................................................................... 2
Literature Review ........................................................................................................................... 2
SWOT evaluation of Caffè Nero ....................................................................................................... 4
Methodology ................................................................................................................................... 7
Results/Discussion ........................................................................................................................ 8
Conclusions .................................................................................................................................... 9
Recommendation ......................................................................................................................... 10
References.................................................................................................................................... 11
Contents
Introduction ..................................................................................................................................... 2
Literature Review ........................................................................................................................... 2
SWOT evaluation of Caffè Nero ....................................................................................................... 4
Methodology ................................................................................................................................... 7
Results/Discussion ........................................................................................................................ 8
Conclusions .................................................................................................................................... 9
Recommendation ......................................................................................................................... 10
References.................................................................................................................................... 11
2
Introduction
Since its founding in 1987, the firm has been sold three times. As a public limited
company (PLC), CFN traded its shares on the London Stock Exchange. Although the
firm was taken over via a management buyout in early 2007, it is presently owned by
private investors. At Caffè Nero, we are committed to providing our customers with the
best coffee and cuisine in a warm and welcoming environment. The importance of
establishing a neighborhood meeting place cannot be overstated in the quest for
economic success. Espresso and cold coffees, sandwiches, paninis, focaccia wraps,
pastas, soups, salads, pizzas, pastries, and cakes are all on the menu. Two-thirds of
Caffè Nero's income comes from beverages, while the remaining one-third comes
from food. Caffè Nero makes more money from food than the typical coffee shop, with
food accounting for around a quarter of total sales (Ali, 2020).
Literature Review
There is still a lot of competition out there. Caffè Nero has a market share of 10.8
percent, significantly behind Starbucks' 25 percent and Whitbread's Costa Coffee,
which has a market share of 20.7 percent. Ford, on the other hand, is now outpacing
the market's average increase. This industry is expected to grow by 14.4 percent,
according to Allegra's forecasts. This refers to the level of rivalry within an industry's
current businesses. Traditionally, profit is driven to zero by the rivalry between
competing firms in classical economic models. Companies aren't just uninformed price
takers in a free market; competition isn't ideal either. Rather, they are attempting to
get an edge over their competitors in the marketplace. Depending on the industry, the
level of competition between companies varies. There are numerous companies in an
Introduction
Since its founding in 1987, the firm has been sold three times. As a public limited
company (PLC), CFN traded its shares on the London Stock Exchange. Although the
firm was taken over via a management buyout in early 2007, it is presently owned by
private investors. At Caffè Nero, we are committed to providing our customers with the
best coffee and cuisine in a warm and welcoming environment. The importance of
establishing a neighborhood meeting place cannot be overstated in the quest for
economic success. Espresso and cold coffees, sandwiches, paninis, focaccia wraps,
pastas, soups, salads, pizzas, pastries, and cakes are all on the menu. Two-thirds of
Caffè Nero's income comes from beverages, while the remaining one-third comes
from food. Caffè Nero makes more money from food than the typical coffee shop, with
food accounting for around a quarter of total sales (Ali, 2020).
Literature Review
There is still a lot of competition out there. Caffè Nero has a market share of 10.8
percent, significantly behind Starbucks' 25 percent and Whitbread's Costa Coffee,
which has a market share of 20.7 percent. Ford, on the other hand, is now outpacing
the market's average increase. This industry is expected to grow by 14.4 percent,
according to Allegra's forecasts. This refers to the level of rivalry within an industry's
current businesses. Traditionally, profit is driven to zero by the rivalry between
competing firms in classical economic models. Companies aren't just uninformed price
takers in a free market; competition isn't ideal either. Rather, they are attempting to
get an edge over their competitors in the marketplace. Depending on the industry, the
level of competition between companies varies. There are numerous companies in an
3
industry, but no one is the dominant one; this situation is likely to lead to poor margins
and profitability. Because the industry is growing slowly, competitors are competing
for market share. Fixed costs are high, which encourages companies to overproduce
and utilise their capacity to its fullest extent. It is difficult to leave a company with
significant exit costs because of the difficulty of selling specialised assets or the loyalty
of the management (for example, in long-established family enterprises). Customers
may readily swap suppliers since the products are so identical. The danger of new
entrants will be considerable in a highly competitive sector. Mobile phone
manufacturers like Motorola, Siemens, and Ericsson, as well as newcomers from Asia,
were putting increasing pressure on Nokia's dominance in 2004 (Blomberg, Kjellberg
and Winroth, 2012).
The SWOT analysis
The SWOT analysis is a summary of the results of internal and external audits that
highlights the company's essential strengths and weaknesses as well as the
opportunities and dangers that it faces. However, swot analysis is so beneficial and
logical that it may be underestimated in planning, but its simplicity frequently leads to
misdirected and poorly executed analyses It is often criticised for allowing companies
to produce lists without giving the concerns sufficient thought, and for often turning
into a dry academic exercise in data classification. A SWOT analysis isn't always
useful or unproductive on its own. Swot analysis' usefulness to a business is directly
related to how it is used. The extent to which swot analysis may help a company relies
on how managers apply the framework. Swot analysis may be a useful tool in the
formulation of a marketing strategy if done properly and effectively. When done
industry, but no one is the dominant one; this situation is likely to lead to poor margins
and profitability. Because the industry is growing slowly, competitors are competing
for market share. Fixed costs are high, which encourages companies to overproduce
and utilise their capacity to its fullest extent. It is difficult to leave a company with
significant exit costs because of the difficulty of selling specialised assets or the loyalty
of the management (for example, in long-established family enterprises). Customers
may readily swap suppliers since the products are so identical. The danger of new
entrants will be considerable in a highly competitive sector. Mobile phone
manufacturers like Motorola, Siemens, and Ericsson, as well as newcomers from Asia,
were putting increasing pressure on Nokia's dominance in 2004 (Blomberg, Kjellberg
and Winroth, 2012).
The SWOT analysis
The SWOT analysis is a summary of the results of internal and external audits that
highlights the company's essential strengths and weaknesses as well as the
opportunities and dangers that it faces. However, swot analysis is so beneficial and
logical that it may be underestimated in planning, but its simplicity frequently leads to
misdirected and poorly executed analyses It is often criticised for allowing companies
to produce lists without giving the concerns sufficient thought, and for often turning
into a dry academic exercise in data classification. A SWOT analysis isn't always
useful or unproductive on its own. Swot analysis' usefulness to a business is directly
related to how it is used. The extent to which swot analysis may help a company relies
on how managers apply the framework. Swot analysis may be a useful tool in the
formulation of a marketing strategy if done properly and effectively. When done
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