Comparing Costa and Starbucks: A Business Report

Business report which
compares Costa and
Starbucks
CONTENTS

1. INTRODUCTION..............................................................................................................1
Background of the study.........................................................................................................1
Research Aim and Objectives................................................................................................1
Research questions.................................................................................................................1
Rationale of the study.............................................................................................................2
Significance of the study........................................................................................................2
2. LITERATURE REVIEW...................................................................................................3
3. RESEARCH METHODOLODY.......................................................................................6
Research type..........................................................................................................................6
Research design......................................................................................................................6
Time framework.....................................................................................................................6
Research approaches..............................................................................................................7
Research philosophy...............................................................................................................7
Data collection........................................................................................................................7
Data analysis...........................................................................................................................7
Ethical consideration..............................................................................................................7
4. DATA ANALYSIS.............................................................................................................8
Presentation of the results.......................................................................................................8
Discussion.............................................................................................................................17
5. CONCLUSION.................................................................................................................19
REFERENCES.........................................................................................................................21

1. INTRODUCTION
Background of the study
Coffee sector in UK is growing rapidly and contributing effective portion in GDP of
the particular economy. In the current era, there is effective trend of consuming coffee by
young generation which is helping the specific industry to grow rapidly by offering various
employment opportunities. There are various companies that is operating in the particular
sector and obtaining reliable performance. It is important for the company to pay attention on
identifying the factors which can influence its performance and decline or incline
competitiveness. For becoming successful in current, it is crucial for firms operating in
specific sector to achieve information about the trends that can boost its financial outcomes in
turn significant pattern of growth & development can be done. Costa is one of the successful
firms that is giving the experience of crafting the finest quality coffee in industry. Starbucks
is famous among the users by offering delicious, handcrafted beverages and great tasting food
that make targeted audience attractive. Recent report will pay attention on comparing Costa
and Starbucks companies on the basis of the financial and non-monetary aspects in turn
deeper information regarding the same can be obtained.
Research Aim and Objectives
Aim:
The main aim of the research is to compare the performance of Costa and Starbucks
companies.
Objectives:
 To understand the concept and significance of comparison.
 To identify the factors considered at the time of comparing the organizational
performance in coffee industry.
 To assess the challenges affecting the comparison of the Costa and Starbucks
companies
 To recommend the strategies pertaining for the overcoming the challenges affecting
the comparison of the Costa and Starbucks companies so that significant outcomes
can be derived.
Research questions
 What is the concept and significance of comparison?
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 Which are the factors that considered at the time of comparing the organizational
performance in coffee industry?
 Which are the challenges affecting the comparison of the Costa and Starbucks
companies?
 Which are the strategies pertaining for the overcoming the challenges affecting the
comparison of the Costa and Starbucks companies so that significant outcomes can be
derived?
Rationale of the study
For becoming successful in industry, it is crucial for the company to give emphasis
on developing the reliable strategy so that effective growth in the sector can be obtained. In
the current era, the trends keep on changing so becomes crucial for the company to focus on
developing the competitive performance which can help in receiving reliable performance for
gaining growth in market. The study will pay attention on assessing the aspects which can
help in identifying the factors that can influence its performance. Comparison of company
with other organization operating in similar industry provides the assistance in identifying the
relevant aspects which is hampering is performance. This provides assistance in receiving
competitive performance by implementing reliable course of action which can result in
receiving organizational growth & development in industry. It will be helpful in recognizing
the impact of the factors which is responsible for organizational growth & development in
coffee industry. For this purpose, the particular comparison between Costa and Starbucks will
be helpful in identifying its success and failure factors. It can contribute in recognizing the
reliable strategy applicable for appropriate actions for the improvement of those areas.
Significance of the study
Comparison is important as it provides assistance in recognizing the aspects which is
assisting it to get good pattern of growth in sector. It provides results which enable companies
to have relevant evaluation of actions that require improvement in turn good level of
performance can be obtained. The particular study is helpful for the Costa and Starbucks
companies so that significant level of performance by implementing the reliable course of
action can become possible. The other companies operating in the similar organization can
find the specific study useful in achieving the objectives by referring its findings. On the
basis of the specific investigation the researcher can achieve the aim and objective of
comparing its firm in highly effective manners. Learners and scholars conducting research in
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similar topic can refer the particular investigation as it can provide assistance in receiving
findings which are helpful for attaining knowledge in specific manner.
2. LITERATURE REVIEW
Theme 1- The concept and significance of comparison:
As per the view of the Drewsen, (2022) Comparison is the act of evaluation of two or
more of the things, that have the identical characteristics of their products or the services they
offer in the market. The comparison of the company's acts as the practical and the easiest way
to ensure the high order working in the comparative ways. This is done by determining that
which of the characteristic of the products offered by the different companies are similar with
each other and till what extent and what all products and services are different and till what
extent those vary from each other. The concept of the comparison works by bringing two or
more of the things together in the physical ways for examining, and identifying similarities
that are relevant enough for meeting the merits of the comparison. Comparison has different
meaning in the different frameworks that it works in with the study of the comparison based
on the different factors. The comparison of the companies helps in gaining the comparative
advantage as it provides the useful information and management gets the help in reviewing
the operations and the policies of the businesses as the whole.
On the other side the Chung, and et.al., (2021) depicted that the comparison is based
on the evaluation of the similar characteristics of the products and the services of the firm but
none of the business is same even if it is operating in the same fields and having the same
products and offers the same services in the market. Business is not about having same of the
products but it is also based on the different factors that are related to the business operations
of the different firms. When the internal things are not known about any of the business than
the comparison made is of no use and the things are likely to be wrong only. The concept of
the comparison is basically that the whenever the business or other things are compared to the
other than things come on the factors like the goals, plans, staffs and structures of the
companies. Keeping the things in mid like the competitor's position and their appearance in
the market can draw the positions of the business in the market. Comparing the business in
the positive ways may help in the find out new ideas and develop the business on to the new
levels and helps in the creation of the new products.
Theme 2 - The factors considered at the time of comparing the organizational
performance:
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According to Susanto, and et.al., (2021) an organization continuously faces out the
external and internal forces. These forces put the impact on the firms functioning and it drives
through the organization to meet the requirements of the competitive atmosphere around the
business functioning. These directly influence the organizational performance in the
companies. The organizational performance means the transformation of the organizational
aspects for the achieving the certain outcomes related to the performance of the organizations
based on the different factors and the factors that performance helps to study about are the
relation between the minimal and effective cost (economy), differences in between the
effective cost and realized output (efficiency), and in between the output achieved and
achieved outcome (effectiveness). The comparison factors that influence the organizational
performance are the human resources outcomes, capital market outcomes, organizational
outcomes and the financial accounting outcomes of the different organizations.
The organizational performance is compared and contrasted on the basis of the
different external and the internal factors. Internal environment factors that are taken under
consideration at the time of the comparison in between different companies are the human
resources, technical aspects, financial aspects, production departments and the marketing
department are some internal factors that are seen while the time of the comparison in
between the two companies. According to Kinley and Bradon (2015), the internal culture of
the company needs to be good as it is highly important for effective functioning of the
operations of the firm. the culture of the company is quite conducive which helps in fostering
better idea and innovation in the work practices. However, there are some cons of this
internal factor if it is not adequately maintained. If the culture of the company is not good
than poor quality of services can be offered to the clients as employees will not be satisfied
with their work roles. Talking in context of Starbucks, the culture of the company is found to
be more effective as compared to Costa. This is due to the fact that the company focusses
more on their workers and provides more values to them. additionally, the culture of
Starbucks is also very healthy which has its own pro like motivated employees, achievement
of desired goals, better productivity etc. However, sometimes it might lead to open discussion
and lack of confidentiality which is not good for the effective functioning.
Some external environment factors that are seen while the comparison is done in the
companies are social, political and the cultural aspects of the business environment of the
company. Governmental policies and the government support to the firm in different ways
and from the different governmental organizations or the parties influencing the working
behaviour of the firms and impacting the performance of the organization. For example,
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