Factors Affecting Business Expansion in Europe: Analysing Bold Street Cafe

RESIT MODULE ASSESSMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
Porter's five force model..............................................................................................................3
Porter's diamond model...............................................................................................................4
Major factors that are affecting the expansion of business in Europe.........................................5
Analysation of the macro factors that impacts the business............................................................5
Culture.........................................................................................................................................5
Brexit...........................................................................................................................................6
COVID-19...................................................................................................................................8
Labour Law..................................................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
......Business expansions means the end point where the company thinks of growth and want to
expand itself to generate more profit. Expansion of business is important because it attracts new
customer's in the new market or using new products or service. This report will discuss about the
bold street cafe is an active private limited company, which is incorporated on 4th march 2019
and it is an unlicensed café. This study will discuss about the expansion of bold street cafe in
Europe, and how some major factors like- inflation, covid-19, labour law, brexit and culture will
affect the expansion of the business in UK. It will also show the five forces model of Porter's on
bold street cafe and the mode of entry in the international market of German.
MAIN BODY
Porter's five force model
It is a business model analysis that explain, analyses or identifies five forces that helps in
determining industry weaknesses and strength. These five forces are necessary to know the risk
that will may occur in the upcoming times. The five forces model includes five main forces,
these are Competitive Rivalry, bargaining power of buyers, Bargaining power of suppliers,
Threats of new entrants, Threats of substitutes. Let's discuss the effect of these forces on Bold
street cafe: -
Competitive Rivalry
There is a high competition in this market despite of being doing the best in the city the bold
street cafe has so many competition, in every 2-3 months there a cafe make innovation or open
one more cafe which cause high disturbance in smooth running of bold street cafe, it is important
to know that both local and international chain affect the bold street cafe
Bargaining power of buyers
The bargaining power of buyers in this coffee industry is so high because of large number of
suppliers available in the market without any big difference, street cafe has the customers with
good loyalty but the behaviour of switching in the employees is very high (Gorynia, M. 2019.).
Bargaining power of suppliers
The bargaining power is very low in this market because the company are very strong and they
have the multiple number of suppliers in their touch who provide them with whatever they want.

Threats of new entrants
The threats of new entrants in this industry is very high as compared to another industry,
whenever someone thinks of a small business the first thought come in their mind is restaurant,
cafe or coffee shop these are the market which can be captured very easily through the taste.
Threats of substitutes
The threats of substitute are also very high in this industry as all the cafe or stores have tea,
drinks and many more that can substitute the coffee.
Porter's diamond model
This is mainly the diamond shaped model consisting of six factors which is also said as the study
of national competitive advantage of firms. It is the structure that tells that why some industries
that are running a country are competitive internationally. This diamond shaped framework
include Chance, Firm strategy, structure, rivalry, demand condition, factor condition,
government and related and supporting industries (Diliana, 2021.).
Firm strategy, Structure and Rivalry
...The national structure in which a company works directly knows that how the firms are made,
organized and controlled, it affects the strategy of the firm and how they frame rise themselves.
The more the rivalry in the domestics is the more innovation will develop and improve itself in
the order to maintain the competitive advantage. At the end, it will help the bold street cafe in
entering the foreign market (Chon, 2019).
Factor conditions
...It refers to the availability of natural resources, capital resources and the human resources that
are available in country to make them use for the firm, advantage of competitiveness results from
the existence of world level institutions that first create specialised factors then frequently works
to enhance them (Valdo’s, 2019.).
Demand condition
The demand of home highly affects how good an industry within a certain nation is, the
larger market means the higher competition but it also has the high number of opportunity to
stand in that cut throat market.
Related and supporting industries