Report on Business Firm : Botannix studio cafe

Report on business firm

Table of Contents
INTRODUCTION...........................................................................................................................1
PESTLE ANALYSIS .....................................................................................................................1
SWOT ANALYSIS.........................................................................................................................4
CONCLUSION ...............................................................................................................................5
REFERENCES................................................................................................................................7

INTRODUCTION
The organisation operating their business within a broad market having wide range of
products and services offered by various organisations or companies all around the world. There
are various factors within the business environment that influence the functions and performance
of a business or organisations. The present report is in context to Botannix studio cafe located in
Botany. It is a popular cafe offering high quality and tasty food items and drinks to their
customers with satisfactory services. The report will identify the various internal and external
factors that affect functions of Botannix cafe. Two main strategic tool will be applied in this
context – Pestle analysis and SWOT analysis.
PESTLE ANALYSIS
Pestle analysis is an effective strategic tool which helps to identify various external
factors in the business environment that affect the functions and performance of each and every
kind of business or organisation such as Botannix cafe. These factors include six elements which
can be described as below -
1
Ill
ustration 1: PESTLE analysis
(Source: Pestle analysis, 2017)

 Political factors – The political factors in the external or macro business environment are
various laws and regulations imposed by the legal authorities. In the context of Botannix
cafe, it is essential for the company to work according to policies imposed by the
government. Political factors are the components which make positive and negative effect
on the working of Botannix cafe. For instance there will different areas where the
organization will work. This can be the negative effect which will looked by the cafe.
Every company can not achieve their business goals or objectives without considering or
following the regulations developed by the legal systems of the country or government
(Islam, Mamun and Amanullah, 2017). Economic factors – The current ongoing global economic recession is a major external
economic driver for the Botannix cafe. The economic factors largely affect sales and
profitability of the cited firm. The economic factors such as local currency exchange
rates, taxation level etc. convince customers to shift to low price alternatives or
substitutes. Economic states of every nation are not quite the same as each other. Here
and there they develop and once in a while they fall. Developing of economy will make
positive outcomes though defeat of the economy will bring negative effect for Botannix
cafe. Although, food industry is high in demand which provides an opportunity for the
chosen cafe. Social factors – The Botannix cafe try to offer cheaper products to their customers which
may affect the quality. These are the components which are affected by the adjustments
in tastes and inclinations of the clients. At the point when the inclinations are in support
then it will make the positive effect. However, in the event that the chosen company
should confront numerous negative effects and its results. It is a major socio-cultural
issue that the company faces, for overcoming this challenge it is significant to expand the
customer base by including middle and lower income buyers. There are various social
factors such as changing family patterns in Europe and Australia, preferences of the
customers, fluctuating work patterns etc (Fozer and et.al, 2017). Technological factors – There are various changes and development in the technology
withing business environment which are necessary to be considered by every
organisation. There are numerous advances which comes in the market. Those can make
numerous positive effects on the business. Better innovation will expand the profitability.
2

There are various technological elements that are affecting Botannix cafe in their
functioning such as Development in agriculture practices, Development of innovative
technology etc. Environmental factors – There are various environmental rules and regulations,
disasters, global warning and other environmental issues in the environment which are
essential to be considered by Botannix cafe. Working of the cited business or
organization towards improving world a place and utilize those advances which are
condition amicable. Making sheltered and solid condition (Duckitt and Hunt, 2017).
 Legitimate components - There are numerous laws and enactments which are
incorporated into the lawful factor. These powers the organization to take after a few
rules in their exercises and activities. This will have negative effect in light of the fact
that Botannix cafe should work as indicated by these laws and enactments.
Macro or external environment that condition which isn't controllable and it conveys
numerous positive and negative effect upon the business association. Positive effects will assist
the organization with growing further and negative effect will influence the organization to
confront a few circumstances which will be bad for them. These full scale factors are to be dealt
with precisely to give manageable business execution. This condition contains outside and
interior variables.
Positive effects of the external environment
Circumstances because of inward and outside elements of the full scale condition which
brings a few advantages or points of interest for the Botannix cafe. These are the positive effects.
Government rolled out a few improvements in their arrangements which will expand the income
or pay of the Botannix cafe. Stable economy or developing economy will acquire positive
changes the working style of the organization and will assist them with gaining numerous prizes
and advantages. By successfully satisfying all the social duties which makes their clients
fulfilled. It makes them to satisfy need and requests of the customers. Keeping sound association
with every one of the people who are identified with their business exercises takes care of
numerous legitimate issues. It makes the organization to utilize every one of the qualities which
they contain in dealing with the business activities of Botannix cafe. It will bring some positive
effects upon the exercises which are held in business.
Negative effects of the external environment
3

This condition additionally have numerous negative effects on the business tasks of Botannix
cafe. Changes in the approaches which are compelled to be trailed by the organization. Economy
is insecure which acquires numerous negative changes the business tasks. Utilizing old
innovations and never refreshing additionally will expedite some terrible effects the workings of
the Botannix cafe. Needs and needs of clients changes quickly. It can be hard to satisfy them all.
Having some legitimate issues with somebody. These are a few instances of having the negative
effect on the business activities of the association.
SWOT ANALYSIS
The Botannix cafe is a popular restaurant in the industry offering food, drinks, ambiance
and comfort to their customers. There are various internal factors which are influencing the
business operations, these factors can be identified by using SWOT analysis (Adem, Çolak and
Dağdeviren, 2018).
 Strengths – The strengths helps in understanding the important areas of a business where
it achieves competitive advantages and beat the competition. The strength of an
organization are main elements that support the growth and development of any type of
organisation or business. The strengths of the chosen cafe are as mentioned below -
1. Impressive ambiance
2. Innovative ideas
3. Location
 Weakness – These are the weak areas of any business which negatively affects functions
and performance of the organisation. In order to gain a positive position in the market it
is essential to overcome these weaknesses. There are certain weaknesses which are
influencing Botannix cafe's business such as -
1. Price
2. Retaining customers
3. High dependency upon customers (Bohari, Hin and Fuad, 2017).
 Opportunities – This assist in understanding what all things an organization or business
can do by using current resources and skills, it assists the company to identify areas
where it can grow and achieve a successful position in the market. Opportunities for
Botannix cafe are as mentioned below -
1. Customer loyalty
4

2. Expansion
3. Diversification
 Threats – This assist in determining various areas which can influence or affect business
functions in the future. It is important for the organizations to be prepare in order to
handle any kind of thereat within the business environment (Tahseen and Karney, 2017)
1. Market saturation
2. Changing needs and demand of the customers
3. Increased competition in the industry
CONCLUSION
The above discussion concluded that there are various factors both within internal and
external environment which influence the overall functioning of Botannix cafe in Botany. In
order to identify the external environment factors Pestle analysis tool is applied. The factors such
5
Illustration
2: SWOT analysis
(Source: SWOT analysis on cafe, 2018)

as Political, Economical, Social, Technological, Legal and environmental have a great impact on
the company's function and performance. The internal environment also includes different
factors such as Strengths, weaknesses, opportunities and threats that also influence companies
performance at a huge level. These internal factors are determined by using another strategic tool
known as SWOT analysis.
6

REFERENCES
Books and Journals
Islam, F.R., Al Mamun, K. and Amanullah, M.T.O. eds., 2017.Smart Energy Grid Design for
Island Countries: Challenges and Opportunities. Springer.
Fozer, D., Sziraky, F.Z., Racz, L., Nagy, T., Tarjani, A.J., Toth, A.J., Haaz, E., Benko, T. and
Mizsey, P., 2017. Life cycle, PESTLE and Multi-Criteria Decision Analysis of CCS
process alternatives.Journal of Cleaner Production,147, pp.75-85.
Duckitt, R. and Hunt, D., 2017. Reimagining unscheduled care–the Worthing Emergency Floor
Project.Future Hospital Journal, 4(Suppl 2), pp.s18-s18.
Tahseen, S. and Karney, B., 2017. Opportunities for increased hydropower diversion at Niagara:
An sSWOT analysis.Renewable Energy,101, pp.757-770.
Bohari, A.M., Hin, C.W. and Fuad, N., 2017. The competitiveness of halal food industry in
Malaysia: A SWOT-ICT analysis. Geografia-Malaysian Journal of Society and
Space, 9(1).
Adem, A., Çolak, A. and Dağdeviren, M., 2018. An integrated model using SWOT analysis and
Hesitant fuzzy linguistic term set for evaluation occupational safety risks in life cycle of
wind turbine. Safety science, 106, pp.184-190.
Online
Pestle analysis, 2017 [Online]. Available through:<http://pestleanalysis.com/pest-analysis-
example-for-the-food-industry/>
SWOT analysis on cafe, 2018 [Online]. Available
through:<http://smallbusiness.chron.com/sample-swot-analysis-restaurant-73526.html>
7