LUBM304: CAFEPOD Coffee - Strategic Management in Global Context

This report provides a comprehensive analysis of CAFEPOD Coffee's strategic management in a global context, focusing on its potential expansion into Sydney, Australia. It begins by evaluating different business types and recommending a partnership model for CAFEPOD's entry into the new market. The report includes a detailed SWOT analysis, identifying the company's strengths, weaknesses, opportunities, and threats, along with recommendations for improvement. A PESTEL analysis of Sydney is also conducted, examining the political, economic, social, technological, environmental, and legal factors that could impact CAFEPOD's operations. Various market entry modes are considered, with recommendations for the most suitable approach. Furthermore, the report explores the marketing mix and Porter's generic strategies to help CAFEPOD achieve a competitive advantage. Finally, a strategic business plan is presented, outlining key performance indicators and strategies for future growth and sustainability in the new market. This report provides a robust framework for CAFEPOD Coffee to strategically navigate its global expansion.

Strategic Management
in Global Context

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Type of business in which company could expand................................................................3
Recommendation..........................................................................................................4
SWOT Analysis......................................................................................................................4
Recommendation..........................................................................................................5
PESTEL Analysis...................................................................................................................5
Recommendation..........................................................................................................7
Modes of market entry............................................................................................................7
Recommendation..........................................................................................................8
Justification...................................................................................................................8
Marketing mix........................................................................................................................9
Porter's generic strategies.....................................................................................................10
Recommendation .......................................................................................................11
Strategic business plan.........................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Global strategic management is the management of a company when it wants to expand
its business in to other countries(Bonsu, 2019). It is the process of defining goals, setting
objectives to make the company competitively stable and others. CAFEPOD coffee is the chosen
organization for this report. It is an independent business established in London in 2011 by Peter
Grainger and brent Hadfield. The company is available in approximately all major supermarkets
and online retailers. It serves various products such as: Aluminium pods, roast whole bean,
ground coffee and others. Their blends include: intense roast, brunch blend, ristretto and many
more. The company is now planning to expand its business in another country. This report will
cover the type of business in which the company will expand, the country in which the company
should expand, SWOT analysis of the company and PESTLE analysis of the country. There are
three different modes in which a business could entre a market. There is a recommendation
covered for the company to entre new market. The marketing mix and generic strategies to beat
competition is also covered in this report. At last, a strategic business plan is given in which the
measurement of success of this new business in the market is measured and the ways in which
this business could improve itself in future.
MAIN BODY
Type of business in which company could expand
CAFEPOD coffee is headquartered in London, UK. The company was founded by Peter
and Hasdfield in 2011. It is primarily a beverage industry but it also serves in food products and
retail speciality. It is basically serving products such as: nespresso, gourmet popcorn, coffee
items, breakfast treats, chocolates and others. People enjoys its products in all major
supermarkets and online retailers. The company used venture capital backed as the way of
funding. Now the company wants to expand it business to another country. Following are the
types of businesses in which the company could expand:
 Sole proprietorship: In this type of business, there is only a single owner of the business
it means the business is operated and controlled by the sole person who have to pay
personal income tax on the earned business profit. He is the only boss and do not have to
follow any orders and only he has the rights on the earned profit. There is less paperwork,
tax, business fee, liability protection and other profits with this business style.

 Partnership: This type of business have two or more partners who together are
responsible to run the business. It means there are two or more heads who could control
things within the organization. Both are responsible to invest capital, share profits or
losses and both have to pay income taxes equally. Both partners share their mutual
interests and cooperates. It could be easy to start as investing costs are divided in between
the individuals.
 Limited Liable Company (LLC): In this type of businesses a person could take
advantage of both the cooperation and the partnership. It protects the individual from
personal liability, personal assets such as: buildings, saving accounts, vehicles and others.
Hence, there will not be the risk of bankruptcy in such businesses. The company has its
own legal entity. This form of business are commonly used in U.S.
Recommendation
It is recommended that CAFEPOD coffee could expand its business in “Sydney” a city of
Australia. The company could use partnership type of business to expand in the new country as
there are already two partners of this business who know how to operate the business smoothly,
who know what are the products, how to produce and manage it, there is division of all the
expenses such as: investment, payment of taxes, purchasing of assets, losses and others in
between both of the partners equally. It means it's being easy to operate the business without any
burden for major expenses or loss.
SWOT Analysis
It is the analysis of a company's strengths, weaknesses, opportunities and threats in a
market. Following is the SWOT analysis of CAFEPOD coffee:
Strength Weakness
 CAFEPOD coffee sells a variety of
product.
 The company has the intension to gain
its market share and become 7th largest
ground and roast coffee brand in
U.K(Campisi, Canale and Tesoriere,
 CAFEPOD coffee is suffering with lack
of good relationship with some of the
suppliers. This is the reason of facing
irregularities in receiving raw materials.
 It also has a weak decision-making
process as the company do not involve

2018)
 They are using LML technology which
is also the reason for improvement in
the quality of coffee and its products.
its employees in this process.
 It is expanding in new city, there are
various cafes which serves better
products than it.
Opportunity Threat
 CAFEPOD coffee could enhance its
customer base as there huge demand
for its products in market.
 The company could use effective
innovations to create sustainable
progress(Teoli, Sanvictores and An,
2019)
 It could make effective relations with
its suppliers so there is continuous
supply for raw materials and it will also
help the company in innovation.
 As it is known, there is huge
competition in U.K. market. It is
important for the company to get
strategic advantages with innovative
ideas.
Recommendation
It is recommended that CAFEPOD could make effective relations with the suppliers so
that it could receive raw materials at time as the company now wants to expand its business at a
new place. There, is need for regular supply of raw materials so that they could easily process
their manufacturing and this will help in the overall growth of the company. The company could
use effective strategies so that it could be able to survive in a new market and could able to beat
the competition. It could now also involve its employees in decision-making process so that there
is no confusion at all in organization.
PESTEL Analysis
PESTEL is the analysis of external factors affecting the operations of a company.
PESTEL stands for political, economical, social, technological, environmental and legal. Sydney
is a city in Australia. Following is the critical evaluation of factors which may affect any
business which is planning to expand in Sydney:

 Political: These are the factors regulated by government and its policies. Taxes, policies,
government laws, rules and others are some examples of this factor. Political stability of
Sydney is at a good level. It means there is stability of government in Australia as in U.K.
it means CAFEPOD do not have to face major problems due to government policies in
Sydney it may be good for for the growth of the company, as there may not have the
headaches of regular change in rules and regulations of the government and within the
company too. The company could take advantages and opportunities for growth in
Sydney market too.
 Economical: These factors are related with money and finance. There is a growth in
economic rate in Sydney. It means the companies which are existing or are planning to
expand their business will doesn't face problems due to major financial loss. It could be
the reason for overall growth of CAFEPOD in Sydney. Inflation rate and taxes are
comparatively low than other countries in Australia which could also be the reason for
success in business for the company.
 Social: These factors are related with society and social changes. There is changing
patterns of lifestyle, family, eating trends and others of the individuals of Sydney. It
means the companies planning to grow or expand in Sydney must have the knowledge of
changing behaviour of the people. CAFEPOD have to take care of each factor and it
should make changes in its products and services as per the requirement of customers on
a regular basis. This regular update will be helpful for the company in having strong
consumer base(Goyal, Garg and Luthra, 2020)
 Technological: These factors are related to change or innovations in technology. Sydney
has good development in technologies for industries. It has a good potential for
innovation in technologies which may be good reason for growth of companies in
Sydney. Government of the country also helps in research funding. CAFEPOD could take
advantage of new technologies by adopting them in its business. It could use more
innovative and new techniques which will help the company to save time and produce
more products effectively.
 Environmental: The factors related with the preservation of environment or are in favour
of environment sustainability. Sydney has a continuous regulation over economy and
environment. The companies there have to follow these laws of environment. They have

to develop green products or eco-friendly products. CAFEPOD have to keep all the rules
and laws in mind and have to develop some of the products which are in favour of
environment protection so that the company could survive in the market.
 Legal: These are the rules, regulations and laws, a company have to follow while doing
its business. It includes all the taxation, laws, regulations and others. Sydney have both
type of taxation legislation – customer and corporate. It means companies there have to
follow the laws regarding and industry and also regarding its customers. Sydney also
have employment laws and competition regulations. It means companies there have to
give employment and fight for competition only by following respective laws.
CAFEPOD should follow all the rules and regulation for growth in Sydney market.
Recommendation
It is recommended that CAFEPOD could take all the advantages of these external factors
in its business by keeping all the policies and laws in mind. The company could take the benefit
by making rules effectively by taking a meeting with every employee so that it have not to
change its rules again and again. It could use more technologies so that speed and efficiency of
work could improve and this will also help to save the time of manufacturing. This will result in
fast and effective service for the customers. The company could run its business smoothly by
taking care of each and every law.
Modes of market entry
It could be a risk to switch its market for a company. There are many reasons for it such
as: requirement of huge capital, expenses in purchasing assets, preparing customer base and
others. To overcome some of the major risks, company should take care of how to entre, when to
entre, in which country to entre and what should be the method of entry to the market so that it
could be a major reason for the success or decline of a company to he new environment. There
are many ways through which a company could entre a new market of a new country. Following
are main three modes of entry in a new market through which CAFEPOD could entre in the
market of Sydney:
 Exporting: It is the sale of goods or services directly to another country. This method is
cost-effective as there is no need to invest in chosen country as goods are still producing
in the home country and will be sent to foreign countries for sale. There may be more

cost of transportation as the costs are rising continuously. This could in direct way or in
indirect way such as through any agent, a case former, in the case of the latter and others.
 Partnering: It is the necessity requirement of every company which is going to expand
its business to search an effective partner for its business either it is to share expenses or
it is to share local information of the city or country where it is going to expand. It could
be in various forms. In this type of entry method, one company is local and another one is
that which wants to expand its business. This will be beneficial for the company which
wants to expand its business in new country as the local company have the knowledge of
market, customers, their taste and others(Linnik, Amerkhanova, Kudaibergenov and et.
al.,2020)
 Joint venture: In this method, two companies from different geographical are combines
together in a joint manner to achieve the same goal at another platform. In this joint, both
the companies comes together to achieve same set goals and have the same chosen
country in which they wants to expand their business. It will also reduce cost as the
expenses are divided between both the companies.
Recommendation
It is recommended that CAFEPOD could expand its business by using partnering method
of entry in Sydney market. Partnership with another company could be beneficial for both the
companies. Partnering company should have an overall good image in the market of Sydney.
This will allow the company to get knowledge of local culture, local people, local market,
customers, their taste, demands, requirements and others. This will be a better method as the
expenses are divided in between both of the companies. As the partnering company is already
famous in the Sydney, it could be easy for CAFEPOD to grow in that country.
Justification
It is the major requirement of each and every individual to earn as much profit as he can
with minimum expenses or loss as per current scenario. No one is here to earn less profit or no
one wants to put all the expenses. As there are at least two partners in partnering one is
CAFEPOD which wants to expand its business in Sydney and another company with which it
could make partnership is for example any famous cafe of Sydney. The cafe is already running in

Sydney and have a great image. Besides this, it have the understanding of customer minds, their
needs and taste. This could help CAFEPOD coffee to take only the products which are in
demand or could adopt possible changes in their products so that they could make a strong
customer base in the new country too.
Marketing mix
It is also known for 4 P's of marketing which helps in understanding what product or
service a company is offering to its customers, what is the price for the respected product, what
are the ways in which the company is promoting its products and at which place the product or
service is available or is going to be available(Mix, 2022) Following is the marketing mix for
CAFEPOD in respect to expansion in Sydney market:
 Product: It is the goods any company manufactures to fulfil customer needs and earn
profit. As it is mentioned above, CAFEPOD, is offering various kinds of products with
unique taste and flavours. The company could continue with its existing products such as:
FMCG, coffee beans, hot drinks and others in the new city also. It could add more
flavours and quality in its products as per the demand of people in Sydney. These
changes will help the company to enhance its sale and make it able to grow and achieve
stability in new market.
 Price: It is the cost at which the product will sell. It is the important factor to choose an
effective pricing for each product offered by the company. CAFEPOD should research
effectively about the expectations of the people in Sydney and then accordingly set the
prices of their products. The prices should not be much low or high. The company may
throw offers and discounts at initial stages to enhance customer base.
 Place: It is the location where a company is existing or is expanding to serve its products.
It is also an important factor as any company have to choose a target market where it
could find target customers and earn profit. Sydney is the chosen location for CAFEPOD
where it is going to expand its business. Basically it is a U.K. based company.
 Promotion: It is the way through which a company communicate about its products to its
target customers. It means promotions let the customers to get an understanding about the
company's products or services. It could be through various ways which will the
company to gain its customers. CAFEPOD could promote its products effectively

through advertisement, templates, banners, billboards, announcements and others to let
the target customers know about its offerings.
Porter's generic strategies
It is important for any firm to enhance its profitability. It could be possible through
sustainable competitive advantage. These are the the strategies describing how a company took
competitive advantages across its chosen target market. Any company must choose one of the
four strategies either it has any form of business so that it could beat competition and survive in
market. Firm could combine any two strategies for effective results(Iyer, Davari, Zolfagharian
and et. al., 2019) This will also help the company to manage risks and threats following are
strategies CAFEPOD coffee could use to analyse and resolve risk factors and survive in the new
market of Sydney:
 Cost leadership strategy: This is the strategy in which a company uses lowest possible
price for its products with high quality than its present competitors. It often enhances the
efficiency of the company, its scope, size, experience and others. This is the strategy
generally used by the company if it enters a new market or launching a new product. This
will be beneficial for a business which is planning to grow internationally.
 Differentiation strategy: Company use this strategy to beat competition and able to
survive in market. This is the strategy in which a company is offering various types of
products and services which are different from its competitors. A company which is
entering a new market could use this strategy as it is tough for any new company to
survive if its products are already available or are popular. Offering a different product
than the competitors will help the company to grow and achieve success in its business.
 Cost focus strategy: This is a strategy in which a company offers quality products at
lower prices (not lower as possible) to a particular market. This strategy focuses in
improving financial efficiency of the company and enhancing customer base. Quality
products at reasonable price will able to attracts more customers. This strategy could be
helpful for the companies which are expanding their business in a new market.
 Differentiation focus strategy: In this strategy, a company focuses in producing
different products than its competitors with higher quality and prices. As the quality of
product is high and are unique in the market, there will be demand foe such products. It
could be difficult for a new company or a business expanding in new country. But it is

effective for a pre-existing company as there is already an image and demand for the
brands of that company.
Recommendation
With reference to the CAFEPOD coffee it should cost leadership strategy as it allows the
firm to attract the large number of customers which can assists the company to build good brand
image among the customers and markets. In addition to this, the respective company also provide
customers with the best ranges of coffee due to which they can increase their market share. By
adopting low cost strategy the respective company can gain competitive market position through
which the the targeted goals can be achieved very effectively and efficiently. Due to this the
respective company can enjoy the increased market share as very large number of customers are
price sensitive and want low price product.
Strategic business plan
It is the process through which a company plans how to achieve its goals and objectives.
Following is the strategic plan for CAFEPOD coffee:
Executive summary
CAFEPOD is a UK based company offering various types of coffee beans and drinks. The
company now wants to expand its business in Australia.
Mission
CAFEPOD has the mission to achieve 30% of its sales in the end of the year.
Vision
CAFEPOD has to achieve its goal in the decided time period and it wants to spread in other cities
of Australia too.
Objectives
Main objectives of CAFEPOD is to enhance customer base and maximize profit.
Marketing mix
Product: gourmet popcorn, coffee items, breakfast treats, chocolates and others.
Price: starting from 10 dollars
Place: Sydney
Promotion: through advertisement and banners.
Available resources

CAFEPOD have 50 staffs
Sources of funds
CAFEPOD will take bank loan as a source of funding as it is easy to take with minimum interest
rate and there are less risk of fraud.
Success measure
CAFAPOD will measure its success through KPI (key performance indicators) method. The
company will use this method in the measurement of net profit and liquidity of the company.
This method will allow the company in having employee's attendance ratio, client retention ratio
and per client revenue.
CONCLUSION
From the above report it can be concluded that global strategic management help the
company to achieve the target goals and objectives. In order to expand there are different types
of business which the company can adopt in order to be more competitive. By analysing and
identifying different internal and external factor the company can make strategy which helps
them to utilize the resources in a productive manner. There are different modes through the the
company can enter into the market as partnering method is considered as one of the most
effective method. Through this report it can be concluded that by adopting marketing mix
strategy the company can achieve higher growth and success which leads in sustainability of the
firm. In addition to this the company can also adopt Porter's generic strategies which can lead the
company towards building good brand image among its competitors.