Cafe Pod and Dorchester: A Business Environment Comparative Report

This report provides a comparative analysis of the business environments of Cafe Pod, an independent coffee company, and Dorchester, a luxury hotel, both operating in the UK market. It examines the external factors impacting each business through a PESTLE analysis, highlighting the political, environmental, legal, social, technological, and economic influences. The report also details the organizational structures of both companies, noting Cafe Pod's functional structure and Dorchester's divisional structure. Furthermore, it assesses their organizational planning and performance strategies, emphasizing Cafe Pod's growth in the coffee market and Dorchester's success in the hospitality industry. The conclusion emphasizes the significant impact of the business environment on companies, irrespective of their industry, and underscores the importance of adapting strategies to navigate external factors effectively. Desklib offers this document as a valuable resource, among numerous others, to aid students in their academic pursuits.

The Business Environment

Table of Contents
Introduction................................................................................................................................3
Main Body..................................................................................................................................3
The external environment......................................................................................................3
The organisational structure...................................................................................................5
Organisational planning and performance.............................................................................7
Conclusion..................................................................................................................................8
References..................................................................................................................................9

Introduction
Business environment refers to different business surroundings and including factors
that may affect the business functions. It is related to internal and external as well and affect
the business functions that is operating within the market (Bratianu and Bejinaru, 2021). The
two chosen local contrasting companies for this reports are Cafe Pod and Dorchester. The
reason behind choosing these businesses is they are local to UK and both are operating in
different industries of UK. Cafe Pod is independent coffee company established in 2011, they
work with creativity, passion and pushes the boundaries of the company in different manners.
Café Pod is private company that is operated its business into the private sector in London
(CAFEPOD COFFEE CO. - CRAFT COFFEE, 202). Whereas, Dorchester is a hotel that is
established in London again and comes under the hospitality industry. It is also a private
company that serve for their customers. These both companies are work for profitability and
manage their local business into UK market effectively (DORCHESTER COLLECTION,
2021). Furthermore, one is working in manufacturing industry whereas other is in hospitality
industry. This become the main reason for choosing these companies as they have different
industries and external environment. So, it will be helpful for analysing external environment
of two different industries in business while operating in same environment. This report
includes the external environment of the companies, a detailed explanation of organisational
structure. In last the report highlighted the organisational planning and performance in
different basis of the two different companies.
Main Body
The external environment
The external environment is very helpful for the company to work effectively within
the environment and make growth into their internal business practices. This process become
very effective and appropriate to summarise the issue that a company face due to their
external factors (Shams and et.al., 2021). The two industries are mainly belongs to two
different industries that would be make different external environment to the company. For
this PESTLE analysis is conducted for each industry:
Political factors: These factors are basically related to the government interventions
and political stability in the different factors within the society (Cascio, 2021). Tax policies,
stability of the government, social policies and many other issues. The major issue which
Dorchester can face due to political factor is the traveling bans in UK due to covid-19

pandemic. It may affect the growth and decline the sales of the company. On the other hand,
for the CafePod, Trade relationship is very effective for the companies. So, it would make a
negative impact on the company if the trade relationship is decline by the UK.
Environmental factors: The consumer and government factors make an adverse
impact on the environment that will further provide some polluting effects on the company.
In the hotel industry, it is very important to provide a warm and relaxing environment to their
customers. Which directly or indirectly make an impact on the pricing policies of the hotels
like Dorchester (Nam and Bao Tram, 2021). On the other hand, Sustainable farming is one of
the major issue that coffee industry are facing. Unsustainable farming may cause for the
deforestation, as it will be helpful for major challenging and effective concerts in different
manners. This get an adverse and positive impact on the company like CafePod, as by using
sustainable farming the company can gain more customers’ attraction. On the contrary,
company can decline their customers when they are not following the sustainable practices in
their business.
Legal factors: There are different legal factors which may get the impact on the
company’s policies some of them are employment, health and safety, antitrust and patents
regulations. For the Dorchester hotel, this factor may decline the sales and revenue of the
company as it is very important to follow Innkeepers laws and safety protection for their
customers (PESTLE Analysis for Hotel Industry, 2021). Whereas, CafePod needed to use
mainly food and safety protection act as the business is mainly related to food productions. It
will be helpful for both the companies to work effectively into the market and gain some
effective strategies for following up the accounts and achieve objectives in an effective
manner.
Social factors: These factors directly affect the mind of an individual in the market.
Some of the major factors which are included in social external factors are population,
distribution of wealth, educational tools and many more. It will be helpful for the growth of
the company to work appropriately and manage the data in an effective ways. Within the
Dorchester hotel, most of the customer’s preferences and mind are change and they want
additional things at the cheaper cost (Chebo and Wubetie, 2021). This happened due to
Airbnb Facilities in UK, so it become the issue for the company and make systematic growth
into the market. On the other hand, CafePod become the rising standards within the market.
Which become the reason for people are becoming health conscious and become focusing on

the international trade into the market. It will be helpful for the company to work
appropriately and manage their societies into the market and achieve some growth into the
market.
Technological factors: This factor introduce major challenges for the companies as it
will bring effective innovation within the market and but need change and strategies for the
growth appropriately. Dorechester and CafePod are using effective new media and social
strategies to make effective prominent tools and achieve different targets in more efficient
ways. It will be helpful for the companies to work effectively and updated technologies that
eventually increase the sales and revenues for attracting more customers. All is related to
work effectively and manage their sources at time to achieve demand of the consumers
(Farhoomand, and et.al., 2021).
Economic factors: This factor is actually shown as the wealth of economic region
that will be helpful for long term process in different industries. This factor make an impact
on Dorchester hotel, government is spending more on hospitality indystry and work
effectively on the economic cycle of the UK. This will further help the increased sale of the
company and enhance the power to manage their activities in significant manner.
Furthermore, For the CaféPod, this factor make a positive impact on the company for
increasing demand and customer’s footfall within the company (PESTEL Analysis of the
Coffee Industry, 2021).
The organisational structure
Organisational structure is a system that make effective outline within different
activities to directed the activities and achieve goals for the growth of an organisation. It
would be helpful for the companies to make an appropriate organisational structure.
CafePod’s organisational structure: The Company have 12 employees at their
workplace. All of them are effective and make systematic changes in different manner and
provide a support to the company and achieve growth to the business objectives. The
company’s director and executive team is able to provide a significant growth in major
challenges and work with high competition into the market. The work of their production of
coffee and coffee substitute into the market will help the company to achieve systematic
growth into market. The company is using functional organisational structure, as it will be
helpful for them to work as per their own specialized structure and work to achieve
systematic growth into the market. It will be helpful for achieving market strength and gain

high profit into the market and achieve effective profitability into the market (Gogokhia and
Berulava, 2021). Below the organisational structure of the company’s employees are
explained through a picture that show the number of employees and their position into the
market.
Figure 1, CafePod organisatioanl structure, 2021

Figure 2Cafepod organisational structure, 2021
Dorchester’s organisational structure: They have unique identity and work
effectively into the market. Dorchester work for the diversity, creativity, passion and
continuous leader for the growth of their own company. It would be helpful for make
systematic challenges in different factors to consider to analyse their major challenges.
Dorchester use divisional organisational structure for working effectively in their own
resources (Griffin, 2021). Each of the department to make marketing team, sales team, IT
team and different factors that are associated to make large companies and achieve
consideration to work effectively in different manners. It will be helpful for work effectively
and achieve systematic growth into the market. There are systematic growth to work on the
focus to achieve variations to be considered into the market.

Figure 3, Dorchester's organisational structure, 2021
Organisational planning and performance
CafePod is using effective growth and work effectively into the market and achieve to
work appropriately into the market. Company’s provided Espressos, ground coffee, whole
bean coffee and varieties of major challenges in different matters (Macdonald, 2021). It will
be helpful for major challenging and in different major challenges to achieve a range of
excitement and high street coffee with the help of achieving systematic growth. This is
analysed that the company is using organisational planning and performance to achieve
systematic growth in different manners. Furthermore, high performance are used to work
significantly to make systematic performance and achieve higher middle class to work in
systematic manner (CAFEPOD LIMITED ACTIVE, 2021).
Whereas, Dorchester to achieve $ 500M to work systematic growth in different
manners. It is analysed to work and achieve growth into the market and gain supremacy in
the London. This hotel is using different performances and planning process to work
appropriately and manage the source effectively into the market (Le, Taghizadeh-Hesary and
Nguyen, 2021). Dorchester use significant success in the London market and gain effective
achieve to represent the equation in different manner. It will be helpful for the company to
work and achieve for analysing the market and gain planning to work and performance
effectively and changing behaviour. This make the effective growth and performance strategy

into the new market and become effective business environment into the major challenges
(DORCHESTER COLLECTION, 2021).
Conclusion
From the above report, it has been analysed that the business environment make a
suitable impact on the companies whether they are from same industry on some other. It is
evaluated that the external factors are make major impact on the growth to analyse effectively
on the each and every activities or strategies of the company. The two chosen companies are
contracting business, means different from each other, furthermore it is concluded that
external factors make different positive and negative impact on any industry of the company.
Furthermore, organisational structure of the two companies are different from each other and
it make an impact on different planning and performance of the company.

References
Books & Journals
Bratianu, C. and Bejinaru, R., 2021. COVID‐19 induced emergent knowledge
strategies. Knowledge and Process Management, 28(1), pp.11-17.
Cascio, W., 2021. Managing human resources. McGraw-Hill US Higher Ed USE.
Chebo, A.K. and Wubetie, Y.F., 2021. The integrative business model as a linkage to venture
growth: An insight from the outside box of strategic decisions. Business Strategy &
Development, 4(3), pp.358-370.
Farhoomand, A., Markus, M.L., Gable, G. and Khan, S., 2021. Managing (e) business
transformation: a global perspective. Bloomsbury Publishing.
Gogokhia, T. and Berulava, G., 2021. Business environment reforms, innovation and firm
productivity in transition economies. Eurasian Business Review, 11(2), pp.221-245.
Griffin, R., 2021. Fundamentals of management. Cengage Learning.
Le, T.H., Taghizadeh-Hesary, F. and Nguyen, C.P., 2021. Obstacles to Doing Business in
Asia: Cross-Country Analysis for State-Owned Enterprises and Private
Firms. Reforming State-Owned Enterprises in Asia: Challenges and Solutions,
pp.297-321.
Macdonald, K., 2021. The impact of business environment reforms on poverty, gender and
inclusion.
Nam, V.H. and Bao Tram, H., 2021. Business environment and innovation persistence: The
case of small-and medium-sized enterprises in Vietnam. Economics of Innovation
and New Technology, 30(3), pp.239-261.
Shams, R., Vrontis, D., Belyaeva, Z., Ferraris, A. and Czinkota, M.R., 2021. Strategic agility
in international business: A conceptual framework for “agile”
multinationals. Journal of International Management, 27(1), p.100737.
Online
CAFEPOD COFFEE CO. - CRAFT COFFEE, 2021. [Online]. Available through:
https://www.cafepod.com/pages/our-story.
CAFEPOD LIMITED ACTIVE, 2021. [Online]. Available through:
https://uk.globaldatabase.com/company/cafepod-limited.
DORCHESTER COLLECTION, 2021. [Online]. Available through:
https://www.dorchestercollection.com/en/who-we-are/.
PESTEL Analysis of the Coffee Industry, 2021. [Online]. Available through :<
https://pestleanalysis.com/coffee-industry-pestel-analysis/>.
PESTLE Analysis for Hotel Industry, 2021. [Online]. Available through :<
https://pestleanalysis.com/pestle-analysis-for-hotel-industry/>.