Macroeconomic Factors Impact on a Café: Business Skills 1 Report

This report examines the external macroeconomic factors impacting a café business, as required by a Business Skills 1 assignment. It analyzes the influence of economic factors, such as economic fluctuations and the Australian dollar's exchange rate, on the café's operations and customer spending. The report also assesses the impact of political and legal factors, including changes in taxation, employment, and consumer laws, as well as internet usage regulations. Furthermore, it explores the environmental factors relevant to the café, such as the need for recycling strategies, waste management plans, and the adoption of green energy practices. The report concludes by highlighting the importance of understanding these factors for the café's success and sustainability, referencing several sources to support its analysis.

Business Skills

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External (macro) factors could impact your business
In the time when the business is facing uncertain business environment hence it is critical that
all the companies understand factors that are affecting their business.
Economic factors
Economic environment in many parts of the world is not good and it is fluctuating at much
faster rate. This fluctuation is not allowing the customers to spend money freely which will
have impact on the café business. Cafés are the places where people love to go when there is
good in economic environment and they have money to spend (Turner, 2018). There is also
fluctuation in the Australian Dollar which will have impact in terms of the fact that there will
be impact on the operational cost of the café especially the cost of the raw materials like tea
and coffee.
Political/Legal
The Australian political environment for business is stable but in the last few years there are
many governments that have changed (Aig.com, 2018). Due to this, policies have also
changed which has impact on the café industry. For example there is change in the taxation
policy which has a direct impact on the operations of the company. On the other hand the
legal environment in Australia also supports businesses but at the same time the change in the
legal policies such as change in employment laws will have impact on the operations of the
business. The consumer laws in Australia have also strengthened and hence it has become
critical for the café owners to look at providing quality to all their customers. This is
necessary for avoiding any kind of legal compliances (Legavision, 2016). Laws have also
become strict over the usage of Internet especially in terms of using it for the purpose of
marketing. All the privacy related laws have to be taken care while doing the marketing.
Environment
After the Paris summit on Climate change countries like Australia has become very much
strict on improper ways of doing business that might have impact on the environment. The
café needs to use recycle strategy as it will not only help the business in reducing the wastage
but also helps in reducing the cost of operations (LeCordon Bleu, 2019). There are many
competitors who have already started to utilise green energy or solar panels to meet their

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additional energy needs which this company should also utilise. At last this business will also
have to make new waste management plan to make sure that wastes are disposed properly.

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References
Aig.com, 2018. Australia - Business Environment & Risk Analysis. [Online] Available at:
https://www.aig.com/knowledge-and-insights/k-and-i-article-australia-business-environment.
[Accessed on 06th September 2019]
LeCordon Bleu, 2019. How can café managers reduce environmental impact?. [Online]
Available at: https://www.cordonbleu.edu/news/how-can-caf%C3%A9-managers-reduce-
environmental-impact/en. [Accessed on 06th September 2019]
Legavision, 2016. How Do Changes to the Unfair Contracts Law Affect My Cafe?. [Online]
Available at: https://legalvision.com.au/how-do-changes-to-unfair-contracts-law-affect-cafe/.
[Accessed on 06th September 2019]
Turner, A. 2018. Why there are almost no Starbucks in Australia. [Online] Available at:
https://www.cnbc.com/2018/07/20/starbucks-australia-coffee-failure.html. [Accessed on 06th
September 2019]