Analysis of Cafe Pod: Internal, External Factors, and Strategic Tools

This report provides a detailed analysis of Cafe Pod, a UK-based subsidiary of Big Cup Little Cup Ltd. The report begins with an introduction to business concepts and then focuses on the determination of internal and external information essential for planning, control processes, and decision-making within Cafe Pod. It highlights the significance of internal information for strategic planning and management decisions, and the importance of external information in adapting to market changes and threats. The core of the report involves a PESTEL analysis, examining political, economic, social, technological, environmental, and legal factors influencing Cafe Pod's operations. Furthermore, the report utilizes Porter's Five Forces model to assess competitive threats within the industry. The analysis considers the power of suppliers and buyers, the threat of new entrants and substitute products, and existing rivalry, providing insights into Cafe Pod's strategic position and potential challenges. The report concludes by summarizing the key findings and emphasizing the importance of continuous environmental scanning and strategic adaptation for business success.

Business

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK ..............................................................................................................................................3
Determination of internal and external information required by business for planning, control
process and decision making ......................................................................................................3
Use of PESTEL analysis and porters five forces model to analyse key factors to influence
organisation and its ways to support business decision..............................................................4
CONCLUSION ...............................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Business can be described as an enterprise that engage in industrial, professional and commercial
activities. It helps business to earn profit and also for attaining its goals and objectives. It has
different functional areas which create impact over operation for business (Cao and Chen, 2018).
There are different factors present in business environment which create negative impact over
operation of company. This report includes consist analysation of Cafe pod which is a UK based
organisation. It was identified by business in the year 2011 which is a subsidiary company of Big
Cup Little Cup Ltd. This project report includes determination of internal and external
information required by business for planning, decision making and control purposes. It also
consist PESTEL analysis and porters five forces model to analyse key factors that create
influence over organisation and also support to business decisions.
TASK
Determination of internal and external information required by business for planning, control
process and decision making
Internal information can be described as information, recorded in paper format, oral formal
maintaining by an organisation or its employees. These information is important for company in
order to understand present situation and performance of company (Hameed, Nisar and Wu,
2021). It can be used by managers of Cafe Pod for different purpose which are mentioned below:
 Planning: Internal information is required by business in order to plan different activities
for business. It is also important for firm to understand which mode to be taken by them
for purpose of growth and success of organisation.
 Decision making: Internal information is also used by managers of Cafe Pod for purpose
of making important decisions for business. It allow them to make choices among
available alternatives that provide various benefits to business.
 Controlling: Internal information is also used by business managers of Cafe pod for
enduring proper control as it allow managers to understand which area require more
control and which are not.
External information: external information can be also described as information which are
present outside business organisation. It is important for business to consider these information

which making decisions as it allow them to take advantage of a situation. It is important for
different functions of business and explanation of it are mentioned below:
Planning: External information in business is also required in order to plan different activities. It
allow firm to understand new trends or change occur in environment. These changes also impact
planning of company that allow them to take advantage of a situation.
Decision making: External information is also required by business for purpose of making
decisions as it allow them to make decision on basis of it. It is essential for an organisation in
order to overcommit of threat present in market (Le Nguyen, Larimo and Wang, 2019).
Controlling: On basis of eternal information, business can control internal factors of business
that is important in order to face the situation and also to taking advantage of it.
Use of PESTEL analysis and porters five forces model to analyse key factors to influence
organisation and its ways to support business decision
PESTEL Analysis
PESTEL analysis is one of external analysis tool which is used by business to identify factors
that create impact over business. These factors includes environmental regulation, laws and
legislation, government rules and regulation, economic growth, advantage of technology, social
factors and other. Explanation of these factors in context of business are mentioned below:
Political factors: Political factors are one of serious factors that crate impact over
functioning of business. In consist rules and regulation form by government for business that
create impact over their operation. Cafe Pod is a one of business that is facing various problem
due to these factors. Due to Brexit government has made changes in their rules and it also create
impact over functioning of business. Rules are also changed in business due to covid-19
pandemic as government impose different rules and regulation. Due to all these, business needs
to face various problem in their organisation.
Economic factors: Economic factors are those that consist condition of economies that
create impact over profitability of business. Due to pandemic situation, economy of UK is facing
recession that create negative impact over business (Liu and Jayaraman, 2019). As pandemic
results in decrease in purchasing power of people that create negative impact over business as
due to this, sales of cafe pod has also decrease.
Social factors: Social factors are another important factors for business that are
important for business. It consist pattern of behaviour of a person, their buying habits and other

things. Pandemic also create impact over purchasing patters of buyers due to which consumer is
shifting their focus over healthy food that create impact over demand of food of cafe pod.
Technological factors: Technological factor concision upgradation and advancement of
technology. It create opportunity for business of Cafe pod as they can adopt these technology
which allow them to get growth and opportunity to differentiate their business (Nguyen, Larimo
and Wang, 2019). Cafe pod is adopting different technology like order food through app, online
payment mode, reserving table and other things.
Environmental factors: Environmental factors are another important factors that create
impact over business. It consist factors like pollution, environmental regulation, environmental
sustainability and other components. Cafe pod is a business that consist contribution for
development of environment by keeping environment clean. They also joining campaign to save
trees and others for this purpose.
Legal factors: Legal factors consist laws and legislation in business that create threat for
business. There are different laws related to restaurant business and all these considered by
manager of cafe pod while operating in UK.
Porters five forces model:
It is also one of model which is used in business in order to analysing environment of
industry in which they are operating. It was introduced by Michel E. Porter in the year 1980. It is
one of important model that is used by business for purpose of analysing industry structure and
helps firm to identify factors that create threat for them. Some of these threat faced by Cafe pod
is mentioned below:
Power of supplier: Suppliers are also valuable person for business as they are provide
raw material and other things to business. There are various suppliers available of groceries and
fresh vegetable that create opportunity for business of Cafe Pod (Rahman, Hassan and Fattah,
2021). It reduce threat of business as if one supplier deny to provide supplies to business, they
can access supplies from other suppliers. Therefore, there is less threat of this factors for
business.
Power of buyer: Buyers are those people who buy products and service for business and
provide opportunity to firm to earn profit. There are various buyers of Cafe pod in UK to whom
business can sell their products and service. It reduce power of buyers to reduce prices of
products of company. Therefore, there is less threat of this factor for business.

Threat of new entrant: New entrant also create threat for business as it increase number
of competitors in business which reduce profitability of firm. In order to overcome of this factor,
business needs to develop effective strategies. In this business, any firm can enter at any time
which increase threat for business. Therefore, there is high threat of this factor in business.
Threat of substitute products: Substitute products are those products which can be
easily replaceable by a person. There are different substitute products of offering of cafe pod.
But company with their specialised taste differentiating its products from substitute products. So,
therefore, moderate threat of this factors in business (Velasquez, 2019).
Existing rivalry: competition is business is creating threat for them as it reduce level of
profitability in business. It is important for an organisation to overcome of competition as it can
reduce marketing share of business.
On basis of above discussion, it can be analysed that there are different factors that create
impact over business. It is important for business to identify their factors on timely basis and
develop strategies in order to overcome of it. For this, business needs to develop strategies that
provide competitive advantage to business.
CONCLUSION
From above mentioned project report, it can be concluded that there are different factors
in business that create operation in business. Thee factors provide both opportunity and threat for
business. These factors can be present inside and outside of business that does not allow business
to get success and growth. In order to overcome of it, business needs to identify these threat for
timely basis. These factors can be identify by business through using different model like
PESTEL analysis, porters five forces model and other things. On basis of these factors business
can develop competitive strategies for organisation.

REFERENCES
Books and Journals
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innovation strategy-The moderating role of top management’s environmental
awareness. Nankai Business Review International, 10(3), pp.342-361.
Hameed, W.U., Nisar, Q.A. and Wu, H.C., 2021. Relationships between external knowledge,
internal innovation, firms’ open innovation performance, service innovation and
business performance in the Pakistani hotel industry. International Journal of
Hospitality Management, 92, p.102745.
Le Nguyen, H., Larimo, J. and Wang, Y., 2019. Control, innovation and international joint
venture performance: The moderating role of internal and external
environments. International Business Review, 28(6), p.101591.
Liu, Z. and Jayaraman, V., 2019. Exploring the effect of internal and external integration on the
performance of professional service outsourcing. Journal of Global Operations and
Strategic Sourcing.
Nguyen, H.L., Larimo, J. and Wang, Y., 2019. Control, innovation and international joint venture
performance: The moderating role of internal and external environments. International
Business Review, 28(6), pp.1-1.
Rahman, M.S., Hassan, H. and Fattah, F.A.M.A., 2021. Optimisation of restaurants’ hospitality
performance: the roles of innovation, internal and external power understanding
capability. International Journal of Innovation Science.
Velasquez, D.L., 2019. Internal and External Environments. Library Management 101: A
Practical Guide, p.163.