Strategic Management Report: CAFEPOD Coffee Co. and France

This report provides a comprehensive strategic management analysis for CAFEPOD Coffee Co., focusing on its potential entry into the French market. It begins with an introduction to strategic management and its importance in achieving competitive advantage. The main body of the report includes a detailed PESTEL analysis of the French market, examining political, economic, social, technological, environmental, and legal factors. A SWOT analysis is then conducted to identify CAFEPOD's internal strengths and weaknesses and to assess external opportunities and threats. The report also applies Ansoff's matrix to determine suitable market entry strategies, recommending market development as the primary approach. The analysis concludes with specific recommendations for CAFEPOD to successfully enter and thrive in the French market, considering the challenges and opportunities identified throughout the report. The report emphasizes the importance of aligning strategic planning with the company's goals and objectives.

Strategic Management

INTRODUCTION...........................................................................................................................................3
MAIN BODY..................................................................................................................................................3
CONCLUSION...............................................................................................................................................8
REFERENCES................................................................................................................................................9

INTRODUCTION
Strategic management is the process of formulating and implementing efficient and
effective strategies in business with an aim of attaining success and competitive advantage. This
is basically the process of setting up of long terms goals and devising strategies so as to attain
these objectives (Ansoff and et.al., 2018). There are various steps in the process of strategic
management and one of the most important components in this whole procedure is to evaluate
internal and external environment. This report, the focus is upon CAFEPOD Coffee Co. It is an
independent craft coffee business situated in United Kingdom. It was established in 2011. It is
famous for delivering quality coffee and making customer enjoy its taste sitting in comfort of
home. This report will throe light on carrying out process of strategic planning for the specified
organization as it is planning to enter in a new market of France. While doing this process, there
are various analyses that needs to be carried out, such as, PESTEL analysis for inspecting into
external environment of new market, SWOT analysis so as to identify strengths and weaknesses
and in last there will be an analysis so as to determine suitable strategy for entering in new
market. This report will end with recommendations for the company so as to formulate an
efficient and effective plan to enter into new market.
MAIN BODY
In this report, company is planning to enter into new market of France and for this
purpose; it is focusing on strategic management planning. This report is divided into three parts,
first part will be focusing upon scanning of external environmental factors of new market, i.e.,
France, in second part there is discussion about SWOT analysis of the company so as to
determine strengths and weaknesses of company. This is done with an aim of aligning these
factors with the process of achieving desired goals and objectives. Last part throws light on
discussion of suitable strategies for entering into new market.
PESTEL analysis for company:
It is a framework of inspection in external factors of the environment that affects the
operations of the business (Engert, Rauter and Baumgartner, 2016). This will help in the process
of decision making of the company and also devising strategies so that desired goals and

objectives can be achieved. In context of chosen organization, it is planning to enter into food
and beverage industry of France; therefore, it is necessary to develop an understanding of
external factors operating in this place. This will help business to devise strong policies and
strategies those will be useful in exploiting strengths and facing weaknesses offered in this new
market. France is also known as French Republic and is a very powerful player on the global
political platform.
 Political environment: This country plays very important role in international affairs. It
is a founding member of the United Nations and also serves as one of the permanent
member of the UN Security Council. It is also an important part of the European Union
as one of the leading member states. Good relationship between France and United
Kingdom also poses a great opportunity for the business and it will help the business to
settle in new market easily (Frynas and Mellahi, 2015). However, on the other part of
page, country is facing a number of law and order challenges that can create a hurdle in
success of this new venture. Furthermore, foreign policies of the country are under
widespread criticisms as they are very difficult to follow. In context of chosen
organization, this threat of tough foreign policies can be a big obstacle.
 Economic environment: According to statistics and different surveys, France is one of
the top ten economies around the globe. Biggest advantage is that it contributes
immensely to the GDP of the Euro area. Services offered by different industries of France
are the main players in the French economy. They provide a run up for the economy.
These strong conditions are directly the advantage for any new business. French economy
is very strong in terms of relations with various global organizations like, NATO. WTO,
European Union, etc. Mentioning about threats, company has high inflation rates and also
they have very high corporate tax rates. These two situations are majorly affecting the
decisions of business.
 Social Environment: France is considered as one of the most modern countries in the
world. It does not have a very high population but it is very famous for its cuisine,
fashion, perfume, cars, culture and language. These all factors directly contribute to
supporting factors in the business idea of chosen company. It is also a very famous tourist
destination, thus, it will give a boost in increasing revenues. There are also certain social

challenges in France, such as high employment rates. This factor results in low
disposable income of population. Industrial strikes, demonstrations, and labor unrest are
common in France. Likewise, anti-immigration sentiment is rife with some spheres of the
French society (Ginter, Duncan and Swayne, 2018).
 Technological environment: France is recognized as a technologically advanced
country around the globe. This is a great opportunity for the new venture. It also has its
part of remarkable journey in the area of science and IT. The most noticeable point is that
the country has very stunning rate of population having good access to internet and
technology. There are certain limitations also. Country has to compete with London in
order to draw attention of start ups, venture capitalists and also some big fate names of
investors.
 Environmental elements: France is considered as a famous tourist destination for many
visitors around the globe. According to statistics, there are number of tourists visiting this
country. There are various sites in France that attract number of visitors as they are so
stunning and sound. (Hitt and Duane Ireland, 2017). Due to increased number of visiting
in the country, it poses a good opportunity for company as it will have a wider market to
serve. Increased tourist also poses a serious threat on environment and surroundings. It
results in issues like soil erosion, increased industrialization, over exploitation of natural
resources, etc. These all factors leads to difficulty in obtaining raw material and other
inputs as well. Increased exploitation of environment will also force governmental
authorities to formulate laws and policies so as to protect the environment. This will lead
to difficulty in following all laws.
 Legal environment: Legal environment refers to laws and policies that govern the
business operations. The most prominent law that will govern the new venture is labor
law. The company will have to follow all the related provisions so as to prevent any
intervention from regulating authorities.
SWOT analysis of company:
This is the tool of investigating in internal strengths and capabilities of company, those
will help the company to settle in new targeted market (Lasserre, 2017).

 Strengths: It is one of the most famous companies in United Kingdom and having
various products in its portfolio. Biggest advantage of this company is that it owns
huge market capitalization in market. Company has correctly aligned its vision and
mission with that of its progressive measures. For example, company has an
intention of maximizing its market share and to raise in rank of all coffee makers
companies in UK. Moreover. The company is aiming at coupling their existing
service with the process of providing premium quality coffee and other products to
its customers. Besides this, company is using a distinct technology of LML which
focuses on improving the quality of goods and services offered by company and also
invent the idea of producing unique coffee capsules. These capsules can be bought
by customers and they can enjoy same taste at comfort of their homes also.
 Weaknesses: Company does not share a very good relationship with its suppliers. In
result, company faces serious issues of irregularities in supply of raw materials and
also as a result, the company will have to face problems in inventory and research &
development projects. The company is also confronting problems in hierarchy of
management and as a result effects on process of decision making. The management
is not having a participative nature of policies; this creates a problem of lack of
participation from side of employees. Furthermore, the company is also confronted
with the issue of lack of use of technology. This weakness results in failure of
company to produce more unique products and services. Process of diversification is
also halted due to this weakness in company. (Morden, 2016).
 Opportunities: The biggest opportunity for company comes in face of huge demand
in market place. This is due to dynamic and growing market of UK. This opportunity
can be exploited by company to form a huge base of loyal customers. Company can
also retain their business orientation in market by formulating effective innovation
policies throughput the process of expanding their business operations (Rothaermel,
2016). To overcome the biggest advantage of weak relationship with suppliers, the
company can attempt to improve this situation so that it can ensure regular supplier
of raw materials. This will help business to expand their business.

 Threats: One of the biggest threat is in the face of cut throat competition in market of
UK. The high profitability and its other attractive benefits gains attention of many
new start ups to enter into this market and it means they will have more intense
competition. Moreover, the diverse customer base creates a vulnerable condition for
Cafepod Coffee Co. to continue its business orientation. The company can focus on
gaining competitive advantage by exploiting the opportunity of diversification. This
can be made successful by keeping its focus on different innovative ideas and
policies. Besides this, the robust government interference and presence of trade
union curtail the freedom of doing business in UK.
Ansoff’s matrix for company:
It is basically tool that is used for strategic planning in an organization. this will help
executives, senior managers and marketers to formulate a strategy that will help a business to
foresee future growth and expansion (Schilling and Shankar, 2019). In given report, an attempt is
made to devise suitable strategies which the company can apply and expand their business in
France. Following is an analysis of different alternatives available with company in order to
achieve above mentioned objective:
 Market penetration: This strategy aims at formulating plans so as to develop more
revenues in existing market. In relation with chosen company, management will
attempt to form a loyal customer base in UK itself. This will help in increasing the
profit margin and also creating a good brand image. These advantages will help
company to expand their business in new market.
 Product development: This strategy focuses on introducing new products to an
existing market. This is basically the strategy of serving the needs of customers more
efficiently and effectively. In this process, the organization must attempt to take steps
so as to develop a range of coffee products after making successful market
penetration (Trigeorgis and Reuer, 2017).
 Market development: There are several ways of penetrating into new markets, such as
merger & acquisition, franchising, direct investments, etc. this will be helpful in

improving existing revenues and also creating a brand image of global organization.
In the present report, the company is focusing upon this segment only.
 Diversification: This is a strategy that focuses on entering into a new market with
completely a new product. This is not the suitable strategy for present objective of
company (Zhao and et.al., 2017).
Recommendations: According to above analyses, it is recommended to the company that
it can enter into new market of France, as it has immense opportunities and also the possible
threats can be managed with the help of resources and capabilities of business (Wheelen and
et.al., 2017). In this way, company can successfully enter and conquer the new market.
Furthermore, the company should take care of all the weaknesses and also attempts to convert
them in strengths of company.
CONCLUSION
In this report, it can be concluded that for expanding in a new market, scanning of both
internal and external environment in necessary. This will ensure consideration of all essential
elements and also formulation of effective and efficient strategies in business. In addition to this,
it is important to consider various alternatives of strategies those can be adopted to enter into
new market. Every above analyzed information should be aligned together so as to achieve
desired goals and objectives.

REFERENCES
Books and Journals
Ansoff, H.I. and et.al., 2018. Implanting strategic management. Springer.
Engert, S., Rauter, R. and Baumgartner, R.J., 2016. Exploring the integration of corporate
sustainability into strategic management: a literature review. Journal of cleaner
production, 112, pp.2833-2850.
Frynas, J.G. and Mellahi, K., 2015. Global strategic management. Oxford University Press,
USA.
Ginter, P.M., Duncan, W.J. and Swayne, L.E., 2018. The strategic management of health care
organizations. John Wiley & Sons.
Hitt, M. and Duane Ireland, R., 2017. The intersection of entrepreneurship and strategic
management research. The Blackwell handbook of entrepreneurship. pp.45-63.
Lasserre, P., 2017. Global strategic management. Macmillan International Higher Education.
Morden, T., 2016. Principles of strategic management. Routledge.
Rothaermel, F.T., 2016. Strategic management: concepts (Vol. 2). McGraw-Hill Education.
Schilling, M.A. and Shankar, R., 2019. Strategic management of technological innovation.
McGraw-Hill Education.
Trigeorgis, L. and Reuer, J.J., 2017. Real options theory in strategic management. Strategic
Management Journal, 38(1), pp.42-63.
Wheelen, T.L. and et.al., 2017. Strategic management and business policy (p. 55). Boston, MA:
pearson.
Zhao, E.Y. and et.al., 2017. Optimal distinctiveness: Broadening the interface between
institutional theory and strategic management. Strategic Management Journal. 38(1).
pp.93-113.