Regulatory, Political & Economic Issues: A Coffee Shop Analysis

This essay provides an analysis of the regulatory, political, and economic environment impacting a coffee shop business. It identifies key pieces of legislation from local, state, and federal levels of government, and explores relevant economic concepts such as SWOT and PEST analysis. The essay highlights the importance of understanding and adapting to these forces to design and implement effective business strategies, emphasizing compliance with food and drink standards, hazard analysis, and privacy laws. The analysis considers factors like market opportunities, potential threats, and the influence of political and economic conditions on the coffee shop's operations and profitability, ultimately underscoring the need for a comprehensive understanding of the external environment for success.

Running head: Assessment 1 Short Essay
ASSESSMENT 1 SHORT ESSAY

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Abstract
The Abstract is based on the Coffee shop, and how it deals with business, the challenges and
barrier one have to face while doing business and running it smoothly. It operates not only on
certain factors it had to deal with many factors like political, economic factor and others. In the
meanwhile, we also discussed certain analysis like SWOT, PEST, and HAACP, which will give
a clear idea about the Coffee Shop

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Table of Contents
Introduction.................................................................................................................................................3
Body............................................................................................................................................................3
Regulations and their Importance with relevant discussion.........................................................................3
Economic Concepts and their Importance...................................................................................................5
Conclusion...................................................................................................................................................7
References...................................................................................................................................................8

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Introduction
To open a coffee shop in Sydney, we have to follow certain rules and regulation by the
Governing Bodies. Based on that we have to identify that organization follow some criteria
adopted by Government like economic issues, political issues, and other regulatory issues.
Before opening the coffee shop, we have to go through certain guidelines like understanding the
role of political, regulatory, and economic environments which can affect the organization in the
future.
Body
Regulations and their Importance with relevant discussion
As per the survey and analysis, a renowned coffee shop in Australia approximated nearly
200,000 dollars. It is oblivious when somebody was investing a huge amount of money in doing
the business of Coffee shop, the owner should know the valuable details of every aspect. The
food and drink standards are one of the major aspects to run a coffee shop or any food-related
business. FSA stands for Food Standard Agency is one of the government organizations in the
Australia that provides responsibility for the safety of food and its standard (Robinson, 2016).
FSA provide hygiene related advice about food standards. ‘Safer Food Better Business' a journal
where it will help us to comply with the law and keep one site for the public. This Journal
provides all the requirement regarding cooking, cleaning, chilling (Roberts, 2016).

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Hazard Analysis Critical Control Point (HACCP) tells us that there is no particular law and order
to run a coffee shop. The employees and workers who are continuing or rather involvement in
Coffee shop must be aware of the taste and quality of food otherwise consumer would move on
to different coffee shop (Loiseau et al.,2016). The more and more customer get acquainted with
the coffee shop the more sales or business development. The responsibility of Law and order
applies to the owner of the coffee shop so for this reason documentation related to political as
well as regulatory power should be safe. The business has to be attached to local governing
bodies and have to face an interview face to face shortly. If the inspection is not up to the mark,
then it will result in the closure of the shop in future (Goue, Gavriel, & Drogui, 2016). All these
problems could be easily avoidable if certain company obeys the Hazard Analysis Critical
Control Point (HACCP). The rules and regulation were not so important in the past as the day by
day the Governments are creating more scrutiny towards the development in business
(Coglianese, 2018). Now we came across more and more coffee shop. Such as Starbucks, Coffee
Republic, Costa and many more, it is creating demand more and more. Since 1995 the coffee
shop started appearing gradually.
The main factor or hindrance in the evolution of coffee shop in the Australia is the
availability of open pub and drinking. Due to this factor, some people used to prefer coffee rather
than hard drinks. At the same time an increase in incomes, more people can afford the cost,
rather than drinking instant coffee. The idea of a coffee shop in bookshop first came from the
USA now it is one of the common trends in many countries (Cette, Lopez & Mairesse, 2017).
The Australia also follows the idea first came in the American mind. Nowadays due to Wi-Fi
Connectivity the coffee shop has become one of the common places for laptop generation user. A
coffee café has full potential to become a moneymaking industry, but completion is huge. To

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maintain the standards, the owners are focusing on internal factors rather than other external
factors. SWOT analysis will help us to identify a nook that has been targeted .The Privacy law or
law by law act of 1988 of Australia states that handling the information about the individual.
Personal information is an opinion about identified individual or reasonably identifiable as an
individual.
Economic Concepts and their Importance
A SWOT analysis is one of the theories that one must follow to engrossed in business. A
SWOT had been spat into two parts that are Internal as well as External factors. Under External
Factors, opportunities and threat have been discussed (Borzaga, Carini, Carpit & Lori, 2015).
When these two categories came together, which gives us a holistic vision of business model
status? The important aspect of the analysis is to give time reflecting the strength of the coffee
shop. It should be detail study as owners pulling altogether a list of USP, which stands for
Unique Selling points. By this owner could be carved out a profit in the coffee trade. One of the
most important aspects of any business is a place, location of the shop is essential from one's
point of view whether an owner or purchaser. The purchaser will focus on being served at his or
her place. Also, the owner should think about his /her competitor. Other things to be kept in mind
are that atmosphere and how the shop is decorated. On the contrary to that soothing environment
is one of the factors that attract the customer. The owner should think about some advanced
technology like high-speed Wi-Fi as a USP one needs to be kept in mind that the locality around
school, college, office premises. It could be that investing in employers and maintainers of place
will affect the money even earned. If someone wants to sale a rare variety, it would be a bit
difficult to up to the mark at the very beginning. Evaluating market opportunities, one came

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across or had to face. It needs to be recognized the chosen area of a business geared towards
improvement if required necessity. Identification of possible threats needs to have good thinking
capacity which is one of the concerned areas of a coffee shop in the Australia. In fluctuation of
finance and change in price, rate is a major concern, where economic plays a very important role.
In some of the few cases, where due to some mishaps due to any factor even SWOTS analysis
can be act as a nuisance.
On the other hand, if any company follows the SWOT analysis like most of the company
follows then that company will not be lagging their business ventures (Baker, Bloom & Davis,
2016). Another point of discussion, which cannot be overlooked, is the Political factor, which
also plays a very important role. Some other factors are Political, Economic, Social, and
Technological, collectively called (PEST Analysis). From the PEST, analysis we can say that
political issue related to business is one of the determinant factors. Several policies of business
can cause hindrance or problems to the business organization. In many ways, political factor
affects the business in many ways. It also creates a disturbance of policy of Government from
local to federal (Aznar-Moreno, Venegas-Calerón, Martínez-Force, Garcés & Salas, 2016). The
company should ready to overcome with the international and local result of politics. Also,
change in government policy can create up political bias. Example of Political element is
increased or decrease in Tax. Its sole concern of Government that which company has to play
low tax, and some of the companies have to follow high tax. The policy of Tax emphasized by
the Government of the Australia has a direct effect on the government. One should be kept
updated of political factors to get a good effect and smooth running of business (Aven, 2016).

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Fig 1: the Trade deficit
(Source: Aznar et al., 2016)
Conclusion
One must obey the above rules to run the business without any obstacles. As discussed earlier the
principle of (HAACP) and SWOT analysis PEST analysis, Privacy law Analysis. Those are the
techniques, rules, or theories generally followed by industry to run their business properly. It will
create a huge generation of revenue, and ultimately the major concern for the company. During
the lows, the SWOT analysis would provide us with a proper dimension of how to overcome the
failure in business. If any owner follows all those principles then it will create a good impact on
his business frontier.

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References
Aven, T. (2016). Risk assessment and risk management: Review of recent advances on their
foundation. European Journal of Operational Research, 253(1), 1-13.
Aznar-Moreno, J. A., Venegas-Calerón, M., Martínez-Force, E., Garcés, R., & Salas, J. J. (2016).
Acyl carrier proteins from sunflower (Helianthus annuus L.) seeds and their influence on
FatA and FatB acyl-ACP thioesterase activities. Planta, 244(2), 479-490.
Baker, S. R., Bloom, N., & Davis, S. J. (2016). Measuring economic policy uncertainty. The
Quarterly Journal of Economics, 131(4), 1593-1636.
Borzaga, C., Carini, C., Carpita, M., & Lori, M. (2015). The Relevance and Economic
Sustainability of the Social Economy in Italy Abstract: In many countries, the economic
crisis has contributed to the increase of already-existing economic and social
inequalities. These circumstances have contributed to the questioning of knowledge and
conventional values, accelerating the need to rethink the roles of the different actors
within the production system and to combine new forms of organization and interaction
among the public sector, civil society organizations ... (No. 1581). Euricse (European
Research Institute on Cooperative and Social Enterprises).
Cette, G., Lopez, J., & Mairesse, J. (2017). Upstream product market regulations, ICT, R&D and
productivity. Review of Income and Wealth, 63, S68-S89.
Coglianese, C. (2018). Retrospective Analysis: Finding Regulations That Work (and Those That
Do Not) (No. 2072-2018-3400).

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Goue, A. F., Gavriel, A. A., & Drogui, P. (2016). Optimizing The Effectiveness Of HACCP In
Agri-Food SMEs. European Scientific Journal, ESJ, 12(24), 18.
Loiseau, E., Saikku, L., Antikainen, R., Droste, N., Hansjürgens, B., Pitkänen, K., ... &
Thomsen, M. (2016). Green economy and related concepts: An overview. Journal of
cleaner production, 139, 361-371.
Robinson, S. (2016). Concepts of Equilibrium and their Role in Economic Simulation
Models (No. 9546). EcoMod.
Roberts, P. B. (2016). Food irradiation: Standards, regulations and world-wide trade. Radiation
Physics and Chemistry, 129, 30-34.