Analyzing Costa Coffee's Business Environment and Employee Performance

This report provides a comprehensive analysis of Costa Coffee's business environment, focusing on pre-placement evaluation. It begins with an introduction to work-based learning and its importance in a competitive workplace. The report then delves into Task 1, which examines Costa Coffee's business environment using PESTLE, SWOT, and Porter's Five Forces analyses, identifying political, economic, social, technological, legal, and environmental factors, along with the company's strengths, weaknesses, opportunities, and threats. Task 2 explores how employee empowerment, training, and development impact worker performance, emphasizing the role of management in fostering employee engagement and motivation. The report concludes by highlighting the importance of continuous learning and skill development in the workplace. This report is a valuable resource for students seeking to understand business analysis and employee development strategies.

Pre-placement
evaluation report

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1. Examining the business environment of Costa coffee ..........................................................3
2. Analysing the effect of employee empowerment, training and development on workers
performance ................................................................................................................................7
TASK 2............................................................................................................................................8
1. Determining the way personal development can bring change in an individual ..................8
2.Identification of new skills, knowledge and competencies require from workplace ..............9
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Work based learning can be referred to as learning while working. It can also be defined
as the proactive approach of bridging gap between skills. Working based learning provides
individual chance to gain practical experience. In context of highly competitive workplace
environment, it is very much essential for an individual to update their knowledge as well as
develop specialised skills, as it will assist them in differentiating themselves from other people at
workplace. Work based training enables employees to develop the core competencies which can
be helpful in context of dealing with various problems which has taken place due to changes in
external business environment.
The report will have focus on analysing the business environment of an enterprise that is
Costa coffee. It is basically a British multinational organisation which offers coffee to its
customers. Study emphasizes on effect of employee empowerment and training on workers'
performance at workplace. It will highlight the new skills, knowledge and competencies require
from workplace.
TASK 1
1. Examining the business environment of Costa coffee
Pre-Placement evaluation can be defined as the process of examining the workplace in
order to identify the skills, experience, knowledge and core competencies required for
performing different roles as well as responsibilities within an enterprise. It is the procedure
which also assist an individual in exploring as well as capturing workplace opportunities.
Costa Coffee is basically British multinational coffee house. An organisation offer
roasted coffee to caterers. In addition to this, other products offered by organisation include tea,
sandwiches, iced drinks and snacks. Pestle analysis is the technique which can be utilised by an
individual for analysing the environment within which an enterprise is operating. It is the
technique which can assist an individual in identifying the external factors effecting the business
performance of Costa Coffee. The business environment of costa coffee include:
Political factors: It is the variable which includes changes in the political conditions of
the nation which might restrict costa coffee from delivering the products to customers. This
external variable also includes changes in the regulation related to the retail sectors, such
amendments in the code of conduct has significant effect on the business plans, policies and

strategies of costa coffee (Rosenberg, Lotz-Sisitka and Ramsarup, 2018). Costa coffee company
need to comply with all regulation formed by political parties, as it will help them in maintaining
their business sustainability for long time in the international market.
Economic factors: Such types of external variables includes changes in the economic
conditions of the nation, inflation, increase or decrease in income of an individual, rise in tax rate
etc. Changes in all these external variables have significant influence on the financial
performance of Costa coffee. In addition to this, changes in the economic condition of nations as
well as market has great influence on the investment decision of firm and also on the buying
power of company. Decline in the consumer income lead to the decrease in the sales of an
organisation.
Social factors: It is the external variables which involves changes in the trends, taste and
preference of customers etc. Changes in social factors have great effect on the operational
decision taken by management in Costa coffee. Changes in social factors also have significant
influence on the demand for products or services offered by enterprise. It is required by Costa
coffee to conduct market research at regular interval of time, as this strategy will assist them in
analysing the demand of costumers. Due to continuous changes in fashion trends, costa coffees
facing the issues in maintaining the balance between demand as well as supply of products which
has further lead to the high level of dissatisfaction among its clients.
Technological factors: In context of Cost Coffee, an organisation has employed advance
technology at workplace which has helped an enterprise in improving the communication
process. It has helped business entity in ensuring the smooth flow of an information within and
outside organisation. In addition to this, use of advance technology for the purpose of
communication has assisted business entity in retaining the control on flow of important business
information. At the same time advancement in technology has given rise to stiff competition
which due to which an enterprise is facing issues in maintaining its concentration on business
activities.
Legal factors: These macro environmental variables includes changes in the norms made
by the government in the nation. In context of costa coffee, it is very much essential for an
enterprise to comply with all industry related norm, as if an enterprise fails to comply with norm,
such instance can have adverse effect on its business sustainability. In addition to this, if a

company fails to follow the law then it might have to bear legal consequences that can have
adverse effect on its image in the market.
Environmental factors: In context of an organization is operating business industry
where there is intense competition in the market. Due to high level of competition in industry, an
enterprise is facing the difficulty in maintaining its concentration on the core business functions.
In addition to this , introduction of the environmental law by government has forced costa coffee
to bring improvement in business operations and to use eco friendly raw material.
Swot analysis is other technique which can be utilised by an individual in order to
analyse the internal environment of company. It helps an individual in analysing the strength,
weakness, opportunity and threats of an organisation. Swot analysis helped an individual in
making the suitable decision related to their placement within specific firm. The swot analysis of
costa coffee :
Strengths:
 The products or services of costa
coffee are of good quality.
 An organisation provides high value
for money.

 Business entity has wide range of
production as well as convenience.
 Costa coffee is operating business at
international level.
 An enterprise has good brand image as
well as high brand recognition in the
market.
Weaknesses:
 Costa coffee has stores in only few
countries.
 An organisation is heavily relies on
only few markets for earning revenue
and profit.
 Business entity charges high prices for
its products or services.
Opportunities:
 Costa coffee has an opportunity to
open more stores at different
locations.
Threats:
 Increase in competition.
 Change in government regulation .

 As business entity has good
reputation, it can continue to expand
business.
 Firm can form strategic alliance with
other firm in an industry.
 Threat of substitute.
 Entry of new companies in an industry.
Porters five force analysis
It is the strategic technique which can be utilised by an individual in order to analysis the
industry in which an organisation is operating. In context of costa coffee, an enterprise is
operating business in highly competitive business environment. Porters five force analysis also
assist an individual in identifying those forces which are giving rise to intense competition in
specific sector (Childs, 2018.). Through analysis of the industry in which costa coffee is
operating using porters five force analysis:
Rivalry among existing firm: As there are many companies in UK food and beverage
industry are struggling to establish good position in industry contributing to the intense
competition. The biggest competitors of costa coffee are Starbucks, Barista coffee, Nestle,
Lavazza etc. Innovation is the strategy which can be adopted by costa coffee, as it will assist an
organisation in gaining the competitive advantage. Threat of rivalry among existing firm is high.
Threat of entry of new firms : There is low of threat of entry of small companies in the
market As there are many companies in food and beverage industry which has been successful in
capturing wide market share and developing the positive impression on mind of customers,
therefore, it will be difficult for small firm to establish their position in industry therefore for
them good and beverage industry is less attractive. The threat of entry of new firm is low, a s
establishing business in retail sector involves high cost. There are strict regulation related to
entry in industry.
Threat of substitute: In context of food and beverage industry in UK , there is high threat
of substitute products in the market. The costa coffee company is required to concentrate on
new product development. In addition to this, business entity needs to develop its focus on
setting the high quality standards, as it is the best strategy for reducing the threat of substitute

products. In addition to this, product innovation strategy will help an enterprise in providing an
appropriate response to the action taken by its competitors for influencing market. It is the
strategy which will help an organisation in gaining competitive advantage (Wall, Giles and
Stanton, 2018. ).
Bargaining power of buyer: The food and beverage industry in UK consist of large
number of enterprise offering similar products or services to customers. Theretofore, buyer can
switch to other firm for buying particular good or services. In context of costa coffee, bargaining
power of buyer is low as business entity is providing goods quality of products as well as
services. In addition to this, an organisation is providing high value proposition to its customers.
Business entity offers goods or services according to the demand of customers (Maguire, Draper
and Cutts, 2018.)
Bargaining power of suppliers : The bargaining power of suppliers is low. In addition to
this, switching cost for costa coffee company is also low (Talbot, 2018). As business entity has
good reputation in the market, there are number of suppliers in an industry those who want to
enter into contract within an enterprise. The costa coffee company can by using the strength that
is good brand name can negotiate with suppliers and force them to reduce the prices of raw
goods.
2. Analysing the effect of employee empowerment, training and development on workers
performance
Management in costa coffee is responsible for managing people as well as business
activities within a firm. In addition to this, role of management in an organisation to motivate
people for masking their contribution in accomplishment of desired business objectives. The
decision taken and activities performed by management has direct as well as significant
influence on behaviour of employees. It also has great effect on employees' performance at
workplace. In context of costa coffee, management has development certain policies as well as
performed different activities in order to positively influence people to increase their
participation in business activities and to improve their performance at workplace (Rowe, Moss,
and Moore, 2018.).
Employee empowerment : The management in costa coffee has implemented employees
empowerment strategy in order to ensure engagement of all workers in business activities.
Employees in an organisation has provided with permission to make their own decision and

select working methods which further has positive effect on the performance of employees.
Empowerment strategy has provided employees with high level of satisfaction as well as
motivation effect of which can be analysed on their performance at workplace (O'Brien,
Hamburg and Southern, 2019.). It is the empowerment strategy which has motivated workers in
costa coffee to produce effective outcome and has inspired them to work more dedicatedly.
Training and development: It is considered to be one of the most crucial function of
management in an enterprise. The training provided by the management in costa coffee has
allowed workers to develop the potential of performing their roles as well as responsibilities in
systematic manner (Abbott, Brook and Knight, 2019). It is the training program which has
provided employees with opportunities to improve skills and increase their knowledge which has
proven to be beneficial workers in order to enhancing their performance at workplace. Training
and development program has assisted employees in increasing their working efficiency as well
as productivity. It has also enabled workers to support firm in accomplishment of desired
business objectives.
TASK 2
1. Determining the way personal development can bring change in an individual
The swot analysis is one of the best strategic technique which is generally utilised by
people for analysing their internal strength, weaknesses, opportunities and threats. It is the
technique which assist an individual in identifying the skills gaps (Attenborough, Knight and
Brook, 2018). Swot analysis help an individual in generating the self-awareness which is very
much important in order to make right decisions related to career or life. I have also conducted in
order to analyse my own strengths, weakness, opportunities and threats.
Strengths:
 I am comfortable working in team.
 Good written communication skills.
 Good personality.
 Diploma course in hotel management.
 Organisation skills.
 Critical thinking skills.
Weaknesses:
 Lack of time management skills.
 Lack of oral communication skills.
 Lack of customer service skills.
 Lack of leadership skills.
 I feel difficult to work under pressure.

 Social skills
 Creative.
 High level of adaptability.
 Friendly nature.
Opportunities:
To get job in well known coffee or other
multinational companies operating business in
food and beverage industry.
Threats:
 Increase in intensity of competition at
workplace.
 Unsatisfactory performance at
workplace due to lack of skills.
The personal development will assist me in bringing positive change in my
behaviour. It will assist me in increasing the confidence about the skills and knowledge which I
posses match the workplace requirement. Personal development will enable me to increase my
own morale as well as motivational level. It will support me in generating the self- awareness
which could be very much beneficial in context of identifying the best way to improve
performance at workplace. Personal development will assist me in becoming a good person in
life. It will also help in enhancing my personality which is very much crucial in order to get good
career opportunity (Nurdiyanto, 2018.). Personal development will also help me in bringing
positive change in my life. It will provide me an ease in accomplishing desired personal as well
as professional goals. Personal development will enable me to develop valuable skills.
2.Identification of new skills, knowledge and competencies require from workplace
In order to work in costa coffee company requires developing following skills as well as
knowledge such as effective communication, customer service, leadership, knowledge of
operating coffee machine, time management skills etc. As all these skills are very much crucial
in order to deliver quality as well as professional services to customers. In addition to this, I
need to be multitasking, as I have to make multiple drinks while also answering the questions
asked by customers. An effective communication skills will assist me providing the good
experience and high level of satisfaction to customers. Communication skills is required for
responding to the queries of customers and handling complaints in proper manner. In addition to

this, Time management skills will support me in delivering timely services to customers. I also
need to develop the potential to work under pressure, it will assist me in calmly completin g my
mu tipple task in systematic manner which is very much crucial in order to foster professional
growth.
In addition to this, I also need to develop the technical skills, as it will assist me in
increasing my working efficiency as well as productivity. While working in costa coffee I can
develop customer service skills which will help in making my significant contribution in
achievement of desired business goals. In addition to this, I should develop problem solving
skills, as it will provide me an ease in resolving the issues faced by clients. In addition to this, I
need to increase my knowledge about food and beverage industry as it could assist me in
increasing my participation in decision making process by organisation.
CONCLUSION
From the above report it has been concluded that workplace learning can be helpful in
improving performance at workplace. The other fact which has been found during the study is
that employment empowerment strategy implemented and training as well as development has
positive effect on the performance of workers in an organisation. It has also been concluded that
customers service and an effective communication skills is very much important in order to fulfil
roles as well as responsibilities in an effective manner.

REFERENCES
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ONLINE:
Work Based Learning e-Journal International. 2019. [ONLINE]. Available through:<Work
Based Learning e-Journal International>.