An Analysis of How Globalisation Drives Costa Coffee's Success

This report investigates how globalisation drives business success for Costa Coffee, a multinational coffee-house organization. The study analyzes the impact of globalisation on Costa Coffee's business, focusing on market expansion, consumer satisfaction, and competitive advantages. It explores the advantages of globalisation, such as new market opportunities, increased revenue, and enhanced brand recognition. The report also examines the existing level of consumer satisfaction and its importance for success in new markets. Furthermore, it discusses research limitations and ethical considerations, along with the research methodology employed, which includes a quantitative approach and a deductive approach. The report references various books and journals to support its findings, providing a comprehensive analysis of Costa Coffee's global strategy and performance.

HOW GLOBALISATION
CAN DRIVE BUSINESS
SUCCESS SUCH COSTA
COFFEE

Table of Contents
INTRODUCTION...........................................................................................................................3
Rationale.....................................................................................................................................3
Literature review.........................................................................................................................3
Research limitations and Ethical consideration..........................................................................6
Research methodology................................................................................................................6
Justification of research method and approach...........................................................................6
Giant Chart..................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
The present research study aims to “Investigate how globalisation can drive business
success of Costa Coffee”. Costa Coffee is a multinational coffee-house organisation that is based
in UK. The study will analyse impact of globalisation on the business and advantages associate
with globalisation. The analysis process will include methodology of research and limitation of
research.
Rationale
Globalisation refereed as the expanding of the products, activities, services of the
company, information and create the job opportunities in the other country and across the
national border and culture of the country. The reason to select this topic is because,
globalisation is emerging trend of the marketplace and it is essential to understand possible
consequences and benefit associated with the term.
Literature review
Theme 1: Impact of globalisation on Costa Coffee Business
Globalisation changes the way of operating as well as developing and implementing
strategies. As this is the most idealistic and opportunistic approach, which gives the more job
opportunities and open the door for the company to increase their profit share I the international
market and to create its brand name in the global international market as well.
Beck, (2018) stated that, this globalization has great impact on the Costa coffee company,
as if the company goes in the global market, as the Costa have to face strong competition level in
that country. Costa coffee shop has to plan their strategies as according to the competition level,
they planed the pricing strategies as low and have to give discount in their services as compared
to the competition like Starbucks, Cafe coffee day, Barista and many more. They planed their
strategies as according to them.
Nikolova, Rodionov and Afanasyeva, ( 2017) argued that, Costa coffee also have to face
the problem with the international strategies. As all the country have their different rules,
regulations, taxations, food tax, import and export rate and many more. If Costa goes global in
other country, then have to make strategies and business policies as according to their country's
law. This may have both positive and negative impact on the Costa company, if there is low
taxation and import and export rate, then it will be beneficial for the Costa, if there is high

interest rate, exchange rate, import and export rate then this will negative impact of the Costa
coffee company. It will very expensive for the company to bring raw materials from the cross
boundary of the country, then have to increase their products and services rate as compare to
their competition on the global market. This will affect the business and demand of their
products.
According to Crane and et. al., (2019) globalization may have the cultural impact on the
Costa coffee company. To operate in the local market of the global country, they have to hire
their local employees from that country, who have the knowledge of current market trend and
culture of the country. But this creates the problem for the company to interact with them and to
have clear understanding of their role by having the cultural differences and language barriers.
This language barrier create problem to smooth operations and affect the whole business plan
and strategies.
Theme 2: Existing level of customer satisfaction through globalisation
Auer, Borio and Filardo, (2017) stated that, Level of consumer satisfaction is based on
the quality of products and services provide by the company as well as on the brand name.
Existing level of consumer satisfaction of the company has a strong base and this will help the
organisation in the expansion planning. Globalisation is a driving element for any organisation
and its growth and development. Apart from this, Costa company has to increase its market
awareness and also bout the customers' awareness in that country, so that they can make
strategies and products as according to their customer's choice and demand in the market. This
will enable the company in enhancing the level of consumer satisfaction. Company, set the target
market and consumers and market segment so that they can fix the particular target consumers. If
costa company do not have the awareness about their customers, they can not satisfy their
customer's need in global market and company can be closed very soon, as it not able to fulfil the
need regarding the price, taste, flavour and innovative products.
According to Beck, (2018) the existing level of consumer satisfaction in the context of
company in UK is strong as per the strong base of consumer in the home country UK. Level of
consumer satisfaction is essential for the company. Consumers of UK have accepting behaviour
for the products and services of the company. The main element of the company is quality of
products and services that enable the consumer to market the company through word of mouth
this ensure that company can effectively run their business in new global market. It has been

analysed by Cramer, (2017) that if Costa Coffee wants to success and growth in the new country
their existing consumer satisfaction level should be strong. Although it will not affect the finance
and sales of the company that much but existing strong consumer satisfaction make a hype for
the company in global market.
Theme 3: Advantage of globalisation on the growth of Costa Coffee business
According to Crane and et. al., (2019) There are various advantages gained by Costa
Coffee. First benefit mentioned is that it offer new market to the company through which can the
industry can expand its products and services. Through globalisation, Costa Coffee able to reach
larger audience in the new global market. It also assists in increase the revenue of the company
and increases sales. Globalisation assists the name of brand to become recognisable and famous
across the world and have a leading position in the world that increase the productivity of the
company. Globalisation enable industry to reach international consumers and have opportunity to
influence them to try the brand, for that purpose existing consumer satisfaction level help the
business to improve the operations and functions.
According to Hirst and Thompson, (2019) the advantage gained by globalisation is that it
assists Costa Coffee to acquire people with new talent as take the business outside of the
boundaries will provide an opportunity to access to new talent pools. It provides the company to
enhance productivity of the company and also international labour can offer companies unique
advantage in terms of advance language skills. And also talent at international level helps the
company to the large extent and enable the company in bringing innovation in the products.
Hopper, Lassou and Soobaroyen, (2017) stated that globalisation also provide an
opportunity of foreign investment and it also enables Costa Coffee to develop new resources
through operating in the global market. It also opens opportunity door as it assist to operate at
large scale of operation. Through expansion in the new global market, company can enhance
their brand value. Globalisation is effective for the rapid growth and development of the
company. The most driving impact of globalisation is it makes the company more technological
advanced and enable at the level that Costa Coffee can gain competitive advantage. As at operate
at international level, can increase the consumer demand that drive the sales and profit. Along
with it, Lasserre, (2017) stated that globalisation enables worldwide access to source of
affordable raw material and this enable the company to be more cost competitive and also enable
to adapt new strategies and technologies that improvise the performance of the company and also

enable them to attract consumers in new international market. Effective globalisation strategies
enable Costa Coffee to gain competitive advantage. Through their marketing strategies and
effective plan company can have competitive edge.
Research limitations and Ethical consideration
In the study researcher face some limitation that limits the scope of study. Time
constraints is the biggest issue and limitation that bound data analysis and collection. It is
essential for the completion of project on time set of priorities managing systematic research
procedure (Nikolova, Rodionov and Afanasyeva, 2017). However, ethic consideration is also a
foremost priority for researcher in investigating that the process of data collection and analysis is
in right way or not. The scholar will ensure the confidentiality of collected information in the
study.
Research methodology
Research method refers to the fundamental element of the research project and it is the
process that refers to gathering data or information in order to reach to the end conclusion. The
present study opt for quantitative method of collecting the data. Quantitative method is are
highly structured on collecting data that are obtained from various sources including primary and
secondary. The approach opt for the research study is deductive approach.
Justification of research method and approach
The selected research method is quantitative method that is beneficial for conducting
study on globalisation and analysing the potential impact. This method is useful to observe and
analyse actual perception within or outside of the organisation. Deductive approach is the best
suitable for quantitative method.

Giant Chart

REFERENCES
Books and journals
Auer, R., Borio, C. E. and Filardo, A. J., 2017. The globalisation of inflation: the growing
importance of global value chains.
Beck, U., 2018. What is globalization?. John Wiley & Sons.
Cramer, J., 2017. Corporate Social Responsibility and Globalisation: an action plan for business.
Routledge.
Crane and et.al., 2019. Business ethics: Managing corporate citizenship and sustainability in the
age of globalization. Oxford University Press.
Hirst, P. and Thompson, G., 2019. The future of globalisation. In The Handbook of
Globalisation, Third Edition. Edward Elgar Publishing.
Hopper, T., Lassou, P. and Soobaroyen, T., 2017. Globalisation, accounting and developing
countries. Critical Perspectives on Accounting. 43. pp.125-148.
Lasserre, P., 2017. Global strategic management. Macmillan International Higher Education.
Nikolova, L. V., Rodionov, D. G. and Afanasyeva, N. V., 2017. Impact of globalization on
innovation project risks estimation. European Research Studies. 20(2). p.396.