The Impact of Digital Technology on Costa Coffee: A Research Project

This research project investigates the impact of digital technology on Costa Coffee, a British multinational coffee house company. The report examines the influence of digital tools and e-commerce on Costa's operations and performance, with a focus on profitability and customer satisfaction. The study includes an introduction outlining the research's rationale, significance, and objectives, followed by a literature review that explores the relationship between digital technology and Costa's profit, the effects of e-commerce, and the dependence of profit on online shopping. The methodology section details the research approach, philosophy, data collection methods (primary and secondary), data sampling, and ethical considerations. The project employs a mixed research approach, inductive reasoning, and interpretivism philosophy to analyze data and generate insights into how digital technology affects the coffee chain. Overall, the report aims to provide a comprehensive analysis of digital technology's role in Costa Coffee's business strategies and outcomes.

Research Project

Table of Contents
TITLE: ............................................................................................................................................1
Chapter One: Introduction ..............................................................................................................1
Chapter Two: Literature Review ....................................................................................................3
Chapter Three: Research Methodology ..........................................................................................5
Chapter Four: Data Analysis and Presentation ...............................................................................7
Chapter Five: Discussion ..............................................................................................................19
Chapter Six: Conclusion, Recommendations and Implications for Further Research...................22
REFERENCES..............................................................................................................................24
Appendix .......................................................................................................................................26

TITLE:
The impact of Digital Technology on Costa.
Chapter One: Introduction
Overview of the Research
Digital Technologies are considered as the most essential aspect for the growth and
success of an organisation, thus technologies are effective in implementing changes in
organisational operations and functions. The digitalization is also refers as one of the key drivers
in the modern century and has a conspicuous impact over an organisation. In the modern trend,
digitalisation has cover a wide area, thus the living of people are also based on digital tools and
technologies. In the organisational context digital tools and technologies are plays vital role in
improvising the operations and production of firm (Berends and et. al., 2014). In this present
investigation work Costa UK is the chosen organisation. It is a British multinational coffee house
company, which operates at global level. The headquarter of the firm is in Dunstable,
Bedfordshire. The company was founded in the year of 1971, with the significant efforts of
Bruno Costa and Sergio Costa in London. The company is widely concern on attaining higher
growth and profitability through suitable use of digital tools and technologies in their
organisational operations. This project contains the study about the impact of digital technologies
over the operations and performance of Costa. In this aim and objectives will be entitled to
providing support to the research in proper manner. In this proper literature review will be
conducted for the intention of overcoming with the cognitive content in effective way in the
manner of justifying the data by determining the views and opinion of assorted communicator
and composers. Along with this suitable methodology will be selected to support the literature
review and data analysis will also be conducted to analysing appropriate findings of the project.
Rational of the Research
The selected field of survey is based on the analysis of the influence of digital
technologies on Costa Coffee. This section of the research is effective in providing suitable
direction to the researcher to implement investigation in right manner (Broekx and et. al., 2011).
In this the issue is based on the execution of digital technologies within the operations of firm,
this recognised as a issue because there is rapid change arises in the technologies and it is not
easy for an organisation to adopt rapid advancement in their operations. However this study is
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effective for researcher as well as learner in developing their idea and knowledge base which
could result in enacting scope for their personal as well as professional development. This study
provides a brief discussion on the area of the impact of digital technologies in improvising the
operations of Costs, this study also provides a brief analysing on the importance of using digital
technologies for the purpose of attaining higher growth and success within the commercial
centre.
Significance of the Research
The inquiry into thought process is based on analysing the effect of digital technologies
on Costa Coffee. The topic of the investigation report is essential because digital technology has
a huge influence over each organisational sector. However its is effective and will bring a
precious attempt to the instant investigation work (Denzin and Lincoln, 2011). Also, Costa is an
essential part in the selling or merchandising of coffee sector and implicitly, in the economy of
United Kingdom. Further more, this is a management research which is effective for people who
are interested in the similar area or the people who re belongs from the area of business
management studies.
Aim Statement:
A qualitative and quantitative analysis of the impact of the digital technology on Costa in
United Kingdom.
Hypotheses:
The testable hypotheses planned are:
H0: Costa’s profit is positively related to the online shopping.
H1: Costa’s profit is positively related to digital technology.
H2: Costa’s profit is positively related to e-commerce.
Research project objectives
The research project is focused on digital technology and its effects, both positive and
negative, on one of the largest multinational coffeehouse in United Kingdom, Costa.
Research Questions:
 What is the relationship between digital technology and Costa’s profit?
 How e-commerce affects Costa in general?
 To what extent the profit is dependent on online shopping in the case of Costa?
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Chapter Two: Literature Review
The relationship between digital technology and Costa’s profit.
According to TCRN Staff, 2019, everyone knows the challenges of running and grading a
businesses. As growth and success are the most important element of every business. Digital
technology refers to the use of all types of electronic equipments and applications that generates,
stores and processes data in terms of positive and non negative data. It has helped in entirely
modifying the business environment. Costa is the nations favourite and fastest growing coffee
shop. So, adoption of digital technology was must for them in order to enhance the productivity
and efficiency to stand out in the competitive market (Fleming and Koppelman, 2016). Use of
digital technology helped costa in building the goodwill through which they can capture high
market share. Digital technology at Costa not only automated different business process but also
helped in exposing new ways of doing business and it saved time as each task would be done
efficiently which reduces human efforts. By adopting digital technology Costa was able to
enhance its customer base and increase its reach in every area so that more and more customers
are aware about the products and services provided by them and which will help in generating
huge amount of profits. For customers sake various Mobile responsive websites, chatbox, social
media platforms and other online services helped them in resolving issues on time, which build a
level of customer satisfaction and reflected in generation of profit.
E-commerce affects costa in general.
According to Carlos J. Costa, 2016, E-commerce is the act of buying and selling and
delivery of goods and services by an electronic means. It promises benefit for the business by
way of reaching new markets. In today's world, it is relatively cheap to run a business, to
successfully run an online campaign, enough budget is needed to sustain for a period of time.
Electronic commerce is progressively and irreversibly changing the face of many business, it will
impact costa in expanding its business, as most of the times customers prefer to visit the store
and have coffee, which will not be effective if e-commerce is there (Geraldi and Lechter, 2012).
E-commerce is affecting Costa as it is not providing services like to order on phone and pay with
the application, which makes it difficult for customers to visit the store and have coffee so
customer think it as time-consuming process. Use of e-commerce at Costa may lead to
distraction of employees which will effect the productivity of workers and will kill the creativity
of employees. It is difficult for Costa to retain the market share, as more flexible competitors are
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entering the market and making fierce competition. To sustain in the competitive market Costa
needs to create such offerings which will help them in gaining the competitive advantage. It can
also affect the relationship between the employees and managers, as there is no one-on-one
communication between them (Glaub and et. al., 2014). With an incredible global reach offered
by e-commerce, range of risk arises which was not even considered. Virtual risk, online
payment, etc. carries a dangerous risk which can put Costa out of business.
The extent to which profit is dependent on online shopping in case of Costa.
According to Heli Hallikainen, 2017, Over the past years Costa coffee's growth has been
moderate, whereas it is currently the leading coffee chain. Costa is one of the leading coffee
chain which does not offer any online ordering service but it has an application which will help
the customers to find out the local stores and loyalty points. Costa will attract more customers
which will help in generating more profit. Profit in case of Costa is not much dependent on
online shopping because costa is not providing such beneficiaries that will attract customers.
They are providing some offers for customers like discounts, vouchers, points, buy one get
online, etc. which will influence only those customers who want to have coffee, not of those who
wants to have while sitting at home. By creating some unique offers for those who wants to have
while sitting at home they can influence them to buy coffee which will result in attainment of
huge amount of profits (Ghobakhloo and et. al., 2012). Business can be profitable if right things
are done rather than chasing numbers, by keeping this saying in mind Costa made corrections by
shutting down shops and renovating them in good locations which are 100% profitable. By
implementation of digital technology at Costa, customers can pre-book their services which will
lead to build satisfaction amongst customers as there is no wastage of time, customers can order
it as and when required. If Costa is able to build satisfaction amongst customers, it will build
goodwill of the brand and will help Costa in generating huge amount of profits.
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Chapter Three: Research Methodology
Type of investigation
The primary duty of a researcher is to assess the kind of research because it helps producing
direction. Investigation can be done in Qualitative, Quantitative or either mixed manner.
Qualitative research is based on spoken or written data (Hirshkowitz and et. al., 2015). It helps in
gaining an in-depth understanding of human attitudes, experiences, behaviours ,etc. Quantitative
Research is based on proving the theories. Data can be collected through surveys. Mixed
Research is the combination of qualitative and quantitative research. In the present study, Mixed
research has been used, as it will help in assessing the accumulated information and perceptions
of human behaviour through which hypothesis can be generated.
Research Approach
A Research Approach is a detailed method of collecting, interpreting and analysing data. It can
be either Inductive or Deductive approach. Inductive approach is used for the emergence of new
theories from the data and Deductive research is used for testing the validity of theories. In the
present study, Inductive approach has been used as the entire research work depends on
subjective means.
Research Philosophy
A Research Philosophy is a belief about the ways in which data can be collected,
analysed and used. It is categorised into two major types i.e., Interpretivism and Positivism
Research Philosophy. Under this research study, Interpretivism philosophy has been used by the
researcher, as it can employ multiple methods in order to reflect different aspects of issues, thus
it will be effective in providing qualitative report.
Data Collection Methods
Data collection is the most essential aspect of research methodology which helps in
gathering and measuring sources in an appropriate manner. It can be done using primary and
secondary sources (Hwang and Lim, 2012). In the present research study, data is collected from
both the sources according to their reasonableness, as primary sources were effective for
accumulation of real data and secondary sources were effective for literature review part.
Data Sampling
Data sampling is a statistical technique which is used to select and analyse data points to
identify patterns and data. It constitutes two types: Probabilistic and Non-Probabilistic Sampling.
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In Probabilistic sampling, every element gets an equal chance to be selected whereas in Non-
Probabilistic sampling , every element does not gets an equal opportunity to be selected. In the
present study,Probabilistic sampling technique has been used by the researcher, since all the
elements gets an equal opportunity to be selected.
Ethical Consideration
Ethical considerations are the norms and standards which are faced at the time of
research. In the present study, a researcher can manage the time, in order to complete the work
effectively (Lakatos, 2014). Under this study researcher can manage the cost and information of
respondents which will help in improving the efficiency of workers.
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Chapter Four: Data Analysis and Presentation
Questionnaires On The Impact of digital technology on Costa
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