Global Business and Strategy Report: Ozone Cafe's Strategic Analysis

This report provides a comprehensive analysis of Ozone Cafe's global business and strategy. It begins with an introduction to global business and Ozone Cafe's background, including its establishment in New Zealand and expansion to the UK. The report then delves into internal and external analyses, utilizing SWOT and PESTEL frameworks to evaluate the company's strengths, weaknesses, opportunities, and threats, as well as the political, economic, social, technological, environmental, and legal factors influencing its operations. Furthermore, the report identifies Ozone Cafe's sustainable competitive advantages using the VRIO model, assessing the value, rarity, imitability, and organization of its resources and capabilities. Finally, the report offers strategic recommendations and discusses implementation issues to enhance Ozone Cafe's market position and future growth. The report emphasizes the importance of global presence, technological advancements, product quality, and human resources in achieving a competitive edge.

Global Business and
Strategy

Table of Contents
INTRODUCTION...........................................................................................................................1
Background of organisation........................................................................................................1
Internal and external analysis......................................................................................................1
Identification of Company’s Sustainable Competitive Advantage.............................................4
Strategic Recommendations and discussion on implementation issue.......................................6
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9
.......................................................................................................................................................10

INTRODUCTION
A global business mainly represent the international or multinational organisation that is
present and operates their business activities in several countries. A global strategy is basically a
strategic plan or critical strategy that is adopted by an organisation or firm when it wants and
wishes to expand or compete with other organisations at global level in the international market
(Ahmad and Ramadan, 2018). The main aim behind global strategy formulated by global
business is to increase there market share and have wider customers base to enhance the sales
and profitability of organisation. The organisation selected for this assignment which is based on
global business and strategy is Ozone cafe. In this assignment a brief about the selected
organisation together with its strength and weakness are included. Beside this, an identification
of company's sustainable competitive advantage is also there together with strategic
recommendations.
Background of organisation
The company selected for this assignment is Ozone cafe which was founded in New
Plymouth, New Zealand in 1998 and expanded to London, UK in 2012. It currently operates two
cafe from which one is in London and the other is located at New Zealand and services a
network of wholesale cafe partners in both countries(Ozone Coffee, 2019). The Ozone cafe is
famous for its quality coffee and other drinks and food items which are offered at low prices
thus, has become a major hit with the office workers and its café are remain completely full
even outside prime time (Zaveri and Amin, 2019). This organisation is having a rich menu which
includes a rage variety of drinks and food item which attract a larger number customers and
ensure its success and profitably. As a coffee company Ozone cafe had build friendships with a
huge variety of interesting & talented people who are embarking on new adventures for this
organisation.
Internal and external analysis
An internal analysis basically provides an exploration of organisations internal
competency and other competitive viability in marketplace. For evaluation of internal factors of
Ozone Cafe use of SWOT analysis is made which is provided below:
Strengths Weakness
 The eye catching and beautiful interior  The weakness of Ozone cafe is it some
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with a clean and tidy exterior is the
greatest strength of Ozone cafe.
 The service style and the variety of
coffee and other drinks and food items
offered by this cafe house are better
than its competitors.
 The price of coffee and other provided
food items are also available at lower
prices as compare to other big
restaurant and competitors (Kara and
Fırat, 2018).
 The loyal and committed employees
with embarking and extraordinary skills
and talent in coffee making is the
creating better creativity and attracting
much more customers for Ozone cafe.
time delays is seen in its supply chain
which sometimes hinder the production
process.
 Beside this, its reliance on a outdated
point of sale system or use of
inefficient technology for keeping
records of ordering and stocking are its
weakness.
 Limited market share and lack of
effective expansion strategy.
Opportunity Threats
 Opportunity to expand effectively in
more markets at global level by the way
of entering in partnership, merger or
accusation of other multinational
organisation.
 Opportunity of making use better
technology to offer diversified facility
and services to its customers.
 The biggest threat for Ozone cafe is
coming from the immense and high
level of competition in hospitality
sector especially in safe hose and
restaurants.
External analysis
It mainly associated with evaluation and analysis of various macro factors of an
organisations prevailing in its target business market (Kochhar, 2018). Use of PESTEL analysis
is made
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Political- Theses factors are mainly related and associated with the government policies
and rules set by various political parties which decided the level of interference made by these
political authorise in business operations of an organisation. The political environment of UK is
quite stable which is beneficial and advantageous for Ozone cafe but the recent the issue of
Brexit is creating some complexity and issues for all hospitality sector which are mainly related
with high employee turnover (Jamil and Berwanger, 2019). Thus, Ozone cafe needs to have
some strategic steps to maintain integrity and growth of its organisation.
Economic- These factors are mainly related with growth or other economic rates of a
nation like interest rate, deflation, inflation, unemployment rate, etc. The unemployment rate of
UK is quite low i.e. around 3.9% which has made it difficult fir Ozone cafe to get employees at
lower wage rate, thus, this factor is creating a pressure on Ozone cafe to work on its expansion
strategy to avail better opportunity in other areas of world Like Asian were workers are available
at cheap rate. Further, Brexit has reduced the value of Pound that is limiting the profit margins of
Ozone layer thus, it should formulate some global strategy to enhance its market share and profit
level (How does Brexit affect the pound?, 2019).
Social- Theses factors are based on the nature and demand of society and customers
which mainly reflects the current trends and preference of target market. The current trend of
society of UK is bending towards better and more effective online shopping and product ordering
services which provides better convince and reduce barrier of locations. Thus, this shift in
behaviour and trend of society is very beneficial for Ozone cafe as online facility offers the best
way to any coffee house or restaurant for expansion of its business operations in most effective
way through catering and attracting customers from diversifier locations.
Technological- This factor determine the level of technology prevailing in the target
market which reflects the speed and phase of technology advancement and innovation. The
business environment of UK is characterised as highly innovative where new and more efficient
technology keeps on chaining (Luo and Bu, 2018). This is also a beneficial factor for Ozone cafe
as it provide better opportunity to have efficiency in its operations and also provide an easy way
to provide online ordering facility to its customer but adoption of new technology is quite
expensive in UK. Thus, the Ozone cafe can make strategy and effective plans to expand its
business operation in areas like China where technology and skilled labours are quite economical
as compared to UK.
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Environmental- In these factors the rules and strategy made by government and society
for protection of nature and environment are included. This factor has created a pressure on
Ozone cafe to make use of such packing product and other items that does not harm nature and
atmosphere. In whole world, awareness about environmental issues like global warming and
other climactic changes are increasing thus, before expansion at any new area Ozone cafe should
starts marking use of eco-friendly items and renewable energy to protect nature.
Legal- These factors are associated with legal laws and cat made by government for
protection of its citizen and labours. The laws of UK are quite strict which includes many labour
laws, customer safety acts and employment acts which some time creates legal consequence for
Ozone cafe (Lavery, 2019). In today's global market strict laws are made for protecting
customers and organisation form cyber crime and hacking, thus, Ozone cafe should adopt some
strategy for protection of personal and sensitive information of its customers and employees
from threat of hacking.
Identification of Company’s Sustainable Competitive Advantage
There are certain positive aspects and capabilities of every organisation that provide
relevant amount of sustainable competitive advantage to a company (Avery, 2018). To identify
and evaluate the factors and resources that are providing sustainable competitive advantage to
Ozone cafe company use of VRIO model is made which is provided below:
VRIO model
This a framework that is used by an organisation or company to uncover and protect its
resources and capabilities to have long term competitive advantage in the business market
(Explaining The VRIO Framework, 2019). Following is the VRIO framework of Ozone cafe
evaluating and identifying the Company’s Sustainable Competitive Advantage:
Factors Valuable Rarity Inimitable Organized What is the
result?
Global
presence
Yes - - - Competitive
advantage
Level of
Technology
Yes Yes - - Competitive
on partial basis
Products Yes Yes Yes - Competitive
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advantage
Human
resource
Yes Yes Yes Yes Highly
Competitive
advantage
Valuable:
These are the factors that provide and facilitates easy achievements of business goals and
desired targets. Thus, reflects the actual capability and internal strength of Ozone cafe. Following
are the valuable resources of ozone cafe which are required to exploit an opportunity and
neutralize the competition through adding value for customers. Global presence- Ozone cafe are having many cafe at various locations of UK and also
expanding its business in other countries like having a branch in New Zeeland thus, the
global presence of Ozone cafe is satisfactory (Kerzner, 2018). Level of Technology- Due efforts are made by Ozone cafe to have improvements in its
level of technology like adoption of mangy innovations are made to facilitates fast
ordering and stoking of raw material. Products- The top quality and a rich menu with various types of coffee, other drinks and
food item is a strong capability of Ozone cafe that helps in neutralizing competition. Human resource- The talented and committed employees of Ozone cafe makes it capable
to overcome all the possible threats and also ensure grabbing of opportunity for
sustainable growth of organisations.
Rarity:
It represent the scarce resource or capabilities of an organisation that can be acquired by
only a limited number of competitors thus, is a indicator of competitive parity or equality in
business market (Pamment, 2018). The rare resources of Ozone cafe are provided below: Level of Technology- Use of better and more innovative technology and offering a safe
site and channel for online order of food items is a capability of Ozone cafe which is
providing it considerable amount of competitive parity. Products- The various products and food items provided by Ozone layers are made from
fresh raw material and the coffee and other drinks and cappuccino are offered in a
attractive way with natural and strong taste.
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 Human resource- The recruitment process of Ozone layer is quite efficient thus it employ
only those individuals which are having good knowledge about coffee making and other
relate jobs thus, maintain the efficiency of employees and its human resource.
Inimitable:
These are the resources which are quite expensive thus, it is hard for other organisation
ton copy or make duplicate of these resources. These are mainly those resources which are not
having much close substitutes (Gao, Li and Huang, 2019). The imitable resources of Ozone cafe
which is providing it considerable amount of temporary competitive advantage are as follows: Products- The products of Ozone cafe are rich in quality and are also offered at relatively
lower prices thus, it is difficult for its competitors to have duplicate or copy its quality
product which is providing significant competitive advantage to this organisation. Human resource- It is biggest strength of Ozone cafe as it makes it able to have better
position in business market trough providing best possible dishes and drinks in its menu
to attract large section of customers thus, provide temporary competitive advantage to
Ozone cafe.
Organized:
It represent the most organised management system and culture of an organisation that
provide it a unique and better strength than all its competitors in business market. Human
resource i.e. the workforce and whole manpower of Ozone cafe is its greatest strength that
makes its superior than all other existing competitors in target market. To maintain the
sustainability and viability of its workforce timely training secession and development
programmes are conducted by Ozone cafe to sharpen and maintain the skills and creativity of its
employees (Neamtu and Neamtu, 2018). Beside this, to ensure the long term sustainability of its
talented employees and to retain them in organisation for a longer time, adequate amount of
incentives and perks are also provided to staff. Therefore, the competent and skilled employees
of Ozone cafe is providing them high level of sustainable Competitive Advantage in its business
market.
Strategic Recommendations and discussion on implementation issue
On the basis of analysis of above internal (SWOT analysis) and external factors
(PESTEL analysis)together with sustainable competitive advantage (VRIO model) of Ozone
layer it has been evaluated that it is many future opportunity are prevailing for this organisation
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to have better expansion strategy in future (Kasemsap, 2018). Following are the possible
recommendations that can be made for Ozone cafe to have sustainable growth and effective
future success in future:
 One of the issue faced by Ozone layer is related with its insufficient global presence as its
business operations are still restricted to UK and some parts of New Zeeland. Thus, an
effective strategy should be made by Ozone cafe to expand its business across Border of
UK. Any one of the following strategy can be adopted by Ozone cafe to have better
future direction and growth:
Horizontal integration- It represent a process of acquisition of a business which is
operating at same level of value chain in a similar or different industry.
Vertical integration- This type of integration are associated with expansion of an
organisation at upstream or downstream level of activities which are mainly integrated with a
different stage or level of production or operations (Zeng, 2018).
For the recommended option for having better global presence to expand its business
assertions at a different level is Horizontal integration. This option of acquisition and acquiring
of same level of organisation like HASBEAN is a good option it will enhance its customer base
and also increase its market share which ensures higher level of profit in future. The issues
related with implementation of this growth strategy is huge of financial resource and adequate
amount of monetary funds are required for acquisition or Integration purpose.
 Apart from this, an effective pricing strategy is also recommended for Ozone layer as a
low pricing strategy is hindering and minimizing its profits while a high price can lead to
a shift in customer base towards competitors. Thus, an adequate level of pricing strategy
should be adopted by Ozone layer to have a balance between profit margin and target
customer share (Kopnina and Blewitt, 2018). The implementation issue related with this
strategy is that a deep discussion and effective decision making is required to formulate a
correct pricing strategy which is a time consuming as well as a risk and costly affair as a
wrong decision can have adverse impact on growth and success of organisation.
 Beside this, an more effective use of technology to provide better services to its
customers and ensure a safe online transaction and payment is also recommended for
Ozone cafe as it ensure growth in customer base and also yield better profitability in
future. The implementation issue related with automation and use of online payments and
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ordering facility is related with the increasing threat of hacking and other cyber crimes
which can lead to legal consequence on terms of leak and misuse of sensitivity or
personal information of any customers or clients.
CONCLUSION
On the basis of above assignment it can be concluded that global strategies are formed by
an international organist ion to have efficient policy to compete dan effectively operate at global
market. Use of SWOT analysis is made for evaluation of internal factors while PESTEL analysis
is a tool used for developing an idea about the external environment. Beside this, VRIO model
helps in identifying sustainable competitive advantage of a firm and determining various
resource that lead to better market position.
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REFERENCES
Books and Journals
Ahmad, S. B. and Ramadan, H. I., 2018. The relationship among distinctive capabilities,
business strategy, environment and performance: a proposed model of manufacturing
SMEs in Palestine. Journal for Global Business Advancement. 11(5). pp.610-629.
Zaveri, B. N. and Amin, P. D., 2019. Global Marketing Strategy in Digital Era: Global Online
Presence. In Breaking Down Language and Cultural Barriers Through Contemporary
Global Marketing Strategies (pp. 103-112). IGI Global.
Kara, M. E. and Fırat, S. Ü. O., 2018. Sustainability, risk, and business intelligence in supply
chains. In Global Business Expansion: Concepts, Methodologies, Tools, and
Applications(pp. 1424-1461). IGI Global.
Kochhar, S., 2018. Corporate Diplomacy as an Engagement Strategy of the Nonmarket Business
Environment. The Handbook of Communication Engagement, p.347.
Jamil, G. and Berwanger, S. G., 2019. Choosing a Business Model: Entrepreneurship, Strategy
and Competition. In Handbook of Research on Business Models in Modern Competitive
Scenarios (pp. 1-20). IGI Global.
Luo, Y. and Bu, J., 2018. Contextualizing international strategy by emerging market firms: A
composition-based approach. Journal of World Business. 53(3). pp.337-355.
Lavery, S., 2019. The UK’s Growth Model, Business Strategy and Brexit. In Diverging
Capitalisms (pp. 149-170). Palgrave Macmillan, Cham.
Avery, G. C., 2018. Altruistic strategy: doing better by doing good. Strategy &
Leadership. 46(4). pp.50-51.
Kerzner, H., 2018. Project management best practices: Achieving global excellence. John Wiley
& Sons.
Pamment, J., 2018. Towards a new conditionality? The convergence of international
development, nation brands and soft power in the British National Security
Strategy. Journal of International Relations and Development. 21(2). pp.396-414.
Gao, Q., Li, Z. and Huang, X., 2019. How EMNEs choose location for strategic asset seeking in
internationalization? Based on strategy tripod framework. Chinese Management
Studies.
Neamtu, A. C. and Neamtu, L., 2018. Image and Identity in Business Communication
Strategy. IJAME.
Kasemsap, K., 2019. Professional and business applications of social media platforms. In Social
Entrepreneurship: Concepts, Methodologies, Tools, and Applications (pp. 824-847).
IGI Global.
Zeng, M., 2018. Smart Business: What Alibaba's Success Reveals about the Future of Strategy.
Harvard Business Press.
Kopnina, H. and Blewitt, J., 2018. Sustainable business: Key issues. Routledge.
Online:
How does Brexit affect the pound?. 2019. [Online]. Available Through:
<https://www.bbc.com/news/business-46862790>
Explaining The VRIO Framework. 2019. [Online]. Available Through:
<https://www.clearpointstrategy.com/vrio-framework/>
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Ozone Coffee. 2019. [Online]. Available Through:
<https://www.timeout.com/london/restaurants/ozone-coffee>
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