Golden Bites Cafe: Impact of Internal and External Factors on Business

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Added on  2023/06/10

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This report provides a comprehensive analysis of Golden Bites Cafe, a startup cafe, focusing on the internal and external factors that influence its business operations. It begins by identifying the types of internal information (financial research, working culture) and external information (market research, stakeholder information) crucial for planning, decision-making, and control processes. The report then applies the PESTLE analysis to assess the political, economic, social, technological, legal, and environmental factors impacting the cafe. Furthermore, it utilizes Porter's Five Forces model to evaluate the competitive landscape, including threats of new entrants, bargaining power of buyers, and rivalry among existing firms. The analysis emphasizes the importance of market research, understanding stakeholder needs, and adapting to current market trends to achieve a competitive advantage for Golden Bites Cafe. The report concludes by summarizing the key findings and highlighting the significance of considering both internal and external factors for effective business planning and strategic decision-making.
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Assessment 2
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Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................1
Determine what type of internal and external information which is required by the chosen
organisation for planning, decision making and control processes. ...........................................1
Use the pestle and porters five forces analysis which can influence the business organisation 2
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5
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INTRODUCTION
The business organisation is delimited as the entity which is formed for the purpose of
carrying on mercenary enterprise. Such a organisation is predicted on the system of law
governing contract and exchange, property rights and incorporation. It is very important for the
business organisation to start a business by considering the various internal and external factors
which can have a impact over the business operations and other activities. There are various
functions which need to be performed by the business organisation in order to provide the
products and services to customers. This report is based on the start up which is the cafe names
as Golden bites. (Anafo, Tian, and Ahia, 2022). There is the discussion on the various internal
and external information which is required by the organisation and it was also include pestle
analysis, porters five forces model.
MAIN BODY
Find out what type of internal and external information which is required by the chosen
organisation for preparation, decision making and control processes.
It is very important for the business organisation to make use of the various internal and
external information which is required in order to plan the business in en affective and efficient
way. There are various type of internal and external information which is required by the
organisation and it is discussed below:
Internal information
This included that information which is within the organisation and it is important to
consider for the planning, decision making and control processes of the business operations. This
is important for the company in order to conduct the operations in an effective and efficient
manner. There are various type of information which are:
Financial research- it is very important information which is required by the business
organisation in order to start a business. This is the basic requirement for the company in
order to conduct the various activities which can help the business organisation to
manage the resources in order to achieve the goals and objectives. (Shakeel, and et.al.,
2020)
Working culture- it is very important for the organisation to analyse and gather
information related to the expected working culture for the employees in order tp gain the
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competitive advantage. This will help in motivating employees pf the cafe where there
should be information of the trend which need to be followed.
External information
There are various external information which is required by the organisation on order to
plan and make decision in the effective and efficient manner.
Market research- it is very essential or the cafe to consider th information which is
related to the market trends which will help in planning the objectives of the organisation
in an effective way. This is most important that what are the market trends which need to
be adopted by the company in order to take necessary decision. This is most important for
the control processes of the business organisation. In context of the Golden Bites the
market research is crucial in order to develop the products and services according to the
market. (Ghosh, , Baig, and Goyal, 2020)
Stakeholders- it is very important to collect the information related to shareholders
whether the business is profitable and who are the interested shareholders for the
company in order to achieve success and growth for the cafe.
It is identified that internal and external information is required for the Golden Bites so
that the marketers and the entrepreneur can focus on the making the right decision of the
employment, financial and the market analysis in order to attract customers. This is the most
crucial aspect for the start-up which need to be identified in order to gain competitive advantage.
Use the pestle and porters five forces analysis which can influence the business organisation
PESTLE Analysis
This is the implement which is used by the business structure in order to identify the
external factors which can have a influence over the business operational activities. It is very
important for the business enterprise to examine the various factors in order to make the right
decision and plan according to it. These are various factors which are discussed below in context
of the cafe: Political- This is the component which is related to the extent to which government
policies may interfere the business organisation. Such factors include trade polices, tariffs
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etc. it is very important for the Golden Bites to consider this factor as the Brexit can
impact the operational activities because of the separation of the European Union. There
are different policies of the government which need to be followed in order to start a
business. (Iwabuchi, and et.al., 2020) Economical- This is the element which is incidental to the extent to which the
performance of the economy can directly impact the business organisation. Such factors
include taxes, inflation rate, GDP etc. it is observed that after the covid-19 there is the
huge impact over the business organisation because of the rise in the inflation rate. This
need to be considered by the cafe in order to purchase the raw material and various other
equipments for the new business. Social- This is the factor which is related to the current trend in the market and has a
influence over the business organisation and its operational activities. Such factors
include lifestyle, attitude, behaviour etc. it is very important for the organisation to know
of the current trend and the lifestyle of the people in order to product the product
according to the preferences of the customers. This is the most important factor which
need to be considered by the organisation in order to gain the combative advantage. Technological- This is the factor which is related to the innovation and development
which is around the world and can influence the operational activities of the business
organisation. Such factors include automation, research and development, digitalisation
etc. it is very important for the Golden Bites to introduce the new technology it is
services where it can focus on the online delivery of the food products to its customers.
(Jobber,, Lancaster, and Le Meunier-FitzHugh, 2019) . Legal- This is the factor which is related to the legislation which differ from country to
country can can have a influence over the business organization. Such factors include
labour laws, employment laws, safety laws etc. as it is very important for the cafe to keep
in mind the safety laws which is very important for the employees while working in the
kitchen. Environmental- This is the factor which is related to the surrounding and can have a
impact over the enterprise. Such factors include sustainable development, climatic
changes, natural disaster etc. It is very important for the Golden bites to consider the
sustainable development in order save the environment and practical the ethical ways. It
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is very essential for the organisation to take initiative in the CSR activities.
(Szczęśniak,and et.al., 2020)
Porters five forces model
This is the model which is used by the business organisation in order to gain the
combative advantage and to know about the different competitive forces that shape every
industry and helps to determine the industry weakness and strength. This is the most useful
model which helps in identifying the different factors which can impact in the business
operations and how these external forces can influence the organisation. The various forces are
discussed below:
Threats of the new entrants- This is the force which explains that there is the threat of
the new business organisation within the industry. It is identified that as the food and
beverages industry has a huge market share and there is the threat for the cafe Bites cafe
in order to gain the market within the industry. There si the threat of new organisation
because the new organisation can focus on the different and new innovative ideas which
can attract customers. (Helmold, and Samara, 2019)
Bargaining power of buyers- This is the force which is related to the potential of the
byers in order to bargain with the cost of the product or services. The bargaining power
of the customers is low because there are less number of the organisation in which they
can have the good ambience and the quality of food. It is very important for the cafe to
focus on the product and services in order to achieve growth and success.
Rivalry against the existing firms- This is the force which is related to the rivalry
against the existing forms which means that there is the tough competition within the
industry as there there is high competition within the food and beverages industry. This is
the force which can influence and impact the Golden Bites in various other ways.
from the above discussion on the external factors which can impact the business
organisation it is analysed that in order to start a business it is very important for the organisation
to consider these factors so that the company can focus on the planning of the activities in an
effective and efficient way. It is very important for the organisation to consider such factors and
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the internal analysis so that the cafe can focus on the business separations. (Moroz, and Gamble,
2021).
CONCLUSION
From the above report it has been concluded that the business organisation is a separate
entity which is been conduct in order to earn profits. It is very important for the organisation
together the internal and external information which is necessary for the planning, decision
making and control processes. It is very important that the cafe focus on the organisational
culture in order to have smooth functioning. The various model which has been used such as
pestle and porters five forces which will help the cafe to know of the various aspect in which the
company will make an effective and efficient decision. The pestle analysis suggest that the cafe
need t focus on the social and technological factor in order t conduct business in an effective
way.
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REFERENCES
Books and Journals
Anafo, S.A., Tian, Y. and Ahia, B.N.K., 2022. Business organisation performance behaviour
indicators in Ghana and Kenya: A comparative analysis. Journal of Psychology in
Africa, 32(1), pp.38-53.
Ghosh, P.K., Baig, N. and Goyal, R.N., 2020. Unit-3 Forms of Business Organisation-II.
IGNOU.
Helmold, M. and Samara, W., 2019. Progress in performance management: Industry insights
and case studies on principles, application tools, and practice. Springer.
Iwabuchi, and et.al., 2020. Factors regulating the differential uptake of persistent organic
pollutants in cucurbits and non-cucurbits. Journal of Plant Physiology, 245, p.153094.
Jobber, D., Lancaster, G. and Le Meunier-FitzHugh, K., 2019. Selling and sales management.
Pearson UK.
Moroz, P.W. and Gamble, E.N., 2021. Business model innovation as a window into adaptive
tensions: Five paths on the B Corp journey. Journal of Business Research, 125, pp.672-
683.
Shakeel, and et.al., 2020. Anatomy of sustainable business model innovation. Journal of Cleaner
Production, 261, p.121201.
Szczęśniak,and et.al., 2020. Recent advances in the development and applications of biomass-
derived carbons with uniform porosity. Journal of Materials Chemistry A, 8(36),
pp.18464-18491.
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