Strategic Report: Lovely Coffee's Planning, Decision-Making Needs

This report provides a comprehensive analysis of the internal and external factors influencing 'Lovely Coffee,' a startup coffee business in the UK. It employs the PESTLE framework to evaluate political, economic, social, technological, legal, and environmental factors impacting the business. Porter's Five Forces model assesses competitive rivalry, buyer power, supplier power, the threat of substitutes, and the threat of new entrants. A SWOT analysis identifies the company's strengths, weaknesses, opportunities, and threats. The report concludes that understanding these internal and external factors is crucial for effective decision-making and strategic planning, enabling 'Lovely Coffee' to navigate the competitive market landscape and achieve long-term growth and sustainability. This document is available on Desklib, where students can find a wide array of solved assignments and study resources.

Table of Contents
INTRODUCTION...........................................................................................................................2
TASK 2............................................................................................................................................2
Determine what type of internal and external information is required by your chosen business
for planning, decision-making and control purposes...................................................................2
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Business may be defined as an entity in which an individual or group of individuals are engaged
in any professional, commercial and industrial activity to earn more and more profit. In this
report a business has been start name as “lovely coffee” in the market of UK. The company is
going to deal in the different types of exotics coffee drinks like black coffee, latte, cappuccino,
americano, espresso and also offers various types of food items(Ghauri, Strange and Cooke, 2021) .
The start up which will be launched in the market of the UK naming lovely coffee are offering
several kind of coffee beverages as well as several food items. The following report will cover
about the framework is in external evaluation that involves all the elements in the environment
impacting business practices as well as their working. . It will also include about the internal
analysis and Porter’s five force as all these models assist the firm to understand about the steps a
business needs to take in upcoming time in accordance to make a effectual strategy for their long
term growth.
TASK 2
Determine what type of internal and external information is required by your chosen business for
planning, decision-making and control purposes.
PESTEL analysis:
It is the appropriate for fluctuating environment having the large consumer base which is there in
the market area. there are numerous of models as well as green board which can be evaluate on
the new business before it is launched in the market area(Christodoulou and Cullinane,2019) . In
order to do this PESTLE analysis Conducted on the start up. Their numbers of elements in
market that can be optimistically or negatively impacts operations of the business. Respective
start up here is also conducting this analysis on their business before starting it. It will help in
evaluating all the external elements of the company and this framework is briefly mentioned
below:
 Political factors: it involves a lot of elements that can be duties, financial policies,
government policies taxes ,trade tariffs and several more. At the time of launching a
business in the market area it is needed by the firm to adopt and obey all the rules and
policies that are issued by the government. It will assist the firm to function with any kind

of fluctuations in the market and can also attain optimistic reaction from the government.
In context to the new start up lovely coffee, which is soon going to launch in the market
of the United Kingdom where there is political stability. As because of this it will be
convenient for the company to properly plan their working and make appropriate
decisions in respect to that which can give them long term growth and sustainability
Economic factors: This factor can be affected by foreign direct investment, inflation, rate of
interest, foreign exchange rate, gross domestic product of the economy, economic growth end
several more (Racz and et. al., 2018). In context to lovely coffee, Management needs to focus on
the market area in which they are going to launch their business as inflation rate, demand in the
market of their product, interest rate is feasible for the start up in order to be launch. The firm
need to be very much aware about the several fluctuation in the economy of the country which
can help the firm in controlling their prices as well as making appropriate plan and decisions
which can be appropriate for the long term success of the business.
 Social factors: This factor of PESTLE Analysis it involves demographic, attitude and
behaviour as well as cultural trends of the consumers in the market area. The dynamic
preferences and taste of the consumer is also evaluated in this factor(Voukkali and
Zorpas,2022). In context to lovely coffee, management need to conduct appropriate
research and development of the market area in order to understand the want and
preference of the consumers there. This can support the firm in planning about their
coffee products which are more preferred as well as make several decisions regarding the
making of the various strategies which can get more consumer base for the company In
order to earn more profits with enhanced sales.
 Technological factors: This factor of this framework refers to all type of innovations
and latest technology as well as automation which are there in the market area currently.
Main elements which are there in this factors technology awareness, research and
development and adoption of technology in the operation of the organizations. In context
to the firm lovely coffee, companies planning to take support from the several
automations as well as technology in the operation of their business(Nazari and et. al.,
2018). For instance, people can order their coffee With the help of their mobile phone in
order to avoid long queues and this will assist Firm in gaining more goodwill in the

market which will lead to the more consumer base as well as it will enhance revenue
making of the company.
 Legal factors: It refers to the numerous of laws which can impact the working of the
business that differs from nation to nation (Hajizadeh, 2019). Companies working in the
United Kingdom are required to obey through the specific rules and legislation. If the
company will not comply with the laws of the government then it could lead to making
several bad consequences which can impact the start up in negative way. In order to
operate there business smoothly in the market of the UK company lovely coffee must
make appropriate plans which are related to consumer safety, hygiene, employees welfare
and many more. So in order to do that company need to make appropriate decisions with
the help of implementation of several strategies that can make the start up work
effectively without any legal consequences.
 Environmental factors: this element of refers to the ecological factor of of the
company. As the start up requires to adopt numerous of environmental laws in
accordance to operate their business effectively. Management of that lovely coffee, need
to make decisions in order to control over utilization of any resource or extraction of any
kind of depleting resource with the aim of the production. Company is planning to
control and reduce the use of plastic . so, they are focusing on serving their product in
the biodegradable cutlery’s as well as glasses which will not harm the environment.
Hence, by offering coffee as well as food items in biodegradable cutlery or glasses
Company can attract a large number of consumers
Porters five forces model:
In this model there are several elements that impact the start up and assist in evolution of
business strategies. The five factors of this model in relation to the lovely coffee is mentioned
below :
 Competitive rivalry - threat of competitive rivalry is high for the lovely coffee As
because of fierce competition in this sector. So in order to overcome this situation
management need to make appropriate decisions and plan for several strategies which can
give them in edge over their competitors(Symeonides, Loizia and Zorpas, 2019) .Company
can offer top quality product with lower price as of their competitors.

 Bargaining power of buyers - As there are several coffee places in the market area of
UK including some big brands, so the bargaining power of buyers are bit high for the
company. So in accordance to overcome this situation company need to make some
decisions on providing variety of coffee as well as more food items by focusing on
maintaining desires and wants of the consumers by giving them good quality product.
 Bargaining power of suppliers - Lovely coffee have to take their raw material from
several external sources so bargaining power supplier is low as companies having many
options. So complete need to control and make appropriate decision in order to negotiate
with their suppliers for the low prices of the raw material which can assist firm in getting
more profit margins(Pervan, Curak and Pavic Kramaric, 2018).
 Substitute of existing product - Lovely coffee poses the high threat of substitute which
can give the strong negative impact for the business. A as because of the firm is new and
planning to launch into the market area then it is easy for other well established
companies to provide substitute product at lower price which can be harmful for the long
term growth of the company.
 Threat of new entrant - After launch of lovely coffee in the market area this threat will
act high As starting coffee shop does not required large capital and experience so it can
act as a threat to the organization which can lead to negatively impact the long term
growth and success of the firm.
SWOT analysis: -
This tool is being considered as the most important framework which help the firm in
decision making and also in the formulations of the different strategies for the growth of the
business. SWOT analysis in context to the Lovely Coffee company has been discussed below: -
Strength
The biggest strength of the respective
company is the quality of coffee which are
going to offered by them to their consumer
and along with this as they are going to
target the college student crowd live music
and late hour sitting help them in growing
the business (Pervan, Curak and Pavic
Kramaric, 2018). This strength helps the
company in taking effective decisions of the
company.
Weakness
The difficulty which are going to face by the
company is investment in the staff members
before made any money. Along with this the
rare type of coffee which is going to offer to
the consumer sometime may difficult to
acquire.

Opportunity
The untapped targeted audience of the
company is the key success for the growth
of the organization. With the help of this
opportunity decision has been made in a
very effective manner and along with this
can control and make the future plan for the
company.
Threat
Fluctuations in the economy and
competition in the market is being
considered as the biggest threat which are
present in front of the company(Pervan,
Curak and Pavic Kramaric, 2018.
With the help of this internal analysis the company is able to make decision in a very
effective manner and along with this the opportunity which are present in front of the company
help them to grow the business in the market of UK.
CONCLUSION
From the above report it has been concluded that it is very important for the company to
analyse the internal and external factor in a very effective manner. For analysing these factors
proper framework has been use by the company. The information which is being required by the
Lovely Coffee in relation to the internal and external factor has been concluded by using
PESTLE, SWOT and Porters five model.

REFERENCES
Books and Journals
Ghauri, P., Strange, R. and Cooke, F.L., 2021. Research on international business: The new
realities. International Business Review, 30(2), p.101794.
Christodoulou, A. and Cullinane, K., 2019. Identifying the main opportunities and challenges from the
implementation of a port energy management system: A SWOT/PESTLE
analysis. Sustainability, 11(21), p.6046.
Racz, L and et. al., 2018. Extensive comparison of biodiesel production alternatives with life cycle,
PESTLE and multi-criteria decision analyses. Clean Technologies and Environmental
Policy, 20(9), pp.2013-2024.
Nazari, B and et. al., 2018. Irrigation water management in Iran: Implications for water use efficiency
improvement. Agricultural water management, 208, pp.7-18.
Symeonides, D., Loizia, P. and Zorpas, A.A., 2019. Tire waste management system in Cyprus in the
framework of circular economy strategy. Environmental Science and Pollution
Research, 26(35), pp.35445-35460.
Pervan, M., Curak, M. and Pavic Kramaric, T., 2018. The influence of industry characteristics and
dynamic capabilities on firms’ profitability. International Journal of Financial Studies, 6(1), p.4.
Ferras‐Hernandez, X. and Nylund, P.A., 2019. Clusters as innovation engines: The accelerating strengths
of proximity. European Management Review, 16(1), pp.37-53.
Hajizadeh, Y., 2019. Machine learning in oil and gas; a SWOT analysis approach. Journal of Petroleum
Science and Engineering, 176, pp.661-663.
Voukkali, I. and Zorpas, A.A., 2022. Evaluation of urban metabolism assessment methods through SWOT
analysis and analytical hierocracy process. Science of The Total Environment, 807, p.150700.