Analysis of Costa Coffee Using PESTLE Framework - Business Report

This report provides a PESTLE analysis of Costa Coffee, a UK-based coffee house operating internationally. The analysis examines the impact of political, economic, social, technological, legal, and environmental factors on Costa Coffee's business operations. Political factors, such as political disruptions and taxation policies, are discussed, along with economic factors, including UK GDP growth and its impact on consumer purchasing power. Social factors, like consumer preferences for coffee, are considered alongside the need for technological advancements such as mobile commerce. The report also covers legal standards, including health and safety regulations, and environmental concerns, such as waste management. The conclusion emphasizes the importance of the PESTLE analysis for understanding the external environment and ensuring Costa Coffee's sustainability in a competitive market. The report references several academic sources to support its findings.

English Academic Skills

Table of Contents
Costa Coffee.....................................................................................................................................1
PESTLE Analysis...................................................................................................................1
CONCLUSION................................................................................................................................2
REFERENCES................................................................................................................................3

Costa Coffee
Costa coffee is UK-based company which is operated at international level deals in
providing different variety of coffees such as roasted coffee to caterers and specialist Italian
shops. It becomes the largest coffee house of UK and is second largest in the world. Due to
operating its business at global level, their business operation got much affected by external
factors. Thus, It requires management to consider such factors which can affect their overall
performance either in negative or positive manner (Barham and Weber, 2012). For this, it is
required for the management of Costa Coffee to conduct PESTLE analysis which are done under
below:
PESTLE Analysis
Political factor: Such factors are related with fluctuation in political system which can
affects the taxation policies and other regulation implemented for an organisation operated in
country, In UK, such fluctuation in political system are more which affects the existence of
company in UK market. Political disruptions can result in disruption of the supply chain and it
can also affects the day to day operation of company along with its sales and profitability. The
suppliers of Costa Coffee need to deal with political pressure while operating in the global
environment.
Economic factor: It includes fluctuations in economy of country which directly impact
on the purchasing ability of the customers. The economy of UK increases rapidly due to which
the income of people are also much affected in positive manner. According to the trading
economics, UK economy grew by 0.4% on quarter till June UK (United Kingdom GDP Growth
Rate, 2018). Therefore, it directly make positive impact on the sales and profit of Costa Coffee.
Social factor: It includes the interest and buying behaviour of people which can impact
on the overall sales and profit of company either in negative or positive manner. Costa coffee
offers different variety of coffee which is more in demand in UK due to high preferences of UK
people. It increases the profitability of company as well as develop their stability in market for
longer period of time.
Technological factor: It includes the technological advancement which required to invest
money in order to get maximum return in near future. In order to expand its business operation,
Costa Coffee need to adopt mobile commerce and multimedia terminals which drives an
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organisation to reach to maximum number of customers across worldwide (Tolessa, Duchateau
and Boeckx, 2018).
Legal factor: It includes legal laws and standards which is required to comply with so as
to sustain in market for longer period of time. UK government has introduced various laws
consisting different Acts such Health and social care (safety and Quality) 2015 etc. which directs
Costa Coffee to provide healthy products to their targeted people.
Environmental factor: It includes environment situations which can damage through
operating business operations. Costa Coffee is engaged in providing wide variety of coffee
products due to which the chances of wastage related to cups and other type of packaging are
more. It makes negative impact on targeted customers due to which the company can even lose
loyalty of their targeted customers as well. Minimum usage of plastics to provide products
protects environment which increases brand image of company in market as well (Duarte,
Sarache and Costa, 2016).
CONCLUSION
It has been concluded from the above project report that the sustainability of Costa
Coffee and its products and services in competitive market are higher through carefully
analysing external environment consisting various influencing factors such as political,
economical, social, technological etc. It can be possible for company through conducting
PESTLE Analysis in order to identify their affects on their business operations and plan
accordingly to cope up with them.
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REFERENCES
Books and Journals
Barham, B. L. and Weber, J. G., 2012. The economic sustainability of certified coffee: recent
evidence from Mexico and Peru. World Development. 40(6). pp.1269-1279.
Duarte, A., Sarache, W. and Costa, Y., 2016. Biofuel supply chain design from Coffee Cut Stem
under environmental analysis. Energy. 100. pp.321-331.
Tolessa, K., Duchateau, L. and Boeckx, P., 2018. Analysis of coffee quality along the coffee
value chain in Jimma zone, Ethiopia. African Journal of Agricultural Research. 13(29).
pp.1468-1475.
Online
United Kingdom GDP Growth Rate. 2018. [Online] Available through:
<https://tradingeconomics.com/united-kingdom/gdp-growth>
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