Costa Coffee

1043 Words Apr 25th, 2011 5 Pages

Costa Coffee
The Handcrafted Taste

External Environmental Factors
April 14, 2011

Team Members:

Alaa Korayem | 7100112 | Mohamad Shafshak | 7102413 | Mourad El-Kerdany | 7100053 | Nada Shalash | 7100835 |

Remote Environment
The remote environment comprises factors that originate beyond and usually irrespective and out of Costa Coffee 's control.
Economic factors
Since Costa Coffee is a multinational business, top-level managers must consider the economic situations on both the National (Egypt) and International levels. Currencies exchange rate (Forex) affects Costa Coffee 's final products ' prices as
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Industry Environment

Operating Environment
A firm’s operating environment is related to environmental factors that directly affect the firm and its success in obtaining necessary resources. Yet, they are still factors beyond its area of control. 1. Competitors
Costa coffee in Egypt faces high direct competition where around almost every corner in the cities, a coffee shop exists. Therefore, product differentiation is a must, and persistent high-quality is the way to keeping customers. Whichever Costa Coffee shop you enter, you are greeted the same, indulge in the same taste and pay what you see in the menu. Menu prices are tax inclusive which is different than most of other coffee shops.

Competitors include, but are not limited to, Starbucks Coffee, Cilantro and Beano’s café.

Costa’s past payment records and working capital position are the main attributes affecting creditors decisions. Considering the Egyptian markets, banks are not rare to find. Costa might be dealing with several banks, and may be granted loans from several areas. Hence, creditors have little leverage; since interest rates are controlled by central bank of Egypt as well.

Costa coffee is a service firm. Therefore, its utmost goal is customer satisfaction and loyalty to yield profits. Constantly monitoring Egypt’s demographics is essential in keeping a convenient atmosphere. For instance, Costa must
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