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The organisation and its environment. Costa coffee - Essay Example

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Costa Coffee Name Institution affiliation Tutor Date Costa Coffee Costa coffee is a business enterprise which focuses on providing breakfast services to its target market. In the founding of this enterprise the proprietors had a hotel industry structure in mind…
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The organisation and its environment. Costa coffee

Download file to see previous pages... Costa Coffee was founded in London in 1971 and initial operations was the supply of coffee beans to coffee shops and small scale vendors. After acquiring a formidable market, the venture was stretched to cover other operations. For many years in the coffee industry, the entrepreneurs behind Costa Coffee realized the demand of coffee beverage was more than the demand for coffee beans and berries. It is at this point that the idea of supplying drinks became more realistic. At the moment the enterprise focuses on the supply of hot drinks, particularly coffee, soft drinks and snacks. The growth of this enterprise has been significant as many branches have been launched across the globe. According to Worthington & Briton (2009) Costa Coffee has become more of a global entity that just a coffee enterprise that was launched in London. From the success story of Costa Coffee many similar companies have been resorting to the strategies applied by Costa coffee in order to achieve their goals. Costa Coffee has several aspects of both its internal and external environment. In its internal environment, operation and structural arrangement makes most of the issues faced in this particular environment. According to Turner (2003) it was hard for the enterprise to open up more than one branch. However, this move was significant as the management of Costa Coffee had the motive of reaching a wider target market. This was only possible through right and proper management that would ensure that all operations and structures are well formulated to suit the resources available for the enterprise. After the launch of another Coffee shop in London, it became easier to open up branches and manage them effectively. However, when it came to cross-border investment the scenario changed since the rules of trade became more complex. In the internal environment, the enterprise had to ensure that they had the right staff to operate in the company, proper management of funds and resources and a strong management team that would ensure continuity of the venture. In the external environment, the main issue was creating a greater competitive advantage over its competitors. This meant that the enterprise had to formulate the best strategy in order to be better than its competitors. Just like any other business venture, competitors create the greatest threat to any new enterprise entry in the corporate environment. For Costa Coffee there was an added advantage as they had started as another venture which had already established a market base. Another significant external market factor was the adherence to the rules of trade in the market. This matter became more complex when the venture had to expand its operations in other countries. The international market has new operational rules and regulations that enterprises need to adhere to. According to Turner (2003) adhering to trade rules and regulations is one external environment factor that any business enterprise is required to effectively consider. For Costa Coffee regulation inclusions of the hotel and catering industry was mandatory. Communication in any organization is an important factor that should be considered effectively. Communication extends from just the requirements of the internal management system. For example, the general corporate environment has rules and regulations that should be adhered to by all organizations. For this to be effectively implemented there should be a proper communication ...Download file to see next pagesRead More
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