Strategic Analysis - Essay Example

ectives. With this concern, the major opportunities and threats that are likely to be faced by Zarraffa’s Coffee owing to the prevailing macro environmental factors have also been illustrated in the report. In addition, the discussion of this report will also focused on analyzing the firm’s internal environment including its key resources or competencies that could provide adequate benefits for Zarraffa’s to achieve competitive advantage in the retail coffee and beverages industry. In relation to preparing the report, qualitative methodology has been used.

Majority of the information related to the preparation of the report has been gathered from secondary sources such as scholarly articles, governmental report and company website among others. Zarraffa’s is an Australian based coffee retailer and beverage company which was founded by Kenton Campbell in the year 1996. The company is also known as one of the fastest growing franchised coffee retailers across the world. Currently, the organization operates around 50 coffee retail franchised stores across the different locations within Australia (Zarraffa’s Coffee, 2013).

Macro Environment Analysis The macro environmental factors are the most crucial aspects that highly influence the management as well as operational performances of the organization. In relation to the macro environmental factors of Zarraffa’s, PESTEL model has been utilized with respect to clearly identify the potential opportunities and threats for Zarraffa’s in the Australian market. PESTEL Model Political Factors Political factors can have a major bearing upon a business organization to efficiently coordinate its number of vital operations.

These factors can create a positive impact upon an organization’s business in terms of making its operations smoother, however political disturbances and imbalances, unrelenting governmental regulations can also provide obstructions for a business to operate efficiently within a nation. In relation to Zarraffa’s, the company tends to offer its range of coffee products and beverages in various regions in Australia complying with adequate political guidelines of the nation. The company focuses towards abiding by diverse regulations as well as guiding principles of the governmental institutions in terms of practicing its business operations within Australia.

Thus, this factor can be quite crucial for the organization in its endeavor to make internal presence as different nations have diverse business operational guidelines, which are quite crucial for a new business entity to ensure positive political or governmental influence and support. Economic Factors In relation to economic influences, Australia is one of the fastest growing nations in terms of making a stable economic position by increasing its annual Gross Domestic Product (GDP) growth and other macro-economic factors (Australian Trade Commission, 2012).

In relation to the industrial scenario, it is observed that coffee is regarded as the most favored hot drink in the nation. A