Costa Coffee Analysis

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As a person with knowledge of knowledge management, the author has always brought up to his superiors the viability of strategy formation regarding the analysis of this topic and at times fails to understand the reasons or logic behind certain strategic implementations imposed on it.

By delving into this project paper, the author intends to have better insights into how knowledge management is thought up, formulated and then imparted down into the subsidiaries of the company. The author hopes to have an in-depth understanding as to how the knowledge management enables companies and organizations to compete effectively and profitably in this era of internationalization where competition is extremely intense.

In order to reinforce the learning objectives, two key focal issues were focused upon i.e. innovation and diversity. Innovation was discussed with regard to knowledge management where it was renowned for its developmental capabilities to constantly innovate. Diversity came under strategic thinking and formation as the author considered the diverse culture, political climate, economic surroundings, social environment, technological settings, government policies and legal systems in order to better understand the issues being discussed.


In the last five years, the coffee brewing industry has seen so much activity in terms of massive changes in the landscape of coffee brewing companies. These changes range from mergers and acquisitions to changing consumer tastes and finally, to different branding strategies. These activities are expected to continue over the course of the next ten years.

Costa Coffee is one of the leading companies in UK's coffee brewing industry in terms of the volume of sales and profitability. It has also one of the widest connections among other UK coffee brewers made possible through a network of distributors and breweries.

The Costa Coffee brand already has a premium status in all its markets. It is practically the main profit provider of the company in the broad markets of UK. Also, because of its market strength, the Costa Coffee brand has already obtained significant profitable segments on its own. Costa Coffee uses the name of both the company and its mainstream coffee label, and this strategy has allowed the company to pursue an integrated marketing approach directly related to the company name.

However, the main questions remain. Does this strategy produce more effective results than the others in terms of gaining company name recognition? Do the adopted strategies allow differentiation in the culture of the corporation to influence consumer choices?

PEST ANALYSIS (United Kingdom)

Political Trends

The United Kingdom has experienced electoral and political transitions and crises in the last 12 months. There have been at least four political trends that have emanated from these political events. These are: (a) the cry for democracy and reforms; (b) increased popular and local-level assertiveness; (c) greater public accountability; (d) re-definition of the concepts of power and politics. Also, the forms of political economies have slowly shifted from a bipolar (big government-big business) to a tri-polar structure (authorities - private sector – civil society).

The implementation of the Free Trade Area, or FTA, which laid out a comprehensive program of regional tariff reduction, will be continuously implemented in phases through the year 2008. Over the course of the next several years, the programs in tariff reductions were made broader. Efforts to eliminate non-tariff barriers and develop common product certification standards were initiated. In addition, the United Kingdom also was able to formulate framework agreements for the intra-regional liberalization of trade in services. Industrial complementation schemes meant to encourage intra-regional investment were also approved....
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