Costa Coffee
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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 well as operation costs. Costa Coffee imports high quality coffee beans from rainforest farms where it pays for in local currency, and sells as coffee in another country with its local country. Hence, when the Egyptian Pound depreciates, the cost of beans relatively increases; therefore, causing a fall in profit margin and vice versa. If depreciation is too much, then Costa might increase its selling prices.
Moreover, interest rate is vital for a business considering expansion as Costa Coffee. As interest rates increase, Costa Coffee’s ability and willingness to expand or open new branches decreases; due to the high cost of capital.
Furthermore, the stock market plays a significant role in encouraging investors to invest in Costa Coffee due to the increasing profits and the good reputation.
Finally, high economic growth rate of a country leads people to increase their consumption of Costa Coffee 's products; since they have more income.
Social Factors
Egyptians’ culture and lifestyle has dramatically changed in the last 10 years. People are more willing to go to cafés for lunch, dinner or simply a snack. Considering the Egyptian demographics of lifestyle and age groups, most of the Egyptian population falls in the
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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 well as operation costs. Costa Coffee imports high quality coffee beans from rainforest farms where it pays for in local currency, and sells as coffee in another country with its local country. Hence, when the Egyptian Pound depreciates, the cost of beans relatively increases; therefore, causing a fall in profit margin and vice versa. If depreciation is too much, then Costa might increase its selling prices.
Moreover, interest rate is vital for a business considering expansion as Costa Coffee. As interest rates increase, Costa Coffee’s ability and willingness to expand or open new branches decreases; due to the high cost of capital.
Furthermore, the stock market plays a significant role in encouraging investors to invest in Costa Coffee due to the increasing profits and the good reputation.
Finally, high economic growth rate of a country leads people to increase their consumption of Costa Coffee 's products; since they have more income.
Social Factors
Egyptians’ culture and lifestyle has dramatically changed in the last 10 years. People are more willing to go to cafés for lunch, dinner or simply a snack. Considering the Egyptian demographics of lifestyle and age groups, most of the Egyptian population falls in the