Cost a Business Strategy (A Coffeehouse Chain)

LO1: Analyse the impact and influence which the macro environment has on an organisation.

LO2: Assess an organisation's internal environment and capabilities.

LO3: Evaluate and apply the outcomes of an analysis using Porter's Five Forces model to a given market sector.

LO4: Apply models, theories and concepts to assist with the understanding and interpretation of strategic directions available to an organisation.

Vocational Scenario (Context/Background)

The aim of this unit is to develop students' awareness of the different kinds of strategy which could be used in an operational, tactical or strategic role for an organisation. This will be underpinned by a thorough knowledge and understanding of the theories, models and concepts which could significantly support an organisation's strategic choice and direction.

This unit enable students to develop sufficient knowledge and understanding of strategy to make a positive, efficient and effective contribution to the development of business plans and operational direction. This could be in the role of a juniormanager responsible for having a specific input into an organisation's decision-making and planning.

Students will learn about the impact and influence which the macro environment has on an organisation and its business strategies, different strategic planning techniques and role of strategy to achieve business goals.

Students will also learn about assessing organisations' internal environment and capabilities. Including key components of strategic capabilities and framework to analyse strategic capabilities.

They will learn how Porter's Five Forces model is used by organisations to analyse the market structure in which they operate. The outcomes of the analysis are used to improve competitive edge and market position based on the outcomes.

Student also will learn how to apply a range of theories, concepts and models and devise strategic planning. They will have the opportunity to assess the strategic significance of cost and price leadership strategy, differentiation strategy, focus strategy and diversification.

This assignment consists of four tasks, writing a report. You are advised to carry out in-depth secondary research as required by the questions and demonstrate your practical application abilities to the given contexts.

Case study of Costa Coffee

On Old Paradise Street, a backstreet tucked away between the two stations in South London, lies the unlikely heart of Costa Coffee's brewing empire.

Hundreds of sacks of coffee beans are delivered here from around the world, where they are tasted, prepared and packaged for Costa's 3,006 coffee shops across the world.

Costa Coffee was founded in London in 1971 by brothers Sergio and Bruno Costa, who wanted to bring a flavour of Italy to London. After achieving success, the business was acquired by Whitbread in 1995, and since then the brand has grown rapidly across the UK and overseas. On a grey day in London in 1971, an incredible thing happened: a cup of Costa coffee was poured for the very first time. Its creators, the brothers Sergio and Bruno Costa, first sold their coffee to a handful of local caterers. Then to some delicatessens. A few years later, they opened their first coffee shop.

Today Costa is the largest and fastest growing coffee shop chain in the UK. In 1999 Costa opened the first International store at The Aviation Club in Dubai, UAE. 12 years later the Costa brand continues to grow with 79 stores operating in the Emirates. There are 1,882 stores across Britain, expected to grow to 2,200 by 2018. There are also 4,000 Costa Express machines, found in UK garages, offices and supermarkets for motorists wanting a quick cup of coffee on the go. In total, the company has 3,006 stores in 31 countries.

In the 39 weeks to the end of November, sales at Costa's branches rose almost 16pc to pass £1bn. Franchises made up £398.1m of this total, while international sales rose 10.7pc to £213.5m.

The firm doesn't deviate from its house blend, which has remained largely unchanged since being developed by the Costa brothers, but its new specialty drink, the sticky toffee latte, is selling more than 100,000 a week in the UK over the festive season. Costa keeps about five days' worth of production at the roastery, and will get through that in just over a week. Beans arrive from Brazil, Colombia, Ethiopia and Vietnam. They're all mixed together to give Costa its mocha Italia blend, which is used in all its coffee.

Task 1 Covers LO1:Analyse the impact and influence which the macro environment has on an organisation.

Scenario: You have been recruited as an Assistant Manager by Costa Coffee a well-known large multinational organisation. You have been asked to produce a report on the impact of the macro environment on Costa Coffee and its business strategy.

Task 2 Covers LO2:Assess an organisation's internal environment and capabilities.

Scenario:In other that Costa Coffee to take appropriate strategic decisions, your line manager has asked you to carry out an analysis and to produce a report on your organisation's (Costa Coffee) internal environment with particular reference to its strategic capabilities.

Analyseinternal environment and capabilities of Costa Coffee using appropriate frameworks (P2).

Task 3 Covers LO3:Evaluate and apply the outcomes of an analysis using Porter's Five Forces model to a given market sector.

Scenario:The board of Costa coffee has observed its annual sales is gradually declining. In other that Costa Coffee to recover from this decline and respond to the situation, your line manager has asked you to produce a report by analysing the attractiveness of the UK retail sector using Porter's Five Forces model.

Applying Porter's Five Forces model to evaluate the competitive forces of Costa Coffee in the Coffeehouse Chain (P3).

LO4: Apply models, theories and concepts to assist with the understanding and interpretation of strategic directions available to an organisation.

Scenario: The management of Costa Coffee has realised that it needs to formulate a strategic plan so as to improve its organisational performance and competitiveness in the UK Coffeehouse sector. Your line manager has asked you to prepare a report identifying the strategic choices and directions available for the company.

Applying a range of theories, concepts and models, interpret and devise strategic planning for Costa Coffee (P4).

Attachment:- brief.rar