Pestle Analysis: The Coffee Bean And Tea Leaf Company

832 Words 4 Pages
Pestle Analysis is originally known as PEST Analysis, it is used to determine the impact of the external factors on the organization. Francis Aguilar was the one who originate this tool; he believes that PEST act as an important factor in scanning the business environment (Pandey, 2011). PEST stands for Political, Economical, Social and Technological factors. According to Pandey (2011) PESTLE Analysis is used to examine the current and future state of the industry an organization belongs to. This helps the company 's strategic planning and gaining the competitive edge over other organization in that industry. The following will show the impact of the external factors on The Coffee Bean and Tea Leaf Company using PEST Analysis. 6.2.1. Political
Fair trade commerce of the coffee bean is the most conflicting political problem for coffee industries. This means that there is
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1. Porters 5 forces Mode
Source: Mindtools Website, 2015 6.3.1. Threat of new entrants
Coffee is becoming more popular among different types of people and age, so coffee retailers are tend to appear regularly in different places because of lack of barriers of entry. The main competitors are well-established brand and those who fund for the newly open stores, but coffee can also be sold on small stores or area which is equipped with machines. Well-established brands like Starbucks, Tim Hortons and Gloria jeans dominated the market through the years. 6.3.2. The bargaining power of suppliers
Suppliers have medium bargaining power since they are originated from the developing countries and because of the increase of competition between the suppliers. Nowadays there is an increasing demand for eco-friendly coffee, organic coffee and gourmet specialty coffee, reason to increase price for coffee. The bargaining power of suppliers depends on the economic situation and stability of the country. 6.3.3. Threat of

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