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External Analysis: PESTEL Analysis of Cafe Coral Essay

External Analysis: PESTEL

Each and every industries may it be small or large companies are subject to different elements that affect the firm’s function as a whole. These elements are considered as the driving forces for the success or even the downturn of a business. One of the factors that must be considered by any company is the external environment and the underlying aspects that must be given emphasis by any business organisation. As mentioned, the case was about the changes that must be implemented by Café de Coral and how the company had been able to adjust to the stiff competition of this kind of business. In this regard, the environment of the group will be analysed using the PESTEL model. PESTEL model evaluates the political, economic, socio-cultural, technological, physical (environmental) and the legal factors.

1. Political Sector

In terms of political sector, the company sees to it that they follow the rules and regulations imposed by the government. In the case of Café de Coral, the company sees to it that they always adhere to the policies imposed and that their organizational goals are achieved without disobeying such policies. In addition, whenever the company is having changes, they make sure that all rules and regulations are set and they are always ready to follow it. In addition, the company also imposed corporate governance to be followed in all levels of the organisation.

2. Economic Sector

Economically speaking, it can be said that Café de Coral being known as the largest Chinese fast food restaurant has been able to help the economy China as well as in Hong Kong, by providing some financial needs to boost the economy of both countries. In doing so, the company is also benefited to become more economically stable in spite of the challenges it faced. In addition, it can be said that the company has been able to cope with the global competition that it become financially stable.

Social Aspect

Society e is an important factor that must be given emphasis by any business,nspecifically those who are operating in the global arena. It is important that the company must operate in compliance with the social systems in order to gain good reputation and effective public image. In the case of Café de Coral, the company has been able to consider social aspects by giving emphasis to the international market and the context of globalization. With this ideology, the company has been able to give importance not only with the Chinese market but most especially to stakeholders in the international level.

3. Technological Sector

The complexities of achieving business success through increased efficiency, effectiveness and competitiveness, combined with innovative applications of modern technology, has heightened the awareness of both the industry and a foreign country to ensure quality products and service(Luftman, Lewis & Oldach, 1993). In line with the technological capacity of the company, it can be said that Café de Coral is using advanced technology to ensure that they provide quality and excellent products and services with their target market. Their technology is built upon the highest quality and functions in order to provide customer’s demands in global market. Herein, the physical resources of the company were being monitored to maintain its efficiency to further enhance the organization’s position to become competitive in the industry. Furthermore, the company has been able to use information technology as part of their strategy in order to be more innovative and gain more in terms of productivity and profit.

4. Environmental Factors

Café de Coral will also be evaluated in terms of environmental aspects. The environmental resources of the Café de Coral ensure that they would always have a facility and technology that would be able to carry out products and services that would eventually satisfy all their customers. The company has been able to consider all its environmental resources to enhance their competitiveness. Further, the joint ventures and mergers of the group have expanded the resources of the company to become more stable and become one of the leaders in the steel industry.

5. Legal Aspects

A company will not be able to gain success if they will not consider legal sector as part of their strategy in entering an international marketplace. Legally speaking, Café de Coral has been able to abide laws of the regions where it is operating. In addition, the company has also been able to follow the law in terms of environmental protection, and other health concerned specifically with the field of their business which is food production. The company always sees to it that all the operations locally and internationally would be legal. In addition, the company has seen to it that they abide by the law by paying their taxes annually.

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