BSBLDR402 Lead effective workplace relationships (Assessment 1)

Unit Code: BSBLDR402 Lead effective workplace relationships Meeting schedule Time - 10am Monday - 7 th February, 2020 Location - Coffee Ville Melbourne store main meeting room Level 1 Team Member Renee Lim - General manager May Law - General manager Joey Li - General manager Doris Goh - General manager Responsbility Each general manager of each branch of Coffee Ville Melbourne store has responsibility to be a main researcher and take a research of 1 issue . List Renee Lim - Topic - Filling Shift May Law - Topic - Quality recruitment Joey Li - Topic - Health and safety risk Doris Goh - Topic - Staff morale Research note PEST analysis The constant global economic recession has dented the macroeconomic environment which Coffee Ville operates in. The recession has hurt the consumer's purchasing power. Recent market research reflects that consumers have not cut down on their coffee consumption. Instead, they are shifting to options with lower prices. This means that the firm can still influence the buying power by offering cheaper products. Coffee Ville has taken steps to be a part of the mobile computing revolution. It has worked with Apple and introduced discounted coupons via iPhone apps. 1
Unit Code: BSBLDR402 Lead effective workplace relationships They also attempt co-branding and cross selling. Starbucks is well poised to enjoy the benefits of the Smartphone revolution. Consumers in the Australia are also becoming more and more conscious of ethics. This means the brands they buy from should abide by social and environmental norms during production. Consumer awareness is challenging Starbucks. These are the most obvious factors affecting the firm's business. But there are many other factors seeking attention. I have divided and organized these issues according to the PEST factors. You will find the details for how the factors impact business for Coffee Ville below. Political Factors - The main political factor is about sourcing the raw materials. This has gathered a lot of the attention from politicians in the West and from the source countries. For this reason, the company wants to adhere to social and environmental norms. It is willing to follow the sourcing strategies. It gives importance to fair trade practices. Another impact is the need to follow the laws and regulations in the countries from where Starbucks buys the raw materials. Activism and increased political awareness in developing countries have made his essential. The regulatory pressures within the home market in the US are also a factor. Multinationals based in the US are now subject to greater scrutiny of the business processes. The company must monitor political stability within the country as well. Some other factors to consider are: Tax policy Employment laws Economic Factors - The ongoing global economic recession is the prime external economic driver for Starbucks. As I already mentioned, this factor dented the profitability of Coffee Ville . This has convinced buyers to shift to cheaper alternatives. As they did not quit buying coffee, Starbucks should 2
Unit Code: BSBLDR402 Lead effective workplace relationships seek an opportunity here. The company has to deal with rising labor and operational costs. The inflationary environment and falling profitability is causing a lot of stress. Some other economic factors which can affect Coffee Ville are: Local currency exchange rates Local economic environment in different markets Taxation level Social Factors - As already stated, Coffee Ville can offer cheaper products but it might have to sacrifice the quality. This is the main socio-cultural challenge that the start-up faces. It will expand consumer base to include the buyers from the lower and the middle-income tiers. The "green" and "ethical chic" consumers are also concerning. They fret about social and environmental costs of the brands. Starbucks has to be aware of this trend. The baby boomer generation is retiring. This means spending by older consumers will decrease. Now, Starbucks will have to tap the Gen X and the Millennials as customers. Other socio-cultural factors to focus on are: Changing family patterns in USA and Europe Consumer preferences Changing work patterns Changes in lifestyles of population The level of education of the population in local markets Changing values among population 3
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