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This is a report on the international dimension of Costa Coffee and Coffee Aroma.

Extracts from this document...

Introduction

´╗┐NAME: ZANNATUL FERDOUS COURSE: G C E APPLIED BUSINESS UNIT TITLE: INTERNATIONAL DIMENSIONS OF BUSINESS UNIT NUMBER: 12 INTERNATIONAL DIMENSIONS OF: COSTA COFFEE COFFEE AROMA 1. Acknowledgement 3 1. Summary 4 1. 12.1- Investigation of two businesses with international and European presence 1. Name of the organisation 2. Operating Profit 3. Main Activities 4. Legal Format 5. Type of Business 6. Target Market 7. Industry 8. Business Sector 9. Product Range 10. Aims and Objectives 11. Type of Competition 12. Similarities and Differences Between the Businesses 13. Why businesses become international 14. How businesses meet their aims and objectives by being international 5 1. 12.2- Research and Analysis of the Factors for Business having an International presence 1. Strategic Objectives 2. Theory of Comparative Advantage 3. Impact on host country when business is setting up and trading 4. Incentives by host country to business 5. Impact of business activities on competitors, customers, suppliers and business itself 6. Effectiveness of international business 26 1. 12.3- Explore the dynamics of international organizations on one chosen business in a globally competitive environment 1. How EU and WTO affect the international business 2. Benefits of membership 3. Limitations of membership 30 1. 12.4- Examine and evaluate the growth and influence of multi-national operations 1. Why business have become international 2. Impacts on developed and developing countries 3. How wealth of multi-nationals influence host countries 39 1. Conclusion 44 1. Bibliography 45 ACKNOWLEDGEMENT This was the most fun way of learning things and a wonderful experience according to my opinion on the Applied Business Assessment. This was a great experience for me because I learnt things in a very interesting and different way. This has overall been a wonderful experience in which I learnt how to present. And I have put a lot of effort and hard work to complete this assessment. This assessment would not be complete without a few people?s help, support and guidance: First, I would like to thank my principal Mrs. ...read more.

Middle

more focused on the quality, in this case taste of their coffee so moving to a country with a slow economy such as Pakistan would be a disaster because simply the majority of people would not be able to afford to use the service. 2. Raising Profits and Market Share: Out of all the reasons for wanting to expand onto the international scene, gaining higher profits and obtaining more market share are probably the most obvious. Put very simply, working in a multinational market as opposed to an individual country provides the opportunity of more customers - meaning the opportunity of more sales (turnover) and this in my mind was not doubt the reason for Costa Coffee and Coffee Aroma's wanting to expand onto a global and European scale. Along with this, expanding internationally gave Coffee Aroma and Costa Coffee the opportunity to work in a more demanding and competitive market as they will not only be battling for the most market share of a market in e.g. - the UK, they will be competing for the most market in a specific continent and on a world scale market which is likely to increase efficiency and work productivity of workers. To add to this, with the chance to increase sales will come the chance to cut costs and being able to achieve this whilst increasing revenue will generate large amounts of profit for both companies. 3. Different Markets: One of the most important incentives behind any business succeeding is to make sure they give all consumers what they want, and to be even more successful give them what they want where they want it and that is the difference and without a doubt there main reason why global businesses are more successful than one-nation ones because even though both can give customers what they want, global organisations can give customers what they want anywhere around the world and the is the difference. ...read more.

Conclusion

2. The challenge of unfriendly business environment. 3. There is usually the problem of conflicting interest among the three parties - the government, the MNC and the general public. 4. There may be huge cost of labor in the host country, at least to get the expatriate managers from home country or somewhere else. Conclusively, the above mentioned authors have given all round and comprehensive note on the benefits of MNCs to the host country where they operate and as well highlighted the derivable benefits to the MNCs themselves from the host country. Likewise, in spite of the challenges and the problems being faced by these MNCs, they still continue to survival and waxing stronger. Conclusion: This assessment is on two international business one with global presence and other wit European presence. The businesses I have chosen are Costa Coffee and Coffee Aroma both being of the coffee industry. A description of legal format one being public limited company and the other being private limited company, type of business both being B2C businesses, target market, business sector and product range of both Costa Coffee and Coffee Aroma has been provided. Identification of aims and objectives with a proper description has been provided. Comment on both the business?s similarities and differences have been given. Reasons why both businesses have become multi-nationals have also been provided. There are comments on whether or not the businesses meet their aims and objectives by being international. Identifications of objectives which have led Costa Coffee to become international. Comparative Advantages achieved by Costa Coffee. Effects of Costa Coffee on the host country, considering customers, competitors and suppliers. Identification of the incentives and limitations of the host country to Costa Coffee. Evaluation of how EU and WTO affect Costa Coffee. Explanation of how memberships of these organizations help and limit trade for Costa Coffee has also been included. Case study with explanation of why businesses become multi-national is also provided. Explanation on impacts of Costa Coffee on host countries with advantages and disadvantages to stakeholders has been included. Description of how the wealth of multi-nationals influences host countries. ...read more.

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