Café Coffee Day PESTLE Analysis

Published in Companies category by MBA Skool Team

Café Coffee Day PESTLE (or PESTEL) Analysis assesses the brand on its business tactics across various parameters. PESTLE Analysis of Café Coffee Day examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental factors. Let us start the Café Coffee Day PESTLE Analysis:

Political Factors:

The political factors in the Café Coffee Day PESTLE Analysis can be explained as follows:

Café Coffee Day management has friendly connections with the political leaders from the state to national level. It is easy for them to establish the new outlets. Due to pandemic, the exports have been decreased a lot and this effect the export business of the company. The GST on coffee is nil which aid to economic growth of the company. As the company is doing export business and have outlets in some countries outside India, it is important to monitor their political stability.

Café Coffee Day also should focus on the norms regarding the environment and social. The Indian government has increased its spending on infrastructure development, it will be a good chance for the company to grab this opportunity and change their strategies. The company is in food industry so it has to maintain quality standards and various regulations.

Image: Wikimedia

Economic Factors:

Below are the economic factors in the PESTLE Analysis of Café Coffee Day:

Café Coffee Day’s business is driven by several economic factors. Due to covid-19 pandemic, the unemployment rises and the disposable income of the people has decreased which dents the profits of the company.

Since this pandemic, people spending cautiously and not spending much on expensive items. CCD has to adjust their labour and operation costs according to the change. This pandemic also effected on the exports of the coffee beans. From the past few months people are meeting out, the process of vaccination and the growth in economy gives a new hope for the company. The consumption of coffee is being rose from years. The production of coffee has increased and at the same time the exports also decreased. This may decrease the cost but eventually it decreases the profits of the company. The company should focus on cost reduction of their operations and labour.

Social Factors:

Following are the social factors impacting Café Coffee Day PESTLE Analysis:

Café Coffee Day is a go to place for many millennials, Gen X. It is a nice meeting place for many people. The company should focus on things which attract these new generation customers. the company also focus more on the places where it establishes the outlets. The company should focus more on changing trends of lifestyles, working conditions, growing urban population. Now-a-days middle class people are also preferring to hang out in café. These changing patterns and spending disposable income more on food and beverages make company to focus social trends.

Technological Factors:

The technological factors in the PESTLE Analysis of Café Coffee Day are mentioned below:

Café coffee day always ready to make innovations in their menu. Their food and beverage innovations, unique customer engagement offerings make them to attract new customers. they also change their menu according to the festivals and seasons. They also introduced fruit-based beverages. During this pandemic, to adjust to the situations they introduced no contact method. They introduced a new web-based platform for all orders and delivery. With the help of big data analytics, they understand the need of the customers and design a personalized experience for them.

The company also changed very few outlets into working places as people are changing their dimensions of working.

Following are the legal factors in the Café Coffee Day PESTLE Analysis:

Café coffee day is a multinational company and it has to ensure different rules and regulations according to the country and state where it is operating. It also ensures that the labour laws are effectively implemented. It also introduced several employee engagement programs and also established whistle blower policy which encourages Directors and employees to bring the company’s attention on the instances of unethical behaviour, suspected incidents of fraud or violation of code of conduct. The company also has zero harassment at workplace. It also ensures to attend the complaints of the customers. the company also should follow legal requirement when it is going to expand or making changes for their outlets.

Environmental Factors:

In the Café Coffee Day PESTLE Analysis, the environmental elements affecting its business are as below:

The awareness of the climate change has increased a lot and government also imposed various regulations to reduce carbon foot print. So, company should focus more on using sustainable products. As there is fluctuations in monsoons, there is fluctuations on the production of the coffee.

This affects most to the company as they can’t impose those costs directly on the customers. Café Coffee Day also focus on the carbon foot print in their entire value chain system. It should also encourage its partners to follow the environmental rules and make them part in reducing change in climate which eventually help for coffee production.

To conclude, the above Café Coffee Day PESTLE Analysis highlights the various elements which impact its business performance. This understanding helps to evaluate the criticality of external business factors for any brand.

This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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