An analysis 3 coffee companies who operate in this industry - Essay Example

Every year 500 billion coffee cups are consumed amongst which 14 billion cups are Italian espresso. It is a fact that beside several flavours of coffee, there are two types of coffee beans in the world known as Robusta and Arabica. Therefore, coffee shops are among fastest growing niches in the business world. Most of the coffee production is undertaken in developing countries as it is a labour intensive work (Business Insider, 2011). These countries include Brazil, Columbia and Vietnam. It is found that Finland has a high consumption per capita of coffee.

PESTLE analysis of coffee industry Political – there is influence of politics on coffee production as it is majorly produced in developing countries. The political condition there is highly volatile which could affect the coffee industry. Economic – it is to mention here that Brazil is having strong influence over coffee industry as Brazil is a major coffee producer. Any affect in the economy affects the entire industry. Social – social aspects of coffee and increasing awareness for coffee and its issues results in more social pressure on industry.

Therefore, it can be said that social factor can influence the coffee industry. Technological – there is increased demand in variety of coffee products and freshness is also a concern of consumers. With technological advancements, industry effectively caters the needs and requirements of consumers. Technological factor also affects coffee industry. Legal – legal issues affects the industry in a way as there is increased focus on ethical and legal requirements of business. Environmental –it is to mention here that environmental factor is important in the process of coffee production.

Therefore for optimum level of operations environment should be under standard needs of coffee production. Profile of three companies in coffee industry Starbucks (Industry Leader) Starbucks Corporation is among the premier coffee roasters, specialty coffee and marketer of coffee. It is to mention here that Starbucks operates in more than 55 countries across the globe. It is present in North America, European Middle East Africa, Latin America and Asia. There are approximately 149,000 employees in Starbucks Corporation.

It is headquartered in Seattle Washington. Net revenues generated by Starbucks Corporation at the end of fiscal year 2012 were USD 13.3 billion as compared to USD 11.7 billion in 2011. Comparable store growth in 2012 was 7 percent. Operating income earned by the company was USD 1997 million with operating margin of 15% (Starbucks, 2013). Costa Limited (Emerging Company) Costa Coffee is entirely owned subsidiary of Whitbread. Costa Limited is involved in operation of coffee shops chain. There is a wide variety of coffee products that the company offers and it includes coffee, coffee beans, coffee bars, hot chocolate drinks along with various other food products that includes sandwiches, paninis, fruits and yoghurt, scones, muffins and toasties and wraps.

Costa coffee majorly operates in Europe, Asia and Middle East. It employs approximately 8,200 employees and it is headquartered in Dunstable, United Kingdom. In the fiscal year which ended in March 2012, the company recorded revenues of approximately USD 865.3 million as compared to revenues generated by the business in 2012 of approximately USD 678.7 million in 2011. Among its revenues the profit generated by the company