THE CREATIVE CULTURE TERM XXXXXXXXXXASSESSMENT ONE DETAILS Individual Assignment (Weight 10%) Required:- 1. Identify an industry of choice which may include the entertainment, food, travel, housing,...

Introduction
The industry chosen for the purpose of the assignment is coffee and specialty beverage
industry. The assignment evaluates the external environment factors prevalent in the industry by
conducting a PESTLE analysis. It also explores the opportunities in this industry and conducts a
feasibility analysis.
PESTLE analysis
The macro economic factors influencing competitiveness of companies operating in the
coffee industry are explained by Pestel analysis. Pestel analysis includes an analysis of political,
economic, legal, social, technological and environmental factors influencing a business
environment.
Political factors: The companies in coffee industry involve extensively in import of
coffee beans and other input materials from different countries and each of these countries has
different political scenario and different levels of government intervention. So the company
needs to have a detailed knowledge of the political turmoil and policy changes in conducting
foreign trade.
Legal factors: The companies need to get the necessary permissions and authorizations in
order to conduct business. The companies also need to abide by the local and central
government regulations including labor laws, food handling regulations, and business practice
restrictions.
Economic factors: According to Worrell (1998), economic conditions of the nation are
the most vital factor as it decides the success and failure of any company. Economic factors that
could affect companies in the specialty beverages and coffee industry encompass economic
growth, exchange rates, interest rates and the inflation rate. All these factors would have a chief
impact on how the company operates and makes decisions. For instance, interest rates would
affect the company’s cost of capital and thus to what level the company grows and expands.
Exchange rates would affect the costs of exporting items and import of raw materials. Moreover,
in case if the interest rates would go up it would imply that there isn’t any capital expenditure
and no jobs would be created that would thus affect employment. Moving ahead, if inflation
went up or down it would have an effect on the cost of materials and as...