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Internal and External Factors Affecting Business Environment


Discuss About The Marketing Strategy Home Business Success?

The below-presented analysis has been made focused on developing and introducing a new and healthy flavor in coffee by “Caffee” that is a coffee house in Melbourne. And this is due to a hike in the demand and consumption of coffee rate in Melbourne city. On the basis of the research conducted by Australian Bureau of Statistic, it has been analyzed that the ratio of drinking coffee was 46% as compared with 38% that of management tea in the year 2014. But too much drinking coffee was causing various harms to the health of individuals and hence the idea of “Green coffee beans” was introduced. Moreover, for generating revenue after the cost applied and expense is a key to the shop's sustainability. 

The concept is concerned with the internal and the external factors which play an integral role in stimulating the business environment for the organization and the product. As per the given scenario, Green coffee beans are the innovative idea which has been introduced for the coffee lovers and also to minimize the bad effects of consumption of coffee on the health of individuals in Melbourne. There are number of internal and external factors that are held responsible for stimulating the business environment and the demand and sale of the concerned product. There will be various positive and negative impacts on the products demand and value. The varied range of approaches can be adopted by “Caffe” and these approaches will aid in attaining the number of data and methods for developing the business. These methods will be proven beneficial in attaining a sustainable position in the market. For instance, for internal environmental analysis, the approach of SWOT analysis can be adopted, which will assist in getting aware of the strengths, weakness, opportunities, and threats of the product.

Marketing analysis is termed as an activity which generates awareness regarding the various conditions and aspects of the market. This research will enable Caffe with the relevant data and also determines the suitability of the marketplace for the particular product or the entity. This analysis will aid the entity in providing a holistic picture of the market in which the brand is interested in. For instance, a market analysis will aid in generating information about the market of Melbourne, the changing marketing trends, technological up-gradation etc. These aspects of the market will aid in developing and establishing the product in a new market region (Cmgpartners 2018). The next segment is customer analysis which will develop awareness regarding the various aspects and characteristics of the customer within the target market. This analysis has been considered as a critical component in each and every stage of growth for a new product and hence will be proven best for Green coffee beans in Melbourne. Customer analysis comprises of the buying patterns, income level, tastes and perceptions of the consumers. These elements are held liable for stimulating the demand for the product.

SWOT Analysis

The aim or the accomplishments expected by the business entity to be attained throughout the year are known as objectives. Business goals are the most integral part of a planning process. There is the diverse range of objectives established by a business entity and same are in the case for the Caffe in Melbourne and that is planning to introduce the new flavor of coffee. The below presented are the financial, marketing and other objectives for stakeholders:

  • Widening the profit margins up-to 35% as compared to the last year
  • Increase in returns on the capital invested
  • Growth in revenues and earnings by 50% each
  • Diversification in revenue base
  • Growth in market share and customer base by 35% and 30% respectively
  • Launching new flavors of coffee (Plewa, Conduit and Quester, 2016)
  • Increase of 50% in sales
  • Establishing strong relations with customers and other stakeholders
  • Launching revenue generation schemes
  • Offering the best flavor with quality and healthy components in coffee at one place to the customers

The concept is concerned with the various consumer segments which are targeted by the business corporation for advancing and establishing and promoting the brand equity in the marketplace. Caffe can develop consumer segments or the target market on the basis of the various components which are the most integral elements of the consumer segments (Marshall, Desborde and Thach, 2016). The below mentioned is the target market which has been developed on the basis of some variants such psychographics and demographics:

Demographics: This segment is one of an integral part of the target market and under this Caffe can segment the consumers on the basis of age, gender, income, ethnicity etc. Caffe can target mainly men and women between age 25-44 and young adults, aged 18-24.

Psychographic: Under this, the consumers can be segmented on the basis of their lifestyles, perceptions, interest towards the product etc. For instance, they can execute an analysis of the consumers who are coffee lovers and should focus on them and advertisements and promotions should be designed accordingly (Armstrong et al., 2014).

A set of plan or action or activities designed for promoting the products and services of a business firm are the marketing strategies (Sheth and Sisodia, 2015). This is the section of the business plan that outlines the game plan for attracting and attaining the customers. The below mentioned are the main components of the marketing strategies which are required to be developed by Caffe for attaining growth and success:

Caffe can develop brand equity by establishing distinct positioning statements. These statements will aid in attracting and attaining huge pool of consumers (Duermyer 2017). “Drink Organic, Live Well” is the positioning statement which can be used by Caffe for attracting the various segments. The positioning statement will develop a positive value in the mind of the consumers.

The product designed by the entity is an organic one and that has been innovated for keeping the individuals of Melbourne healthy (Armstrong et al., 2015). It is a new coffee flavor which is made up of Green coffee beans. At starting the coffee will be made available at the café which will be located at the popular places in the city of Melbourne. As the present era is more focused towards living a healthy life, the concept of organic coffee will be aiding Caffe in sustaining competitive advantage.

Market Analysis

Recommendations: Caffe should make use of attractive labeling such as the use of bright color themes while packaging and also the material used for packaging should be environmental friendly.

For providing quality services the business entity should focus on motivating, training and taking care of the employees or the staff of the coffee houses. Training sessions should be organized for the staff so as to make them adopt the customer service culture and thus ensuring a high quality for the customers. Moreover, proper motivation as per the performance of the staff should be provided that will enhance the dedication level of the staff towards the customer service (Armelini & Villanueva, 2011). The staff should focus towards the expectations and the requirements made by the consumers so as to deliver the high level of satisfaction.

The managers and the seniors at the Caffe will provide training sessions to the teams and the staff for updating the operations and procedures executed in the organization. Updating will aid the staff to bring development and this will also enhance the performance level. This all will directly affect the services provided by the staff to the customers and will fulfill their expectations.

The outlets and the coffee houses are considered as one of the most integral and valuable parts of the business and these factors aid the entity in attaining growth and success (Drucker, 2014). Caffe should develop and design an attractive ambiance for the customers so as to make them feel good. Layout of the coffee house should be spacious, everything should be arranged in a manner, staff should be in proper uniforms etc.

As the business entity is expecting to launch a new product so the penetration pricing strategy can be used by the business entity for attracting the customers on large scale. According to this pricing strategy, the business firm should keep the prices low at the initial stage and after establishing a customer base and attaining market share the prices can be increased accordingly. 

Distribution channels are the mediums through which the business corporation can make the availability of the products to the consumers. The business entity has limited options for making the products and services available for the consumers (Dorn and Suessmair, 2017). The physical outlets and the coffee houses are the only distribution channels through which the entity is offering the services. These are considered as the direct channels of distribution. 

Customer Analysis

The business firm can make various forms of promotions for widening the market share for the product. Caffe can make a distribution of coupons at public places such as train stations, distributing pamphlets, free samples can be distributed for promoting. Moreover, social media and other online platforms can be utilized for advertising the brand. Further, the business entity can also organize integrated marketing communication sessions so as to develop relations with the customers.

This operation is concerned with the implementation process of all the plans and strategies that are developed by the business entity for executing the business (Deakins and Freel, 2009). The below mentioned is the action plan which has been developed for Caffe so as to make practical implementation of strategies:


Starting date

End Date

Responsible Person

Related Department


Establishing new targets and mission statement



Managerial authorities

Management staff


Communication regarding the determined marketing goals and objectives



Managerial authorities

Management staff


Generation and innovation of ideas for decision making



Concerned experts from departments

Heads of departments


Developing substitute and alternative ideas



Marketing Executives

Marketing department


Making implementation of marketing tactics and plan



Managers and executives of marketing and advertising departments

Marketing department


Budget for Caffee


Amount ($)

Stock and Supplies






Lower Level Staff (15 Staff*$1,000)


Kitchen Staff (10 Staff*$2500)


Senior Staff (10 officials*$4500)




And at last the business entity is required to develop some strategies for monitoring and making control over the process and operations executed at the business entity. The management staff is held responsible for executing the monitoring and controlling practices. Various approaches and mechanisms can be adopted by the business corporation for monitoring and controlling the various aspects and operations within the organizational structure (Bruni, Gherardi and Poggio, 2014). For instance, for monitoring the performance of the employees the business entity can make use of KPI’s. For checking and controlling the quality of the products and services the firm can make use of the approach of TQM. For evaluating and assessing the results of the marketing efforts the business entity can carry out various surveys and researchers which will aid the entity in getting the data about the consumer’s attitudes and their behavior. Some preventive measures should also be adopted in relation to safeguarding the environment, such as reduction in food wastage, recycling etc. can be done.


Armelini, G. & Villanueva, J., 2011. “Adding social media to the marketing mix”, IESE insight, vol. 9, pp.29-36.

Armstrong, G., Adam, S., Denize, S. and Kotler, P., 2014. Principles of marketing. Pearson Australia.

Armstrong, G., Kotler, P., Harker, M. and Brennan, R., 2015. Marketing: an introduction. Pearson Education.

Bruni, A., Gherardi, S. and Poggio, B., 2014. Gender and entrepreneurship: An ethnographic approach. Routledge.

Cmgpartners, 2018, What is customer analysis, Assessed on 21st January 2018,

Deakins, D. and Freel, M.S., 2009. Entrepreneurship and small firms. McGraw-Hill College.

Dorn, T. and Suessmair, A., 2017. Determinants in Pay-What-You-Want Pricing Decisions—A Cross-Country Study. American Journal of Industrial and Business Management, 7(02), p.115.

Drucker, P., 2014. Innovation and entrepreneurship. Routledge.

Duermyer, R, 2017, Marketing strategy for home business success, Assessed on 21st January 2018,

Marshall, K.P., Desborde, R. and Thach, S., 2016. A Fine Arts Marketing Elective: Justification of Need and Proposed Course Content.

Plewa, C., Conduit, J. and Quester, P.G., 2016. Making a Difference Through Marketing. Springer Verlag.

Sheth, J.N. and Sisodia, R.S., 2015. Does marketing need reform?: Fresh perspectives on the future. Routledge.

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