The Baytown Coffee Company in Canada Analysis Essay

Nobody would argue with the fact that small business is a comprising element of macroeconomics. Small business does not necessarily mean that a corporate size is not enormous, while number of employees and turnovers are limited to a certain extent. Nevertheless, small business can expand itself in foreign market and address a global context of its performance. International performance presupposes entering some foreign market, which is why such process is considered to be a matter of international marketing. Many organisations deploy international marketing, but only a few firms manage to estimate a foreign market appropriately and perform successfully overseas. One of such companies is The Baytown Coffee Company. Thus, the following report of a case study demonstrates that a small company can enter foreign markets and establish a profitable performance.

PESTLE Analysis

A choice of the company can be justified by the fact that it manages to operate with relatively small number of employees and deliver products of high quality. Thus, the successful performance should be analyzed as long as the findings will provide valuable knowledge regarding best practices in small and medium marketing. The company focuses itself on unusual product positioning so that effectiveness of such marketing strategy could contribute much to the current knowledge of marketing in small and medium businesses. Moreover, product positioning is important not only to marketing strategy of The Baytown Coffee Company but also to the other aspects of the firm. Thus, a choice of the company is well-justified. At the same time, the company manages to produce certain social impacts. As a result, the influence on the entire success of the business has to be taken into account, as well. Regarding all the above-represented points, the company is particularly interesting for the UK market, which is why such relation can also be traced.

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Politics

To speak about a political factor of the company’s marketing strategy, no influence in political terms can be indicated. As a matter of fact, small business is not influenced by political changes, while medium and big companies can be affected by a certain political state within the country. In the same way, no recent political debates were observed regarding the issue of small businesses and coffee retailing industry. Small business is always protected by the government, which is why The Baytown Coffee Company has a strong political agenda. Such advantage can be traced not only in the United Kingdom but also in the majority of Western countries. Therefore, the firm may rely on a sufficient governmental loyalty in the country, as well as abroad (Abbott 2015). As a result, the political aspect of the company’s marketing is relatively positive as an appropriate political agenda is present for The Baytown Coffee Company on almost global level.

Economics

As for a factor of economics, a situation cannot be judged from a single perspective. A current taxation situation may occur to be comparatively difficult for the company as long as the country is facing certain problems in the national economy. In addition, the European Union is in a moderate adverse economic state so that such issues as employment, expenditures, investments, and purchasing capacity of potential customers are not mainly favourable for The Baytown Coffee Company marketing strategy (Leonard 2015). The current state of economics makes the company reconsider its strategic orientation and marketing strategy (Leonard 2015). In addition, the national market of coffee industry is facing a relative overgrowth so that a value of products is initially decreased. Conversely, the United Kingdom obtains a meaningful transportation system. Consequently, The Baytown Coffee Company has an opportunity to create a developed supply chain. Overall, economic situation is relatively dubious, which is why the firm has to pay a substantial attention to risk management.

Social Factor

In regards to a social aspect of The Baytown Coffee Company’s marketing strategy, a positive social trend can be admitted. Coffee is a popular drink and there is a global trend on it worldwide, since it is associated with being modern, trendy, and stylish. Moreover, the majority of workers, especially office employees, prefer drinking coffee as a way to energize them. Needless to say, such trend can be actively used for a better positioning of the company’s products. Coffee contributes much to a mass culture so that its branding, as well as positioning provides a sufficient space for creativity and ways to make the company noticeable. Thus, a social factor is extremely positive for The Baytown Coffee Company as long as it presupposes a wide range of marketing opportunities for the company (Stationery Office 2012). The trend on coffee seems to last for a long period, which is why the firm is ensured about its target segment to a sufficient extent.

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Technology

The Baytown Coffee Company has a meaningful expertise in coffee industry as long as some of its owners belong to the entire dynasty of coffee entrepreneurs. Therefore, the company has an opportunity to utilise various approaches to production, storage, and distribution of coffee. Moreover, The Baytown Coffee Company can establish an effective supply chain as it cooperates with many supplying companies worldwide. In such way, a well-developed technology is an obvious competitive advantage of The Baytown Coffee Company, which can be used for a foreign market entry as long as leadership in technology places the firm under more beneficial circumstances even in a market with a stronger competition (Schmid 2005). Besides, the organisation managed to create a simple but attractive website, which can potentially become a platform for an advanced e-commerce (Schmid 2005). Such opportunity is also useful for a market entry as the firm will receive an opportunity to present its products before their entry to a physical market.

Legal Factor

It is becoming increasingly apparent that The Baytown Coffee Company does not have any specific issues regarding the U.K., as well as international law. Such perspective, however, should be paid an appropriate attention to, especially in case The Baytown Coffee Company is planning to enter some foreign markets. As it has already been mentioned, a strong political agenda is ensured for a small business in the United Kingdom and in the majority of Western countries. As a result, The Baytown Coffee Company is not likely to face any legal limitations in the nearest future (Christiansen 2014). Therefore, a legal perspective does not imply any negative outcomes and unintended consequences.

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Environmental Factor

Concerning sustainability of the company, The Baytown Coffee Company can be regarded as entirely environmentally-friendly firm. It manages to develop a strategy of social, economic, and environmental sustainability. First of all, the industry of the firm presupposes a direct care for the environment as growing coffee plantations is obviously a positive impact on the environment (Marmol 2015). Likewise, The Baytown Coffee Company provides a meaningful workplace for many people with learning disabilities so that social sustainability is also gained. As long as the company establishes partnerships with international coffee suppliers, The Baytown Coffee Company contributes much to the economy of the countries that are represented by the specific companies. As a result, a complete sustainability of the firm’s performance is positively reflected in its marketing strategy as The Baytown Coffee Company is not limited by any environmental regulations and is always provided with a workforce (Marmol 2015). Hence, its production design is stable and capable of operating on a regular basis.

Comprehensive Discussion

The company is particularly interesting for a comprehensive analysis as it has many chances to enter a foreign market with is minimal number of employees and turnover. The firm includes only four workers, who are actual owners of the business. The company’s turnover ranges from 15 to 27 million Euros. It is a sufficient basis for entering Canada market as The Baytown Coffee Company is able to compete there and win a comparatively big share. In addition, the company potentially can expand itself overseas throughout providing some of English cuisine like muffins, scones, and various sorts of tea. Since it is a distinct cultural reference to England, it will be a strong product positioning at the Canadian market. In a similar manner, menu of the company can be expanded as horizontal growth is not sufficient for a foreign market entry (Hollensen 2012). The Baytown Coffee Company obtains enough experience to find the best matches to already traded coffee so that the entire product system could be created. Thus, the firm needs to enter the market, since it has all capabilities for a successful performance overseas.

However, production and distribution of new products may face certain issues from a legal perspective, which is why The Baytown Coffee Company needs to consider the international, as well as Canadian law. At the same time, the PESTLE analysis suggests that small business has a positive political agenda worldwide, which results in the fact that the firm is likely to experience minimal problems with contracting and shipment of its new products (Hollensen 2012). On the contrary, some products, such as cakes, muffins, and other bakery cannot be shipped to Canada. As a result, it is reasonable to open a coffee shop or an outlet (Hollensen 2012). The shop will have a competitive advantage because it is owned by a supplier so that delivery and availability will be always supported. In addition, it is a strong marketing method, since average people will be able to try the firm’s coffee and English cuisine. Needless to say, Canada implies certain opportunities for The Baytown Coffee Company due to the fact that a little evidence of English culture can be traced in Canada. Besides, specific climate conditions presuppose that people would like to drink coffee more often as this drink provides a warming effect. Thus, a target audience will be relatively wide in Canada.

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The choice of Canada market can be also justified by the fact that it is less demanding regarding legal perspective of a small business. For instance, the United States presupposes a wide range of licenses and standards for a small business even though it is attempting to promote it on the federal level. Canadian market is relatively loyal to a small business, and it is a particular benefit for the firm as it will need some official help. The government of Canada is also interested in attraction of foreign companies. Furthermore, the U.S. market is very wide resulting in the fact that The Baytown Coffee Company will face much more difficulties with competition due to the fact that coffee industry is extremely developed in the United States. Canadian economy is particularly oriented at heavy industry and technologies so that most of the business is presented with public enterprises. Canada obtains one of the most flexible environments for private businesses. Therefore, The Baytown Coffee Company will have an opportunity to perform there successfully, especially in regards to the fact that Canada also lacks small businesses and a size of coffee industry market is relatively small (Hollensen 2012). $785 million imports can be traced annually in Canada. Hence, the market entry is beneficial for the firm.

As it has been already mentioned, Canadian market is more attractive because it does not imply much of local competition. Thus, foreign competitors are placed in the same circumstances as The Baytown Coffee Company. The firm possesses distinct and strong competitive advantages, and Canadian market environment is favourable for the company’s performance. Nevertheless, the issue of currency difference can emerge. That is why, it is appropriate to operate Canadian branches with U.S. dollars as it is a widespread currency there, and the market is a potential platform for a further expansion of the company (Hollensen 2012). The Baytown Coffee Company may have multiple bank accounts for its Canadian and British branches. Consequently, it creates a situation when the difference in currency will not pose a difficulty to the company’s transactions. As a consequence, Canadian branches need to find smart and responsible managers. It is becoming increasingly difficult to ignore the fact that the managers have to be Canadian citizens. Moreover, it is desirable that they have certain experience in coffee business in Canada so that the foreign branches of The Baytown Coffee Company can be managed with the best judgement of Canadian coffee market.

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Staff recruitment is especially hard task for The Baytown Coffee Company as it does not involve any external workforce. That is why, the firm is recommended to hire some consulting organization for assistance in recruiting new employees for Canadian branches. Needless to say, the consulting firm has to be also Canadian. In spite of the assumption that big cities presuppose more investments and incomes for business, The Baytown Coffee Company should locate its first outlet is a small or medium city in order to learn about Canadian market environment and customer behaviour (Hollensen 2012). In addition, small cities do not imply a strong competition, which is not desirable for the first stage of the market entry. The costs for the branch opening should not exceed a specific margin that is supposed to be developed beforehand. Risk management should be also applied as The Baytown Coffee Company will be especially vulnerable at the period of the market entry (Hollensen 2012). Eventually, attraction of customers can be conducted throughout advertising, promotion in social media, and various initiatives as public degustation of coffee, contests, and any other public-oriented events.

In general, the paper has focused on a description and discussion of The Baytown Coffee Company marketing strategy and its potential to enter the market of Canada as a direct way to address a global context of its performance. Initially, the study has reported about PESTLE analysis that has covered implications on political, economic, social, technological, and environmental issues related to The Baytown Coffee Company. On the basis of the analysis, the paper has provided a comprehensive discussion of the firm’s possibility to enter Canadian market. The current section has given an account on such aspects as vertical growth of the firm, production and distribution, expansion within new market, and attraction of potential target audience. Overall, the study has managed to fulfil its purpose as long as certain findings have been identified. However, the paper has not formulated a distinct marketing strategy for the market entry in Canada, but the findings clearly demonstrate a certain tendency.

Thus, it is appropriate to make a general comment on the fact that Canadian market is obviously favourable for the expansion of The Baytown Coffee Company. The firm obtains all capacities for the market entry as long as it can provide original coffee and custom English cuisine. In addition, the firm can rely on its expertise in coffee industry and relative technological advantage gained throughout past experience. It is difficult to argue with the evident readiness of the firm to enter a foreign market. The market of Canada is especially convenient for the company as it consists mainly of foreign companies. Consequently, The Baytown Coffee Company will be placed in equal conditions with its key competitors. Moreover, The Baytown Coffee Company presents unique menu, and it is may be considered its strongest competitive advantage. Finally, the further study can be focused on a distinct planning of Canadian market entry for The Baytown Coffee Company.