Founded in Trieste, Italy, Illy marketed a unique blend of coffee drinks in over 140 countries and in more than 50,000 of the world's best restaurants and coffeehouses. The company wanted to expand the reach of its own franchised coffee bar, Espressamente, through international expansion. Potential markets included Brazil, China, Germany, Japan, India, the United Kingdom and the United States. In addition to market selection, mode of entry was vital and included options such as exporting, franchising and joint venture. This case provides a practical example of the challenges faced in international business.
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Case Analysis of The Espresso Lane to Global Markets
The Espresso Lane to Global Markets is a Harvard Business (HBR) Case Study on Strategy & Execution , Texas Business School provides HBR case study assignment help for just $9. Texas Business School(TBS) case study solution is based on HBR Case Study Method framework, TBS expertise & global insights. The Espresso Lane to Global Markets is designed and drafted in a manner to allow the HBR case study reader to analyze a real-world problem by putting reader into the position of the decision maker. The Espresso Lane to Global Markets case study will help professionals, MBA, EMBA, and leaders to develop a broad and clear understanding of casecategory challenges. The Espresso Lane to Global Markets will also provide insight into areas such as – wordlist , strategy, leadership, sales and marketing, and negotiations.
Case Study Solutions Background Work
The Espresso Lane to Global Markets
case study solution
is focused on solving the strategic and operational challenges the protagonist of the case is facing. The challenges involve – evaluation of strategic options, key role of Strategy & Execution, leadership qualities of the protagonist, and dynamics of the external environment. The challenge in front of the protagonist, of The Espresso Lane to Global Markets, is to not only build a competitive position of the organization but also to sustain it over a period of time.
Strategic Management Tools Used in Case Study Solution
The The Espresso Lane to Global Markets case study solution requires the MBA, EMBA, executive, professional to have a deep understanding of various strategic management tools such as SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.
Texas Business School Approach to Strategy & Execution Solutions
In the Texas Business School, The Espresso Lane to Global Markets case study solution – following strategic tools are used - SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.
We have additionally used the concept of supply chain management and leadership framework to build a comprehensive case study solution for the case – The Espresso Lane to Global Markets
Step 1 – Problem Identification of The Espresso Lane to Global Markets - Harvard Business School Case Study
The first step to solve HBR The Espresso Lane to Global Markets case study solution is to identify the problem present in the case. The problem statement of the case is provided in the beginning of the case where the protagonist is contemplating various options in the face of numerous challenges that Coffee Espressamente is facing right now. Even though the problem statement is essentially – “Strategy & Execution” challenge but it has impacted by others factors such as communication in the organization, uncertainty in the external environment, leadership in Coffee Espressamente, style of leadership and organization structure, marketing and sales, organizational behavior, strategy, internal politics, stakeholders priorities and more.
Step 2 – External Environment Analysis
Texas Business School approach of case study analysis – Conclusion, Reasons, Evidences - provides a framework to analyze every HBR case study. It requires conducting robust external environmental analysis to decipher evidences for the reasons presented in the The Espresso Lane to Global Markets.
The external environment analysis of The Espresso Lane to Global Markets will ensure that we are keeping a tab on the macro-environment factors that are directly and indirectly impacting the business of the firm.
What is PESTEL Analysis? Briefly Explained
PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in The Espresso Lane to Global Markets case study. PESTEL analysis of " The Espresso Lane to Global Markets" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.
How to do PESTEL / PEST / STEP Analysis? What are the components of PESTEL Analysis?
As mentioned above PESTEL Analysis has six elements – political, economic, social, technological, environmental, and legal. All the six elements are explained in context with The Espresso Lane to Global Markets macro-environment and how it impacts the businesses of the firm.
How to do PESTEL Analysis for The Espresso Lane to Global Markets
To do comprehensive PESTEL analysis of case study – The Espresso Lane to Global Markets , we have researched numerous components under the six factors of PESTEL analysis.
Political Factors that Impact The Espresso Lane to Global Markets
Political factors impact seven key decision making areas – economic environment, socio-cultural environment, rate of innovation & investment in research & development, environmental laws, legal requirements, and acceptance of new technologies.
Policy Making Impact on The Espresso Lane to Global Markets
Government policies have significant impact on the business environment of any country. The firm in “ The Espresso Lane to Global Markets ” needs to navigate these policy decisions to create either an edge for itself or reduce the negative impact of the policy as far as possible.
Data safety laws – The countries in which Coffee Espressamente is operating, firms are required to store customer data within the premises of the country. Coffee Espressamente needs to restructure its IT policies to accommodate these changes. In the EU countries, firms are required to make special provision for privacy issues and other laws.
Competition Regulations – Numerous countries have strong competition laws both regarding the monopoly conditions and day to day fair business practices. The Espresso Lane to Global Markets has numerous instances where the competition regulations aspects can be scrutinized.
Import restrictions on products – Before entering the new market, Coffee Espressamente in case study The Espresso Lane to Global Markets" should look into the import restrictions that may be present in the prospective market.
Export restrictions on products – Apart from direct product export restrictions in field of technology and agriculture, a number of countries also have capital controls. Coffee Espressamente in case study “ The Espresso Lane to Global Markets ” should look into these export restrictions policies.
Foreign Direct Investment Policies – Government policies favors local companies over international policies, Coffee Espressamente in case study “ The Espresso Lane to Global Markets ” should understand in minute details regarding the Foreign Direct Investment policies of the prospective market.
Taxation & Regulation Impact on The Espresso Lane to Global Markets
Corporate Taxes – The rate of taxes is often used by governments to lure foreign direct investments or increase domestic investment in a certain sector. Corporate taxation can be divided into two categories – taxes on profits and taxes on operations. Taxes on profits number is important for companies that already have a sustainable business model, while taxes on operations is far more significant for companies that are looking to set up new plants or operations.
Tariffs – Chekout how much tariffs the firm needs to pay in the “ The Espresso Lane to Global Markets ” case study. The level of tariffs will determine the viability of the business model that the firm is contemplating. If the tariffs are high then it will be extremely difficult to compete with the local competitors. But if the tariffs are between 5-10% then Coffee Espressamente can compete against other competitors.
Government Scheme & Subsidies Impact on The Espresso Lane to Global Markets
Research and Development Subsidies and Policies – Governments often provide tax breaks and other incentives for companies to innovate in various sectors of priority. Managers at The Espresso Lane to Global Markets case study have to assess whether their business can benefit from such government assistance and subsidies.
Consumer protection – Different countries have different consumer protection laws. Managers need to clarify not only the consumer protection laws in advance but also legal implications if the firm fails to meet any of them.
Political System & Stability, and its Impact on The Espresso Lane to Global Markets
Political System and Its Implications – Different political systems have different approach to free market and entrepreneurship. Managers need to assess these factors even before entering the market.
Freedom of Press is critical for fair trade and transparency. Countries where freedom of press is not prevalent there are high chances of both political and commercial corruption.
Corruption level – Coffee Espressamente needs to assess the level of corruptions both at the official level and at the market level, even before entering a new market. To tackle the menace of corruption – a firm should have a clear SOP that provides managers at each level what to do when they encounter instances of either systematic corruption or bureaucrats looking to take bribes from the firm.
Independence of judiciary – It is critical for fair business practices. If a country doesn’t have independent judiciary then there is no point entry into such a country for business.
Government attitude towards trade unions – Different political systems and government have different attitude towards trade unions and collective bargaining. The firm needs to assess – its comfort dealing with the unions and regulations regarding unions in a given market or industry. If both are on the same page then it makes sense to enter, otherwise it doesn’t.
Economic Factors that Impact The Espresso Lane to Global Markets
Social Factors that Impact The Espresso Lane to Global Markets
Technological Factors that Impact The Espresso Lane to Global Markets
Environmental Factors that Impact The Espresso Lane to Global Markets
Legal Factors that Impact The Espresso Lane to Global Markets
Step 3 – Industry Specific Analysis
What is Porter Five Forces Analysis
PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in The Espresso Lane to Global Markets case study. PESTEL analysis of " The Espresso Lane to Global Markets" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.
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