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Assessment 5


The environmental factors affecting Gloria Jean’s coffee are mainly competitors, financial needs that involve creditors and consumers or customers.


Specific Environmental Factors

Competition between Gloria Jean’s Coffee and other market players have been fierce leading to their collision and each doing the best they can to get the greatest market share. The market of Malaysia consisting of a population of coffee drinking people provides a favorable environment for this kind of competition. Financing the business has been a real challenge for Gloria Jean’s Coffee and recently the ministry has announced to support the franchise industry and offer financial assistance in form of loans and charge very low interest rates. Consumers have been another environmental factor that has affected Gloria Jean’s performance. The growing trend among the population of coffee drinking has fuelled the emergence of many coffee brands hence fuelling competition and emergence of copy cat brands. Gloria Jean’s Coffee has however been striving to remain competitive and continues to provide a good mixture for their customers. Also, like most of their competitors, they are connected to WIFI enabling their customers to enjoy coffee as they are connected to the world. Suppliers have also contributed and this is because recently, Gloria Jean’s Coffee has introduced delivery boys who act as suppliers to customers living or working within close proximity. This supply strategy has proved to be very effective especially to the working population. Suppliers in the franchise business are very important in any transaction and any poor planning could devastate the sales of an organization (Neblett 2005 pp. 104).

General Environmental Factors

The political environment has also played a part in influencing the performance of Gloria Jean’s coffee. Berhad is government agency Perbadanan Nasional responsible with the role of developing the franchise industry. This shows the involvement of the government in the franchise industry. The processes of gaining certification are also hectic and long. Economic factors like the recession that affected Malaysia are said to contribute to Gloria Jean’s performance. Global crisis impacts consumer willingness to buy more and goes for alternative and affordable options (LisaBrown 2010, pp12). Social cultural factors include the population’s values and beliefs. The growing culture of coffee drinking in Malaysia has been of benefit to Gloria Jean’s Coffee. Globally, it has diversified into international markets and technologically, the organization has been developing positively. This factors need to be considered by the managers as part of the growth strategy of Gloria Jean’s Coffee.


Responding to customer’s suggestions as a localization strategy should be used to respond to such factors. The customer’s reaction can be very encouraging or discouraging and their views need to be considered (Barbara 2001, pp. 14).Catering for the young market, Gloria Jean’s coffee will experience increased levels in the present and the future. Keeping the customers engaged and finding out what appeals to them is another factor that should be considered by management (Nies and Natter 2010, p.49).Gloria Jean’s Coffee has realized that thermal mugs appeal to the young customers and hence should be catered for. Obtaining loans is another strategy that can be employed. Gloria Jean’s coffee should also strive to remain competitive and maintain the quality of their coffee. To compete in such an environment with so many players in the market offering similar products, this is the best way to remain in the market and maintain customers. Obtaining Halal certification is also important in gaining the trust of consumers. Also, the potential in the development of halal products is tremendous (Issa et al. 2009 p, 53).Consumers demand towards halal food has tremendously increased and this certification is thus vital. Managers of Gloria Jean’s coffee should respond to the environmental factors in such a manner so as to secure today’s and the future’s profits.


Barbara, S 2001, ‘E-Complaining: A Content analysis of an internet complaint

Forum’, The Journal of Services Marketing. vol. 15, no.4 p. 14-16.

Issa et al. 2009,’Practices of Food Producers in Producing Halal Food Products in

, Malaysia’ Interdisciplinary Journal of Contemporary Research in Business. vol.1, no.7. pp 53-55.

LisaBrown M 2010 ‘Ethical Supply Chains-The New Black’, Economic

Recession Journal, vol.21. no. 2 pp13-14

Neblett, J 2005, ‘Environmental Factors Affecting Firm’s Ability to Compete: A

Retail Perspective’, Environmental Factors Journal, vol. 7, no. 1, pp.102-

Nies, S. & Natter, M 2010, ‘Are Private label users’ attractive targets for retailer

Coupons?’ International Journal of Research in Marketing vol.27, no.3 p.49-50.