Having completed the tables on the economic performance of the UK and China you can now write the magazine article.
Give the article a title.
Have an appropriate graphic or picture to attract your reader.
Start with a brief history of Costa Coffee.
Explain that Costa operates in the UK and a number of overseas markets including China.
Describe how current economic conditions in the UK and China have created certain challenges for Costa.
Use the information you have collected in the tables for this section.
Costa Coffee in the United Kingdom
What challenges for Costa does the following chart show?
If this occurs again in the next quarter (three months) the UK economy will officially be in a recession.
What does this mean for a business like Costa Coffee?
How should the business respond?
Use the headings in the picture below to explain the actions Costa Coffee could undertake to react to a slowing economy.
Although the UK economy is performing weakly you discovered unemployment is currently at very low levels.
How might this be a problem for a business like Costa Coffee that needs to regularly recruit staff because of very high labour turnover in the hospitality industry?
One of the factors leading to inflation in the UK is the fall in the value of the pound following the Brexit referendum result.
Costa Coffee must buy coffee on international markets in dollars.
How might the business respond to the challenge of a fall in the value of the pound?
Costa Coffee in China
Although China's economy is slowing it is still growing at an impressive rate.
Here the challenge for Costa is to maximise the business opportunities this economic growth will bring.
Although the Chinese economy is slowing it is still growing at a relatively impressive rate.
How should Costa respond to the challenge of a growing Chinese middle class who are attracted to western brands?
Should Costa expand its operations in China?
Where should it locate new stores and why?
Full article here.
You discovered that interest rates were very high in China.
How could Costa Coffee deal with this challenge if it needed funds to expand the business?
Inflation is higher in China than the
UK.
Explain that if prices are rising Costa will have higher costs.
Staff may
want a pay rise.
What might happen to prices in Costa Coffee stores?
