Koi Cafe

Free Essay Database Online

Koi Cafe

KOI Cafe


KOI Cafe is a bubble tea franchise that was first established in Taiwan in 2006 with a focus on product development and innovation. A year later, KOI Cafe’s first overseas store was opened in Singapore. KOI Cafe aims to turn Taiwanese teas into a global heritage by presenting their authentic beverages all over the world. With plans to keep Taiwan’s heritage of premium bubble tea alive, they make sure that their beverages are made with consistent controlled quality and standardized preparation processes. KOI Cafe perceives the importance of giving careful attention to specifics with their products. The tea leaves are specially imported from the Alishan and Nantou mountains in Taiwan for their thickness and aroma. To maintain its consistency and quality, the tea is made by hand individually before serving to their consumers. The company continuously developed and has become an established international brand. (KOICafe, 2012)


2.1General Environment Analysis

A PESTEL analysis is used to analyze and monitor external factors relating to a business scenario and how these factors will influence the performance and activities of an organization in the long-run. It is often used in collaboration with other analytical business tools such as the Porter’s Five Forces to give a clear understanding of a situation and related external factors. (LLC, 2015)

2.1.1Political factor

The political factor determines the degree to which the government may affect or impact the economy or a specific industry. (LLC, 2015) Analysis shows that with the honest government leaders and little disputes among them, Singapore is politically stable. Back in 2013, Singapore faced problems with employment rates as many companies turned to foreigners from Singapore’s neighbouring countries that come in search of jobs in Singapore who are willing to work efficiently even while minimally paid. (Soh, 2013)

However, these problems were tackled politically by introducing foreign worker levy for S Pass and Work Permit holders as well as taxes. Foreign workers are then required to be paid a minimum set amount depending of which sector they work for. This provides a stability of job opportunities between locals and foreigners.

Regulations on hygiene standards are imposed to ensure that food are hygienic and safe for consumption. Since Singapore is well known for its wide range of food, policies like these help it retain its good reputation to satisfy. (Government of Singapore, 2013)

KOI cafe, being within the F&B (Food and Beverage) industry, requires a lot of manual and physical labour; these jobs are usually taken quickly by foreigners in the past as a common objective was to find a place to work in Singapore.

However, due to the previously mentioned policies that were established, KOI Cafe now has a well maintained balance of employees who strive for it to grow.

2.1.2Economic factor

Singapore, being a vast, fast developing country, it is one of wealthiest countries, and it has the highest per-capita income in ASEAN. (Economics, 2015)

Since it is always developing, citizens face problems such as labour shortages and the rising standard of living. This makes the need for a high paying job very strong. As for business sectors, this makes profiting a challenge.