The Great Cups of Coffee Company Internal Analysis

Core Competencies

The Great Cups of Coffee Company (GC3) possess distinctive competencies that have the potential to provide the company a valuable competitive capability. The Pittsburg training group is one of these competencies. The training group, although narrowly focused, is superior. The Pittsburg training group has created a training that develops high customer satisfaction. Designing a way for this training to be transferred and applicable to the other GC3 locations could provide a competitive advantage for the organization.

Another distinctive competency that the organization possesses is the marketing approaches that derive out of the Chicago location. The Chicago locations have been successful with couponing and are able to utilize the ad agencies located in the city to their advantage. Capitalizing on the marketing initiatives of the Chicago division could also prove to be a competitive advantage for GC3.

Along with the successful marketing department in Chicago and the training department in Pittsburg, both divisions possess strong HR departments. Utilizing the HR departments in each location as strategic partners in order to achieve the goals of the organization is yet another way GC3 can be competitive in the coffee industry. However, the current corporate structure may not be conducive to allowing the HR departments to function to their utmost capabilities.

Economic Indicators

It is vital for the GC3 Executive Team to recognize the economic indicators that may impact their business. The coffee industry is subject to change relative to the economy. These types of economic forces can impact the competitiveness of a coffee retailer. One powerful economic challenge many retail coffee owners are facing is the price of coffee. Prices hit a 34-year high in the spring of 2011. Additional price pressure is evident as the demand for premium beans is increasing. When prices of coffee increase, owners have to determine how much is passed on to the customer (Demetrakakes, 2011). This decision could impact coffee consumption at the GC3 locations, and is a force that must be considered and contemplated carefully by the Executive Team.

Internally, there appears to be economic indicators that the company needs to manage in order for the business to continue to grow. Over the past two years, the company has experienced a decline in earnings with the growth rate of their top lines dwindling. They also have difficulty accessing their working capital, which could prove detrimental in the future. Resolving these economic indicators internally will greatly benefit GC3.

Competitive Advantage

GC3 does possess some resources that would assist in their competitive advantage; however, developing capabilities that would utilize these resources so they are not replicable is an area of need.