CAGE Analysis

Introduction

Recently, the coffee industry has experienced increased consumer spending who are driven by the availability of higher income which is disposable and the greater outlook of the economy. Coffee demand has increased in higher rate compared to other food services segment. The consumer usually looks for an affordable price and high quality where they can get their materials. This has led to the company to change its preferences for customers especially those who have diet and health complications. The situation has called for expansion of the industry so as to cater for various demands. Export of coffee has alone accumulated to $20 billion dollars and it is mostly consumed by industrialized countries. Boca Coffee Beans is a company in the United States which is based in Boca Raton. We do sell roasted coffee through a website. We are currently looking for a potential market so as to expand our company. The paper conducts a CABE analysis on two potential markets through comparison and contraction with United State.

Cultural analysis

United Kingdom does not have a defined national language though English is considered to be the main language since it is spoken by more than 70% of the population in the UK. Other native languages in the country include Irish, Welsh, Cornish, Ulster Scots, British sign language, and Gaelic. Immigration has mostly contributed this into the country.  United state is only made up of two languages mainly English and Spanish. United Kingdom ethnic composition comprises of largely white of which 83.6% are English, 8.6% Scottish, 4.9% Welsh, 2.9% Northern making about 92.1% of the white people. Blacks in the United Kingdom makes up 2%, Pakistani 1.3%, Indian 1.8%, mixed 1.2% and others 1.6% (Matthew 2014). United State is made up of largely White of various races. Other ethnic groups that hold a substantial percentage include blacks and Asians (Thomas, 2011).

The most popular religion in the United Kingdom is Christianity which holds 71.6% which includes Anglicans, Presbyterian, Roman Catholic, and Methodists. Muslims hold 2.7%, Hindu 1%, others 1.6% and the unspecified group 23.1%. United state also has more Christians that includes the Protestant, Roman Catholic, Mormon, other. Also, the country has Jewish, Buddhist, Muslim.

On the other hand, United Arabs Emirate official language is Arabic. Due to immigration, the county has other languages such as Hindi, English, Filipino, Farsi and Urdu. Islam dominates the country religion in all life aspects. Most of the people in the country are of the Sunni sect. Matters relating to inheritance, divorce, marriage, politics, personal conduct, and economics are usually affected by Islamic law commonly known as Sharia. The Emirates also embraces another region like Christian and Hindu by allowing them to have their places of worship (Forstenlechner, 2010).

Administrative analysis

The United Kingdom was under the leadership of India for some years before they began colonizing other countries in the different continents. However, the United States were colonized by Britain. United Kingdom is composed of a parliamentary democracy monarch in the constitution which is headed by Queen Elizabeth II. The constitution of the country is not set in a single document. The constitution of the country is made up the combination of practices and laws which are not enforceable legally but are considered important to the government working. United State has a single constitution which stipulates as the processes of the government (Matthew 2014).

The regional trading bloc of United Kingdom includes BRICS, ADB, ASEAN, UNESCO, WHO, WTO, UN. Through these blocs, the country has been at the forefront of ensuring that it establishes itself in the market. On the other hand, United States trading bloc includes ADB, NAFTA, UN, UNESCO, WHO, WTO.  Lord Chancellor heads the judiciary in the government where law administration rests in him. Wales and England, North Ireland and Scotland have different legal systems which have minor differences in organization, law, and practice. Both countries also use different currencies. United Kingdom currency is pound while that of the United States is the dollar. Both countries have a colonial tie since British colonized United State (Thomas, 2011).

UAE is a member of WTO. It is considering entering into the agreement with other blocks so that it can be considered. The country has a federal system that includes the council of ministers, supreme council, federal national council and a parliamentary body. The system also has a federal supreme court. The currency of the country is United Arab Emirates Dirham (Forstenlechner, 2010).

Geographical analysis

The United Kingdom is made up of four countries that include Wales, England, Scotland and Northern Ireland. The land area of the region is 2330,500 sq. kilometres that are equivalent to 89,000 square miles with additional 13,986 sq. kilometres in North Ireland were making it be the most populated densities in the Western World.  The country lies mostly at Labrador latitude in western Atlantic (Matthew, 2014). The climate of the country is usually tempered by the stream of Gulf and do not experience summer heat extremes or the cold winter. Except for some small region that with barren bog and upland, most of the area is suitable for agriculture practices and was cultivated and grazed since before. The vegetation of the country comprises of woodland of mixed oak, but most of the terrain is already cleared for shipbuilding, smelting of the charcoal or agricultural use. United States has an area of 3.797 million sq. metres. The country plays host for 50 states that cover a large area of North America with Alaska in Northwest point, and Hawaii extends the presence of the nation to the Pacific Ocean. The country is navigable due to presences of various harbours in the shores of the ocean. The climate of the region varies across the country. In the southern states, they are usually humid and hot in plains and dry and hot n southwest (Thomas, 2011).

The shortest distance between the United States and the United Kingdom is 4,255 miles which are equivalent to 6,848 kilometres through the air travel commonly known as the birds fly. When one travels by plane with an average of 560 miles per hour, it will take an average of 7.6 hours for one to transverse between the United Kingdom and the United States with a direct flight (Thomas, 2011).

The United Arabs Emirates covers 83,600 sq. kilometres which are equivalent to 32,278 so miles. The country is located in the Persian Gulf also known as Arabian. The country shares the border with Qatar, Oman, and Saudi Arabia. The country has seven emirates that vary with size. For example, Abi Dhabi has 85% of the land, and the smallest is Ajman. Every emirate in the country is named according to its capital city. Most of the inland area of the country is mostly a desert that is served by oases. Most of the land is barren with mountain running. The country has a dry climate with high humidity and temperature during summers. The distance between USA and UAE is estimated at 7,822 miles (Forstenlechner, 2010).

Economic

The United Kingdom has a policy of free market economy. In the world, the country is ranked thirteenth based on the economic index of 2015. By the United Kingdom, the country is also ranked the sixth largest economy in the world. The GDP per capita of the United States per the record of the World Bank stands at 41,787.47 USD and the gross domestic product at 2.678 trillion USD.  The country is also experiencing an annual growth of the economy at 1.7%. Most of the cities in the country have standard infrastructures. The human resource in the United Kingdom is composed of both high cost and low cost depending on the skills that one needs (Matthew 2014).

Recommendation

United State embraces the policy of open market economy that allows the country to transact business with all countries, and this would make it a good choice for opening up new businesses. The gross domestic product of the US is at US$16.77 trillion as per the World Bank. The gross domestic capita of the country stands at US$ 53,041.98. The country also has annual GDP growth of 2.2%. The human resource in the country is of the high cost since all the people involved in various jobs within the country are educated and skilled. The country also has good infrastructure network across the states (Thomas, 2011).

United Arab Emirate has a competitive, free, and open policy. The GDP per capita of the country is US$ 43,048.85 and the gross domestic product stands at US$ 402.3 billion. The country has an annual growth of GDP at 5.2%. The country has good infrastructures across the country (Forstenlechner, 2010). And while they may have an open business policy, the UAE is partial to businesses, especially those owned by people of non-Arabic nationality.

I recommend that for our company to prosper, we need to consider investing in the United Kingdom. This is easier since there are various protocols to follow when investing in UAE. One of the reasons is that UAE does not have the ant free trade agreement with United State. But for the United Kingdom, both countries have strong trade ties. Also, in consideration of the regional trade, United Kingdom is better suited (Matthew 2014).  It is also near to export our product to the United Kingdom since it is near than in UAE considering the distance difference.

 

References

Forstenlechner, I. (2010). “Workforce localization in emerging Gulf economies: the need to fine-tune HRM.” Personnel Review 39(1): 135-152.

Freedman, N.; Park, Y.; Abnet, C.; Hollenbeck, A.; Sinha, R. (2012). “Association of Coffee Drinking with Total and Cause-Specific Mortality”. New England Journal of Medicine. 366 (20): 1891–1904.

Thomas H. (2011). Changes in the Distribution of Income among Tax Filers between 1996 and 2006: The Role of Labor Income, Capital Income, and Tax Policy. Washington, D.C.: Congressional Research Service.

Matthew T. (2014). “‘The UK has the fastest-growing economy, International Monetary Fund says’“. The Telegraph. London.

Related Essay Examples

Add a Comment

Your email address will not be published. Required fields are marked *