Essays on Implementation of PESTLE in Tchibo Case Study

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The paper "Implementation of PESTLE in Tchibo" is a great example of a business case study. The Tchibo entity or company started in 1949 as a coffee business. The business idea for Tchibo arose from the need to provide the German people with coffee; this is because Coffee had become scarce after the ending of World War 2. The company begun was started by Max Herz and Carl Tchilling-Hiryan. The company, which started off with selling of coffee locally expanded when they started selling the product by mail order.

This was a major innovation step by the company and in 1955; these two gentlemen opened a coffee shop. This was the first of its kind in the country as customers could either buy coffee or drink it in the shop. The company started to expand rapidly and had 77 coffee stores by 1958. By 1970, the coffee shops were offering products to go along with the sale of coffee. This included items like cans and coffee mugs. This was stopped by a law passed in 1972 that prevented the provision of free samples by businesses.

To counter this, the company started putting up these products for sale in their stores at low prices. To increase the range of products offered to their customers, they started offering non-food products too. In 1987 the company formed partnerships with normal retailers like supermarkets. This enabled it to sell its products in these businesses where they owned and managed these shelves. The company took another step in 1966 by selling goods online. In 2008, the company established Tchibo ideas where customers could actively interact with the company by offering suggestions and solutions to be implemented by Tchibo.

The company, therefore, has a three-pronged hold on the German market with the presence of Tchibo shops/stores providing coffee services and products, Tchibo depots in supermarkets that provide consumers with Tchibo merchandise and the Tchibo online service. This paper analyzes the entrepreneurship shown by Tchibo through the platform of Tchibo ideas. Literature review The development of Tchibo since its inception has taken different twists and turns until its emergence as a big force in the retail and service industry.

It has been faced with challenges and threats while pursuing different ideas and opportunities that have been presented by the existing market. SWOT Analysis A SWOT analysis of Tchibo provides an opportunity to study and analyze the strengths the company possesses, its weaknesses that can be exploited thus leading to its decline, the opportunities the company has been presented with and the threats facing the growth of the company. A SWOT analysis evaluates the possible risks that can affect the company’ s future operations. It provides insights into an organization past and helps develop solutions to those problems in existence or those that have not yet arisen but are potential risks (department of agriculture, 2009; Pahl and Richter, 2009).

Nedeljakova (2007) argues that risk is twofold and it projects either an opportunity or a threat to an organization. Once a threat to the business has been identified, measures are developed to mitigate the effects of these threats. They can be reduced, reduced or directly absorbed so that its effects become negligible. The probability of occurrence of opportunities and threats depends on the environment the company operates in.

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