Analysis for coffee shop in Colorado

Analysis of a coffee shop

Introduction

In order to conduct business successfully it is immensely important that an entrepreneur takes into account all the factors relevant to make an investment decision (Wadhwa, 2008). In this era, where markets are dominated by large number of competitors both local and foreign, investment decisions must be made with great care. A thorough analysis must be made considering all the relevant factors to find out whether investing in the desired market is feasible or not. For this purpose an environmental analysis must be conducted to find out whether opportunities for investment in the market exist or not. On the converse, such analysis also helps to figure out the potential threats if any, exist in the market. If there are any opportunities identified such analysis would help the business to further chalk out the strategies to invest.

Environmental analysis for a coffee shop in Colorado

The environmental analysis includes an analysis of the political, technological, economical, legal and cultural aspects of the market in which the investment is required to be made. This analysis would help to determine the opportunities and threats in the market and enable the entrepreneur to decide about the investment according to the feasibility of the market.

Economic analysis

The economy of Colorado is progressing as a drop in the unemployment rate is being witnessed in the state. According to a survey of businesses. Conducted nationwide a total of 2.3 million jobs were obtained by people during the months of March and April (AP news, 2013). This clearly shops that more inventors are coming to the region to make use of business opportunities. In rest of the areas the economy of Colorado mirrors the US economy. According to an estimate, in the ongoing year the revenues earned from sales tax will exceed the one in 2008 in Colorado. Moreover, Colorado will keep on to be a famous place to visit and live. Accommodation and food services sector will continue to enhance due to good snow in the region, effective promotion of the tourism industry, and due to increase in population. It is also estimated that the population will grow by 77500 in the ongoing year. This increase in population will be mainly due to an increase in the construction and manufacturing sectors and also due to an increase in the employment services as more workers are being called in by the companies. However there appears an apparent lack of the creation of new firms. Moreover, as Europe is a key trading partner of Colorado, recession being experienced in some parts of Europe may have the potential to affect the demand of goods and services in Colorado (Colorado Economic Forecast, 2013).

Political analysis

As the Latino population is increasing in Colorado due to immigration from other US states apart from a change in the demographics a change in the political landscape is also observed. The state is moving towards democratic state reliable in politics. The main reason behind the increase in the Latino voters in the ...