Threats are the external conditions available that deny a firm the chance to achieve its objective. In case of Cafe Nero, the main threat is increasing competition. As new firms enter the market, the market share for Cafe Nero is being reduced. This means that in the end Cafe Nero may be faced with decreasing revenue as well as profit margins.
In addition to this, an increasing regulatory framework that may make it hard for the industry to charge exorbitant prices while at the same time paying peanuts to the primary producers of the coffee.
The pestle analysis is the macro-environment analysis of factors that may affect the decisions that managers take on behalf of the companies. The pestle involves the political, economic, social, technological environmental and legal environments.
In case of Cafe Nero the political factors that have an impact on the firms operations include the use of the euro and enlargement of the European Union. These two factors have helped to ease operations as the EU has become larger, increasing the market while at the same time unifying the currency to ease transactions.