Macro Environment

'Totality of economic factors such as employment, income, inflation, interest rates, productivity, and wealth that influence the buyer behavior of consumers and firms.' (www.businessdefinition.com)

Old Town White Coffee business was equally focused on its three-in-one coffee mix retail business, which started a decade ago, and the food and beverage chain, which took off in 2005,

Being the pioneer white coffee brand with roots in Ipoh, the Old Town White Coffee brand at present has about 40 per cent of the market share for the white coffee mix retail market. The rest is believed to be shared by more than 20 other brands. The expansion of the Food&Beverage business was based on three models -- fully owned outlets, joint ventures and licensing. Their strategy was to expand as fast as possible to capture market share.

During economy crisis, Old Town White Coffee is still making money. The price of foods for Old Town White Coffee are cheap and reasonable, as a result the profit is not decreasing. Promotion of breakfast set or set meal help a lot in profit gaining because the price is cheaper than other restaurants

The Economic conditions affecting old town white coffee company in easiness or difficulties is to be successful and profitable at any time because its affect both capital availability and cost, and demand, hence, customers play a very important role in organizations in gaining profit.

Computer order system: The operation of OLDTOWN White Coffee is implemented the computer order system. After the customers wrote the orders, workers will key-in their orders through the computer order system for sending the orders into kitchen. Then, workers will print out a receipt for customers about their orders which are processing. While the kitchen received the orders, then cook the meals for customers. To retrieve the record or data in computer order system, they can access the bill which is paid by customers effectively and efficiently. Through computer order system, they can handle and offer customer services effectively and efficiently.

At a time where technology is overtaking almost all aspects of business, Old Town White Coffee has also welcomed changes in this area. A key example is the touch screen system used for sending orders to the kitchen, and POS system for the payment.

3. Political and Legal environment

As part of the macro forces of the external environment, the political and legal factor affects a business. In Old Town White Coffee, this element is applied through its nature of business and its industry, food and beverage industry.

3.1 Political

'The basic understanding of the political legal environment is when the government implement's laws and or regulations which affect the way a business operate.'(www.answer.com)

In Malaysia, competition of the food and beverage industries