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External Environment Analysis





Couche-Tard (n.d.) has stated its vision using the acronym PRIDE. “P” stands for the people or customers with which the company builds long-lasting relationships. “R” stands for results. “I” stands for improvement, which the company persistently seeks. “D” stands for development, which means growth and evolution. “E” stands for entrepreneurship and it means that the company’s managers think like its customers and act like entrepreneurs.

The vision of the company is to attain recognition as a global training partner of choice which enhances safety, productivity and preparedness. CAE highlights that they are unrivalled worldwide and are definitive drivers of training standards. Their virtual-to-live priming services are innovative and make flying safer, conserve defence force preparedness and enhance patient protection (CAE, n.d.).


Alain Bouchard (n.d.) says that the missions of Couche-Tard since its inception have been to make its customers’ lives easier, to offer them the products which they need and at the time they need them and to increase the company’s profits.

The mission of CAE is to mould the future of training. It desires that its people make a difference. The ultimate aim of CAE is to be the global training partner chosen by every relevant organisation in the fields in which CAE works (CAE, n.d.). They are proud of their mission and are committed to making a difference in the world by introducing safer air travel environments, facilitating defence forces in mission preparedness and contributing in the field of healthcare by training medical personnel in life-saving strategies.


Couche-Tard (n.d.) points out that the company is driven by a tradition of pride, a factor with which they serve their customers. Unity is a strong value within the Couche-Tard family.

The values of CAE involve making a difference in civil aviation, defence readiness and healthcare sector. They want to achieve their targets responsibly. CAE specifically focuses a great deal on teamwork and collaboration. The five main values of CAE are “One CAE”, “Empowerment”, “Innovation”, “Integrity” and “Excellence”.

PESTEL Analysis


According to (n.d.), there are various political environment and stability hassles. Fluctuations in fuel prices also affect road transportation.

CAE operates in 35 countries, so there are different political scenarios it faces. There is the risk of the tussle with the military of some nation CAE has its branch in. Corruption could also affect CAE’s business and the bureaucracy could also interfere in its operations.


Labour costs in Canada have increased, which means the company has to hire staff on higher wages than earlier. There are also some economic growing views.

The different types of economic systems in the different countries CAE has its offices in affects its business. Similarly, government intervention in industrial goods also has a significant impact.


Health and wellness are being focused more on in Canada. Locally produced products are preferred by people.

The demographics, culture and whether the population is skilled or not matters to CAE in the country it operates in.


Artificial Intelligence (AI) and robotics are starting to be used in retails supply chain. The company is heavily investing in new technology. (n.d.) has mentioned that the role of technology is vital to CAE and it is always adopting new technology. The role of technology influences CAE aerospace and defence products and services.


Canada’s laws and regulations are strict. Some products are banned for sale like single-use plastics, facial scrub and microbeads among other things (Sharma, 2018).

Weather, climate change, laws related to environmental pollution and waste management among other factors have significant impacts on the organisation.


Canadian laws are stringent in the sense that retail supply chains cannot sell products which harm the environment like products containing microbeads (Kirmse, 2018).

Intellectual Property (IP) laws, discrimination laws and health and safety laws must be adhered to by CAE in Canada as well as the other countries in which it operates (Murphy, 2018).

Porter’s Five Forces

Competition in the Industry (2019) has highlighted that since there is a remarkable competition within the supply chain industry, Couche-Tard has taken steps in the direction to improve its services.

The market for aerospace/defence products and services has intense competition. CAE can drive away from this competition by constructing sustainable differentiation as well as by collaborating with competitors to increase the market size.

Potential of New Entrants into the Industry

The company is always innovating and revamping its older methods and services to counter the threat of new entrants in the market. (n.d.) has mentioned that pressures of innovation and novel ways of operating are put on CAE as now entrants are introduced to the market.

Power of Suppliers

The main supplier is Core-Mark International Inc. (Market Publishers, 2020). The company is working towards meeting the ever-growing demands of its customers. The company has to haggle for low rates.

CAE has numerous suppliers for the different raw materials that it procures. Suppliers have the power to decrease the margins of CAE. A solution to this could be building strong and efficient relationships with the supply chain players.

Power of Customers

Since people can buy from anywhere, given the vast size of the supply chain market, Couche-Tard is expanding its reach by opening new stores.

Buyers always want to pay as minimum as possible. This can be tackled by having a huge customer base.

The Threat of Substitute Products

This threat is considerable. Couche-Tard is taking the necessary steps to meet the demands of its clients.

Competition from similar products and services makes the profitability of the industry suffer. CAE can tackle this by being more service-oriented than just being product-oriented.

References for The Couche Tard and CAE Companies Analysis

Bouchard, A. n.d. Founder’s message. [Online]. Available at: [Accessed on September 24, 2020].

CAE. n.d. About CAE. [Online]. Available at: [Accessed on September 24, 2020].

CAE. n.d. Careers. [Online]. Available at:,helping%20medical%20personnel%20save%20lives. [Accessed on September 24, 2020].

Couche-Tard. n.d. Our culture. [Online]. Available at: [Accessed on September 24, 2020].

Couche-Tard. n.d. Vision. [Online]. Available at: [Accessed on September 24, 2020].

Eddu Saver. 2019. The Couche Tard and CAE companies. [Online]. Available at: [Accessed on September 24, 2020].

Fern Fort University. n.d. CAE Inc. PESTEL & environment analysis. [Online]. Available at: [Accessed on September 24, 2020].

Fern Fort University. n.d. CAE Inc. Porter five forces analysis. [Online]. Available at: [Accessed on September 24, 2020].

Kirmse, N. 2018. Most toiletries with microbeads no longer for sale in Canada. [Online]. Available at: [Accessed on September 24, 2020].

Market Publishers. 2020. Alimentation Couche-Tard Inc. Fundamental company report including financial, SWOT, competitors and industry analysis. [Online]. Available at: [Accessed on September 24, 2020].

Murphy, F. 2018. CAE Inc. PESTEL & environment analysis. [Online]. Available at: [Accessed on September 24, 2020].

S & P. 2020. Couche Tard SWOT and PESTLE analysis. [Online]. Available at: [Accessed on September 24, 2020].

Sharma, C. 2018. These products are now banned in Canada. [Online]. Available at: [Accessed on September 24, 2020].

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