Management Report on KAFFEINE Cafe

AS1 Management Report

Contents
INTRODUCTION.......................................................................................................................................3
ORGANISATION/INDUSTRY/TOPIC AREA IDENTIFICATION.........................................................4
DATA COLLECTION AND ANALYSIS..................................................................................................4
LITERATURE REVIEW............................................................................................................................9
To explore the importance of expanding business for an organization at global level.............................9
To determine the strategies that may use by company for its business expansion at international level 10
To analyses challenges preset at global level for KAFFEINE cafe while expanding their business
operations globally................................................................................................................................12
GROWTH STRATEGY PROPOSAL.......................................................................................................14
REFERENCES..........................................................................................................................................16

INTRODUCTION
While running a business management is an essential element because it is considered to
be the backbone of the company. If the management is good than company can achieve all its
objectives and goals without having any severe problem but if the management is poor than bad
consequences can be faced. Therefore, it could be said that management includes a set of
activities which helps in directing the action with an effective use of resources available. This
undertaken report is done on KAFFEINE which is an independently owned café. Company is
truly inspired by the coffee culture of Australia and New Zealand thus, considering this they
started their own business in United Kingdom. The Café is situated in the two important
locations of London and providing its services to its valuable customers. Henceforth, this report
will provide with an insight of the external and internal analysis of the markets area so that
company can develop marketing strategies and grab the opportunity for getting into a better
position as compared to rival firms. Moreover, based on this factor a growth strategy proposal
will be developed. Thus, this report will include various range of criteria that are important for
management in an organization.
ORGANISATION/INDUSTRY/TOPIC AREA IDENTIFICATION
For the 20 consecutive years, coffee shop sector in UK has been developing and this
growth is projected to continue. In 2018, UK branded coffee shop industry expanded by 5.8%,
with 1,300 new shops opening from across country. Unauthorized companies concentrating on
coffee sales, in contrast to several other beverages or healthy meals, are part of coffee shop
industries. Sector success is driven through economic and social factors such as rise in real
disposable households, coffee tastes over the alternative social settings and increased customer
demand in coffee mixtures and origins (Schembera, 2018). In recent times it has been solid,
backed by increased demand, as culture of coffee between customers is increasingly prominent
UK coffee sector reported overall sales of £7.2 billion in 2017, reflecting an average annual
increase of 7% in the period 2012 to 2017. UK coffee sector is estimated to have an employee
compensation of £2.5 billion in 2017, representing 68 percent of estimated total GVA in 2017.
An approximate 10.1 billion UK pounds was available on United Kingdom (UK) coffee shop

market in 2018. Coffee industry sector has remained resilient and believe coffee industry will do
much stronger than its predicted UK GDP. These forecasts make coffee store a strong investment
in chaos. Coffee store sector continues to expand with a high level of coffee market price every
year. In 2020, UK coffee shop sector would be vital year as operators deal with Brexit
ramifications, try to leverage the M&A activities of 2019 and retain consumer loyalty in a highly
competitive market.
DATA COLLECTION AND ANALYSIS
Internal analysis
Resources within the organization
Resources are necessary for performing the business in an effective manner. Under this,
VRIO analysis has been used. VRIO is a framework for business analyzes that is part of a
broader strategic plan for a company. The fundamental strategic process that each organization
undergoes starts with a declaration of vision which continues with goals, internally and
externally evaluations, policy choices or strategic execution. The different dimensions of VRIO
analysis of KAFFEINE café mention below:
Valuable- Through a strong presence in United Kingdom, a corporation is an important
commodity for growing its growth, revenue and market share. It is a smart way for current and
established customers to gain more money (Bryson, 2018).
Rare- KAFFEINE café is largest coffee business in United Kingdom. Although other
multinational coffee chains exist, KAFFEINE café is biggest.
Inimitable- No competitor can gain a global presence in short term. This will take
tremendous time and money.
Organization- This skill is widely used by KAFFEINE café. It retains the customers by
providing the high quality of services and better products.
Evidence of entrepreneurial orientation