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Business Case Study on Marvin and Smith Expansion Strategy

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Added on  2020-01-23

Business Case Study on Marvin and Smith Expansion Strategy

   Added on 2020-01-23

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Business Case Study
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TABLE OF CONTENTSINTRODUCTION...........................................................................................................................31) Country for business expansion and structural challenges .....................................................32) Marketing mix ........................................................................................................................43) Implications of need for wider geographical area ..................................................................54) Impact of profitability and liquidity .......................................................................................75) Overall viability of overseas expansion .................................................................................9CONCLUSION................................................................................................................................9REFERENCES..............................................................................................................................112
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INTRODUCTIONBusinesses sight an opportunity to expand when excess of profits are acquired and theowners explore modes of investment. Any strategy would work in global markets if its uniqueand socio-culturally acceptable. This report will help in creating an understanding regarding thedifferent aspects which need to be evaluated before implementing business expansion strategy.The uniqueness of coffee shop of Marvin and Smith has led them acquire huge profits. In thisreport, the feasibility and viability of Paris as the future destination for expansion of Marvin andSmith's coffee shop has been provided. 1) Country for business expansion and structural challenges Marvin and Smith have been earning huge profits through their coffee shops in London.Their need of business expansion can be fulfilled if targeted location is France, specifically Paris.The geographical conditions of the place attract a lot of tourists from across the globe. Thiscountry is a member state of European Union, business expansion will become much more easierdue to flexibility in legislations provided by the EU constitution (Huang and Sarigöllü, 2014).Before implementing a strategy, it is important to understand entire environment of the placewhere target customers exists. Paris is one of the renowned tourists destination with large travelturnover every year. The taste and culture of people residing in France is inclined towards artisticcreations and fashion. Logical considerations: Market exposure and aim of expansion for a small scaleenterprise can be easier if near by countries and places are targeted. Paris has a population ofabout 18.5% of the total citizens in the country. This depicts that large number of opportunitiesfor store expansion in Paris itself can be sighted by Marvin and Smith, once the business isestablished and growing. The transportation facilities in this place are very efficient withconnectivity to suburbs and near by cities (Peter and Donnelly, 2011). Moreover, an internationalairport is situated in the city which makes it easier for gathering raw materials from Africa. Ethical considerations: Culture and society is something that changes from place toplace. Every country has its own set of rules and regulations which need to be followed bybusiness organisations while delivering their products and services (Gordon, 2012). The ethicalconsiderations for business expansion in France include acceptance of products given by Marvinand Smith's coffee shop. Since, this business is based on ethical working and loyalty of3
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employees, the chance of unfair or illegal activity is minimum. Henceforth, there is no problemin ethical acceptability of the company. It is important to note that there may be certain businesspractises in UK which might be offending in France. Therefore, it is important to analyse andimply those strategies which are respectful for the consumers of targeted country. Other ethicalconsiderations include human resource management and employment legislations (Luan andSudhir, 2010). All the rules and regulations of coffee shop must be in accordance with nationalpolicies and labour laws of France and EU.Structural challenge of expanding: The major structural challenges which can be facedby the company while developing the business expansion strategy are Keeping up the market,maintaining cash flow and finances, effective problem solving and correct use of skills andattitudes (Armelini and Villanueva, 2011). It is possible that business of Marvin and Smith mightnot function in France due to lack of stability. Ineffective labour or inappropriate cash flow canbe some dominant structural challenges. Henceforth, a full-grown action plan must beimplemented for getting a clear view of the structural challenges which can hinder progress inthe near future. All these considerations and challenges which have been described in this report, depictthat Marvin and Smith should expand their business in France and specifically in Paris so thatmore profit share and market recognition is obtained. 2) Marketing mix Marketing mix is a principle tool that is used for implementing efficient and effectivemarketing strategy by the company (Powers and Loyka, 2010). There are 4Ps which comprise ofthe marketing mix. Marvin and Smith's coffee shop expansion plan when aided with thismarketing mix can help in gaining better customer share and also accomplish the aims andobjectives of the company.Product: The product is a coffee shop with different varieties of ethnic coffees and someshort meals. Marvin and Smith have developed their business on the principles of ethicalworking which has helped them in gaining a brand reputation within short time span. Theattribute that has attracted customers over London is innovative theme and a different taste incoffee (Chan, Finnegan and Sternquist, 2011). The use of authentic raw materials in the coffee4
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