Expansion of Marvin & Smith's Coffee Shops in France

Business Essential

Table of Contents
Question 1:.......................................................................................................................................1
Overview of coffee shop and rationale to choose a specific country for expansion..............1
Question 2:.......................................................................................................................................2
A tailored marketing mix in relation with coffee shop expansion plan in overseas market. .2
Question 3:.......................................................................................................................................3
Key factors that Marvin & Smith need to consider for expansion of coffee shop in abroad. 3
Question 4:.......................................................................................................................................5
Financial information of Marvin & Smith's Coffee Shops.....................................................5
Question 5:.......................................................................................................................................8
Overall summary of viability of overseas expansion of Marvin & Smith's Coffee Shops....8
REFERENCES................................................................................................................................9

Question 1:
Overview of coffee shop and rationale to choose a specific country for expansion
After successful opening of two cafes in London, Marvin & Smith plans for an overseas
expansion of business, by opening one or two outlets in European market within next three
months (Ozuem, Howell and Lancaster, 2019). These partners have first time launch cafe in
London market, with investment of £100,00 capital through personal loans, with effective
business plans in terms of quality of coffee products which are sourced from Fair-trade registered
Foundation in Eastern Uganda, relaxing environment, extra accommodations and more. Potential
of these entrepreneurs can measure by fast opening of two more outlets in just a gap of 3 to 6
months (Khoo, 2019). Along with this, coffee shop of these entrepreneurs has a strong ethos to
promote fair trade and equality, where it concerns more on buying coffee beans from those
farmers who have grown the same ethically. So, measuring the ability of business, it is
recommended to Marvin & Smith to open new outlets in one of the famous market of EU i.e.
France. It is third-largest nation of Europe and second most populated one, where having a
strong economic condition, shows high level of income (Tournois and Forterre, 2019). France is
also a home of multinational or foreign companies. Therefore, considering France as top FDI
recipients in EU, opening outlet of cafe will prove beneficial for Marvin & Smith to gain high
profitability.
Marvin & Smith entrepreneurs currently focusing on targeting the tourists because they
demand more for East-African inspired coffee shops, which are themed with evenings (Vijayan,
2019). In this regard, France market seems to fit for them, because it is also known as leading
tourist destination of the world which helps Marvin & Smith in reaching out its targeted audience
easily. Other factors that make this place best location for opening of new cafe outlet, includes
labour, facility costs, transport, utility costs and corporate tax. These start-up costs as compared
to other 20 globalised countries is much low, where within 7 days, foreign entrepreneurs can
easily start their businesses (Liu, 2019). France also allows access to over 500 million
consumers, who are able to purchase good quality of products on any costs (Why Start a
Business in France, 2020). Moreover, the highly qualified and trained labours of France gives
opportunity to present cafe owners to get skilled workforce, for achievement of its objectives.
Similarly, other factors which shows importance of opening business for foreign companies are
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