Business Essential: Market Research, Marketing Mix, Implications, Financial Statements

BUSINESS ESSENTIAL
ADVANCE

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1. Market Research of European Nation ....................................................................................1
2. Marketing Mix........................................................................................................................2
3. Implication that are faced by Marvin and Smith’s coffee-shop..............................................3
4. Interpretation of financial statements......................................................................................5
5. Summary.................................................................................................................................7
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Business is an economic activity which is concerned with regular and continuous
production and distribution of goods and services for satisfying human needs and wants.
According to Dicksee “ It refers to a sum total of all activities related with purchase of goods and
services with the main objective to earn profit as well”. Marvin and Smith is famous coffee shop
in Wandsworth, South London. It was opened by Hank and Patty in January 2016. After gaining
popularity in London, they have decided to expand their business operation in another European
Union country. This report mainly talks about what all factors Hank and Patty taken into account
while expanding their business operation in Germany. Further it also discuss about its marketing
mix, interpretation of financial accounts and overall summary regarding viability in international
expansion.
TASK 1
1. Market Research of European Nation
According to the given case study, Hank and Smith are together working with food and
catering sector from last so many years. After gaining much experience in this sector, they both
have decided to open their own-coffee shop in South London. They spent near about 12 months
for researching and planning the details regarding their coffee shop. This include choosing best
location, identify target market, figure out initial capital requirement, key competitors, selecting
best supplier and so forth (Anderson, Sweeney and Williams, 2011).
After gaining popularity in London, they both are looking forward to expand their
business operation in another European Country so as to increase its market share and gain high
competitive edge in overseas market. After doing the research part they have decided to open up
their coffee-shop in GERMANY. The main reason for choosing this particular country is
approx. 86% of Germans adult drink coffee on regular basis and moreover, each year large
number of tourists are visiting the country which can be taken as an advantage as it aid
increasing overall sales of coffee in Germany. According to the study in 2016, it has been figured
out that an average German consumes about 1.43 cup coffee per day (Bradford, 2015). Germany
is the biggest exporter of processes coffee product. The country stand out in domestic coffee
roasting process and has a large and efficient coffee processing industry which proves out a big
opportunity for Hank and Patty. Along with that, Germany is the 3rd largest coffee market in the
world after Brazil and United States.
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