Marvin and Smith's Expansion Business

Business Essential

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
1. Choosing EU nation for the firm for expansion ................................................................1
2. Producing tailored marketing mix for the business............................................................2
3. Outlining issues faced by the coffee shop..........................................................................4
4. Impact on decisions by evaluating profitability and liquidity position..............................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Business runs to earn profit and initiate growth for expanding to more locations to
maximise profits. Present report deals with Marvin and Smith's coffee shop which has existing
coffee shop in London and is planning to expand in France in order to earn profits and satisfy
customers. France is chosen for expansion purpose as coffee drinkers are more in quantum which
will be able to fruitful for firm to earn profits. Marketing mix is provided along with financial
ratios so as to analyse financial performance of firm. Moreover, issues which will be faced by
business in new location and its impact are also explained. Hence, overall analysis of expansion
is made for the coffee shop so that they may expand and garner desired profits.
1. Choosing EU nation for the firm for expansion
Business starts it operations in order to serve the society. It further helps to earn profits in
good quantum when quality products are supplied by business. Marvin and Smith's coffee shop
which has earned enough recognition and good customer base in London is planning to operate
and expand in France as it is the highest coffee consumption nation in EU. It will eventually help
firm to garner more customers and profits would be magnified quite effectually. In an research, it
has been identified that France has the largest ratio of coffee beans consumed by the people
which paves the way for Marvin and Smith's coffee shop to expand its market and earn desired
income. As per recent reports published by ICO (International Coffee Organisation), it has been
clarified that consumption pattern of France is 5.1 kg per capita per year which is being
identified in the biggest coffee drinkers in the world. However, Finland tops the chart.
It can be clarified that Marvin and Smith's coffee shop will be able to garner enough
profits and may attain good market share (Hair, 2015). French people have strong preferences for
perfect blend of coffee beans and consumes high proportion of Robusta coffee beans. This
variety alone consists of almost 50 % of the market in France. Expresso flavour of ingredient is
made in relation to the Robusta beans have effectively undergone significant change. They prefer
such type of coffee beans which makes it the highest coffee consumption nation particularly in
EU. Imports to France are also significant as in 2014, nearly 83 % of imports were being made
by all the developing nations. The rates have been increased on average annual consumption
which signifies that it is the most highly coffee consumption country.
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The ethical considerations in France are remarkable as people thinks about raw material
and further, cares about society up to a high extent. Location will be in main city which means
that more of customers will be attracted and sales will be increased up to a major extent. The
structural challenge of expanding to France is nothing as licenses can be obtained in a better
way. In accordance to the chart, it can be analysed that coffee drinkers be it instant or roast
flavour will increase quite significantly (Per capita consumption volume forecast of coffee in
France from 2010 to 2021 (in kilograms). 2018). The estimates in coming years are crucial as
Roast coffee would reach to 3.66 in 2019, 3.68 in next year and further would increase to 3.7 in
2021 as forecasted. Instant coffee will also be injected in coming three yeas as 0.59 in 2019
would be achieved. In 2020, 0.60 mark would be crossed and 0.61 in next period will be
obtained. By considering all logical, social, ethical elements and statistics, it can be said that
Marvin and Smith's coffee shop will be able to attain desired goals.
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Illustration 1: Consumption estimate per kg in France Source: statista.com