Hank Marvin and Patty Smith | Business Essentials Assignment

Added on -2020-02-12

| 12 pages| 3448 words| 72 views

Trusted by 2+ million users,
1000+ happy students everyday

Showing pages 1 to 4 of 12 pages

BUSINESS ESSENTIALS
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................11........................................................................................................................................................1Justification for choosing Germany for expansion..........................................................................12........................................................................................................................................................2Marketing mix.............................................................................................................................23. ......................................................................................................................................................3Implications of need for Marvin and Smith to cover geographical area.....................................34........................................................................................................................................................5With the help of financial information, determines profitability and liquidity which createimpact on decisions.....................................................................................................................55........................................................................................................................................................6Summary about overall viability.................................................................................................6CONCLUSION................................................................................................................................7REFERENCES................................................................................................................................8
INTRODUCTIONBusiness demonstrates various activities and actions through which they can achievemarket share and profits. There are different types of advertisement techniques which are usedand that assists to make effective cultural environment (Demil, Lecocq and Zott, 2015). Presentstudy is based on a case scenario in which Hank Marvin and Patty Smith work together toestablish coffee shop industry. Thus, they are analysing market to assess requirement forenhancing their business. To focus on this report, it covers research of country in which bothperson can expand their operations. Furthermore, it includes marketing mix, which relates to theexpansion of coffee shop. Moreover, it also describes financial information, which evaluatesprofitability and liquidity having impact on decisions available with them. 1.Justification for choosing Germany for expansionFrom the provided scenario, it shows that Marvin and Smith's coffee shop has beenexpanding its business in London and around areas within one year only. This shows that thebusiness is going really well and therefore they are making plans to expand its business in othernation as the financial condition of shop is good. It is recommended that quoted coffee shopshould expand its business in Germany. There are many reasons for which Germany is advised tocited coffee shop. The market of this shop has witnessed an increase in turnover of about 2.2percent yearly during the past five years (Liberles, 2012). It is anticipated the yearly averageoutlet growth for coffee shops will be to level at 1.1 percent. Along with this fact, the Germanconsumers are becoming increasingly ambulant and they want convenient places to get a goodcoffee. This is an excellent opportunity for quoted coffee shop to expand its business in thoseareas, which have high footfall or in traffic hubs. There is an increasing trend, which is movingfrom traditional filtered coffee oriented culture to more diverse and experience oriented. Chainedas well as independent outlets along with bars, cafes, smoothie bars, specialist coffee bars areanticipating to give their contribution in the growth of the sector as Germans desire to see cafesand bar as a catchy, affordable price methods of eating and drinking when they are outside ofhome (Grund and Breeksema, 2013.). Apart from these individual factors of Germany, whichwill be a great opportunity for cited organisation, there are certain trends and challenges alsowhich the cited firm will have to face while planning its expansion. It has to do business with1
adequate cross-cultural awareness. If this is not taken into account, then it might be at risk. Theculture and values of German business organisation are in the roots of their economic success,which can be a reason for cross-cultural confusion or misunderstanding for the chosen coffeeshop to do business in Germany. Along with this, the German business people prefer to interactin a direct way. They give their viewpoints and opinion in straightforward nature and expectsame behaviour from the other people (Kolk, 2013). They do not like humour and prefers not tobe used in business. Therefore, cited firm has to be aware that it would be inappropriate andunprofessional to use humour in business deals. They have to be aware regarding this cross-cultural difference otherwise it will be very blunt and undiplomatic. Also, registration ofproperty in Germany is negatively affected by bureaucrats. The cited firm has to get an extractfrom Land registry and notarise transfer agreement before getting release of pre-emption rightsfrom municipality and pay transfer tax. This may take about 40 days in completing it (Morris,2013). 2.Marketing mixTo expand Marvin and Smith's coffee shop in Germany, it can take use of standardmarketing mix or adopt the marketing-mix, which is suitable in Germany to carry out thebusiness activities (Lilien and Grewal, 2012). The cited coffee shop can apply the belowmentioned marketing-mix, which will be facilitating the expansion plans in Germany:Product: The basic concept of marketing says that the firm will be able to sell productsmore if it has an aim of fulfilling the wants and desires of its target market. But, if quotedfirm expands its business in Germany then, it has to take into account several factors suchas the cultural background of customers, their religious beliefs, purchasing habits andpersonal disposable income level. Under some situation, chosen coffee shop has to adaptits marketing mix strategies and products for meeting the needs and wants of locals thatcannot be changed (Noori, 2015). It has to make modification in its offerings according tothe preferences and tastes of local people. If the mentioned coffee shop takes use ofstrategies of standard products along with customised products, it will work very well forits expansion plans in Germany.2

Found this document preview useful?

You are reading a preview
Upload your documents to download
or
Become a Desklib member to get accesss

Premium

$45

Q&A Library Access

Chat support

12

Document Unlocks

4

Answer Unlocks

Students who viewed this