Cafe Design and Business Plan

BUSINESS
ESSENTIALS

TABLE OF CONTENT
INTRODUCTION...............................................................................................................1
TASK 1...............................................................................................................................1
1. Reason to select Germany and justification of choice..............................................1
TASK 2...............................................................................................................................5
Marketing mix of the cafe..............................................................................................5
TASK 3...............................................................................................................................7
Implications of the need for Marvin and Smith’s to cover a wider geographical area in
terms of a different country. Considering its impact on the organisational culture and
personnel and managing staff issues of the following and show how these issues are
interlinked......................................................................................................................7
TASK 4...............................................................................................................................9
Using the given financial information, evaluating how their profitability and liquidity
may impact on decisions available to them...................................................................9
TASK 5.............................................................................................................................10
A concluding summary about the overall viability of overseas expansion at this stage
.....................................................................................................................................10
REFERENCES................................................................................................................12

INTRODUCTION
Business determines the opportunity for enhancing the economic condition of a
nation. This project has been carried to enlighten the expansion of a coffee shop by two
business partners namely Hank Marvin and Patty Smith. In order to expansion of their
enterprise, they are hereby required to select a suitable market to reflect an overseas
enlargement of their business (Rodrigues and Naidoo, 2016). This is basically in regard
to ascertain several opportunities in their undertaken business and design an
appropriate coffee shop in the selected marketplace. In this way, Marvin and Smith can
put additional services such as effective customer service and delivery, etc.
TASK 1
1. Reason to select Germany and justification of choice
Reason why Marvin and Smith need to select Germany
Germany is selected by Marvin and Smith to expand their coffee shop in an
overseas country. People of this nation prefers coffee that largely influenced both the
business partners to expand their business in this nation. There are several coffee
shops that already exists that will in turn reflects a beneficial consideration for Marvin
and Smith to make an effective business relation in a pertinent manner (Flanagan and
Alfonso, 2017). In Germany market, there exists several other coffee shops which is
referred to be a greatest opportunity for both the business partners to expand their
business in a successful manner. Hence, reasons for the selection of Germany are as
follows:
 In Germany, people are found to consume around 150 litres of coffee per year
which is more than beer, wine and mineral, etc.
 Every week, the consumption of coffee is around £1500 which is beneficial for
Marvin and Smith to earn more profit within the nation.
1

The following graph shows that Germany is the 2nd largest consumable market of coffee
after Australia. Number of cafe around the market is 306 on whose basis, Marvin and
Smith have hereby decided to expand their business in this particular area.
Logistic that the firm uses-
In order to expand the business, logistic consideration includes two types which
are inbound and outbound logistics. They are as follows:
Inbound logistics: This includes buying of material, resources and many other
elements from suppliers to manufacturers (Kakarot-Handtke, 2015). In order to make
coffee, there are beans as raw-material which can be purchase from Uganda with free
trade agreement with a prior role of suppliers in it to ensure a fair trade practice for the
same. Therefore, entity includes tariff and non tariff barriers that are being adopted at
2
Illustration 1: Graph of coffee drink in world
Source: (Tsui, Karam and Bernal, 2016)