Business Expansion of Hank and Patty

Business Expansion
of Hank and Patty

Table of Contents
Question 1: Selection of nation for Marvin & Smith’s Coffee Shop’s expansion with
justification.............................................................................................................................1
Question 2: Tailored Marketing Mix for expansion of Marvin & Smith’s Coffee Shop in
Spain.......................................................................................................................................2
Question 3: Key factors while gaining entry into Spain and ways to tackle emerging issues3
Question 4: Profitability and Liquidity Ratios affect decision making of Marvin & Smith. 4
Question 5: Feasibility of Marvin & Smith’s Coffee Shop’s expansion on global level.......7
REFERENCES................................................................................................................................8

Question 1: Selection of nation for Marvin & Smith’s Coffee Shop’s expansion with justification
Marvin & Smith’s Coffee Shop has the intention of carrying out expansion into one of
the countries which are a part of EU looking upon the need to facilitate growth and development
of the entity in today’s hyper competitive market place (Martinez-Toledano and et. al., 2019).
With respect to this, it is recognised that Spain is a lucrative market for the respective coffee
shop as it has extensive coffee consumption culture. Further, a number of factors have been
taken into consideration by Marvin & Smith to select Spain as the market for expansion for Hank
and Patty:-
Spain is an impeccable location for coffee consumption as a large proportion of audience
within this nation are inclined towards consuming coffee on a regular basis. People hereby are
equipped with knowledge about all types of coffees that are available in market and thus demand
from the coffee shops in accordance with their preferences (Morales and Devesa, 2017). The
extensive likelihood of people towards consuming coffee has led to a rapid increase in number of
cafes within this region within last some years. Spain over the course of time has emerged as one
of the most prominent and largest exporters of coffee worldwide.
It is further analysed that the coffee culture within the confines of Spain owes its
existence and rapid development to national culture and history. In past, freedom fighters used to
accumulate in cafes and discuss strategies for rebels (Yang and Yaoyungyong, 2020). Also, cafes
are preferred by youngsters because of the soothing and pleasant environment that is provided
within its confines. Further, a significant proportion of population of Spain like roasted coffee
owing to which the concept of cafes has become prominent with the passage of time.
Looking upon the growing coffee market and its evidential statistics, the government of
this nation demands cafes to maintain sustainability certificates obtained from Fairtrade,
Rainforest Alliance and many more. Out of the total population which consumes within Spain, it
is found out that almost 82% people possess likelihood towards consuming it within cafes only.
Thus, the research done by the entrepreneurs of Hank and Patty has equipped them with
knowledge regarding the rapidly growing coffee culture (Santos‐Álvarez and García‐Merino,
2018). This is why Spain has been selected as the country for carrying out expansion. Further,
Savelle has been chosen as the place to locate the outlet as the people within this city are driven
by the need to consume roasted coffee on a regular basis. Being a populous city, this acts as a
lucrative market for Hank and Patty to carry out geographical expansion and thereby attain rapid
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