Business Management and Strategic Management

Running head: BUSINESS MANAGEMENT AND STRATEGIC MANAGEMENT
Business management and strategic management
Name of the student
Name of the university
Student ID
Author note

1BUSINESS MANAGEMENT AND STRATEGIC MANAGEMENT
Table of Contents
Executive summary....................................................................................................................2
Task 1 – Forecast of cash flow, budgeted statement of profit and loss and balance sheet........2
Task 2 – Report..........................................................................................................................2
Introduction................................................................................................................................2
Discussion..................................................................................................................................3
Products and services.............................................................................................................3
Marketing strategy.................................................................................................................3
Operations and logistics.........................................................................................................5
Financial strategy...................................................................................................................6
Alternative business strategies...................................................................................................7
Conclusion..................................................................................................................................7
References..................................................................................................................................8
Appendix..................................................................................................................................10

2BUSINESS MANAGEMENT AND STRATEGIC MANAGEMENT
Executive summary
Main purpose of the report is to evaluate the feasibility of the coffee business stated
up by 2 retiring lecturers in Openshaw that is close to TMC and UCENMCR campus. Te
report will consider the liquidity, gearing and profitability factors for assessing the business’s
feasibility. For doing this it will prepare the statement of cash flows, budgeted statement of
profit and loss and the balance sheet of the business for period of 12 months with the help of
the given information. Financial years for the purpose of assessment will be taken from
January 2018 to December 2018.
Task 1 – Forecast of cash flow, budgeted statement of profit and loss and balance sheet
Refer to the excel sheet for above projection
Task 2 – Report
Introduction
Coffee bar that will be opened in Openshaw will be owned by 2 retiring lecturers.
Coffee bar will be opened at nearby to TMC and UCENMCR campus. Partners of the
business are under the process of negotiation regarding small seating unit outside, for ground
level with the developer and competitive rent for the period of 1st 12 months that has already
been offered. Further, it is noticed that the entrepreneurs has acquired the license already for
selling the alcohol (Burns and Dewhurst 2016).

3BUSINESS MANAGEMENT AND STRATEGIC MANAGEMENT
Discussion
Products and services
Various products those will be offered by the business best taste coffee beverages that
will use high standards quality. Along with this it will also offer brewed coffee, espresso
drinks and refreshment beverages, sand witches and small salads. Further, it will also offer its
customers with pastries and will sell coffee beans (Brinckmann et al. 2018). The coffee bar
will have built around coffee based on espresso like mochas, cappuccinos and lattes. Espresso
based drinks will be provided with skimmed, whole or soy milk. Further, the espresso shots
will be combined with the steamed milk or other additives such as caramel or cocoa.
Marketing strategy
The business will cater to the people who are in needs of getting the daily cup of
coffee under relaxing atmosphere. The customers differ in age and as the coffee shop is
nearby the campus it is expected that majority of the customers will be from the faculties and
college students. As per the research it is recognized that these customers are gravitate
towards the better tasting coffee. Further, most of the students from college consider the
coffee bars convenient for meeting with friends where they can get a comfortable ambience
with a cup of coffee (Pasqual, Padilla and Jadotte 2013). It will offer unique possibility for
establishing loyal client base. Marketing strategies of the business will be as follows –
 Launching with adequate funds – once plan of the business is prepared for starting up,
the owners must have adequate funds for covering up the initial costs. This will
decrease the risk level and will start business with strong customer base (Khan and
Guruli 2015).
 Talking to potential customers – if potential customers are identified they can be
personally contacted for assessing the appropriate demand. However, if demands of