Business Model Design and Performance Analysis

This assignment provides a comprehensive analysis of business model design and its impact on mobile startups' performance. It explores the lean startup approach versus traditional business planning methods and examines the role of employment by industry in Hobart's economy. The assignment also includes SWOT analysis, PESTLE analysis, and Porter's Five Forces competitive position analysis. Detailed statistics and industry reports are provided to support the analysis.

BUSINESS MODEL
PROPOSAL

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
Business concept:.........................................................................................................................1
Vision and mission......................................................................................................................1
Product and services:...................................................................................................................2
Competitor analysis.....................................................................................................................2
Market analysis:...........................................................................................................................5
Marketing mix...........................................................................................................................10
BUSINESS CANVAS MODEL....................................................................................................13
OPERATIONAL PLAN................................................................................................................17
SWOT........................................................................................................................................17
PESTEL.....................................................................................................................................19
Organisational structure:............................................................................................................23
Ecosystem analysis:...................................................................................................................26
FINANCIAL PLAN......................................................................................................................27
CONCLUSION..............................................................................................................................30
Ecosystem analysis of business and competitors.......................................................................31
REFERENCES..............................................................................................................................31

INTRODUCTION
“Coffeerito Cafe” have been planning to refurbishing a previously existing shop to convert it into a café. It has been determined
by the professionals that there would be a barista station as well as a wine craft beer bar. It has been proposed by the professionals that
they will initiate this set-up in Hobart Tasmania. It will be a family run business and owned as a personal property. In the present
report, to set up this business plan on which there would be consideration of several factors such as vision and mission, product and
services, market, competitors, operational efficiency as well as financial health of firm in promoting this business concept.
Business concept:
“Coffeerito Cafe” has been based on delivering the best quality of beverages in the café with the concept of Barista station and a
wine craft bar. It has been stated by the professionals that the barista station would operate business on shift basis on which people
will take away their drinks plus there is no seating available, for the wine craft bar there will be availability of seats.
Moreover, it has been planned that “Coffeerito Cafe” will function between 07.30-16.30 with considering all the legal terms and
legislation stated in Hobart. It will be approached towards bringing the green, environmental friendly as well as sustainable business
approached which would be beneficial for society. The target consumers for this café will be nearly resident families, school students
and general public. It has been estimated by the professionals that, this concept would be effective in controlling the costs of a cafe as
well as generating proper amount of revenue.
Vision and mission
Vision: To become a best café for coffee lovers in Hobart, Tasmania with the variety of beverages presented in market.
Mission:
 To achieve the best market reputation and creating identity in environment.
 To expanding the business by its product scope and also in numbers of consumer
 To maintain Gross profit margin more than 60% per quarter.
1

Product and services:
There are wide of range of varieties which have been decided by the professionals at “Coffeerito Cafe”. Therefore, several types
of coffees and related beverages would be effective in leading the business for reaching consumer satisfaction. Its has been estimated
by the professionals that the start-up inventory would costs them on the basis of estimated cost of ingredients such as:
Coffee beans 4000
Coffee filters, baked goods, salads, sandwiches, tea, beverages etc. 5500
Retail supplies 1700
Office supplies 300
Expresso machine 5000
Coffee maker 1200
Grinder 700
Other equipment 1600
Camel milk 2500
Total cost 22,500
Competitor analysis
There are various competitors which will affect the operational practices for “Coffeerito Cafe”. However, this will have negative
impacts on the growth and profitability of the business in terms of creating a business identity in the market. Rivalries affects the
profitability of the business as per the changes in product lines, prices as well as convenience to the consumers (Brinckmann and Kim,
2015). To attract the large number of buyers in café, on which “Coffeerito Cafe” must implicate various techniques to be undertaken
by them. It will be helpful as if the business must implicate the below listed model to analyse the competition stated in market
environment.
2

Porter’s Five Forces
Figure 1 Porter's five forces
(Source: Porter’s Five Forces of Competitive Position Analysis, 2013)
Suppliers power: This cost of assessment based on how a business would be affected by the suppliers. Thus, in the case of
rare product line on which variety of raw material are being required by a business which would have risen the bargaining power of
suppliers. They will charge higher rates in supplying such products. “Coffeerito Cafe” is being planning to serve the camel milk coffee
in the market which is the rarely being used by any coffee shop (Watson and McGowan, 2018). Thus, arranging camel milk would be
3

a big task for the businesses and which would affect its cost structure. Thus, in this case the coffee shop is having higher threat of
supplier’s power.
Buyer power: It is based on the number of buyers are interested in the product line. However, there will be threat of losing the
consumers as they can switch to the most convenient business in terms of location, costs and quality of services ( Ghezzi and et.al.,
2015). “Coffeerito Cafe” will have medium rank of challenges which would affect the business in not retaining adequate targeted
aims.
Competitive rivalry: There are large number of competitors stated in Hobart which would challenge business functioning of
“Coffeerito Cafe” such as Villino coffee, Shoebox, café, Beaujangles café coffee shop etc. Thus, the consumer backup as well as
public attraction towards such coffee shops is comparatively higher which would affect the firm in managing the operational activities
(Yu and Wiklund, 2015). Moreover, there would be various numbers of competitors which are being stated in South Hobart such as
Ginger brown cafe, Rivulet cafe and McQuarrie street food store.
Threat of Substitution: There will be treat to a business on we basis for having the similar products and services as well as
having duplicates which would affect the consumer interests. Consumers are price sensitive as well as their satisfaction is balance
between the quality as well as costs of the services which are they enjoying (Rosati and Conti, 2016). Thus, to maintain such ration on
which a business is required to state cost effective prices as well as making reliable quality of production in market. “Coffeerito Cafe”
will have threat of number of substitutes such as tea and other beverages which would change interest of consumers in switching
organisation.
Threat of new entry: There have been influences of various entries for the new entries which would create barriers for the new
entries stated in the market. “Coffeerito Cafe” there have been implications of regulations, taxation as well as trade policies
(Brinckmann and Kim, 2015).
4

Market analysis:
By considering the consumer interest and habit of consuming caffeine on which analysing the rate of coffee have been
consumed under the various cities of Australia can be determined and undertaken such as:
5

Illustration 1: Employment level by industries in Hobart
(Source: Employment by Industry, 2019)
6

In accordance with the above presented statistics which is reflecting the number of employees has been engaged in the
operational process which are serving the state best employment opportunities. However, in this case the food services business is
presenting the employment as 4679 as per the statistical ascertainment in 2016. therefore, they contribute 27.6% of employment in the
state. On the basis of which it can be said that Coffeerito cafe would have adequate growth and profitability which would result in
better operational management as well as retaining the qualitative growth in environment
Moreover, there can be influences of various number of competitors which would have impacts on managing the operations and
making corrective actions to be undertaken by the business professionals. In South Hobart, there are rivalries which would challenge
the business in undertaking the operational efforts and making corrective
7

8

Figure 2 Small business statistics in Southern region of Hobart
(Source: SMALL BUSINESS STATISTICS, Greater Hobart-Southern Region, 2018)
In accordance with the southern region in Hobart there have been various number of small businesses which were operating and
contributing in the economy. In this case, accommodation, cafes and restaurants which are rapidly raising and contributing in the
society. In terms of revenue as well as employment rate the hospitality businesses are one of the most successful industries in the
economy.
9

Marketing mix
Product- The product menu of “Coffeerito Cafe” will include Espresso-based drinks like cappuccinos, lattes, mochas etc. Each
of the coffee drinks will be served with skimmed, whole or soy milk (Watson and McGowan, 2018). Espresso shots will be mixed
with the milk and other additions such as caramel, cocoa etc. Further the menu will include the basic flavors like Cold Coffee with
chocolate ice-cream, coffee with cinnamon stick, hot coffee, Black coffee and Sugar free French Vanilla coffee cream.
Products Ingredients
Expresso It is a concentrated drink which is consists of brewed quantity of approx. 1- 1*1/2 ounce. It has a smooth,
velvety crema and intense aroma texture. It has been served in a pre-heated espresso cup.
Cappuccino This recipe has been prepared with considering the traditional aspects such as 1/3rd part espresso, 1/3rd part
steamed milk and 1/3rd foam in a cup. It will have garnishing of ground chocolate, cocoa powder, cinnamon
or nutmeg. For adding flavours on which there would be addition of quality coffee syrup as Monin to taste.
Mocha: This is the easiest recipe which is highly preferred in the market. Thus, it consists of ingredients such as 1
cup hot coffee, 1/4th cup of milk any percentage, 1 tablespoon (5g) unsweetened cocoa powder, 1
tablespoon heavy cream, 1-2 tablespoon granulated sugar to taste and whipped cream for toppings.
Latte It is a double shot of expresso which have been mixed with approximately 5 oz of steamed milk and there is
no addition of foam. It will be served inn a large latte cup that will consist of 9-12 oz of quantity.
Camel milk coffee This has been determined as the special recipe for “Coffeerito Cafe” which will be consisting the various
ingredients such as 2 cups of camel milk, 1 tsp vanilla extract, 1/s tsp honey, 1 tbsp cinnamon, ½ tsp ground
nutmeg, ¼ tsp ground ginger and cloves and cardamom.
Pre-bought slices These are the slices of bread such as toast which would be served among consumers. It will have variety of
preparations such as garlic bread, toasts and in various flavours as per consumers desire.
10

Biscuits This will be served as the complementary product in the café to the potential consumers. However, it will
have variety of biscuits which were prepared at bakery as well as ordinary biscuits.
Pricing – Different pricing strategy will be used by “Coffeerito Cafe” like penetration pricing strategy, value based pricing and
premium pricing. For gaining the market and increasing the sales penetration pricing will be used in which the prices are set at a lower
rate as compared to the competitors price. Value based pricing strategy will be adopted to provide different variants in terms of prices
by altering the quantity to give a sense of affordability to the customers so that normal class people can also afford to visit. Premium
pricing will be charged for adding things like creams, chocolate sauce, caramel and positioning as a premium coffee.
Promotion- The most important part for creating awareness among the customers and gaining the large customer base effective
promotional techniques will be used by company. Advertisement through public campaigns and Brochures will be printed and put on
cars that will state the name, logo and address of “Coffeerito Cafe”. It will also list the day of opening and will state that if the
customer will bring the brochure then he or she will get 15% off on any drink. The company will also provide advertisement in the
newspaper with the discount coupons of 30% off on the purchases of over $500 to attract the people.
Place- It is a startup business at Hobart Tasmania. It will set up as a Barista station room and the owners have ideas to expand the
business in the future in different countries.
People: In accordance with the operational practices on which there have been various roles and duties which are being awarded
to the workforce. There will be two coffee maker and for the wine craft bar there would be one bar tender who have skills and talent in
preparing the satisfactory drinks for the consumer. Along with this, there will be communication with the number of suppliers in
relation with bringing the appropriate supplies at the café.
Physical evidence: The café has been located in South Hobart in between 2 schools which are being operating in relation with
sustaining the better revenue and operational advantages. The structure design would lead in attracting numerous customers towards it.
It would lead in enhancing the sales volume and profitability of Coffeerito Cafe.
11

Process: The Coffeerito Cafe has decided to install equipments of the latest technology for the purpose of preparing coffee
with good quality. The Latest technological instruments installation can be more expensive for the company. But it would reduce the
cost of business in near future definitely. Coffeerito Cafe will install the latest coffee maker machines, coffee vending machine from
which customers would be able to take their coffee just by entering a specific amount. It will also reduce the requirement of
employees in the business which would reduce the cost to the company in future.
12

BUSINESS CANVAS MODEL
Key partners
 Suppliers of
ingredients such
as quality
equipment sales
and services.
 Comparing the
offerings and
performance with
stated competitors
in Hobart
Key activities
 Serving the best
quality and
varieties of
coffee
 Snacks
 Wine/ craft beer
bar
 Takeaway coffee
bar
Value proposition
 Prices will be
cheap at the initial
stage
 Preparation of
budgets and
timely recording
all costs.
 Developing the
products as per
consumer
requirement and
satisfaction.
Customer relationship
 Survey over the
household,
tourists regarding
the type of coffee
shop
 Taking
feedbacks
regarding the
types of products
and services
being used by the
business.
Customer
segmentations
 Students at
schools near to
café
 Regional and
local consumers
13

Key resources
 Workforce
 Suppliers of
ingredients
Channels
 Mapping
suppliers
 Mitigating the
challenges from
bargaining power
from consumers
14

Cost
 Accommodation cost estimated to be $200,000 in total
 Takeaway coffee bar cost: $40000 approx.
 Wine craft bar will cost $50000 approx.
 Installation of coffee machines will cost $2000 approx.
 Relevant ingredients will cost $22500 approx.
Revenue
 Validating the business profit through research
 Validating the sales turnover
Key partners: There have been influences of various key partners which are being associated with the operational practices of
“Coffeerito Cafe”. It includes suppliers of essential ingredients from the Hobart such as Quality equipment sales and services. To
improve the partnership tendency as well as making adequate operational governance would be effective in leading the firm in the
right manner. Further, the company also has decided to develop partnering with manufacturers and suppliers of the coffee equipments
of the latest technology. It would help the company in enhancing its ability of involving technological development in the business
and enhancing its efficiency and quality of products as well.
Key Activities: There are various activities which were being planned by the professionals at “Coffeerito Cafe” such as take
away coffee services, wine craft beer bar as well as variety of coffees along with snacks. The motive of business is for creating the
brand name in the market as well as service the best quality of coffee among consumers which would be adequate and attentive with
respect to meet the operational profits. There will be use of equipment’s which would be effective and beneficial in bringing the best
economic control as well as ascertainment of operational requirements. There will be use of energy efficient coffee machines which
would be adequate in monitoring and managing the operational gains at the right time.
Cost: For initiating the business on which there have been estimated requirement for cost of capital to be implicated in the
business activities which is $200,000 in total. There are various activities which requires different range of costs which are to be
15

payable for facilitating the services. To set-up takeaway coffee bar which reflects $40,000 approx., wine craft bar will cost $50,000
approx., installation of coffee machine will cost $2000 approx. and required ingredients will cost $22,500.
Revenue: there revenue will be generated by the business through selling the coffees, wine and snack among consumers. The
best quality of such serving will be effective for the business in determining the adequate gains and profitability at the right time.
Involving a range of variety of foods and latest drinks will also result in enhancing the sales volume of Coffeerito Cafe. Opening a
wine bar along with the coffee shop would result in attracting more customers of the company.
Value proposition: For this approach the strategies has been stated by professionals that there will be cheap prices on the
services at the initial stage. This has been determining to create the best consumer base in the market. This technique would be
effective in creating the value in the business operations. Employing a professional bar tender in the wine bar will help in enhancing
the quality of services to be provided by Coffeerito Cafe and enhance its profitability as well. (not clear at all)
Key resources: There are key resources which has been ascertained by the business professionals to run and govern the
operations such as workforce and supplies of material needed in the operations. The latest technological coffee maker machines are
also one of the major key resource of company. Managing these resources by analyzing needs, utilization s as well as ascertainment of
targeted aims.
Channel: These are the sources through which the organisation would retain the adequate amount of gains as well as
generating effective amount of profits through implicating the operational practices. There will be requirement of developing
relationship with suppliers as well as analysing their bargaining power for managing the operational practices.
Customer segmentation: The business has been stated between the two schools on which it can be said that there will be
changes of having students as consumer. Along with this, there can be consumer segmented operations stated for the residential people
in Hobart. Further, opening a wine bar shop along with the coffee shop will help in attracting various customers apart from students,
nearby population of the coffee shop.
16

Consumer relationship: It can be developed through taking feedbacks from consumers as well as conducting a survey over
consumer requirement from a coffee shop. Thus, it will be indicative and helpful with reference to develop a sound relationship as
well as developing the operational performance café.
OPERATIONAL PLAN
SWOT
With the help of Swot analysis, the “Coffeerito Cafe” can analyse its strengths and weaknesses. It also provides information
about various opportunities and threats of the business from its external environmental factors. This analysis provides the best
evaluation of influence of various internal and external factors of the business organisation. SWOT analysis of the Coffeerito Cafe is
as under:
 Strengths: The “Coffeerito Cafe” is being launching with unique concept. Delivering the best quality of food to the customers
and including products in the menu as per the latest trends are the major strengths of business. The company is going to
include a variety of food and include soya products rather than diary products while preparing variety of coffees can also be
determined as the strengths of it, as in present time, the population of Australia has become more concerned about their health
and reduced consumption of dairy products (Pfitzner and McLaren, 2018). Moreover, the company also have decided to install
the latest technological equipments in the business. It would result in attracting maximum, number of customers towards it
along with enhancing quality of products and efficiency of overall business as well.
 Weaknesses: Due to enhancement of inflation rate in the Australian economy, the company's cost has been raised. It has
resulted in enhancing the prices of the products to be sold by the Coffeerito Cafe. It can be the greatest weakness of business,
as customers hardly attracts towards costly products. For attracting customers with higher price, the company needs to enhance
quality of products. Further, the weather of Australia is also included in the weakness of it, as, generally the temperature of
Australia keeps on high. It my reduce the demand of coffee in the market. Moreover, as the owner does not have any
experience of running a coffee shop business, it could also be a greatest threat for the firm.
17

 Opportunities: Coffee is one of the most demanded product in all over the world. In this regard, the Coffeerito Cafe have an
opportunity to attract maximum amount of customers towards it. Australia contains numerous coffee raw material suppliers. In
this order, the company have an opportunity to bargain with suppliers and reduce the cost of company. In the present time, the
Australia is the biggest market for the coffee business. In this regard, by developing attractive advertisement and effective
competitive strategies, the company can grab a large number of market share and enhance its profitability as well. With the
increase in sales volume and market share, the company can also grab the opportunity of expand the company's business at
global level and earn more profit from the business operations.
 Threats: The Australian market is the most profitable coffee market in this regard, it attracts a higher amount of competitors
towards it. In this regard, the Coffeerito Cafe huge threat of competition. Further, a profitable market also attracts a large
amount of new business units towards it. Therefore, the market also contains a threat of new entry. Moreover, while running
the coffee business in Australia, Coffeerito Cafe will also face a threat of substitutions as large number of competitors results
in providing various substitutions to the customers.
18
Illustration 2: SWOT analysis
(Source: SWOT Examples, 2018)

In this order, from the above analysis it can be concluded that by opening Coffeerito Cafe in Australia, there would be various
strengths, weaknesses, opportunities and threats that would be faced by it (Sholihah and et.al., 2016). Providing a range of products to
the customers is the biggest strength of company. On the other hand, higher inflation rate, high temperature of Australia is the
weakness of it
Business would also have an opportunity to reduce the cost of production by bargaining with the suppliers and can grab a large
market share through its effective strategies and plans. Further, the company may also suffer numerous threats like, a large
competitive market, threat of substitution, threat of new entry into the market, etc. which may lead in reducing the profitability and
market share of it. Although, it all the weaknesses and threats can be eliminated by the Coffeerito Cafe by developing effective
strategies. Moreover, company can enhance its strengths and opportunities from the market by developing effective plans and policies
for the business.
PESTEL
In context to analyses and determine the influence of external factors over the business, the PESTLE analysis could provide the
best result to the firm. With the help of this analysis, Coffeerito Cafe can analyse each factor beyond the control of it and enable its
managers to develop the most effective strategies for it and enable the company to face each uncertainties that can be arisen due to
influence of these factors.
PESTLE analysis of Coffeerito Cafe can be done as under:
 Political factors: The main influence of political factor is stability in the political party. As frequent change in political party
may lead in making frequent change in the policies of business. Further, being a coffee manufacturing and selling company,
the Coffeerito Cafe needs to source a range of raw materials (Ahmed, 2016). Being a largest coffee market, the raw materials
of it have gained attention of each political party. In this regard, while purchasing the raw material, Coffeerito Cafe has to
comply with various rules and regulations provided by the existing political party (PESTLE Analysis of Coffee Industry,
2018.). It may lead in enhancing the cost of purchase and procedure as well.
19

If the rules developed or innovated by the new political party is in favour of the company, it would have a positive effect over business
of Coffeerito Cafe . On the other hand, any unfavourable rule made by the new political party would result in effective the business in
negative sense. Moreover, if the Coffeerito Cafe frequently changes its rules and policies of business operations, it would reduce the
efficiency of the overall business performance. Therefore, the Coffeerito Cafe will be highly influence by political factor of
Australia.
 Economical factors: Economical factors are inflation rates, purchasing power of customer, exchange rates, saving rate of
population, etc. all these factors have direct influence over the volume of sales of the Coffeerito Cafe. The Australia have a
growing market for the coffee industries. Further, the spending power of the population living in Hobart or nearby the area of
Hobart will also have a great influence over the business of Coffeerito Cafe, as these will be the potential customers of it
(Bulak and et.al., 2016).
Further, as the raw material will need to be imported, therefore, the exchange rate of Australian economy will also have a great impact
over the cost of business and therefore over the financial position of it as well. In case, the economy of Australia goes on high and the
spending power of the consumer rises, it would result in enhancing the sales volume of company. On the ither hand, recession period
in the economy of Australia will reduce its profitability. In this order, the economical factor have great influence over the business of
Coffeerito Cafe. In addition, influence of this factor can be reduced by developing effective financial, sales and other strategies for the
business.
 Social factors: This factor includes culture, the latest trends, etc. of the Australia through which the taste and preference of
potential customers of Coffeerito Cafe would be influenced. Presently, population of Australia has become more health
conscious. In this order, the demand of coffee may reduced that may have a negative effect over the sales of Coffeerito Cafe.
Although, as the company has decided to prepare the coffee products with the soya products rather than dairy products, it
would reduce the influence of this factor over its business and sales.
20

Further, as per the latest research, consumption coffee results in enhancement of sleep disorder, hear disease, migration problem, etc.
it would also have a great influence over the sales volume. Inclusion of diversified products in the menu would help the Coffeerito
Cafe in reducing influence of this factor as well. In this order, it can be analysed that social factor does not have a huge effect over the
business of Coffeerito Cafe. Although, influence of this factor can be easily reduced by the company if it starts innovating its
business as per change in social culture, trends, taste and preferences of the customers.
 Technological factors: In the latest time, the technology have a great influence over each business industry. Therefore, the
coffee industry also have a great influence of technological advancement. Using latest technology in production of coffee and
other products can result in enhancing the quality of coffee and other products. It may help the Coffeerito Cafe in attracting
21
Illustration 3: PESTLE Analysis
(Source: Australia PESTLE Analysis &
Macroeconomic Trends Market Research Report, 2018)

large number of customers towards it. On the other hand, if the company installs equipments of the latest technology, it would
enhance the cost of company. Therefore, the technological factor also have a great influence over the business of Coffeerito
Cafe.
 Legal factors: Legal factors includes law and regulations applicable over the coffee industry in the country. Each coffee
business is needed to comply with all the rule, laws and regulations applicable on the whole coffee industry. Being a growing
industry, for the purpose of maintaining control over the overall industry, the Australian government has imposed some major
rules over the industry (Aknesia, Daryanto and Kirbrandoko, 2015). Further, as Coffeerito Cafe will need to import raw
materials, it will also have to follow the import export rules of the country. Further, non compliance of any of law, rules or
regulation of the country may lead in attracting legal proceedings like fine over the firm. In this order, this factor have a great
influence over business of Coffeerito Cafe.
 Environmental factors: The raw material of coffee is coffee beans. Therefore, the coffee industry is highly dependant upon
the environmental factor. Various environmental calamities like earthquake, heavy rainfall, natural disasters, etc. can effect
the harvesting of coffee beans which can directly affect the business of overall coffee industry. Further, these natural calamities
are also beyond the control of Coffeerito Cafe (Galea, 2019). In this order, opening coffee manufacturing and selling firm
would be highly affected by the environmental actors.
In this order, from the above PESTLE analysis, it can be said that there are various external factors that have a great influence
over the business of Coffeerito Cafe. Although, all these factors are beyond the control of company, but for the purpose of reducing
the risk of these factors, the Coffeerito Cafe needs to frame effective strategies and plans for running the business without getting
much affected by these factors (Truman, Mason and Venter, 2017).
22

Organisational structure:
23

Employee structure of Coffeerito Cafe serving centre
Professional Number of employees Role in the coffee bar
24

Coffee maker 2 To take orders from customers and prepare coffee as per the demand and
need of consumers.
Cleaner 2 To maintain cleanliness in overall floor. They will also clean the
bathrooms of the Coffeerito Cafe serving centre
Cashier 1 To check the bill and collect payments from customers. Cashier will also
need to maintain a proper record of total sales made by the Coffeerito
Cafe.
Employee structure of Wine craft bar
Professional Number of employees Role in the coffee bar
Accountant 1 To maintain the record of all receipts, payments, sales and purchase of the
company.
Manager 1 To develop effective plans and policies for business as to run each activity in
the coffee bar smoothly. Further the manager would also need to listen quarries
of customers and resolve them as well.
Cleaner 3 To clean the whole floor of coffee bar.
Coffee maker 3 To prepare coffee and all other products as per the needs and demands of the
customers.
Bar tender 1 To serve drinks to the customers.
Waiter 3 To take orders from customers and to serve products asked by them.
25

Ecosystem analysis:
26

In accordance with the innovative approaches which are being considered by the professionals of the café on which various
environmental friendly plans have been taken into account and addressed in a right manner. There have been use of Reusable mugs
and no influences of plastics, installing the devices which consumes less energy etc. along with making a sustainable and reliable
infrastructure would be effective in managing the operational practices at the right time.
FINANCIAL PLAN
Estimated cash flow statement
Particu
lars
Initial
invest
ment
Janu
ary
Febru
ary
Marc
h April May June July Augus
t
Septem
ber
Octobe
r
Novem
ber
Decem
ber
27

service:
coffee
Numbe
r of
consum
er
served
1100 1210 1331 1464 1611 1772 1949 2144 2358 2594 2853 3138
average
rate of
coffee
160 164 168 172 177 181 186 190 195 200 205 210
revenu
e from
coffee
1760
00
19844
0
22374
1.1
252250.
86
284518
.811
3207
77
3616
38.8
40776
6.76
459679
.045
518328
.087
584332
.993
658772
.469
Service
: Wine
craft
bar
Numbe
r of
consum
er
served
1500 1650 1815 1997 2196 2416 2657 2923 3215 3537 3891 4280
average
rate of
wine
240 246 252 258 265 272 278 285 292 300 307 315
revenu
e fom
wine
3600
00
40590
0
45765
2.25
516132.
1388
581753
.546
6560
36
7395
13.3
83388
6.83
940119
.676
106013
4.8
119539
4.15
134777
5.41
Total
revenu
e (cash
5360
00
60434
0
68139
3.35
768382.
9988
866272
.357
9768
13
1101
152
12416
53.6
139979
8.72
157846
2.88
177972
7.14
200654
7.88
28

inflows
)
Operati
ng
expense
s
Coffee
beans 4000 4320 4666 5039 5442 5877 6347 6855 7404 7996 8636 9327 10073
Coffee
filters,
baked
goods,
salads,
sandwi
ches,
tea,
beverag
es etc.
5500 5940 6415 6928 7483 8081 8728 9426 10180 10995 11874 12824 13850
Retail
supplie
s
1700 1836 1983 2142 2313 2498 2698 2914 3147 3398 3670 3964 4281
Office
supplie
s
300 324 350 378 408 441 476 514 555 600 648 699 755
Express
o
machin
e
5000 5400 5832 6299 6802 7347 7934 8569 9255 9995 10795 11658 12591
Coffee
maker 1200 1296 1400 1512 1633 1763 1904 2057 2221 2399 2591 2798 3022
Grinder 700 756 816 882 952 1029 1111 1200 1296 1399 1511 1632 1763
Other
equipm
1600 1728 1866 2016 2177 2351 2539 2742 2961 3198 3454 3731 4029
29

ent
Camel
milk 2500 2700 2916 3149 3401 3673 3967 4285 4627 4998 5397 5829 6295
Total
operati
ng
expens
es
(Cash
outflow
)
22500 2430
0 26244 28344 30611 33060 3570
5
3856
1 41646 44978 48576 52462 56659
Net
cash
flow
-22500 5117
00
57809
6
65304
9.35
737771.
9988
833212
.357
9411
08
1062
591
12000
07.6
135482
0.72
152988
6.88
172726
5.14
194988
8.88
capital
investe
d
400000
openin
g
balanc
e of
cash
flow
400000 3775
00
88920
0
14672
96
2120345
.35
285811
7.35
3691
330
4632
437
56950
28.4
689503
5.99
824985
6.71
977974
3.59
115070
08.7
Closing
balanc
e of
cash
flow
377500 8892
00
14672
96
21203
45.4
2858117
.349
369132
9.71
4632
437
5695
028
68950
36
824985
6.71
977974
3.59
115070
08.7
134568
97.6
Interpretation
Cashflow statement prepared for the purpose of analysing the effectiveness of the business plan shows that the business plan
developed for exapanding the business of Coffeerito Cafe will result in continuous increse in the cash inflow of company with an
30

increasing rate. The company would be able to develop its net cashflow upto 147261 at the end of year. Further, it will also provide a
rapid increase in the liquidity of the business. It would develop the ability of company to maintain the liquidity of 1137832 till the end
of year.
By analysing the above estimated cash flow it can be interpret that if the Coffeerito Cafe is being opened, it would result in
enhancing the cash flow of business continuously through which it could be unable to expand its business in different countries as per
the business objective set by its owner. As the estimated cash flow statement is showing a continuous rise in the cash flows on
monthly basis, it can be evaluated that the plan and policies developed by the business is profitable for the company. With the help of
this plan, the company will enhance the profitability of the overall business. Moreover, as the sales volume will grow continuously
which will result in garbing a huge amount of market by Coffeerito Cafe in near future. In this order, it can be concluded that the
Coffeerito Cafe should be opened in Hobart in Australia.
CONCLUSION
From the analysis of above study, it can be concluded that the Coffeerito Cafe is being planning to re-establish the previous
business and open a cafe. It has decided to open its cafe in the Hobart, a famous place in Australia. For this purpose, the firm has
developed an effective business plan in which it has planned and developed procedure of various activities to be performed by the
business in future. Company has set its vision, mission and business objectives as to set the goal of firm. Coffeerito Cafe has
developed a list of foods and drinks that is going to be served to the customers. It has also analysed the competitor's strategies,
through which it would develop the best competitive strategies for itself and gain the competitive advantage from the market as well.
The managers of the company have analysed each major factor of the competitive market with the help of porter's five forces theory.
Company has developed a marketing plan by analysing the the overall market condition including latest trends, customer's preference.
Competitor's strategies and plans etc. with the help of this analysis, the Coffeerito Cafe would be able to enhance its ability of
developing its own marketing plan and enhance its profitability as well.
31

For analysing the market condition, the Coffeerito Cafe have analysed each element of the marketing mix so that they can gain
the maximum opportunity from market. It has developed business canvas model for detecting various key resources and revenues, cost
and customers of the firm. In addition, the company has also made the operational plan through which it has analysed its strengths,
weaknesses, opportunity and threats through SWOT analysis. Influence of external factors over the business has also been analysed by
the Coffeerito Cafe with the help of PESTLE analysis. It has helped the company in developing effective strategies as to reduce the
threats of business due to these influencing factors. In addition, it has also developed financial plan through which it has forecasted the
future operations and future growth of business. From this forecasting it has analysed that by opening a new business as per the
developed plan would provide a huge gain to the company. The sales of Coffeerito Cafe will grow continuously, through which it
would be able to enhance its profitability. Further, the business will provide a frequent growth in the cash flows of company through
which its objective of expanding its business at global level could be easily achieved.
Ecosystem analysis of business and competitors
The present plan has been developed by taking into account the environmental protraction techniques. For the sake of
safeguarding the environment, the company has decided to provide products in reusable mugs rather than plastic. Competitors of the
company does not use eci friendly production machines whereas, the Coffeerito Cafe have decided to develop install the latest coffee
making equipments that consumes minimum energy. In addition, by developing effective competitive strategies, the company has
decided to use the latest technology for taking orders from the customers for attracting maximum customers towards it.
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