Business Concept Assignment - “Coffeerito Cafe”

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