Business Plan for Brew Bean's Cafe

This document is a comprehensive business plan for Brew Bean's Cafe in UK, London. It includes the vision and mission of the cafe, market analysis, competitor analysis, marketing strategy, and market growth strategy. The document also discusses the resources needed for the venture and the sources of finance.

Business
Plan
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Table of content
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Rationale for initiating organization and its vision and mission.................................................3
Industry and market along with clear demonstration of understanding of variables at work here
involving a macro/micro analysis of market place......................................................................4
Competitor analysis as well as competitive edge and its reasons of successful market..............5
Segmentation analysis, offering market statistics........................................................................6
Marketing strategy, adopting the 4P’s or 7P’s if it is a service...................................................6
Market growth strategy................................................................................................................8
Resources needed for venture involving source of finance.........................................................8
Risk analysis..............................................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12
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INTRODUCTION
Business plan signifies written document through which objective is accomplished in
timely manner. It aids assistance in executing target and assists in accomplishing goal in pre-
decided period of time. Business plan is significant document that assists in attracting large
number of investor to increase investment within organisation. The current assignment is depend
on innovative business idea related to cafe Brew Bean’s that is situated in UK, London. This cafe
offer different facilities to its user for satisfying them. This topic includes vision as well as
mission of organisation, its competitive edge, assessing segmentation, marketing tactics and
growth of company. In this assignment, the PESTEL analysis is used to consider external
environmental factor for performing different activities in an appropriate manner. In addition to
this, Porter five force model and Ansoff matrix is used for conducting different activities in
proper way (Almeida and Santos, 2020).
MAIN BODY
Rationale for initiating organization and its vision and mission
Significance of Brew bean's Cafe:
 Brew bean's cafe is situated in area; there is not any kind of competition and offer things in
specific manner.
 The cafe offer different facilities in reasonable price that achieve competitive edge and earn
revenue.
Vision:
The vision of cafe is to open happiness as well as positive ambience by offering them
delicious meal or food and also offer unique things to its user. There are different kind of
entertainment concept are also involved in Cafe that assists in generating wider experience of
user (Αργυρός, 2017).
Mission:
The mission of cafe is to appropriate welcoming of user and provide them comfort during
particular phase of time period. They also offer special services to them at reasonable price. This
cafe offers services by using specific method and to generate hospitality venue along with great
experience.
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Industry and market along with clear demonstration of understanding of variables at work here
involving a macro/micro analysis of market place
Internal and external environmental factor can be assessed by adopting PESTEL analysis
as it is used in assessing political, social, economic, legal, technological as well as environmental
element through which the macro company is influenced. There are different kinds of factor
especially economic as well as political element that increases direct effect on organisation. In
context of UK, it is necessary to open innovative business that requires appropriate strategy to
run organisation in an appropriate manner (Vurro and Perrini, 2016). In addition to this, the
PESTEL analysis adopted by Brew bean's cafe is going to be mentioned below:
Political factor it is determined as an element that assists in assessing factor of economy
that influenced by government. In addition to this, government influence new rate of tax and
newly started organisation must pay them. In context of UK, political element is determined as
major issues through which new organisation pays tax rate and also pay interest rate (Flori,
2018).
Economical factor it is used in assessing performance of organisation and its impact
within company. If rate of inflation of organisation will increase, it imposes direct effect on cost
of organisation to survive at market place in long run. The Brew bean's cafe focuses on having a
reasonable price so that every individual person afford but there is a change in economic element
that fluctuate price in an appropriate manner.
Social factor signifies market element through which purchasing trend of organisation is
considered according to taste and preferences of user. This Brew bean's cafe focuses on altering
menu as per preferences and taste of user. There are different kinds of dishes that are preferred
by individual person in order to get menu updated.
Technological factor there are different factors that impose its effect on operation of
business organisation by using innovative technology that assists organisation to run operation of
company in long run and they also focus on updating their technology as per trend in order to
satisfy its user. Brew bean's cafe adopts innovative technology that is preferred in order to attract
large number of individual person according to interior and changes at Cafe.
Legal factor this element impose direct effect on micro and macro element of company
that strictly followed. Therefore, the Brew bean's cafe focuses on having a legal documentation
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in order to eliminate crisis that arises and possess license and appropriate brand name that must
follow.
Environmental factor this element is impacted by external atmosphere and these elements
are due to climatic changes. In different environmental element, the organisation focuses on
performing different task in an appropriate manner without any kind of waste. In context of Brew
bean's café, the focus is on adopting optimum utilisation of resources without any kind of
wastage and fulfills need and wants of user as per trend. The chosen cafe focuses on providing
friendly environment to its user in order to reduce issues at marketplace in future period of time
(Liu, 2016).
Competitor analysis as well as competitive edge and its reasons of successful market
Competitor analysis of organization aids assistance in analyzing strength as well as
weakness of company in order to achieve market share in future period of time. There is different
kind of competitor such as bakery shops. Cafe can accept it's rivalry by using Porter five forces
model that is going to be mentioned below:
Porter five forces model assists in assessing competitive atmosphere of organization that
helps in influencing profit margin and also assess its negative effect.
Threat of substitute goods it signifies goods and services that is adopted in place of
substitute products. The product do not possess close substitute possess higher price. Therefore,
Brew bean's cafe must have a substitute well if price in cafe is low and provided better services
to its user during the period of time.
Bargaining power of buyers herein, the buyer has a capability to shift to other
organization if they do not provide services on reasonable price. Therefore, it is necessary for
Cafe to provide superior quality services at reasonable price in order to retain customer for a
longer period of time.
Rivalry among existing competitor it signifies competition which is arises among
organization offer services that is better than its rivalries that help in achieving competitive edge
over rivalries at marketplace. Therefore, it is necessary for Cafe is to provide superior quality
services in order to attract large number of user at market place (Lüttmer, 2018).
Barriers to entry the power of organization can assist by new entrants and they also need
price and time to take entrance in the market. The cafe possesses threat in respect of new entrants
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because new Cafe established with similar technology and attracts large number of customer
during the period of time.
Bargaining power of suppliers The cafe possess superior bargaining power as cafe adopt
innovative technology that are unique and that is not copied by any other rivalries and that help
in attracting large number of user during the period of time. The cafe possess higher bargaining
power in order to attract large number of customer and it help in achieving success and growth in
future period of time.
Segmentation analysis, offering market statistics
STP signifies segmentation, targeting and positioning that assist in improving marketing
tactics in order to take appropriate action by organization in proper way. It is used in
communicating advantages to its customer to achieve favorable outcomes. STP aids assistance in
assessing position along with competitor positioning. Therefore, the chosen cafe adopting
techniques to assess benefits of organization that assists in reducing risk (MEJZLÍK, 2016).
Segmentation it is used in categorizing group of individual person who possess similar
characteristic and need that must be differentiated. The cafe target large number of customer who
possesses similar likes as well as preferences along with hospitality activities.
Targeting it assists in targeting user that help in easily shifting to new ideas and enjoy
innovative services and technology of organization. The Brew Bean Cafe focuses on targeting
customer according to age and individual person take preferences of light music along with cozy
environment. The main purpose of Cafe is to target individual person by giving them innovative
foods and attractive interiors.
Positioning: It assists in positioning of goods at marketplace as compared to its rival firms.
It is positioning related to brand in market and take decision in respect of issue so that they
maintain position in market in future period of time. In addition to this, the main purpose is to
provide superior quality services to its user in order to achieve or maintain brand image or
goodwill of company in front of customer at Marketplace.
Marketing strategy, adopting the 4P’s or 7P’s if it is a service
Marketing Mix- This signifies foundation of company which focuses on promotion of
goods and services that assists in enhancing productivity of company. The chosen cafe focuses
on adopting marketing mix for attracting large number of user and enhances performance that is
going to be mentioned below:
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Elements Description
Product This signifies item that is improved by company for aim of
running organization and enhancing sales. The Brew Bean’s
cafe is determined as a medium Cafe that offer different kind
of goods and services. All kind of dishes are available in
company that is needed by user.
Price It is significant factor for old user as it enhances them to
purchase product, if cost is affordable. The chosen
organization use comparative strategy of pricing that help in
attracting large number of user and maintain higher level of
profitability (Monin, 2018).
Place This signifies place in which business organisation conduct
their operation and handle overall activities during particular
phase of time period. In context of Brew Beans Cafe, that is
determined as newly situated cafe and they focus on offering
superior quality goods and services in UK. There are different
kinds of staff member which is around 50 who increase
understanding need of user and offer goods as per demand.
Promotion For company, it is significant to choose best option in order to
promote good. The chosen cafe is adopting newspaper, print
media as well as other sources for providing information to its
user and that help in enhancing sales of company.
Physical evidence This signifies structure that is used by user in order to get
products. The physical evidence related to Cafe is light music
along with designing lights, rooftop and hospitality idea in
order to deliver food in unique way. This will influence large
number of user and handle all activities in an appropriate
manner.
Process They focus on offering superior quality of goods and service
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the management adopts natural processes and digital activities
that help in handling all kind of working and improve
performance of organization appropriately.
People It signifies the individual person who increases engagement in
activity of organization by getting more responsibility in an
appropriate manner. In Brew Bean’s cafe, the marketing
manager, production manager and distributor and increase their
understanding level in order to perform different function in an
appropriate manner that help in enhances performance.
The marketing mix adopted by management team of Brew Bean’s Cafe is to promote
goods and services and increase higher level of profitability in future period of time. By selecting
this, the organization can attract large number of user during particular phase of time period.
Market growth strategy
It signifies plan that assists in accomplishing higher market share within business
organization in order to achieve growth in long run. It is determined as a plan that assists in sales
and market improvement during particular phase of time. The Brew Bean’s Cafe assists in
accomplishing market share in environment and adopts different kind of tactics to accomplish it
in an appropriate manner (Rebelo, 2017). Therefore, for market growth strategy, Ansoff matrix is
adopted by company that is going to be given below:
Ansoff Matrix signifies tools which are adopted by organization to assess growth during
particular phase of time period. The risk is linked with every strategy imposes direct effect on
growth of business organization. Therefore, Brew Bean’s Cafe adopts Ansoff Matrix in order to
assess growth.
Market penetration signifies enhancing sales of existing product in prevailed market
only. The cafe focuses on adopting this tactic as it aids assistance in enhancing target user of
given product and that help in earn more and more revenue.
Product development under signifies developing innovative product in existing market in
order to attract large number of customer and to understand preferences of innovative product by
user. The Brew Bean’s Cafe adopts strategy by adopting new technique in Cafe in order to attract
large number of customer in existing market.
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Market development emphasized on existing good and take entrance in new market and
innovation is executed by existing product and offer services in innovative market. This Brew
Bean’s Cafe adopts strategy by launching branch in new market in order to attract large number
of customer.
Diversification signifies take entrance in new market along with innovative product as it
is used in success as well as growth of organization. In addition to this, the Brew Bean’s Cafe
adopts strategy by offering different kind of services as per taste and preferences of user.
Resources needed for venture involving source of finance
There are various sources of finance within business organization that is needed by
company to start their operation in an appropriate manner. It aids assistance for organization to
get launch and earned income in future period of time. Brew beans Cafe focuses on having a
necessary fund before launching new business in which capital is needed before starting new
organization and their main purpose is to operate different activity in an appropriate manner.
There are various sources of finance that is adopted by organization are given below:
Bank loan this is determined as a best source of fund through which money is given to
employees along with fix rate of interest (Ritter and Lettl, 2018). In addition to this, the bank
imposes a security amount from individual person who are taking the loan and it is necessary for
employees to repay them along with principal amount in future period of time. Hence, it is assess
that bank loan helps organization to conduct their operations in an appropriate manner. It is
important for company to repay them amount along with interest rate for operating different
activities in proper way.
Saving is determined as other source of finance in which person can launch innovative
business and use their savings to purchase assets of organization and do not possess any kind of
burden related to repayment. The Brew Bean Café adopt saving for starting new organization
and they possess not any kind of burden related to repayment and they do not capable to earn
revenue.
Particulars amount
Raw material 2000£
Labours 1000£
Land 8
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0
0
0
£
furniture 2500£
Consumable goods 1000£
Dishes and Flatware’s 100£
Machinery 3000£
Marketing 500£
Salary 1000£
Total 20000£
Therefore, the total finance needed is rupees 20000£ for restarting organization so that
they can fulfill requirement for staff related to finance. In context of Brew Bean Café, they
should take references or take loan from Bank that is determined as a best source of finance to
start organization and attract large number of customers during particular phase of time period.
Risk analysis
Risk analysis is used in assessing issues within business organization which imposes
negative effect on company. These factors are determined as an important factor before starting a
new business organization and risk must be reduced during particular phase of time period
(Robby, 2019).
Identify risk there is different kind of risk in environment that includes legal, environment
as well as market risk. There is different kind of risk is involved and it is necessary to take
measures to correct or rectify them. In context of Brew Bean Cafe assess risk such as
environmental, financial as well as technological issues that are arise in future period of time.
Analyze risk after the risk is assessed or analyzed and measure is taken to rectify them so
that it does not impose direct affect on them. Therefore, the cafe focuses on assessing risk in
future period of time in order to take decisions that are beneficial for organization. It is necessary
to overcome from risk in order to start a new business during particular phase of time period. The
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Brew Bean Cafe focus is on considering this factor that possess high level of risk and reduce
them in order to conduct different activity in an appropriate manner.
Treat risk the risk is raised and take proper measure in order to reduce risk during
particular phase of time period. The Brew Bean Cafe focuses on taking measure to assess risk
during particular phase of time period.
Monitor and review after getting solution, there must be a appropriate monitoring related
to risk and risk cannot assessed in future period of time. In context of Brew Bean Café, they
focus on assessing risk on a continuous basis so that it cannot occur in future period of time
(Spieth and Schneider, 2016).
CONCLUSION
On the basis of above given report, it is assess that business plan signifies written
document through which objective is accomplished in timely manner. It aids assistance in
executing target and assists in accomplishing goal in pre-decided period of time. Business plan is
significant document that assists in attracting large number of investor to increase investment
within organisation. This topic includes vision as well as mission of organisation, its competitive
edge, assessing segmentation, marketing tactics and growth of organisation. In this assignment,
the PESTEL analysis is used to consider external environmental factor for performing different
activities in an appropriate manner. In addition to this, Porter five force model and Ansoff matrix
is used for conducting different activities in proper way.
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REFERENCES
Books and journals
Almeida, F. and Santos, J.D., 2020. 4 Financial Plan & Viability Analysis.
Flori, G., 2018. Business Plan for an Autonomous Driving Formula car in the FSG17
competition.
Liu, A., 2016. An Algae Bioreactor Business Plan to Demonstrate Market Feasibility.
Lüttmer, J., 2018. Business plan for an online booking pet related services marketplace:
Petsity (Doctoral dissertation).
MEJZLÍK, T., 2016. Business plan: Growth strategy of a propeller's producer (Doctoral
dissertation, Vysoká škola ekonomická v Praze).
Monin, C.C.M., 2018. Le Cocoon-coworking: innovative business plan (Doctoral dissertation).
Rebelo, J.I.A.C.T., 2017. Business plan: animal assisted therapy in Portugal (Doctoral
dissertation).
Ritter, T. and Lettl, C., 2018. The wider implications of business-model research. Long Range
Planning, 51(1), pp.1-8.
Robby, A., 2019. Business Plan Wistarlabs (Doctoral dissertation, Universitas Kristen
Maranatha).
Spieth, P. and Schneider, S., 2016. Business model innovativeness: designing a formative
measure for business model innovation. Journal of business Economics, 86(6), pp.671-
696.
Vurro, C. and Perrini, F., 2016. Social business plan simulation: the case of Dynamo Camp.
Αργυρός, Σ., 2017. Repositioning in the sporting goods market: A business plan for a Greek
SME.
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