Business Plan for The Family Cafe: Feasibility Study, Marketing Strategies and More

This report discusses a new business idea for The Family Cafe, including a feasibility study, marketing strategies, and more. It covers the concept of causation and effectuation, relationship between entrepreneurship and innovation, competitive and STP analysis, proposed business model, and business and marketing strategies for success.

Entrepreneurship and
business development

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK 1............................................................................................................................................3
Concept of causation and effectuation.........................................................................................3
Feasibility study of New Venture Concept..................................................................................4
Relationship between entrepreneurship and innovation..............................................................4
TASK 2............................................................................................................................................5
Competitive analysis....................................................................................................................5
STP analysis.................................................................................................................................6
Justification behind feasibility of business..................................................................................6
TASK 3............................................................................................................................................7
Frameworks and concepts............................................................................................................7
Proposed business model and Process of working of new venture.............................................8
TASK 4............................................................................................................................................8
Business and marketing strategies for success.............................................................................8
TASK 5............................................................................................................................................9
Quantitative and qualitative planning tools to assess and mitigate risks.....................................9
Common mistakes made by entrepreneur at first time..............................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Business plan is a very significant strategic tool for the entrepreneurs of the business that
not helps them in concentrating on particular steps that are necessary for them but also facilitates
them in attaining short-term as well as long-term objectives. Within this report, a new business
idea will be discussed that explains concept of introducing a new product or a new service. This
report includes concept of causation and effectuation along with conducting a feasibility study of
new venture concept as well as relationship between innovation and entrepreneurship. Moreover,
there will be competitive as well as STP analysis to evaluate opportunities within marketplace
and along with it, there will also be a discussion on feasibility of business (Abuzjarova, 2018).
Furthermore, there will be application of relevant frameworks as well as concepts and a
discussion on proposed business model along with process of working of a new venture. This
report also covers marketing strategies of business for it success and an explanation on
quantitative as well as qualitative planning tools that can be used by an entrepreneur.
MAIN BODY
Within this report, the business of Cafe is taken into consideration, named The Family
Cafe that offers multiple food items such as Pasta, Pizza, Shakes, Mocktails, Coffee, Sizzler,
Lassi and many more. The respective business is going to introduce a new variety within the
Lassi in the form of a new flavour of the fruit. The Family Cafe was already providing Orange
Lassi, Pineapple Lassi, Rose Lassi, etc. and now the cafe is planned to introduce the Mango
Lassi.
TASK 1
Concept of causation and effectuation
Causation is said to be the term which is impacted through an event, object, state as well
as process that facilitates in introducing another process, event, object or state where the cause is
accountable for the effect and its effect is relied on cause (Akpan, 2021). The main motive of
The Family Cafe is to develop the new ideas and along with it, to access the several resources
which permits it in achieving the objectives as well as goals of the organisation. This helps the
firm in solving multiple issues that are faced by the management of the organisation. This is very
significant for The Family Cafe to predict the uncertainty within the business as it would

facilitate it in preparing the organisation in order yo face the problems that occurred in the near
future.
Effectuation is considered as a process of decision-making that has been evolved within
the entrepreneurship in the form of a rational economic process of decision-making. This kind of
process takes a set of means that is given and concentrate on choosing between the possible
effects which can be generated with that respective set of means. This is considered as an
approach that facilitates in making the decisions and operating various activities in the process of
entrepreneurship that recognise multiple steps with the assessment of the different resources that
are available for the achievement of the objectives as well as goals of The Family Cafe.
Feasibility study of New Venture Concept
In context to New Venture, the feasibility study is that type of study that is designed to
determine whether a proposed idea or a project should go forward or not by ascertaining whether
the plan or the project is doable or practical (Amjad, Rani and Sa'atar, 2020). The feasibility
study of new venture of The Family Cafe can facilitate the business in identifying the strengths
as well as weaknesses of the proposed plan. This is a good idea in order to have a contingency
plan in case of the uncertain circumstances. There are some advantages of having the feasibility
study within the New Venture and these benefits are:
 Being specific as well as focussed, the feasibility study starts with asking whether the
idea of introducing a new product or business is a viable solution and also forces
entrepreneur of The Family Cafe in concentrating solely to drill down for exploring the
possible results.
 This kind of study pressurises an entrepreneur in first considering the big picture and then
make thoughts regarding the top-bottom strategy (Azizi and Mahmoudi, 2019). The
Family Cafe is planning to introduce Mango Lassi in which the main ingredient will be
Mango and there will also be another ingredients that makes the people feel refresh and
energetic.
Relationship between entrepreneurship and innovation
Innovation is the process of creating something new that has not been ever exist within
the business and this process does not create the opportunities for the organisation always.
Entrepreneurship is the process of identifying the opportunities within the great innovations as
well as creating the opportunities and adding along with keeping the values improving over a

defined time period. The function of entrepreneurship within the process of innovation driven
economies is very clear as higher the level of innovation, greater will be the rate of
entrepreneurial births take place to absorb and diffuse new technologies.
TASK 2
Competitive analysis
In order to analyse the competency within the industry, the model of Porter's Five Forces
can be used by The Family Cafe as it would help the organisation in analysing the level of
competition within the food industry (Chatterjee, Gupta and Upadhyay, 2018). The five forces of
this model are discussed as under in relation to The Family Cafe:
 Competitive Rivalry: Competition level in food industry is intense and there are several
competitors of the respective cafe such as Cafe Parisienne, Nora Cafe, Kennington Lane
Cafe an many more. These players influence profitability as well as efficiency of The
Family Cafe and is a high threat for this.
 Threat of new entrants: This is based on entrance of new firms within the industry and
the challenges associated with them. In order to overcome the challenges, The Family
Cafe is required to evolve effective strategies of business that facilitate organisation in
chasing competitive benefits within market. There is low threat of new entrants as UK
government has formulated various trade policies which are needed to adhere by new
entrants for taking entry in food industry.
 Bargaining power of buyers: There are numerous cafeterias in UK holding a large
number of market share. Customer-base of country has several alternatives for buying
food products, so there is high threat of bargaining power of customers for The Family
Cafe.
 Bargaining power of suppliers: Within food industry, there are several suppliers that
are offering raw materials to organisations (Huang and Liu, 2019). In context to The
Family Cafe, there are large number of suppliers that are supplying such materials and at
low price in comparison to other competitors. Therefore, there is low threat of bargaining
power of suppliers for the cafe.
 Threat of substitutes: Such products are homogeneous to firm's products and provided
at less cost to market share. In relation to The Family Cafe, entrepreneur of organisation

would offer innovative product like Mango Lassi to its potential customers. Hence, there
is low threat of substitutes for the respective cafe.
STP analysis
This model helps the organisation in ascertaining the segmentation, targeting, positioning
and recognising the target market so that food products of the cafe can be offered to the market-
base in an effective way (Kadir, 2018). Different stages of STP Model is described as below in
context to The Family Cafe:
 Segmentation: Within this process, the requirements of each market segment are
identical in nature and hence, marketing strategy is designed for every single segment of
the market in order to concentrate on the concerned benefits and attributes needed. In
context to The Family Cafe, organisation can divide its business in multiple market
segments such as age, location, behaviour, etc.
 Targeting: This process assists The Family Cafe in identifying the target-market and
framing competitive marketing strategies. From the above discussed market segment, the
target market for this cafe can be location as the organisation should enhance its business
at different locations even at international markets also.
 Positioning: In context to The Family Cafe, organisation is required to evaluate various
marketing channels such as digital marketing, online and offline advertising like print
media, social media, websites and many other (Kiminami, 2019). For the new venture of
cafe, social media is considered as the best as well as the most attractive targeting
strategy that facilitate the organisation in capturing a large number of market share by
promoting Mango Lassi to target customers.
Justification behind feasibility of business
The new business of cafe is feasible because its main product that is Coffee never goes
out of style and can be considered as a great source of extra income. The risk of failure is
relatively low in such kind of business in comparison to other forms of the business. Coffee
shops are very profitable because of the high margins of profit as well as low cost of stock.
Therefore, the effective management of the costs helps in ensuring the business of cafe is a
success.

TASK 3
Frameworks and concepts
There are various frameworks and concepts that are concerned with the respective new
venture of Cafe and some of these frameworks are explained as follows:
Marketing Mix
This tool is a set of strategies that are required to be determined by an organisation for
promoting its products as well as brand (Le Dinh, Vu and Ayayi, 2018). Marketing mix of The
Family Cafe is given as below:
 Product: The Family Cafe will provide a huge variety of food and beverages products
such as Coffee, Mocktails, Pizza, Pasta, Sizzler, Lassi and many more. The business has
introduced a new flavour within the Lassi, that is, Mango Lassi that assists in refreshing
the mind of people and make them more energetic.
 Price: The Family Cafe will use cost plus pricing strategy to price their food and
beverages products as in this pricing strategy, products are priced with a considerable
amount of profit including the cost.
 Place: Entrepreneur of The Family Cafe will use direct channel of distribution to offer its
products as this kind of distribution channel will facilitate the organisation in capturing a
lot of market share directly. It will also help the cafe in gaining competitive benefits over
competitors in the market place.
 Promotion: In relation to The Family Cafe, promotional strategy of social media
marketing is suitable as it will assist organisation in attracting more customer-base by
describing features and benefits of its innovative Mango Lassi.
 Process: Entrepreneur of The Family Cafe will use direct selling process to serve its
products to its potential customers because this facilitates business in reducing
intermediate cost that will enhance profitability of cafe.
 People: Within The Family Cafe, people includes staff members who will be involved in
preparing food, cleaning, receiving payments, etc.
 Physical evidence: The Family Cafe will maintain records of all thoughts and
observations of customer-base at the time of buying products from its organisation.

Proposed business model and Process of working of new venture
Business model is plan of an organisation in order to make profits within workplace and
it is significant within The Family Cafe because it facilitates entrepreneur through giving
knowledge regarding competitive benefits of organisation and also gives better sense of financial
information (Meister and Mauer, 2018). There are different business models and some of them
are Subscription model, Bundling model, Retail business model, Manufacturer model and many
other. In context to The Family Cafe, Retailer business model is considered as a proposed
business model in which the store of food and beverages is competing locally. New venture will
go through different processes in order to offer its food and beverages products to its potential
customers. Organisation will hire some manpower and buy machines and technologies to prepare
food and maintain decorum of cafe. It will also follow various promotion strategies for fostering
its products within market-place to capture more customer-base. This will help in enhancing the
level of profitability, efficiency and productivity within business.
TASK 4
Business and marketing strategies for success
Business strategy is defined as a clear set of plans, objectives and activities that traces the
process of a business to compete within a specific marketplace along with its products and
services. Examples of business strategies are improving customer service, grow sales from new
products, product differentiation, pricing strategies, etc. Marketing strategies are overall game
plan of a business in order to reach potential market share and turning them into consumers of
products and services of respective business. It includes internet marketing, social networks and
viral marketing, direct selling, conversational marketing and many more. Entrepreneurs should
follow strategies of social media, creating video tutorials, blogging, leverage influencers, content
marketing, search engine optimisation, e-mail marketing, etc. to find the success of business
(Morozova, Popkova and Litvinova, 2019). Description of different strategies is given as below
in context to The Family Cafe at the start-up phase:
 Leverage free marketing and advertising strategies: It is time to make good money as
it is practical that an entrepreneur rethink expensive choices in order to get individuals for
noticing its products or services. By encompassing social media, entrepreneur would be

able to know that exposing its business to a wider segment within market without having
to go beyond budget is possible.
 Embracing appropriate technology: In modern times, start-up is actively pursuing
technologies as well as innovations that facilitates it in easing a large number of
operational activities. The cafe is taking advantages by using automation technology
within its business as it helps in reducing business cost and time.
 Attracting proper people: Respective cafe should hire right candidate that is suitable for
the particular job role (Schaltegger, Beckmann and Hockerts, 2018). Effective hiring of
people can lead to business growth and success and enhances profitability of
organisation.
During period of growth, the entrepreneur can use business and marketing strategies of
market penetration, market expansion, product expansion and diversification. This would help
organisation in gaining competitive advantages over rivalries within market-place. At time of
consolidation, entrepreneur should follow strategies of product line expansion, diversification,
enhancing channels of distribution and many more. This will assist the business in maintaining
sustainability within the industry or the market and also help in increasing the business with less
risk or failure. At time of underperformance, strategies that should be used by entrepreneur are
discussion with employees regarding setting clear performance expectations, seeking feedbacks
from them, monitoring employees and many others.
These business and marketing strategies would help the entrepreneur of The Family Cafe
in achieving higher level of growth as well as success within the business. It would also facilitate
in gaining competitive advantages over competitors within the market place (Tyagi, Sengar and
Kumar, 2018). Effective business and marketing strategies will provide assistance to the
entrepreneur of the cafe in maintaining a higher of profitability as well as productivity within the
business.
TASK 5
Quantitative and qualitative planning tools to assess and mitigate risks
Qualitative planning tools are those that are based on the domain-specific features that
might be used by the human experts in order to differentiate between the plans. In order to assess
and mitigate the risks, various types of qualitative planning tools are available that helps the

business of The family Cafe in enhancing the level of efficiency within the workplace. These
tools can vary significantly relying on the type of business that is being run as well as the
resources of the risk management that are available to the business. There are various qualitative
planning tools that can be used by the business of The Family Cafe in order to assess and
mitigate risks and some of them are discussed as under:
 Delphi Technique: This tool uses opinions of experts in order to identify, examine and
evaluate risk on the basis of an individual and anonymous (Wang, 2021). Every expert
then reviews each another expert risks as well as a risk register gets produced through
consistent review along with consensus among the experts.
 SWIFT Analysis: It stands for Structured What-If Technique and applies a systematic
and a team-based approach within the working environment where the team of an
organisation researches how changes from an approved design or approved plan may
impact a business through a series of “What-If” considerations. Such kind of technique is
specifically used in the evaluation of viability of opportunity risks.
 Decision Tree Analysis: This tool is most often used in determining the best action that
can be taken when there is uncertainty in result of possible events or the plans proposed.
Once all the outcomes as well as pathways have been developed and the respective
possibilities have been evaluated, a course of action may be chosen on the basis of
combination of the most expected results that are concerned with the events as well as
possibility of success.
Quantitative planning tools for assessing and mitigating the risks are considered as a
numeric estimate of the entire influence of risk on the objectives of the business like scheduled
objectives and cost. The outcomes give insight into likelihood of success of business and is used
to evolve contingency reserves. There are different quantitative planning tools that can be used
by the business of The Family Cafe in assessing and mitigating the risk and some of these are
described as follows:
 Three Point Estimate: As per this kind of quantitative technique, values that are
optimistic as well as pessimistic are used in order to ascertain the best estimate among the
alternatives available. It is a type of management technique that is used by the
organisation for ascertaining the possible results of the future happenings that are based
on the available information.

 Expected Monetary Value (EMV): In such type of quantitative planning tool,
contingency reserves are established for a budget and schedule of the different operations
of the business. This technique refers to a statistical concept that helps in calculating the
average results when the future involves scenarios that may or may not occur within the
business.
 Monte Carlo Analysis: This is a kind of quantitative planning tool technique that uses
optimistic as well as pessimistic estimates in order to ascertain the total cost of the
business along with the completion time of the different business activities (Zhang,
2020). According to this kind of planning tool, the simulations of this technique are used
to model the possibility of carious results within a process which cannot easily gets
predicted because of the intervention of the variables that are random.
 Sensitivity Analysis: This is a quantitative planning method for predicting the
consequences of a decision in case if a situation turns out to be varied as compared to the
standard predications. This facilitates the cafe in assessing the riskiness of a strategy and
also assists in identifying the dependency of output on a specific value of input.
Common mistakes made by entrepreneur at first time
There are multiple mistakes that are made by the first time entrepreneurs but there are
some common mistakes that are made by them and these are mentioned as under:
 Raising money from the capitalists on which they do not trust.
 Over-weighting the opinions and ideas of investors.
 Over-complicating the messages of investors assuming that average individual will
provide more than 0.1 seconds of their attention.
 Not thinking enough regarding the sales velocity as well as whether the clients of
entrepreneur have desire and ability to purchase in a quick way.
 Not identifying kinds of customer-base who will purchase at a great price point to assist
business model.
 Poor prioritisation and performing on way very initiatives at once.
 Waiting too long to fire people.

CONCLUSION
From above explanation of report, it has been concluded that business plan is a document
in the written form that explains in detail the process of defining the objectives as well as
achieving them in an effective way. This report has been included several aspects of
entrepreneurship and business development. These various aspects has helped business in
achieving its long-term profitability as well as sustainability within the marketplace. Qualitative
and quantitative planning tools also helped business in assessing and mitigating the risks in order
to effectively operate different business functions.

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