Business Plan Report

A business plan is considered to be the most important document for a business as it acts as a roadmap and helps in the smooth functioning of the organization. It is a document that provides guidance regarding the achievement of future goals and objectives effectively and efficiently. The plan is usually prepared by the top-level management of the company as they know the vision and mission of the organization and how to achieve it. In present research business plan is prepared for inventing new products to the market. Aim of business plan is to give outline what will be the new products and services. How firm will be delivering its product to its target consumers. In the present report Harvard Coffee house is taken as the host company that is planning to bring new products along with its existing product. Business plan will help to analyse how effectively product will be accepted by the consumers. The complete research is carried out on Harvard Coffee house.

BUSINESS PLAN REPORT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
BUSINESS PLAN...........................................................................................................................1
Product and services offered............................................................................................................3
SWOT analysis................................................................................................................................4
PESTEL analysis : .........................................................................................................................4
Marketing strategy :.........................................................................................................................5
Marketing mix :................................................................................................................................6
Segmentation, targeting and positioning approach :........................................................................6
Operational structure (Number of staff, manager)- ........................................................................7
Funding............................................................................................................................................7
P&L..................................................................................................................................................7
Cash flows........................................................................................................................................7
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
A business plan is considered to be the most important document for a business as it acts
as a roadmap and helps in the smooth functioning of the organization. It is a document that
provides guidance regarding the achievement of future goals and objectives effectively and
efficiently. The plan is usually prepared by the top-level management of the company as they
know the vision and mission of the organization and how to achieve it. In present research
business plan is prepared for inventing new products to the market. Aim of business plan is to
give outline what will be the new products and services. How firm will be delivering its product
to its target consumers. In the present report Harvard Coffee house is taken as the host
company that is planning to bring new products along with its existing product. Business plan
will help to analyse how effectively product will be accepted by the consumers. The complete
research is carried out on Harvard Coffee house.
BUSINESS PLAN
Executive summary
Harvard Coffee shop is serving the regions by its fabulous tastes in coffee and chocolate
products. Coffee shop is run by single owner and have 3 branched in the city. Cafe has gained
the trust of people that will help it in growing further. Seeing the public acceptance and demand
for the existing chocolate product company is planning to add fast food like pizzas and
sandwiches of chocolate and ice creams. With these product invention company will gain new
market share. Cafe is planning to expand 2 new branches in the city. Main motive of cafe is to
serve society with completely new experience and build a positive brand image of cafe. Cafe is
running successfully from the years and growing high in revenues every year(Blackwell, 2017).
There is an increasing trend in sales and profitability of coffee shop. It will conduct market
research using SWOT analysis competitor analysis, marketing sub plan and monitoring and
controlling of the business activities to check that the goals and objectives are timely achieved.
Vision
''Bringing people together with best eating experiences stretching from the coffee house''

Mission
 To become welcoming, comforting the presence in each community served and
everywhere that we happen to show up.
 To serve everyone better than other with mesmerizing eating experience.
 To improve lives of guests by supporting the communities served(Brinckmann and Kim,
2015).
Objectives
 To increase the sales of company by 20% by the end of fourth quarter.
 To achieve productivity increase by 25% by end of fourth quarter.
 Of becoming bestselling coffee house of the city within a year. '
 To gain market share increase by 20% till end of the year.
 To control cost of sales by 10 % with implementation of new marketing strategies by last
quarter(Burns and Dewhurst, 2016).
Product and service descriptions
Coffee house is serving excellence in its coffee thereafter it introduced new Belgium
chocolate products that gained high market acceptance that helped the coffee shop to gain
competitive advantage over other cafes. Now cafe is planning to bring chocolate pizzas and ice
cream sandwiches. These are the new inventions that are not served by another cafe house of the
city. Pizzas will be made of bread and chocolate and caramel mix servings. Other product will be
the ice cream sandwich. It will be prepared by fillings of Belgium ice creams as it main product
and other sandwiches using ice creams flavours of customer's choice(Chambers and Humble,
2017). This is an entirely new concept that is unique in itself and are not existing in other coffee
or ice cream shops. Product will also be available in sugar free ingredients for old age people.
This will help cafe to increase its revenues as they are prepared using natural caffeine products
and natural chocolates that will not harm the body of people who are consuming it.
Industry Analysis
Cafes in United Kingdom have already grown. Cafes established from more than 5 years
have gained large market share and established kind of monopoly in their regions. As per the
survey reports number of people going to cafes are increasing every year(Chambers and Humble,
2017). This shows that opportunities for cafes are still open and if they are utilized using

effective strategies than they may establish well in market. There are large number of chocolate
and ice creams consumers in the nation. Harvard Coffee Shop is well-established from last 7
years and surprises the market with its new and innovative products and services. There are
number of pizza lover that because of which restaurants and fast food cafes are rising. A new
quality of pizza and sandwiches will further attract new consumers that will help coffee shop to
reach new heights in this sector. People are always in search of something new and unique that
adds to their experiences. These products will give consumers a completely new and
mesmerizing experience(Hofer, 2016).
Competitive Analysis
It is imperative for a company to analyse its competition as it would help them in
preparing various strategies to counter them and achieve an edge over other players in the
industry. Major competitors of Cafe are Hems-berg and Lakeside Cafe. They are serving the city
from past 10 years and have equal level of market acceptance. These cafes are highly rated by
the consumers because of their services of existing products. They are serving based on their
services and coffee products. Harvard Coffee house is serving high and unique chocolate
products and it has helped company to gain competitive advantage over its competitors. It is
essential for cafe to serve society with new products that will enhance their serving experience. It
is essential to analyse the present market competitors and what are trends which they are
following to maintain their position in market. Competitive analysis helps in analysing the
strengths which are helping it to grow with a steady growth(Hutchinson, 2017).
Product and services offered
Harvard Coffee is innovating its business operations and under this it will offer two new
products to the customers which are chocolate pizzas and ice cream sandwiches. Usually, it is
observed that few of café offer products other than coffee. Few one offer pizza and other items
that comes in category of fast food. It is observed that such kind of restaurants offer traditional
edible items. In the current business concept some innovative is offered to the customers and one
of them is chocolate pizza. It is the one of unique variant of the pizza and not is commonly
available to the people. Thus, such kind of product is introduced in the business and this will
definitely pave a way of growth for the firm. Other product offered is ice cream sandwich which
is also one of the unique items and not available easily. Speciality of this product is that it is cold

as chocolate and ice cream is inserted between bread. This make item different and delicious.
Price is also moderate which will definitely elevate demand of the product(McKeever, 2016).
SWOT analysis
Strength
 The Harvard coffee house serves the
best taste in the chocolate and coffee
products.
 They had gained a huge trust of their
customers with their awesome taste
and services(McKenzie, 2015).
Threats
 Available rivals in the market with the
same product is major threat to the
coffee house.
 Changing needs and preferences of the
consumers.
Weakness
 They mainly focus on the chocolate
and coffee products not on other range
of food product in coffee house.
 No promotions and advertising is
being done by the coffee house.
Opportunities
 Harvard's coffee house can attract the
wide range consumers with the new
products.
 The sales and profit margin will also
increase and further can expand to
different countries as well(Stark,
2016).
PESTEL analysis :
It is the framework which can be used by marketers for analysing and monitoring macro-
environment factors which can impact the organization.
Political Factors-
The government policies and transitions changes time to time that can affects the
business operations. And thus government from other parties made changes in treaties which has
been made by previous government(Tanev, Rasmussen and Hansen, 2016.).

Economic Factors-
Inflation price of the country can affect the pricing of the food product in the coffee
house to be also increased. The higher GDP rate is helpful for coffee house in introducing the
new product in the market with its new branches in city.
Social Factors-
The demographic trend should be considered by the coffee house before developing new
product in the market and develop the product's features which fits to this segment. The
advertising and promotion of new products are according to the locale culture and belief so that it
can be popular among the people(Ward, 2016.).
Technological Factors-
The mobile payment and fin-tech services must be allowed at the coffee house so that it
will be easy for customers. For making supply chain more flexible coffee house can further
analyse the different areas where technology can easily empower the supply chain partners.
Environmental Factors-
They can form food waste management so that it could not harm the environment. No use
of plastics is being done in the coffee house which is helpful for coffee house to adopting
sustainable business activities.
Legal Factors-
Before entering the new business coffee house must be aware of the business law and
regulation in food industry. Consumer protection Act must be considered by them for analysing
the consumer law(Watson and McGowan,2019.).
Marketing strategy :
Marketing strategy which is being used by Harvard coffee house will be modern online
marketing that is helpful for the company to attract the customer's attraction to the coffee house.
By this they can reach to the wide range of customers easily and new product's could also be in
trend with this marketing strategy. For online marketing they can use social media channels such
as Facebook, Instagram, Twitter etc., so that wide range of customer can attract towards the new
product which is being launched by the coffee house at new stores. The main aim of the Harvard

Coffee House is to maintaining the brand loyalty among the customer. And building huge
customer's trust towards the coffee house. They are refocusing on the old customers also and
along with that they are concentrating on new ones also that they can get through with huge sales
and huge profit margin for preceding year.
Marketing mix :
Marketing mix is the foundation of business model which is historically being centred
around the product, price, place and promotions. It is being explained below-
Product-
The new product which is being designed by the company should be unique in taste from
other products so that it can be popular among the consumers and more & more consumers are
easily attracted to that. Product must be innovative that influence the all ages group.
Price-
The pricing of the product must be low as the major number of customer's can be
attracted to that product, and they can render a high quality taste so that more and more
individuals like to taste the new products which is being introduced in their new coffee house.
Place-
The place where the new coffee house is being opened must be reachable to the
customers. The consumer can reach that place easily and enjoy the food their. Place must be at
the city centre so that the other peoples, tourist can also be attracted there.
Promotion-
The promotion must be done by the coffee house very effectively they should use the
online advertising and promotion with the help of various social media channels that can further
helpful for them to attract wide range of consumers to heir place. The brand loyalty can also be
formed among the consumers by company so that it can sustain in market for long term.
Segmentation, targeting and positioning approach :
Demographic market segmentation should be used by the coffee house so that they can
accurately target their customers. In this segmentation customers is targeted on the basis of ace,
religion, family size, gender, income, ethnicity and education which is very helpful for targeting
he customers on this basis. The targeted consumer will be youth and adults which can be
promptly attracted to the new products which is being introduced by the coffee house and further

it can attract a wide range of consumers. As the fast food are much popular among the youth
generation. For effective positioning approach it can be considered by the Harvard coffee house
to use the strength and weaknesses, needs and wants of the c0nsumers at particular local areas
and market and the competitors position which can be useful for the coffee house to gain a huge
market penetrate ion among the customers and attracting wide range of consumers to the coffee
house(Watson, McGowan and Cunningham, 2018).
Operational structure-
There will be 15 staff members in the coffee house from kitchen area to serving zone and
there is one manager who will be monitoring all the activities within the coffee house. There will
be five staff members who will work in the kitchen area and other remaining will be 8 staff
working for serving the customers and 3 will be working for the cleanliness, gatekeeper etc.,
Funding-
The funding of the Harvard coffee house is to be done by the bank loan and the crowd
funding which can be helpful for the company in establishing the business with its new product
at two different places. The coffee house can easily set up their business with help of this funding
sources.
P&L and Cash flows -
Valu
e
Choclate Pizza 10
Labo
ur 2000 2
Sanwich with ice
cream 3
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Choclate Pizza 300 375 469 586 732 916 1144 1431 1788 2235 2794 3492
Sanwich with ice
cream 250 313 391 488 610 763 954 1192 1490 1863 2328 2910
Revenue Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Choclate Pizza 3000 3750 4688 5859 7324 9155
1144
4
1430
5
1788
1
2235
2
2794
0 34925
Sanwich with ice
cream 750
937.
5 1172 1465 1831 2289 2861 3576 4470 5588 6985 8731
Revenue 3750 4688 5859 7324 9155 1144 1430 1788 2235 2794 3492 43656

4 5 1 2 0 5
HR expenses 4000 4000 4000 4000 4000 4000 4000 4000 4000 4000 4000 4000
Other expenses 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000
Electricity 300 300 300 300 300 300 300 300 300 300 300 300
Rent 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000 2000
Total expenses 7300 7300 7300 7300 7300 7300 7300 7300 7300 7300 7300 7300
Profit
-
3550
-
2613
-
1441 24 1855 4144 7005
1058
1
1505
2
2064
0
2762
5 36356
Sales 203279
264262.346953
154
343541.051039
1
Expenses
HR expenses 48000 68708 89321
Other expenses 12000 10570 13742
Electricity 3600 5285 6871
Rent 24000 24000 24000
Total 87600 80300 73000
Profit 115679 183962 270541
CONCLUSION
From the above study it is concluded that the business plan is very necessary element for
company to start up the business and conducting better business activities. This is helpful in
developing the business strategies and policies which can be further implemented in business so
that the business can be successfully established in market. New product can be easily launched
with the help of that and complete market study and watch is done before introducing product in
the market so that the company can gain huge profit margin and revenues of company can also
raise.

REFERENCES
Books and Journals
Blackwell, E., 2017. How to prepare a business plan: your guide to creating an excellent
strategy, forecasting your finances and producing a persuasive plan. Kogan Page
Publishers.
Brinckmann, J. and Kim, S.M., 2015. Why we plan: The impact of nascent entrepreneurs'
cognitive characteristics and human capital on business planning. Strategic
Entrepreneurship Journal, 9(2), pp.153-166.
Burns, P. and Dewhurst, J. eds., 2016. Small business and entrepreneurship. Macmillan
International Higher Education.
Chambers, I. and Humble, J., 2017. Developing a Plan for the Planet: A Business Plan for
Sustainable Living. Routledge.
Chambers, I. and Humble, J., 2017. Plan for the planet: a business plan for a sustainable world.
Routledge.
Hofer, C., 2016. The Evolution of Business Plans in International Business Plan Competitions.
In Models of Start-up Thinking and Action: Theoretical, Empirical and Pedagogical
Approaches (pp. 145-211). Emerald Group Publishing Limited.
Hutchinson, C.E., 2017. Engineering Entrepreneurship, From Idea to Business Plan. Technology
and Innovation, 19(1), p.451.
McKeever, M., 2016. How to write a business plan. Nolo.
McKenzie, D., 2015. Identifying and spurring high-growth entrepreneurship: Experimental
evidence from a business plan competition. The World Bank.
Stark, R., 2016. SanSal Business Plan.
Tanev, S., Rasmussen, E.S. and Hansen, K.R., 2016. Business plan basics for engineers. In Start-
up Creation (pp. 21-37). Woodhead Publishing.
Ward, J., 2016. Keeping the family business healthy: How to plan for continuing growth,
profitability, and family leadership. Springer.
Watson, K. and McGowan, P., 2019. Emergent perspectives toward the business plan among
nascent entrepreneur start-up competition participants. Journal of Small Business and
Enterprise Development, 26(3), pp.421-440.
Watson, K., McGowan, P. and Cunningham, J.A., 2018. An exploration of the Business Plan
Competition as a methodology for effective nascent entrepreneurial learning. International
Journal of Entrepreneurial Behavior & Research, 24(1), pp.121-146.