Business Strategy for Caffe Culture

This presentation focuses on Caffe culture and its vision, mission, and goals. Learn about the factors considered while formulating strategic plans and techniques in developing a business plan.

Business Strategy
(TASK 1)
Caffe culture

Table of Content
 Introduction
 Business mission, visions, objectives, goals and core
competencies
 Factors considered while formulating strategic plans
 Techniques in Developing Business
 Conclusion
 References

Introduction
This presentation focuses on Caffe culture and its vision,
mission and goals.
Caffe culture is new age coffee shop situated in the heart of
London. In this presentation the factors which play a critical
role in developing strategy will be analysed and techniques
such as benchmarking, business analysis and Ansoff can be
utilised to formulate a business plan.

Business missions, visions, objectives,
goals and core competencies
Mission
The Mission is to create a great place for socialising along
with the best brewed coffee in town .
Vision
The vision is to serve United Kingdom the best brewed coffee
and obtaining the market share of 40%.

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Goals and objectives
Earn profits rights from inception of business.
Best coffee shop in London.
Maintaining a gross margin of minimum 50%
Customer Retention
Positive word of mouth.

Factors considered while formulating
strategic plans
Strategic Plan are action plans for the future and the process on
how to achieve the organisational goals. SWOT analytical tool is
most efficient for the purpose of the company.
Strength
Demand
Customer Base
location
Weaknesses
Volatile customer base
Budget
Opportunities
Price differentiation
Discounts for regular
customers
Threats
New entrants
Competition

Techniques in Developing Business Plans
Business Analysis: It is a practice of developing business strategies, plans on
the basis of research. It focuses on the needs of the consumers and
providing with the solutions.
Example: Demand Determination
Benchmarking: the technique believes in setting up of standards and then
comparing the actual performance with the predetermined one. It is an
essential element in understanding the advantages or disadvantages of
competition.

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The analysis of the factors of
external environment for the
coffee business which affect
strategy formulation.
 Political environment/ Legal
environment
 Economic environment
 Social environment
 Technological environment
 Economic environment

PESTEL Analysis
Political: Suitable political environment and liberal
policies to run the coffee business.
Economic: With the change in foreign exchange, price
of raw coffee increases and due to this, profitability
of cited business can be hampered.
Social: Change in taste of youth, demand for coffee
shop increases which is favorable for cited business.

PESTEL Analysis
Technology: Rise in technology makes coffee business
easy as various coffee making machines are available
which certainly decreases the job time.
Legal: Business need to consider the food and hygiene
act in order to run the business of coffee shop.
Environmental: More pressure from regulatory bodies
to practice sustainability in business operation can
increase the operational cost of coffee business.

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Ansoff Matrix: this tool is used to determine
the product and the market growth
strategy.
Market Development: This refers to a growth
strategy where the business seeks to enter into
new markets to sell their products.
New-product: This can also be mentioned as Product
development which focuses on introduction of
new product into the existing market.
Market Penetration: This strategies focuses on
selling the existing products in the operating
market.
Diversification: Diversification refers to the strategy
which focuses on business launching new
products in new markets.

Conclusion
 This report carries a brief about business strategy of a company.
Assessment of vision, mission, goals and objectives influence the
process of strategic planning.
 The Factors and techniques used in the developing of business
plan such as Ansoff, benchmarking and analysis of environment
understood as well. The implementation of the business strategy
plays a crucial role in the success of the business.

REFERENCES
Scholes, M. S., 2015. Taxes and business strategy. Prentice
Hall.
Shapiro, C., 1989. The theory of business strategy. The
Rand journal of economics. 20(1). pp. 125-137.
Miller, D., 1987. The structural and environmental
correlates of business strategy. Strategic management
journal. 8(1). pp. 55-76.

Thank You!!