New Venture Creation: Cafe Business in United Kingdom

NEW VENTURE
CREATION
INDIVIDUAL

Description of the company
The innovation of the company in this report that is being presented is the cafe business and it is the
new venture which is new in the market of united kingdom the working of the cafe is not that
typical but it is the kind of the company which is going to deal in the market of the cafeteria nd it is
going to attract a lot of visitors and the customers(Hertel, Binder and Fauchart, 2021).
Vision and mission
The phrases are used interchangeably in the mission statement and coffeehouse. They all serve a
different purpose, though. The cafe's vision statement discusses where it wants to go in the future,
while the mission statement explains what it needs to accomplish today to get there. Although the
vision and mission statements must complement one another, the mission statement is more
detailed. It establishes how the bold street cafe will be distinguished from other businesses in its
field.
And our business vision is to make people happy so its vision statement is “life is good”
Both the vision and mission statements differ from the values statement, often known as the code of
ethics. The organization's vision and mission describe where it is heading (vision) and what it will
do to get there (mission) (mission). They focus the efforts of the organization's employees on
achieving a common goal. The values statement outlines what the company stands for and how
employees are expected to interact with one another, customers and suppliers, and other
stakeholders. It gives the organization a moral compass that drives decision-making and establishes
a baseline for evaluating activities. It also establishes a criterion by which staff can assess
infractions(Dost, Shah and Saleem, 2021).

Industry Analysis
Porter's five model is a business analysis which identifies and analysis the competitive forces of the
market. The model is used to determine the corporate strategy and known by the name of
competitive strategy. This model was published after the Harvard business school by the
professor Michael E. porter.
FACTORS ARE AS FOLLOWS :
 Threat of new entrant - It refers to the threat that new rivals offer to an industry's incumbent
competitors. In the case of the brazen street cafe, there are hefty startup costs. As a result, the
company is unlikely to face significant risks from new entrants, and new entrants have a low
impact on the firm because new companies enter the market with new pricing strategies, fresh
products, and appealing consumer offerings. So, to address the problem, brave street can offer
new technologies, new collections, and new prices for products, as well as some perks to
buyers, making the firm more appealing(Riley Doyle, Burks and Paul, 2022).
 Bargaining power of suppliers- It is the impact that suppliers can have on businesses by
raising their pricing. This carries a lot of weight because he is in a strong position to put
pressure on the company by employing various strategies such as lowering product quality,
raising prices, and increasing the cost of switching raw materials. The cafe solves the problem
by building supply chain management with several suppliers from various countries; if prices of
any good rise, it can switch to other suppliers if switching costs are minimal; if prices are
unsuitable for the product, it can switch to other providers.
 Bargaining power of buyers- It refers to the pressure that customers can apply to businesses in
order to compel them to produce better products and customer service. Buyers frequently have
high expectations. They aim to get the greatest deal possible by paying the least amount of
money feasible. Customers have cheap switching costs and a variety of options, therefore this
has a mild force. Bold street needs to increase client loyalty by providing unrivalled value and
conveniences.
 Threat from substitute product- It is the availability of other products from outside an
industry that a client could purchase. It is high force because there are substitutes for the things
that bold street provides, and customers can simply switch because they have options, so rather
than buying products at a high price, they will tend to get it elsewhere. To address the issue, a
corporation can cut the price of a brand with similar good attributes, so attracting buyers more
easily.

 Rivalry among the existing players – It is a metric for determining the level of competition
among current businesses. It exerts a significant influence on the company due to intense
market competition, with competitors such as Swiggy and Zomato delivering more appealing
offers in both stores and online. This bold street should also focus on its web site and present a
wide choice of things to dissolve it(Yang and Yang, 2022).
Customer Segmentation and Targeting: Our goal is to assess the customers to whom the
company wishes to advertise its product. The value potential of each customer or set of customers
(called as segments) is the focus of the customer portfolio analysis. bold street is now pursuing a
differentiation emphasis approach, with the goal of standing out in a number of target market
sectors.
Competition and Purchasing Patterns: Coffeehouses must create a high-quality product in order
to maintain the reputation of "small luxury." Most of the major chains are currently bending to
growth demands and cutting shortcuts on quality by implementing fully automatic espresso
equipment, mass bean purchasing, and other efficiency methods.
Segment marketing
In essence, a market segment is a group of clients who have comparable demands and needs. As a
result, we divide the market into segments depending on their requirements and desires. We sell
snacks, beverages, light dinners, and fast food items in addition to coffee so that customers can have
a pleasant time while doing so. With this in mind, the following consumer segments were chosen:
I. Geographic: It is unimportant that people from different divisions come to our outlet only to
drink coffee. As a result, we are solely concerned with the people in the united
region(Ogunsade And et. al., 2021).
II. Demographic: Although our coffee shops primarily cater to people aged 20 to 35, they also
provide products that appeal to young children, such as a variety of classic hot chocolates for