Business Plan for CAFEPOD Cafe in United Kingdom

This business plan discusses the launch of CAFEPOD cafe in the United Kingdom, including its business overview, legal status, industry analysis by Porter Five Forces Model, SWOT analysis, evaluation of possible issues, and more. The plan also covers the cafe's vision, objectives, and mission, along with its financial analysis and market analysis. The report highlights the possible issues that may impact the success of the Cafeteria and provides solutions to overcome them.

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Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Business overview.................................................................................................................3
Legal status............................................................................................................................4
Industry Analysis by Porter Five Forces Model................................................................5
SWOT ANALYSIS...............................................................................................................6
Evaluation of the possible issues that may impact the success of the Cafeteria.............8
Market Analysis....................................................................................................................9
FINANCE............................................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................11
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INTRODUCTION
Buisness plan is a systematic written document which helps an organisation to store their set
aims and goals. The effective business plan can identifies the proper techniques which helps
an organisation to accomplish those targets. The chosen organisation in this project is
CAFEPOD cafe which is located in the country UNITED KINGDOM. They try to bring
new product for their customers which can help them to generate more profits and revenue.
Many strategies and method will be discussed in the following report.
MAIN BODY
Business overview
The small and medium size of commercial enterprises such as cafe or bakery would be
launched and run their business under the brand name of CAFEPOD which is been established in
the country United kingdom. The management of this company offers a wide range of products
related to coffee in both the type such as raw material and in ready form to their potential
customer base. They almost generates more than 1.75million dollars of revenue by the sales of
their products. The higher authorities of company CAFEPOD has decided to start the new outlet
in the state Blackpool, because as per the survey most of the people who likes to eat the bakery
items are living in the region of Blackpool as compare to other cities. The company CAFEPOD
has speciality in the coffee products.
Vision of the business
The main reason and aim of this start-up is to satisfy their customer through best quality
services which they can give with the help of strong core value, ethical operations and valuable
products. This cafe is focused to gain the customer loyalty towards their organisation by
fulfilling all the specific needs and wants demanded by final consumers. They are trying to
create strong brand image in their respective market field which can help them to highly
recognised and should known for providing the best services to their customers. After this
pandemic almost all the people across the globe had become health conscious, due to this The
management of CAFEPOD is trying to adopt various ozone-friendly methods to manufacture
their products.
Objectives and mission
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The mission of the organisation CAFEPOD is to create value of their products and
services in the mind of their consumer by serving best quality of coffee product and bakery item.
The objective of the start-up is to increase their customer base and revenue by manufacturing
new product range for their customers. By catering the bakery products and services which will
fulfil the requirements of their customers they can attain enormous growth and development in
their business. The cafe aims to maintain a strong and reputed image in their market field by
maintaining good communication system such as response to the feedback etc. with their
customers. They can also provide better and top quality offers to their existing customers.
CAFEPOD has added various products in their production such as organic cakes, cookies,
breads, muffins, cupcakes, pastries, doughnuts, wafers, and various kind of flavoured snacks by
this they can target the new customer base.
Legal status
The CAFEPOD is a private limited company which has been started in the year 2011.
Limited company are the kind of business organisation which are manage or run by the various
entities such as stakeholders, investors and many more higher authorities. In this kind of business
model the authorities make their own rules and regulations in order to run the business
operations effectively and efficiently. The main target of these limited companies is to earn more
and more profit by selling the products and services to their customer's. They can face various
risk if one of their stakeholder start misbehaving in the company. The management of this
company has build a strong brand image with the help of private limited label attached with their
name. In the current world, if the company is a private limited firm then the customer will prefer
it more as compare to other companies. It will help them to strongly fight with their present
rivals in their industry. The employees of the company CAFEPOD has to follow and obey the
protocols made by their management in command to get the best working performance from
them which will enhance the productivity of the company. The revenue or profit earned by the
company will be distributed between the shareholders in the form of dividend. The private
limited companies are the one which are responsible for every negative and positive issues
occurs within their organisation. In present period of time, limited organizations of UK are
paying only 19% of business firm profits which is very less as comparison to other type of
organisation such as sole traders which are paying almost 45% of tax. Limited companies are
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one of the most complex and difficult to manage business organisation because the working of
the company such as management, operations etc. are very complicated and hard.
Industry Analysis by Porter Five Forces Model
Industry analysis is a type of marketing tool which helps an organisation to conduct a
complete analysis which included their brand image, position etc. in the specific market sector
where they are working. In case of CAFEPOD, the porter's five force analysis model has been
mentioned below which can help them to examine their competitive position in the bakery or
cafe industry. This model examine the 5 most important micro and macro factor that can effect
their business in a positive and negative way. After this, the management can make the several
changes n their ongoing operations in order to accomplish the set goals and aims. This strategy
will help CAFEPOD to analyse the competitive and strategic environment which can help them
to build a proper strategy by which they can attain more future growth:-
 The Threat of New Entrants: This is the important factor of porters five forces model
that can helps an organisation to identify the new competition which arises in the
working field that can effect and beat the current player. The new entrant who starts
dealing in the market will use modern techniques to manufacture the goods or services
and can provide those product in low cost as compare to existing companies which can
effect the business operations and sales of the companies which are already working in
the bakery industry. The threat of new entrant in context to CAAFEPOD is high because
it easy for an individual or group of people to start a small cafe in their locality which can
effect the sale and revenue of old companies. The management of CAFEPOD has to
develop various unique products which can decrease the change of reputation regarding
their cafe in the mind of their customers.
 Threat of Substitutes: This factor states that the company try to compete with the
existing company by producing the same product made by the other companies. In other
word threats of substitute refers to the substitute product line from another company that
offers the same or similar product or services as compare with the other companies to the
consumer present in the industry. In case of CAFEPOD, this threat of substitute is low
because they produce a complete different bakery product such as organic flavoured
bread etc. which they totally manufacture in their company.
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 Bargaining power of customer: The Bargaining Power of customer refers to the force
made by customer or the final consumer in which they demand high quality ,more valued
and customers services regarding the product product or services by the company in a
very low cost . In relation to CAFEPOD, they set low prices of foods & drinks like
coffee, bakery products which can be easily afford by the people. Thus, there is low
bargaining power of customers.
 Bargaining Power of Suppliers: The food and beverages industry includes a large
number of reputated firms, particularly in cafe and bakery sector. As a outcome, suppliers
has the high amount and power to do the bargain with the companies . If competitors pay
their suppliers well, they may not be able to supply CAFEPOD with all of the essential
supplies and resources which can effect the business production and in result it can effect
the sales and profit of the company.
 Competitive Rivalry: In context to CAFEPOD, the present competitors pose a
significant danger. Several cafes and bakeries such as Starbucks, cafe-coffee day which
operate their business function in United Kingdom as well as across the globe.. This is
because all of these institution set the competitive price for their products, therefore a
small increase in price of product offer by CAFEPOD lead to the other companies to
enlarge their current customer base.
SWOT ANALYSIS
Swot analysis is strategic tool and model which assist an organisation to analyse or
examine the both external and internal factor that can effect the business operation. Strength and
weakness are 2 kind of internal factor that includes in this model whereas opportunities and
threats are some kind of external factor that has been explained in this report:. In context to
CAFEPOD, the swot analysis is mentioned below:-
STRENGTHS
 Highly experienced- CAFEPOD has
been in operation for more that 10
years. The management of this
company has build number of unique
WEAKNESSES
 Price- The management of CAFEPOD
has set the price of their product as per
the core value and they ensure to serve
the best quality but somehow they
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and several products which they offers
to their customers. Hence, they have the
complete knowledge of their customers
regarding their needs and wants.
 Well appointed team-force- The
higher authorities of the company are
completely involves in the resource and
manufacturing department and they
keeps the complete control on the
quality of their products. They highly
motivates their employees which can
help to enhance their overall working
capacity.
losses the customer base because they
set the high price for some of the
products.
 Perception of Public:- The company
CAFEPOD, has build a thought process
in the mind of their customer's that they
only provide coffee to their customer.
Thus, it is a very big dis-advantage in
decreasing the sale of other product
manufactured by them.
OPPORTUNITIES
 Global Expansion- The management
of CAFEPOD, only conducts their
business operations in United Kingdom.
The company can expand their business
operations in various other nations such
as Russia, Brazil because these
countries are promoting foreign
companies to establish their business
operations in their countries.
 Online Store- The management of
CAFEPOD can use various online
platforms which can help them to sell
their products to more and more
customers. They can also promote and
market their product or services to
THREATS
 The competition in the market can also
affect the CAFEPOD future growth and
success because low prices of the
product offered by the competitors
which can compel the customers to shift
to the other side.
 New technologies can affect the
business in negative way because it can
change the needs and wants of the
customer in order to this the CAFEPOD
has to invest lots of money, time to get
successful in their new business
operations.
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across the world with the help of social
media platforms such as instagram,
twitter etc.
Evaluation of the possible issues that may impact the success of the Cafeteria.
In regarding the growth and success of the business their are several aspects present
which can reduce the effectiveness of the CAFEPOD. Their various issues which arises within
the organisation which can have a bad impact on the business operations, management and
various elements related to the company. In context to CAFEPOD, some of the issues and their
solutions are mentioned below which can help to run their business smoothly and fluently:-
 If the marketing strategy which has been adopted by the CAFEPOD fails then it will
decrease the overall performance of the company and can affect the business reputation
or image in their respective market area. The management of CAFEPOD should use
proper and appropriate marketing strategy in order to avoid the big loss which can occur
due to this section of the company.
 Promotion is one of the most important work which has to done by the management of
companies in order to deliver the details regarding their products and services. It is one of
the most essential part included in a good business plan. In case of CAFEPOD, if they
put less effort in this work then it can disrupts the sales and running of the business. The
positive feedback and output given by the customer on the basis of their experience can
refers as the most valuable asset as they will automatically promotes their cafe with their
friends and family members.
 If the present owner of the company doesn't enthusiastically take the part in the
companies operation then it will automatically create a mess thus in result it will lead to a
permanent shut down of he running business. In context to the CFAEPOD, the owner
should regularly check the employees performance which will lead them to get the best
working performance from them by giving them the positive feedback regarding their
completed task
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 The management of CAFEPOD should always properly allocate their present resource
which can help them to make the fullest utilization of that elements in order to prevent
the huge losses. If the mismanagement occurs in the usage of resource then it will hamper
the profit ratio and can impact the various segments of the Cafe.
 It is very important fro an organisation to provide complete and proper direction to their
employees regarding the business operations and objectives. If the employees present in a
firm are not managed properly by their higher authorities then it will decrease the overall
productivity of the business. Out of control working force in an organisation cannot
achieve the set goals and aims of the company.
Market Analysis
Market analysis refers to the analysis which provides data about the industries,
competition, customer and many more elements. It is the large part of an market research and
important part of business plan, the 2 types of market research are involve such as primary and
secondary research. These 7 P'S helps to analysis the company to review and determine the key
issues which can affect the market by its products and services. The 7 P's of marketing are as
follow -
 Product: This factor refers to the product as well as the services which accounts to the
features, quality, benefits and advantages that the cafe will be selling which eventually
will induce the customers to fulfil their need and demands.
 Price: It refers to the amount which has to be paid by the customer in order to enjoy the
ownership of the particular product and service. In context to CAFEPOD, the
management of the company should know the complete details of their customer that
they are willing to pay for acquiring the product and service made offers by them. They
can also provide discount to their customer which can attract more new clients towards
their organisation.
 Promotion: It refers to the systematic and appropriate strategy which can help the to
advertise their product and services in the marketplace. In context to CAFEPOD, they
can adopt various marketing techniques which can help them to convey the proper details
of their products and services to their customers. Different social media platforms and
official website can effectively do this process which can enhance their sale and
productivity.
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 Place: It refers to the place where the company sells their product and services to their
target customers. In context to CAFEPOD, the management should select the correct
place where they can serve their product and services to more customers easily and
fluently. They should develop the proper strategy in the selection of appropriate place
from where the customer can buy their products and services.
 People: This is one of the most important factor related with an organisation which
involves an indirect or a direct contact of the enterprise with the customers that are
involved in the consumption of the product or the services that has been offered in the
market. The case to CAFEPOD, they will make an efficient use of this mix in command
to build a strong market position in their respective industry.
 Process: Process refers to the operations that are involved in delivering the products and
services to the customers. If an organisation adopt proper process system than it will
ensures the standard of the services that are offered by them to their [potential and new
customers which in results saves their time as well as the cost by increasing productivity
and efficiency of their business functions.. In context to CAFEPOD, the management
will ensure the accuracy of the process which takes place within their organisation.
 Physical Evidence: This factor includes the physical elements such as environment
where the product or the services is provided etc. The CAFEPOD will make certify that
all the values and standards are met in accordance to the customer preferences.
FINANCE
CASH FLOW
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CONCLUSION
From the above report it has been concluded that, a proper and effective business plan
will help an organisation to successfully run their business operation and can build a strong
market position. Furthermore, this report is based on small bakery CAFEPOD. The proper
business plan includes the business overview, their legal status, competitive advantage is been
included in this report. Later on, the Swot and Pestle analysis of the cafe is also been mentioned
in this report. At last, the financial account such as cash flow and P&L of company CAFEPOD
has been included in this report.
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