Coffee Connections: A Business Start-up Idea

Coffee Connections is a new business venture in UK that offers different flavors of coffee to the youth aged between 16-25. The café is located near universities and educational institutes and offers a unique experience to customers with its seasonal drinks, socializing ambiance, library, and music shows. The staff is polite and efficient in resolving customer queries. The legal structure of the venture is sole proprietorship. The 7 domains of the business idea include market attractiveness, sector market benefits & attractiveness, industry attractiveness, threat of new entrants, bargaining power of buyers and suppliers, threats of substitute, and competitive rivalry. The venture has potential for long-term sustainability by offering quality services at affordable prices and its major USP of seasonal coffee.

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Table of Contents
Description of business start-up...............................................................................................................3
7 domains of the business idea................................................................................................................3
References...................................................................................................................................................6

Description of business start-up
The name of the business will be “Coffee Connections” that has been started to offer
different flavors of coffee to the people. Here, the target customers for new business venture will
be youth who belong from the age group between 16-25. The business will starts at the prime
location of UK nearby the universities and educational institutes. The USP of café are its
seasonal drinks apart from the regular coffee. Like, it will provide floral notes during spring
season, yuletide spices during the holiday season. This “seasonal swag” in terms of cups, mugs,
coffee shop apparel will differentiate the venture from competitors. Apart from the coffee, the
main aim of the venture is to provide different experience to the customers. For this purpose, the
ambiance of the café has designed in such a way where people can easily socialize and connect
with each-other. Additionally, there is a library wherein students can enjoy reading along with
coffee. Apart from this, the music show, concerts are also organized in the café on weekends.
The staff of the café are polite and able to resolve the queries of customers efficiently. Here, the
services of the staff make the café different from its competitors. Also, they ensure to make
significant presence on social media platforms. For this purpose, they ensure to stay connect with
the customers via social media platforms like Face book, Instagram and more. In addition, they
motivate customers to give their reviews and post picture with the coffee on the social media. It
helps in attracting more number of customers in an efficient manner. The legal structure of the
new venture is sole proprietor as it has started by the sole proprietor who is responsible to take
all the necessary decisions of business.
7 domains of the business idea
This model was founded by John Mullins in 2003. The main aim of this model is to assist
the entrepreneurs to start a new business. However, this model can be utilized within the
organization in order to launch new product or services in market place. Here, different
dimensions of the respective model are mentioned below:
Macro Aspects:
Market attractiveness: This is one of the crucial aspects of the respective model that is
based on the attractiveness of the market that is being catered by the organization. Here, it is
analyzed that whether the market has necessary potential to earn significant amount of profit. If
the market is less attractive, it is difficult to ensure long term sustainability (Kim, 2018). In

context of the given business venture the market is highly attractive as it has potential of growth.
The food and beverage industry of UK consist ample of growth opportunities that will help in the
success of new venture in future period of time. For this purpose, PEST analysis is mentioned
below:
Political Factors: Here, the venture can avail the benefit of political stable environment
of UK. Additionally, subsidies and grants of government will create opportunities for future
success.
Economical Factors: Economy of UK is growing rapidly. However, there is threat of
COVID-19 , Brexit and other such uncertain events that might have profound influence on the
economy.
Social Factors: now, people get attracted by the creativity and unique features. In this
situation, the new venture can avail the opportunity by offering unique product to the potential
buyers.
Technological Factors: With the implementation of advance and unique techniques, it is
possible for the new venture to attract more and more customers efficiently.
Sector market benefits & attractiveness: At this level, the marketers are likely to
analyze the market in a depth manner. Majority of the product are not offer to serve the entire
market rather they cater the need of a particular segment (Maroufkhani, Wagner and Ismail,
2018). In this, the marketers need to select the segment which they are going to serve. In the
given situation, young generation is going to target by the new venture. It will be beneficial for
the entity in terms of earning high amount of profit.
Industry attractiveness: In broader prospective, the business manager is required to
consider the growth potential in the industry. It will help the business entity to determine their
competitors in the market (Pham, 2018). In the given scenario, the food & beverage industry has
high potential of profit. There are nearly 4 million people are working in the industry and the
industry is generating around 121 billion on annual basis. In addition, it is the biggest
manufacturing industry of UK (Opportunities ahead for UK food & beverage sector, 2021)

However, there is high competition in the industry which makes it difficult for the entity to
sustain for longer run.
Threat of new entrants: Threat of new entrance is high as there are limited entry
barriers in the industry in terms of initial investment, cost as well as government regulation.
Bargaining power of buyers: In the food & beverage industry of UK, bargaining power
of buyers is high as there are ample other options present in the market.
Bargaining power of suppliers: Suppliers have lower bargaining power hence they
need to work as per the rules & policies set by the buying company (de Araújo Lima, Crema and
Verbano, 2020).
Threats of substitute: There is high substitute present within the industry which also
affects the growth of the respective company.
Competitive rivalry: Competition is high in the respective industry as ample of
companies are offering similar products.
Sustainable advantage: This aspect is used to evaluate the existing level of competition
in industry. It is useful to identify the potential of the organization to sustain in the competitive
environment (Liguori and et. al., 2019). In context of the given scenario, the entity can sustain in
the competitive market by offering quality services at affordable price Additionally, the major
USP of the venture is their seasonal coffee which will help in creating difference in the
competitive market. It will help the organization to ensure long term sustainability in market
Micro aspects:
Mission, aspiration, propensity for risk: It is related with internal elements which
demonstrate the motives to start a business. Each and every entrepreneur has different type of
motives to stat the business such as earning profit, passion about business, produce creative
products and more. At initial level, the entrepreneur is required to put rigorous efforts in order to
ensure future success (Liguori, Bendickson and McDowell, 2018). In case of the coffee
connections, the main aim of the company is to earn high amount of profit. However, there is
extensive competition present in market place which create risks for future growth.

Ability to execute on critical success factors: Here, the elements are identified which
determine their success and failure in venture. Basically, it is related with such elements that
have large influence on business (Saptono and Najah, 2018). In context of coffee connection, the
success factors are quality, ambiance, potential of human resources and more. Availability of
such elements help in order to ensure future growth and potential of the business venture.
Up, down across value chain: However, the business entities are started with an aim to
earn potential amount of profit. But the business owners have to face up and down across the
value chain throughout the business journey. For this purpose, it is vital to get such supplier on
whom the business owner can rely. These factors are not in the control of business owners but
these can affect the progress of the organization (Bird, 2019). In context of coffee connections,
they need to manage efficiency across the value chain in order to ensure growth & success of the
entity in future period of time.

References
Books and journals
Bird, B., 2019. Toward a theory of entrepreneurial competency. In Seminal ideas for the next
twenty-five years of advances. Emerald Publishing Limited.
Kim, S., 2018. Domains and trends of entrepreneurship research. Management Review: An
International Journal, 13(1), pp.65-90.
Liguori, E., Corbin, R., Lackeus, M. and Solomon, S.J., 2019. Under-researched domains in
entrepreneurship and enterprise education: primary school, community colleges and
vocational education and training programs. Journal of Small Business and Enterprise
Development.
Liguori, E.W., Bendickson, J.S. and McDowell, W.C., 2018. Revisiting entrepreneurial
intentions: a social cognitive career theory approach. International Entrepreneurship and
Management Journal, 14(1), pp.67-78.
Maroufkhani, P., Wagner, R. and Ismail, W.K.W., 2018. Entrepreneurial ecosystems: A
systematic review. Journal of Enterprising Communities: People and Places in the
Global Economy.
Pham, D., 2018. Contemporary issues in entrepreneurship research volume 7: Entrepreneurship
education: New perspectives on research, policy & practice. International Journal of
Entrepreneurial Behavior & Research.
Saptono, A. and Najah, S., 2018. Development of an assessment instrument of affective domain
for entrepreneurship in senior high school. Journal of Entrepreneurship Education, 21(4),
pp.1-12.
Online
Opportunities ahead for UK food & beverage sector, 2021. [Online]. Available through:<
https://www.santander.com/en/press-room/news/opportunities-ahead-for-uk-food-and-
beverage-sector/>