Expand a Coffee Shop in a Country of the UE Assignment

EXPAND A COFFEE SHOP IN A
COUNTRY OF THE UE

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1. Expansion of coffee shop in Spain and impact of Brexit.................................................3
TASK 2............................................................................................................................................4
P2. Marketing mix related to coffee shop expansion.............................................................4
TASK 3............................................................................................................................................6
P3. Implications of the need for Marvin and Smith’s for covering wide geographical area in
terms of a different country....................................................................................................6
TASK 4............................................................................................................................................7
P4. Evaluating financial condition on the basis of liquidity and profitability........................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Expansion of any business is an essential part of sustaining ability of any organisation in
the market scenario. Businesses dealing in food and other drinks face a stiff competition from
other competitors in the market. Hank Marvin and Patty Smith both; working together for years
in catering and food services wish to expand their business by opening a new coffee shop in
market (Nestle, 2013). By doing some research and analysing different markets in all over the
UK they have estimated how much market capital is needed and what are the types of services
and features they can add to their coffee shop. After the surveys and analysis, they have opened
their shop in Wandsworth in south of London city (Stambo, 2013). They have a strong believe in
providing services and following ethical way of doing their business. After doing successful
business in United Kingdom, they have focussed on expending their business in Europe.
TASK 1
P1. Expansion of coffee shop in Spain and impact of Brexit
Spain will be suitable country for setting up coffee shops, from survey it has been
observed that Spain is hub for global tourist destination of European Union. It has a traditional
coffee culture and situated at third place after USA and Brazil as largest coffee consumers. It is
consumed more than alcohols and soft drinks so it will be regarded as best place for expansion.
In Spain, having a coffee machine is considered as a status symbol. Prices of coffee will increase
as most of the customers are young people.
Logistics – (supplies, inventory and storages)
Company through adopting fair trade can deliver their product in Spain as there are
many direct cargo freight from Entebbe to Spain. Country have high tech technologies so it is
easy to locate places through GPS features of cell phone. The only problem arises in Spain is
their ligations and languages. Tourists often find it difficult to read out locations. Company can
have several technological help in to ease access of their shop's location. Having a direct transfer
of their inventory will help them to grow faster in German market. This will also reduce cost of
production which will help them to add more features to their products.

Ethical consideration – (welfare of staff, adopting fair trade practices)-
Spain is among several country who have signed treaty of adopting a fair trade with
COTECA (Coffee, tea, cocoa global industry expo), Anuga trade-fairs and BioFach in Spain. By
signing treaty with these three organisations farmers in East Asian country Uganda have luxury
to earn their income independently. Uganda is known for well-known coffee seeds having all
numbers of suppliers e.g. Marvin's and Smith coffee shop deals with Gumutindo Coffee, Fair
trade regarded as best suppliers providing high level quality products.
Structure (transport, layout, locations) - Spain is regarded as heart of European Union which
is surrounded by Ukraine, Poland, France, UK and Italy. Geographical boundaries of Spain
provides a closeness with other countries (Prado, 2012). So it can be considered as one of the
tourist destination in European Union as many people have to pass through Spain to go to
another country so it is regarded as a meeting point of different destination. Spain have wider
roads, advance rail network modern airports high security and extensive lands makes it a
pleasing destination of travellers.
Brexit negotiations – With United Kingdom is going out of European union in coming days it
won’t affect must of the business of coffee as it an consumable item and a cheap commodity .
Pattern of consumption of these food item won’t change as well as business strategies. With
Brexit there will be change in policy in business as they are having fear the other company may
not leave European unions (Lachos-Perez, 2016). So in future they have plans to reduce taxes on
trade practices in all over Europe.
These are some of the important factors which are to be considered while expansion of their
businesses.