Marvin & Smith Coffee Shop: Case Study of Geographical Expansion

This case study analyzes the geographical expansion of Marvin & Smith's coffee shop, focusing on their decision to expand into Belgium. The study examines the logistical considerations, including Belgium's attractive logistics infrastructure and low operational costs. Ethical norms and regulations within Belgium are also considered, highlighting the importance of country governance and labor market regulations. The report further explores the impact of geographical expansion on the business's management structure, comparing vertical and horizontal structures, with a recommendation for a horizontal structure for the coffee shop. Additionally, it discusses how to gain a competitive advantage in the new market, emphasizing understanding consumer preferences, reviewing core strengths, reducing costs, focusing on services, and differentiating products. The conclusion emphasizes the strategic decision-making process of the coffee shop expansion and the necessity for market adaptation.

Case study project

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................1
Selection of country on the basis of logistical considerations, ethical considerations and the
structural challenge of expanding into that country....................................................................1
TASK 3 ...........................................................................................................................................2
Impact of geographical area expansion.......................................................................................2
TASK 5............................................................................................................................................4
Conclusion...................................................................................................................................4
REFERENCES:...............................................................................................................................5

INTRODUCTION
Geographical area extension of a business is technique of expansion of the business. A
business can expands by establishing its outlets and shops in different areas. For that study is
required to be done for selecting a proper place for expansion of the business. The present report
is about the expansion of Marvin and Smith's coffee shop in a different country. The study deals
with analysis and evaluation of different factors related to expansion and selection of the place.
1. Selection of country on the basis of logistical considerations, ethical considerations and the
structural challenge of expanding into that country
Country selected: Marvin and Smith's have selected the country Belgium for expansion of its
coffee shop business. The section of the country is based on different factors. Some of them are
explained below.
Logistics in Belgium: according to the reports among all European cities for logistics activities
the most attractive cities are Belgian cities. Among top 10 cities for logistics three cities are
from Belgium. The great location and infrastructural know how makes Belgium one of the most
attractive logistic operations country (Charter and Tischner, 2017). Low operating cost and
developing infrastructure of main attraction of Belgium. The factors which were evaluated under
this report for logistics were:
Infrastructure: a well developed infrastructure facilities attracts more consumer and
helps in attaining competitive advantages over competitors.
Market access: the country have a good and easy market access, which leads to easy
penetration in markets and is a main growth point with high demand and sale.
Operational costs: the country is a developing one which makes resources available very
easily and at low rates, all these factors together makes the operational cost of a business low.
Specific know how: the people in the Belgium have a knowledge of specifics know how
of the country which makes it easy foe a business to operate in new location with new people.
Labour market capacity: the lob our availability is in abundance in the country and with
a low yet effective cost. This makes the cost of business lower and makes available working
capital to the business.
Business environment: a business operates both in macro and Cicero environment. Both
the environment have a strong effect on the operations of a business (Hornidge and et.al., 2016).
For a new business the environmental conditions are positive which is a boon to the business.
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Ethical norms and regulations in Belgium:
Country governance: with time country governance is give priority. For the growth of
country an improvement in the way a country operates is needed to be governed. That will
ensures the fundamental development of the country (Schliwa and et.al., 2015). A business in
this country is bound to abide by this fundamental regulations.
Labour market: with availability of low cost labour in abidance it is strictly mention to
protect interest and rights related to labours. The labour market of country is full know how and
skills.
Corporation taxation: another law that business abide by is times and full payment of
corporate taxes. The revenue generated from such taxes are used in development of country.
3. Impact of geographical area expansion
c. Management structure:
The management structure of business can organised in two ways:
Vertical: the hierarchy in vertical management structure goes like top management.
Middle and supervisory level management. The people at top management are responsible for
planning and decision making and affects the whole company (Stringfellow and et.al., 2016).
These are the persons with grant responsibilities. The people at this level are designated as chief
executive offers, chief operating officers, vice president. The middle level of management
structure includes managers to implement the strategies made at top level management. This
level works as bridge between lower and top level of management. The supervisory level
includes employees who carries out the work for achievement of objective set at middle level of
management.
Horizontal: this is the management structure which involves self management by the
teams who decides goals and objectives to be achieved (Yang, and et.al., 2017). This
management is customer oriented and gives its full attention at consumer satisfaction and
retention.
Marvin and smith being in a coffees shop business it is a better option to have a
horizontal management structure. The focus of this business is to attract new consumers and
retain the old. It can be done by providing best services to customers and keep them satisfied
with the services. The consumer satisfaction and best services are only possible with a efficient
management in the business (Competitive advantages, 2018). The business of coffee shop
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doesn't have numerous employees. To have a proper interaction and proper flow of information
a horizontal management structure is best to adopt by the business. This will open gates of free
communicator among the peers of bushiness and also with the bosses and mangers. An open and
unambiguous communication lead to flow of proper information and feedbacks from employees
to managers, which helps in improvement of service structure and innovation to increase
consumer satisfaction.
d. Competitive advantage:
To gain competitive advantages over the competitors in new market place at different
geographical area a business needs to review its core strengths and weaknesses. To create
competitive advantage it is needs to follow the structure stated below:
understand the consumers: to understand the needs, taste, requirement related to the products
served by coffees shop is needed to be understood. The taste and preferences of people changes
with different locations. The business need find out the taste preferences and products which are
in demand.
Review core strength: the core strength of the coffee shop is its serving the most delicious food
products and beverages along with best services possible. It need to focus on the development of
new products according to the taste preference of the new market area (Ramanathan, Bentley and
Pang, 2014). Existing products can also be launched with a new twist.
Reduce cost: it shall introduce its product with a low cost which will attract more consumers.
focus on services: with serving food it is required to serve consumer in such a manner that make
them happy and they want to come back.
Focus of quality: with good services a good quality of times served by business is essential at it
is these are tire main product of the business. A consumer will be happy and satisfies with a good
quality of product.
Differentiate the products offered by others: make sure your product is different from others
and metformin the consumers about the same with the help of different sources of advertisement
and publicity.
5. Conclusion
Marvin and smith's coffee shop have taken a right decision in selection of the country for
their business expansion. The expansion is both geographical and structural. At present the
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coffee shop is operating at one place only. With this expansion it will have more outlets at
different geographical location. This approach will expand the number of consumer served by it.
The Marvin and Smith's must expand their business after considering all necessary
acquirement any all modification that are requited as a change if market place. In the current
scenario they are making a geographical expansion for this a proper study of geographical
condition and market place is required to be conducted.
An understanding of availability transportation services, regulation and ethical matters
which are required to be followed, is required to be attained. The logistics services related to
transportation are best in Belgium which will give a business a cost effectiveness. The ethical
matters with are to be abided by the business is country governances. At present Belgium is
focusing on its fundamental governance which the business is needed to comply with.
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REFERENCES:
Books and Journals
Charter, M. and Tischner, U., 2017. Sustainable product design. In Sustainable Solutions. (pp.
118-138). Routledge.
Hornidge, A.K and et.al., 2016. Reconceptualising water management in Khorezm, Uzbekistan.
In Integrated Water Resources Management: Concept, Research and Implementation. (pp.
569-602). Springer, Cham.
Ramanathan, U., Bentley, Y. and Pang, G., 2014. The role of collaboration in the UK green
supply chains: an exploratory study of the perspectives of suppliers, logistics and
retailers. Journal of Cleaner Production. 70. pp.231-241.
Schliwa, G and et.al., 2015. Sustainable city logistics—Making cargo cycles viable for urban
freight transport. Research in Transportation Business & Management. 15. pp.50-57.
Stringfellow, T.D and et.al., 2015. Defining the structure of undergraduate medical leadership
and management teaching and assessment in the UK. Medical teacher. 37(8). pp.747-754.
Yang, W.Sand et.al., 2017. Iodide management in formamidinium-lead-halide–based perovskite
layers for efficient solar cells. Science. 356(6345). pp.1376-1379.
Online
competitive advantages.2018. [Online]. Available through:
<http://smallbusiness.chron.com/four-methods-competitive-advantages-32344.html>.
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