Hank and Patty's Coffee Shop: Expanding to Netherlands - Business Essentials Advanced

Business Essentials Advanced
1

Table of Contents
Introduction...................................................................................................................... 3
Q1. Justification of chosen country..................................................................................4
Q2. Marketing Mix............................................................................................................6
Q3. What are the implications of the need for Hank and Patty to cover a wider
geographical area in terms of a different country?...........................................................9
Q4. The following financial information, evaluate how their profitability and liquidity may
impact on decisions available to them............................................................................11
Q5. Write a concluding summary about the overall viability of overseas expansion at this
stage.............................................................................................................................. 13
Reference List................................................................................................................ 14
2

Introduction
In this assignment, a detailed discussion has been done on the business essential for
Hank and Patty’s new opening coffee shop in Netherlands. Huge demands of coffee
among customers are there in the states of E.U. To open a new coffee shop, a huge
investment is the first requirement. People go to these cafeterias just to relax and enjoy
good coffee. High profitability in future is a definite surety as huge demand in always
there. Therefore, the shop authority always tries to provide the best facilities for the
customers by providing good ambiance as well. In this assignment, why Netherland has
been chosen for the new setup, its scope, marketing mix policies, and financial
processes, implementation of geographical area in terms of need, profitability, and
liquidity will be discussed.
3

Q1. Justification of chosen country
Hank and Patty’s coffee shops are present in south London. They have successfully
opened the shops within a year. The reasons behind their success are the quality of
coffee beans, fulfilling customers’ needs like giving them facilities like charging their
phone or laptops, wifi facilities, offering them east African snacks, fresh mango juice,
herbal tea, herbal infusions, cold drinks and many more products, using staffs in a
mannered way, wage development facilities for staffs, live chat and so on. Now after the
success, they are planning to open a new coffee shop in Netherland to develop and
expand their business in E.U.
Hank and Patty has chosen Netherlands for this new opening. Many reasons are there
to choose this country. First and foremost reason is the consumption of coffee in
Netherlands. This country comes within the top twenty countries with a consumption of
8.4 kg per capita per year (Scarlat and Dallemand, 2018). Dutch are the world second
biggest coffee drinkers (Gunter et al., 2017). The Dutch government also works actively
in this process. With the growing demand of coffee, government is in favor of expanding
this business. With a diverse culture and foreign influence, Dutch are welcoming,
overwhelmed people. Over a 17 million of living population, it is the 66th populated
country in the world and millions are coffee drinkers (Grosso et al., 2016).
The transport and communication system of this country is also a great working factor.
With a long term panning and with the help of many technologies, it is developing with a
great speed. Around 74 percent of people with the age group of 55, 50 percent people
from the age group of 18 to 34 and almost 35 percent of people are from the age group
of people who tend to drink coffee a lot (Frankfort-Nachmias and Leon-Guerrero, 2017).
In Netherlands, nowadays small-scale initiatives in trade and development od
cooperation is the main thing by which social and economic condition is more
developing. The growing rate of turnover is helping in the economy as well
(Westenbrink et al., 2017). Staff welfare is another issue that is in the favor of
4