Marvin and Smith Coffee Shop Assignment
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Added on 2020-07-22
Marvin and Smith Coffee Shop Assignment
Added on 2020-07-22
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COFFEE SHOP
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1QUESTION 1...................................................................................................................................1Selection of country for expansion of coffee shop of Marvin and Smith along withjustifications behind selection of the country.........................................................................1QUESTION 2...................................................................................................................................3Presenting tailored marketing mix with reference to expansion plan of coffees shop...........3QUESTION 3...................................................................................................................................4Implications of two key aspects on the business expansion of coffee shop in Austria..........4QUESTION 4...................................................................................................................................5Evaluating impact of profitability and liquidity position on expansion decision of the coffeeshop.........................................................................................................................................5QUESTION 5...................................................................................................................................7Conclusion and summary about viability of expansion in another country...........................7REFERENCES................................................................................................................................8
INTRODUCTIONAt the workplace of every business, wide range of decisions are required to take atdifferent levels like strategic, operational and tactical. Apart from this, while taking differentkinds of decisions several factors also create huge impact on the managers. The current casestudy is on the basis of Hank Marvin as well as Patty Smith who are partners. Further, they areworking in food industry along with catering from last many years. In the present times, both aremaking plan of business expansion in another country of European Union only. In the presentstudy, one particular country is to be selected which will be highly suitable for the coffee shopand support for generating more profit in proposed market. Apart from this, reasons due to whichparticular country only chosen is also described in the project so that Marvin and Smith able tomake strategies accordingly. Other than this, marketing mix is to be presented here by which itaids to aware people about the coffee shop in new market. Besides this, impact of some factorswhich are like management structure and organisation culture on business expansion is analysed.At the end of study, profitability as well as liquidity position of Marvin and Smith coffee shop isto be determined and its impact on business expansion is reflected. QUESTION 1Selection of country for expansion of coffee shop of Marvin and Smith along with justificationsbehind selection of the countryAt the time of expanding business then crucial aspect needs to analyse is related to thearea or market. The reason is that selection of market must be proper and appropriate so that firmable to operate smoothly as well as earn desired profit. In the current study, Marvin and Smithboth partners want to expand coffee shop in European Union (EU). This stated union consists ofwide range of countries or nations. For the present business, Austria country of EU is one of thebest and suitable for proposed coffee shop to enter and expand firm. Further, several aspects ofAustria are in favour of the firm so that entrepreneurs able to boost up sales and profit with thehigh growth rate (Ataman, and et.al., 2010). When looking at the weather then Austria compriseswith winter, summer and rainy all three seasons. The coffee shop will offer both hot and coldcoffee as per the weather by which easily customers will attract towards it. Therefore, thebusiness able to improve financial performance on consistent basis in Austria market of EU. 1
Looking at the logistical aspect of Austria then it considers as hub of logistics in theEuropean Union. Generally, a place where resources are available in plenty then cost of thatspecific aspect will be highly lower as compared to another states. Being a logistic hub,expenditures of transporting raw materials and finished goods will be declined in the coffee shopup to a greater extent. This particular term will provide facility of reducing cost of production,offering coffee items at low price and enhance profitability in the market (Logistics Hub Austria,2017). Apart from this, raw materials like coffee beans as well as sugar is highly needed forproducing products in the company while operating in potential country. In context to this,availability of such raw materials in Austria is in enough quantity. Due to these things, thematerial will be available at the low prices which is beneficial aspect of it. Along with this, whenraw materials are easily available within country then logistics expenses declined up to higherlevel. Hence, Austria is suitable for Marvin and Smith coffee shop to expand business and boostup profit. As per the survey of last two years it can be seen that, Austria is fourth highest country ofEU in terms of consumption of coffee products. Apart from this, revenue generated by coffeeindustry in Austria nation is worth of US$1163 million in 2017. Moreover, it is expected that inthe future or upcoming five years coffee sector of Austria will grow by 2.2% annually (Coffee inAustria, 2017). Considering to this, it can be clearly said that Marvin and Smith coffee shop caneasily operate in the proposed market. Along with this, become highly capable for generatinghuge revenue and profit smoothly in selected market. Further, in terms of ethics and legal rulesalso Austria is one of the favourable nation of EU for the stated coffee shop. On the such kindsof businesses, any strict rules and regulations are not imposed by Austrian government which isanother beneficial aspect for Marvin and Smith coffee shop. However, an issue which has to face to the coffee shop entering in Austria market isrelated to structure of organisation. As of now Marvin and Smith considering divisional structurefor operating in existing market. As per the rules and regulations of Austrian government, coffeeshops have to follow functional organisational structure. After expanding business in proposedcountry of EU only structure has to change to the coffee shop which is minor or negligible. 2
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