Marvin and Smith's Coffee Shop Expansion into Ireland: A Business Analysis

This report analyzes the feasibility of Marvin and Smith's coffee shop expanding into Ireland. It examines the justification for expansion, a tailored marketing mix, the implications of a wider geographical reach, and the impact of profitability and liquidity on decision-making. The report concludes that Ireland presents a promising market for Marvin and Smith, with a strong coffee culture and a favorable business environment.

Business Essentials Advanced
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Table of Contents
1. Justification for expansion for Marvin and Smith’s coffee shop in Ireland..................3
2. Tailored marketing mix in relation to expansion of Marvin and Smith’s coffee shop in
Ireland................................................................................................................................4
3. Implications of the need for Marvin & Smith’s Coffee Shop to cover a wider
geographical area in terms of a different country..............................................................6
4. Evaluation of the impacts of Profitability and Liquidity on available decisions in
Marvin & Smith’s Coffee Shop...........................................................................................7
5. Conclusion..................................................................................................................9
References.......................................................................................................................10
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1. Justification for expansion for Marvin and Smith’s coffee shop in Ireland
Marvin and smith is an innovative business type, which is very famous for its service
and quality of the food served here. Ireland has a unique culture, Irish coffee is heart of
this culture, and therefore Ireland as EU nation will perfect for the expansion of the
Marvin and Smith. Irish people are very serious about their beverage and coffee in
particular. Irish people drinks coffee every day and they are known for their strong blend
of coffee. In a survey recently found out that the coffee houses in the Ireland are
growing by 8.5% since 2016 this implies that Irish people’s growing fascination with this
beverages (Roe et al., 2016).
Ireland is very strict with their policies and fair trade is a policy that is very much utilised
in the food and beverage industry so that the consumers can only consume certified
and safe food. Their government also has policies regarding management of the staff
and the welfare and the safe of the work place is their key priority making Ireland a very
appropriate place to expand for Marvin and Smith. Liberty market in Dublin can be a
very apt66 place foe Marvin and Smith’s coffee shop. This market is in the heart of the
Dublin, which is the capital of the country and lot of tourists all around the world comes
here to visit. Liberty market is located in the centre of the Dublin which is always a busy
market will be really a great location for the business. Dublin is also very resourceful
therefore; the company will find suppliers and deliverers in plentiful.
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2. Tailored marketing mix in relation to expansion of Marvin and Smith’s coffee shop
in Ireland
Figure1: 4Ps of marketing Mix
(Source: Khan, 2014)
Product There is a lot of scope in experimenting in Ireland with a new product type
and Marvin and Smith can utilise this opportunity by combining the
essence of vast heritage and culture by reflecting them in the menu and
introducing new products that bear the traditional name yet a punch of
modern taste in it. There is a variety of cakes and finger food that can be
introduced to go with the coffee and this will very much appreciated by the
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Irish people.
Promotion Promotion of the business can be done by advertisement in the social
media. Hoardings and posters can be utilised and digital marketing will
be also very helpful for promoting the business.
Place Liberty market is a very busy place and it is located in the centre of the
capital therefore this place will be catching a lot of attention.
Price The pricing strategy needs to implement penetration pricing strategy for
Marvin and Smith so that it can compete with the other existing and well
established coffee shops of the Dublin
Table 1: Marketing mix of Marvin and Smith’s coffee shop
(Source: Created by the learner)
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3. Implications of the need for Marvin & Smith’s Coffee Shop to cover a wider
geographical area in terms of a different country
Supply Chain: Supply chain is related with the resource management. Better resource
management can be very much beneficial for the Marvin and Smith. The proper supplier
is needed for the business and being a food and beverage company, they need fresh
supplies everyday, which Marvin and Smith have implemented in their UK business. For
expanding in the Ireland, the company needs to have proper knowledge of the suppliers
in the Dublin and the price needs to be right of the resources as well. The proper
management of the supply chain also proves very cost effective as well as it is another
implementation that Marvin and Smith have to cover bigger geographical area
(Christopher, 2016.).
Organisation culture: The organisation culture influences the business structure very
much. In case of the Marvin and Smith they have followed fair trade policies throughout
and which is another reason for their success. The organisation has implemented better
management policies to provide their workers and the customers the best experience.
They ensure that the work place is safe for the workers as well. The recruitment of the
employees is done in a manner that it does not discriminate. The work culture in the
Ireland is different than in UK therefore they have implement policies after considering
the work ethics of the Ireland. The ethical consideration is again something that is
important that increases the value and image of the company (Elsmore, 2017).
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4. Evaluation of the impacts of Profitability and Liquidity on available decisions in
Marvin & Smith’s Coffee Shop
Current ratio = (Current assets / Current liabilities)
(800/113000-6200) x100=25.09%
Current ratio: Current ratio is the ratio of the current assets and the current liabilities.
In the case of Marvin and Smith, they have acquired 5.71% of this entity meaning they
are in position to expand in a different country financially.
Quick ratio = (Current assets – inventories) / Current liabilities
27400/6200=4.42
Acid test or quick test ratio: the quick ratio is the ratio between the difference of
current assets and inventories with the current liabilities. This ration implies that the
Marvin and Smith is in a position to make big investment as well.
Net ratio of profit = (Net profit / sales) * 100
26800/360000x100 =7.44%
Net profit: Net profit can be obtained by dividing the net profit and the sales of the
company. Marvin and Smith have obtained 7.44% of the net profit in the year 2016.
Gross ratio of profit = (Gross profit / sales) * 100
208000/360000 x 100= 57.78%
Gross profit: The gross profit of an organisation is obtained by dividing the gross profit
by the sales of the company meaning the in this the Marvin and Smith has about
57.78% of gross profit in the 2016.
ROCE= 800/113000-6200) x100=25.09%
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ROCE: It is an acronym of the returned on capital employed which implies the
justification of the investment and if it has turned out to be profitable which in case of
Mavin and Smith is positive. They have 25% of the ROCE which is implies financial
independence.
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5. Conclusion
After finishing the entire report and analyzing the required specifications, it has been
understood that expanding the business into the develop market as well as developing
market is an essential point to achieve success standing in the midst of the ever
competitive business environment. This report has introduced about a business with an
innovative idea and underlined processes and plans through which the coffee business
has been intending to expand its business into the market of Ireland where possibilities
for coffee business became high in past few years. Apart from this, the marketing mix
model has been highly important for understanding the exact processes, pricing
strategies and change in the product line by Marvin and Smith’s coffee shop. This
analysis is helpful in developing knowledge regarding the market scope and profitability
scope of the previously mentioned business in a new market that is Ireland. On the
other hand, the implications for an effective organizational culture and supply chain
process have been quite helpful in realizing the fact that within a different market
balancing both the external and internal environment of the business is equally
important along with increasing profitability. All these points have been underpinned and
evaluated in this report effectively.
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References
Christopher, M., 2016. Logistics & supply chain management. Pearson UK.
Elsmore, P., 2017. Organisational Culture: Organisational Change?: Organisational
Change?. Routledge.
Khan, M.T., 2014. The concept of'marketing mix'and its elements (a conceptual review
paper). International journal of information, business and management, 6(2), p.95.
Roe, B., McCormick, S., Lucas, T., Gallagher, W., Winn, A. and Elkin, S., 2016. Coffee,
Cake & Culture: Evaluation of an art for health programme for older people in the
community. Dementia, 15(4), pp.539-559.
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