Managing Small and Medium-Sized Enterprises (MSME) - CafePod Case Study

This report analyzes the management of CafePod, a London-based coffee company, as a case study for managing small and medium-sized enterprises (MSME). It covers the entrepreneurship process, competitive advantage, Porter's five forces, PEST factors, and growth strategies. The report recommends investing in new resources, talent, technology, and transportation services, collaborating with other businesses, and using eco-friendly packaging.

MANAGING SMALL and
MEDIUM SEIZED
ENTREPRISES SME

EXECUTIVE SUMMARY
Management of the medium-sized business has been considered to the efforts which
influences the operations. Entrepreneurship is the process of establishing a new business with the
help of ideas and technologies to achieves the necessary growth that is required. The internal and
external factors of the environment impacts the start-up and its growth. Also, with analysing pest
factors of the small business of cafe pod helps in analysis's the external factors impacting the
online business and its transporting of various products to consumer in the supermarket.

Table of Contents.
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
MAIN BODY .................................................................................................................................5
FINDINGS ......................................................................................................................................5
Nature of entrepreneur.................................................................................................................5
Start-up process............................................................................................................................5
Source of competitive advantage.................................................................................................6
Discussing Porter five force.........................................................................................................6
Current growth and development strategy...................................................................................7
Analysing PEST factors...............................................................................................................8
Government support.....................................................................................................................9
CONCLUSION ...............................................................................................................................9
RECOMMENDATIONS.................................................................................................................9
REFERENCES .............................................................................................................................11

INTRODUCTION
The management is the process of the setting goals, procedures and objectives which are
essential for making the company competitive. Management of the medium-sized organization is
responsible for developing a long term planning of the business. The selected medium-sized
organization for this project is CafePod coffee which is a company based in London, UK with
around 50 employees. This company was established in 2011 which conceives the quality of
coffee that we love to drink be the creativity passion and pushes the boundaries. The founder of
this organization were Peter Grainger and Brent Hadfield. This organization exports its coffee
beans from South America. The products of this organization are available across different super
markets. This organization provides coffee in Nespersesso compatible and doice gusto
compatible capsules. In this research the secondary data is going to be used for developing the
findings about the CafePod business.
Aim :
The aim of this project is the measure the factors and forces which impact the
management of CafePod a medium-sized organization.
Objectives :
 To understand the concept of entrepreneurship in development of medium-sized
business
 To analyse the process involved in the creation of start-up.
 To study the significance of Macro and Micro factors in the business.
 To recommend the business with strategies which can contribute towards its
growth.
This business faces some clear challenges in management of its operations. Some of these
challenges are regarding the competition which this organization has to face in the market. This
can be considered to be the factor which influences the growth of the business. Some external
factors are the ones which impact the operations of this business negatively. This is the reason
being able to mitigate the risks from these challenges in the organization can be considered to be
the key factor which provides the CafePod Longevity in its growth.

MAIN BODY
FINDINGS
Nature of entrepreneur
This is the business of Coffee manufacturing on a medium scale. This company produces
products out of raw coffee beans which are exported from South America itself. Owner of this
organization started its journey when he travelled around South America for a year (Savitri,
Novijanto and Fajriati, 2021). This was the time in which when he quit the existing job during
the middle of financial crisis and searched for the perfect coffee beans which can be used for its
CafePod coffee.
Hence, the nature of the entrepreneur is of Risk Taking individual which is determinant
in achieving the goals.
Nature of Business
Industry Coffee
Funding type Convertible Note
Culture CafePod is about creating, doing,
living, accomplishing, optimism,
simplicity and positivity.
Vision To provide the customers with the
best quality of Coffee in the market
which makes them feel like home.
Start-up process
 This business started when the founder Peter stumbled across a coffee plantation and
started an independent shop that makes Nespresso.
 At first an undisclosed amount of capital was generated by this organization from Seed
from Angel Investment Network.
 This organization had not more than 10 employees when it was a start-up.

 At the start of this business it was founded by two individuals which were the main
operators of the organizational activities. Hence, this organization started raising finding
with the help of Convertible Note from Blue Wire Capital.
 Competing with the large sized organization for their cost-effectiveness was very big
challenge for this company (Lestari and Abdurahman, 2021). Selling its products in the
super markets in which products from other market giants were already famous was an
issue.
Source of competitive advantage
The main idea behind this business was to provide the customers with variety of options
of coffee. This includes the purest form of coffee in order to ensure the quality. As this
organization cannot be cost effective due to the small scale of its operations it neds to have
quality in the organization.
The conceive quality of coffee that it provides to the adventurous coffee drinkers. The
different flavours which this organization has introduced in the production shows the creativity,
passion and pushes the boundaries of coffee production (Bolka and Emire, 2020).
Competitive advantage of this organization has over other producers of coffee is the fact
CafePod products are completely natural and are made with basic cooking process. In
comparison to which the competitors use different additional flavours and preservative which
hits the natural aspect of the coffee.
Discussing Porter five force
Threat of new entrants
Threat of new entrants of the cafe business is at moderate level, as cafe pod is serving
quality coffee and retaining loyal consumer with providing quality products and services online .
With the range of retail teas and frappes also smoothie. But new small and large businesses with
more innovative technology and new tastes hinders the company operations and creates strong
competitiveness to the company Which are serving offline in stores.
Threat of substitute goods
Threat of substitute goods is high for operating in the competitive market. As various
substitutes available in market as which helps in fulfilling needs of consumers as the hot
chocolate, tea, energy drinks, bottled water (Caballero-Morales, 2021). The companies offering

product portfolio at reasonable prices affects and thrives consumer to purchase substitute goods
from the other small business stores via online with easy and conveniently.
Bargaining power of suppliers
Bargaining power of supplier is at moderate level as company manufactures its own
blend coffee beans. Taking supplement of retail teas and disposable for serving consumer is at
moderate level. The small company will shift to the supplier for obtaining raw material which is
charging optimal and low prices than other as for increasing profits.
Bargaining power of customers
consumer power is high as consumers shift to other brand mainly with the price factors
and with changing taste and preferences. For this cafe pod introduced loyalty schemes and
planning for retaining loyal consumers the providing online consumer services.
Competitive rivalry
Competitors in market are very high, as establishing business and serving coffee products
to large number of consumers (Snider and Davies, 2018). The large coffee houses established
but cafe pod beats in term of quality and offering better pricing products to retain its consumers
in market via online .
Competitors of the company
operating in the high competitive market, Various competitors of the firm operating and
serving large number of consumers with coffee and restaurant services incudes casual dining
group, black sheep coffee , cafe direct , Starbucks.
Current sales level
The current sales level of this organization has been said to be very good. The sale of this
organization has increased from the past experiences that it had. It can be said that the growth of
the organizational competition also depends on the ways in which it has been able to gain
competitive advantages. Current sales level of this company is 1.1million.
Growth and market share
In the UK market of coffee, CafePod has recently shown some interest in the customers
which are fond of Nespresso Compatible coffee capsules, gourmet popcorn, coffee accessories,
biscuits, chocolate and for those customers which enjoy quality drinking experiences. Hence, the
growth of this company has been very good. This is the factor which influences the ways in
which it brings the success. The growth history of this organization starts from retail product at

street coffee shops which then turned into being supplied at all the major supermarkets and
online retailers in UK.
Current growth and development strategy
The strategy which this organization has adopted is the Differentiation. This is the
strategy which helps the organization in the creation of strategy that makes its product different
from others (Park, Choi and Kang, 2020). Hence, focusing on quality is the way to go for this
business to develop and achieve growth. However, the focus of this organization in the future
show be to expand its operations. For expansion of the operations this organization would
require capital and talent requirement that would provide the growth it desires.
Analysing PEST factors
The analysis helps in determining the external factors affecting companies operations.
Political factors
various political factors affecting small company as the taxation, imports, and rules an
regulation of the governmental as for restricting the business operations due to covid . But the
major factors is changing into the labour laws , policy changes affect cafe pod with serving
various livelihood and results in impacting on increasing profits for the company with the
unstable political regulations impact production and serving various frappé teas and smoothies.
But serving online is beneficial for operating and providing services to consumers.
Economic factors
Economic factors affecting the small business as of producing the own cafe bean as for
providing the quality coffee large consumers on the markets. Production of various disposals and
raw materials for making coffee into Cafe Pod impacts profits. Changes into currency fluctuation
also affects sales level. Also, due to recessions and fluctuation in employment level obtaining the
employees as due to small business working employees are less than 250 with the changes into
economy results in loss of profits due to pandemic crises.
Social factors
As cafe pod operating at small scale doing online business, with the changes in consumer
patterns affect company at wide level (PESTEL Analysis of the Coffee Industry, 2022). As

individuals preferences, tastes and living style impact the company for producing coffee and
smoothies with opting the latest tastes trend and with new tastes. Also, considering customer
specific needs and marketing and other social culture impact company internal operations.
Technological factors
Digitalisation and new digital technologies impact companies profits as for marketing
products and services provide by the Cafe Pod, cyber attacks as operating small business impacts
digital segment of business. As adopting various technologies for full control and access to the
information as the blockchain helps in investigate and making profits. Also, cafe pod is serving
and marketing the products with using the tariff planning, adopting social marketing strategy and
introducing loyalty schemes for premium and regular consumers.
Government support
The ways in which the government support can help the start-ups like CafePod to save its
economy are,
 Direct grants provided by the government can be the best way in which the business can
achieve the goals which has been the factor that creates new initiative for focusing on the
reduction of overhead expenses and allows the business to extent their runways.
 Employment support schemes that are provided by the government are considered to be
the factor which influences the ways in which these start-up are able to support the
employees.
CONCLUSION
From the above report it can be concluded that cafe pod serving large consumer from the
South Africa. Products of the company is available at various stores and supermarkets. It mainly
manufactures Nespresso compatible ans the doice of gusto capsules also coffee beans. Further
the company is serving blended smoothies and frappes. With analysing the forces an factors
affecting companies mainly the changes into currency and unemployment level impacts the
transportation and online serving the consumer. Also, competition level operating into the
dynamic market impacts the company operations which affects growing business. With
establishing the medium size business the main aim of this is to provide wide variety of coffee to
consumers by ensuring proper quality with different flavours. The main growth strategy of
company is for serving large consumers by attracting and marketing products online also serving
consumers by supplying products to supermarkets also at retail coffee shops. Moreover,

company adopt differentiation strategy a for growing career and developing the business by
focusing on quality. For growing business the company must collaborate with different agencies
and small firms which help in increasing sales and profits of the product to consumers. also,
retaining top talents for increasing the production of the products being served at Cafe pod
business .
RECOMMENDATIONS
 Investing into the new resources and raising capital from different sources as from
banks, loans from institution. By obtaining capital for expanding into new
location is must for the cafe pod business.
 Also, for growing in future the company must invest into new talent as for
increasing production of the business and providing wide services as for serving
more ranges of smoothies at home, also different ranges of beans and blend
frappes for attracting consumers towards coffee pod online services.
 Investing into the right technology as for marketing company, mainly by adopting
new marketing tools for attracting consumers for online purchasing the companies
products.
 Furthermore, company must collaborate with the other business as for expanding
services helps in boosting and engaging employees. Also, it helps in speeding up
the production level and diversifying product ranges into new line by
collaboration increasing sales of companies products a for serving smoothie and
adding new product line.
 Investing into the transportation services for providing quick services to loyal and
premium consumers for providing goods to large consumers .
 Also, serving consumer with eco friendly packaging and recyclable packages
helps in growing business in future with grasping large consumer target market.

REFERENCES
Books and Journals
Bolka, M. and Emire, S., 2020. Effects of coffee roasting technologies on cup quality and
bioactive compounds of specialty coffee beans. Food science & nutrition. 8(11).
pp.6120-6130.
Caballero-Morales, S. O., 2021. Innovation as recovery strategy for SMEs in emerging
economies during the COVID-19 pandemic. Research in international business and
finance. 57. p.101396.
Lestari, D. and Abdurahman, A., 2021. Designing Coffee Powder Products Through the
Application of Quality Function Deployment Methods (Case Study at Small and
Medium Enterprises Gusto Coffee). Food and Agricultural Sciences: Polije Proceedings
Series. 3(1). pp.46-51.
Park, D.Y., Choi, K. and Kang, D.H., 2020. Measuring the Meta Efficiency and Its Determinants
on Efficiency in the Korean Coffee Shop Franchise. Sustainability. 12(6). p.2398.
Savitri, D.A., Novijanto, N. and Fajriati, R.M., 2021. Defect Analysis and Development Strategy
for Robusta Coffee of Tanahwulan Village, Indonesia. Journal La Lifesci. 3(1). pp.14-
25.
Snider, J. H. and Davies, K.J., 2018. Success strategies for small financial planning
firms. International Journal of Applied Management and Technology. 17(1). p.4.
Online
CAFEPOD COFFEE CO. - CRAFT COFFEE - ESTABLISHED LONDON 2011, 2022[Online].
Available through: <https://www.cafepod.com/pages/our-story>
CaféPod, 2021[Online]. Available through:
<https://www.crunchbase.com/organization/cafepod/company_overview/
overview_timeline>
PESTEL Analysis of the Coffee Industry. 2022. [Online]. Available through:
<https://pestleanalysis.com/coffee-industry-pestel-analysis/>