Case Study Assignment: Opening a New Coffee Shop in the European Market

Running Head: Case Study assignment
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Case Study assignment
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Contents
Introduction.......................................................................................................................3
Country analysis and store analysis..................................................................................3
Marketing mix of coffee shop...........................................................................................4
Implications of coffee shop..............................................................................................5
Financial evaluation..........................................................................................................7
Conclusion........................................................................................................................9
References.......................................................................................................................10

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Introduction:
Hank Marin and Patty Smith both are entrepreneurs who are administrating a coffee
shop in the Wandsworth in the market of South London. The case explains that these people
are planning to open new coffee shops in the new market to diversify the business and
improve the profitability level of the business. Hank Marin and patty smith worked together
to evaluate the market and recognize the future performance of the organization in the new
marketplace. Both of them have researched on the market for around 12 months to begin the
new stores. Meanwhile, they have also started 3 new coffee stores in the London market.
The theme of the coffee shop also attracts the foreigners and it has helped the business
to improve the footfalls and the turnover of the business. These improvements have helped
the partners to open new stores as well in the same market. And due to it, they have made a
decision to open their chain in the European market as well. The report mainly concentrates
in the new coffee store in the European market.
Country analysis and store analysis:
The case study explains that both of the partners, Hank Marin and patty smith have
made efforts to evaluate the European market to open their new coffee stores. The European
market consists of 28 countries along with their political and economical aspects that are
located in the area of Europe. The European Union is one of the largest unions and the study
says that the German is one of the best locations to open the new coffee shop. The
economical factors, culture, changes in the perception of the customer, taste of citizen, their
demand, internal position and the political stability are the main factors due to which the
German has been chosen among the 28 countries of European Union. The overall economy of
the German has been enhanced by 0.8% in June 2018 from previous quarter as well as the
overall economy of the country has also shown an improvement of 1.2% in the current year
(trading economics, 2018).
The political factors of the country have also been measured and it has been found
that the political changes are stable in the country. The German citizen is quite simple and
they follow to their culture and the values which makes them simple. The German people are
also connected to their cultural food and the food is amusing which attracts the foreigners as
well. Though, along with the time, German citizen are also getting attracted towards the
different cuisines from different countries and they have also started looking for the different

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places with peaceful environment and the great place to hang out with their nearest and
dearest ones (Focus economics, 2018). The research on the German market explains that the
citizen have great love for coffee.
The above evaluated factors are few points which have attracted the Hank Marin and
patty smith to open their new coffee store at German in European Union. It has been studied
in the given case study that the raw material would be exported by the store from the Uganda.
A fair-trader of Uganda would help the business to get the beast raw material directly from
the Uganda’s farmers. The ethical consideration of the business would also be higher in case
of buying the raw material from the fair traders. So, if the company wants to start in the
German market than also the raw material would be sell abroad from the market of Uganda
only. The Hamburg, Germany is the best place to open the store. The store would be opened
at Dofour crossing.
The logistic factors of the German have been studied and it has been found that the
material could easily be transported from the Uganda in German and the cost and the time
involvement is also lower. The transportation from Uganda could be done through the sea
ways (Agility logistics, 2018). The unethical involvement of the business would also be
lower in case of opening a new coffee store in the German market. The main client of the
business would be the youth who is getting attracted towards the new culture and want to
enjoy the new cuisines with a great ambiance. The working hours of the coffee shop would
be from 9 am to 11 pm. The employees of the coffee shop would work in 2 shifts.
Five waiters and two chefs would be required for the coffee shop out of which 1
waiter would work for 9 am to 11 pm and rest would work in two shifts. The salary would be
paid them according to their efficiency and the experience. A proper training would be given
to the waiters of the coffee shop. The coffee shop would offer the competitive price to the
customers. At initial level, the margin of the business would be lower to attract more
customers. The main menu of the business would include variety of coffee, pastries, herbal
tea and ice creams to the customers.
The crime rate of German citizen is also lower which explains that the German could
be a better option for the partners. The structural factors have also been studied and
recognized that for entering into a new market, structure must be decided by the business.
The business could start the new business with a partnership contract with a local business