Operations Management Assignment Case Study
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Added on 2020-06-04
Operations Management Assignment Case Study
Added on 2020-06-04
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CASE STUDY
TABLE OF CONTENTS1. Providing justification on selection of country for the purpose of expansion of businessoverseas.......................................................................................................................................12. Providing Marketing Mix for Expansion plan........................................................................23. Implications of factors on the business operations of coffee shop..........................................44. Evaluation of their current profitability and liquidity position and its impact on theirdecision.......................................................................................................................................6CONCLUSION....................................................................................................................................8REFERENCES...................................................................................................................................10
1. Providing justification on selection of country for the purpose of expansion of businessoverseasAs per the given case study of Hank Marvin and Patty Smith, they are running a businessin food and catering industry from past 12 months. There business is shown a great success in acouple of months, due to which they are now dreaming of opening a new branch and expansionof their business overseas in any of the European union Country. It is essential to determine andassess various factors of a country where new branch of the business is to be opened (Igou andCoe, 2016). Therefore, it requires to analyse and research about demographic information andgeographical information along with knowing the preferences of people of that country. For thepurpose of expansion of business in an overseas market, Marvin and smith can open a branch oftheir coffee shop in Germany. Below is the justification of why Germany would be the bestcountry for the purpose of their expansion.Geography and Climate of GermanyA business is highly influenced by geographical location and climate of the country inwhich it is operating. As Marvin and smith are dealing under food and catering industry, mainlya coffee shop that can be highly affected by the climate of country as it is perishable product.However, Germany is suggested to both the partners due to the positive impact of Geographicallocation and climate over their business (Geographical and climate conditions of Germany,2017). Germany has the highest number of neighbours in overall Europe, this means it shares itsboundaries with the highest number of countries i.e. 9 countries. Having the highest number ofneighbour’s means large number of tourists to the place and more the tourists more will bebeneficial for the coffee shop.Climate of Germany is moderate i.e. not too hot and not too cold. The demand of coffeeand coffee products usually decreases when the climate becomes hot as people shift to colddrinks. However, other than hot climate demand of coffee and coffee products remains at peak.Since the climate of Germany is moderate there will be always high demand of coffee productswhich is a positive sign for both the partners. In the months when summer season is at its peaki.e. in the month of July, the mean maximum temperature of Germany remains at 21.8 degreewhile mean minimum temperature remains at 12.3 degrees and during January, temperature
reaches to minus degrees. The climate and geographical location of Germany is favourable forthe opening of coffee shop in and around its locations.Demographic Conditions of GermanyEstimated population of Germany as per the latest census information is 80,722,792. Thismeans there is a great population that can be targeted as potential customers to business. Morepopulation means more customers to business (Bai and Anderson, 2016). This is again afavourable factor for partners to establish their business in the locations of Germany.Legal Structure of countryLegal structure includes various policies, regulations and legislations of country. A startup business is highly affected due to various policies that are to be adhered to mainly when thebusiness is an international business. In order to open a business in Germany, both the partnershad to consider various laws and policies of Germany along with the policies of London i.e. thecountry where their business is currently operating. However, norms and policies of Germany forstart up business are not too harsh and are developed in a way that support smooth operation ofbusiness. Hence, both the partners will not have to face issue regarding legal structure foropening a branch in Germany.All the above factors that are discussed in the context of Germany are in favour forMarvin and Smith. Other than these factors, Germany is a place where there is easy availabilityof coffee beans that is raw material for the business. This will also enable them in operating theirbusiness successfully and hence, Germany would be the best country for their expansion.2. Providing Marketing Mix for Expansion planThe initial step for expansion of business is analysing market where the company wantsto expand its business and preparing a favourable market strategy. For this purpose, componentsof marketing mix helps management and owners in determining the role of their product, price,place and promotion in achieving its target objectives and goals (Armstrong And et.al., 2015).Marketing Mix generally consists of 4 P's that are Product, price place and Promotion. Thesehelps in providing a base or can be said a starting point for new establishments and start ups.
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