Business Plan: Startup Analysis of The Buffet Cafe in London

This report provides a comprehensive analysis of The Buffet Cafe, a sole proprietorship business startup in the food industry. It examines the internal and external information required for the business, including market trends and financial considerations. The report utilizes PESTLE analysis to assess political, economic, social, technological, legal, and environmental factors impacting the business. Additionally, Porter's Five Forces model is applied to evaluate the competitive intensity within the food industry, considering competitive rivalry, the threat of new entrants, bargaining power of buyers and suppliers, and the threat of substitute products. The analysis concludes with recommendations for the owner of The Buffet Cafe, emphasizing optimal resource utilization, competitive strategy development, and environmentally responsible practices to enhance efficiency, productivity, and profitability. The report highlights the importance of considering various business aspects and frameworks to achieve sustainable growth in the market.

Introduction to business

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Determination of internal as well as external information required by the business...................3
PESTLE Analysis........................................................................................................................4
Porter's Five Forces......................................................................................................................6
Recommendations........................................................................................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Business is defined as an enterprise or an organisation that is engaged in industrial,
commercial or professional activities. There are different types of businesses and some of them
are sole proprietorships, partnership, limited liability companies and many more. The
introduction of business covers the scope as well as sequence of the most introductory courses of
business. Within this project, the ongoing business start up is based on sole proprietorship as a
kind of business in the food industry (Bougie and Sekaran, 2019). In order to complete the
project, different aspects related to new start-up are going to be discussed such are internal as
well as external information that can be used by organisation for its smooth functioning.
Furthermore, different frameworks like Pestle Analysis and Porter's Five Forces will also be
described in this report to analyse the key factors that impacts the business performance.
MAIN BODY
Within this project, a business of sole proprietorship in food industry is going to be
started and the name of the proposed business is The Buffet Cafe that is a cafeteria located in the
London. Different aspects related to this business are discussed as under:
Determination of internal as well as external information required by the business
In order to start a business, various internal and external information is required so that
the enterprise can work in a smooth way. Different types of information that is needed by The
Buffet Cafe are given as below:
 Latest Market Trends: Various trends of the market has greatly impacted the business
because of the pandemic situation of COVID-19 as the government of the United
Kingdom has made several restrictions. Therefore, it becomes important for each
business organisation to adhere all the restrictions. Due to this pandemic situation, it
became significant for the owner of The Buffet Cafe to evaluate all the conditions of the
market that gives benefits to the business (Brondoni, 2018). The taste as well as
preferences of the market share are shifted towards the healthy food products after the
pandemic and the customer-base became more health conscious. Hence, it is essential for
the owner of the respective cafe to understand the perceptions of customers and introduce
healthy food products like dishes made up with more green veggies, etc. This would help
the organisation in capturing a lot of market-base towards the business.

 Financial information: Finance is considered as the most valuable as well as crucial
concept of every business. The necessity of finance is very high in every kind of business
organisation as there are multiple business activities that require proper allocation of
funds. It is very essential for The Buffet Cafe to have effective sources of funds within
the business so that the different business activities can be run in a smooth manner. Funds
required by a business is based on its nature and it is significant for the administration of
the respective organisation to allocate the funds in a proper way (Bush, 2018). In order to
run the business in an effective way, the owner of the cafe are required to allocate the
funds to various departments of the business like production, sales and marketing, human
resource, etc. There are multiple sources of acquiring or obtaining the fund and these are
bank loans, friends and family, private financing and many other.
 Details of the product: The concept of product is the most essential for organisation to
understand that plays a major role in the success and failure of a business. This becomes
a responsibility of the owner of the organisation that they evolve attractive and effective
ranges of the product within the market place. This would help the respective cafe in
capturing a wide number of market share towards the organisation. The administration of
The Buffet Cafe has planned to offer healthy food products that are made up of green
vegetables and healthy ingredients. It would help the cafe in getting more of its potential
customers within the market place.
PESTLE Analysis
The framework of Pestle Analysis helps an industry in analysing the impact of different
external macro-environmental factors that influence the functioning of a business. This tool helps
the organisations in making effective and well-informed business decisions that would facilitate
in achieving higher level of productivity as well as profitability within the business. The Pestle
Analysis of The Buffet Cafe is described as under:
Political factors: These factors are associated with the regulations and guidelines of the
government and some of the political factors that have impact on the businesses are political
stability, trade regulations, taxation policy and many more (Cristani and et.al, 2018). In context
to The Buffet Cafe, this factor will help in analysing the long-term profitability within the market
segment where the business is offering services. The organisation should be aware of changing
political laws as well as policies of the United Kingdom in which it wants to operate its business

as changes in political factors like restrictions in trade regulations can impact business
performance in an adverse way.
Economic factors: Such factors have great impact on the economy of a country and
profitability of the organisation. These factors involve interest rates, inflation rates,
unemployment rates, foreign exchange rates, etc. In case of The Buffet Cafe, there are different
economic factors that can have a great influence on the organisation and these factors are
inflation and taxation within the respective country (Davidson, 2018). The organisation should
be aware of these factors and must adopt effective strategies of business in order to sustain
within the market place.
Social factors: Such factors ascertain the social and cultural environment in respect to
the business and involves health consciousness, cultural aspects, population growth, career
attitudes, age distribution, etc. In relation to The Buffet Cafe, the organisation should understand
the perceptions as well as taste and preferences of the market share in order to attain the
maximum level of growth and profitability within the business. The owner of the cafe should
offer those food products to their customers that directly satisfy their wants and needs. It would
help in increasing the sales of organisation and positively influence the organisational
performance.
Technological factors: These factors are concerned with the changes in technology like
advancements, upgradations, innovation and many other. Examples of such factors involve
automation, mobile technology, research and development, etc. In context of The Buffet Cafe,
the organisation should follow the recent highly upgraded technology that gives competitive
advantages to the business. It would help the cafe in offering its food products in a very less time
and at less cost. This will facilitate the owner of the organisation in reducing the overall business
cost and impact the operations of business in a positive way.
Legal factors: These factors are related to the laws and legislations that are formulated
by the legislative system of a country (Dumas and et.al, 2018). Some of the factors include
changes in legislations and laws, access to materials, laws related to employment, taxation laws,
etc. In relation of The Buffet Cafe, the organisation should consider such legal points that
influence the organisation while conducting business operations. Owner of the cafe is required to
adhere the laws such as health and safety laws, data protection laws, employment laws,

consumer protection laws, etc. and work in an ethical environment. This would help the
organisation in enhancing the business efficiency as well as profitability in a great way.
Environmental factors: Such factors ascertain the environment of surrounding that
influence the business operations of the organisation. It includes environment protection laws,
disposable waste, pollution, climate and many other. In context to The Buffet Cafe, the
organisation should understand the market and its condition and the owner of the cafe is required
to evaluate the environment standards of the country that are needed to operate business in those
market factors such as climate, weather laws regarding environment (Parboteeah and Cullen,
2018). This would assist the business in gaining competitive advantages and achieving higher
level of efficiency.
Porter's Five Forces
This model helps the organisation in analysing the level of competition within the
industry and determining the process in which other businesses are working at different
profitability level. The five forces of this model is explained as under in relation to The Buffet
Cafe:
 Competitive Rivalry: The level of competition in food industry is very intense and there
are various competitors of The Buffet Cafe such as Nora Cafe, Cafe Parisienne,
Kennington Lane Cafe, etc. These competitors of the respective organisation impacts the
profitability and efficiency of the business and is a high threat of competitive rivalry for
the cafe.
 Threat of new entrants: It is based on the entry of new business in the industry and The
Buffet Cafe can face challenges regarding entrance of new firm. In order to overcome the
challenges, the cafe is required to develop effective business strategies that would help
the organisation in gaining competitive advantages over the competitors in market
(Pettinger, 2020). There is low threat of new entrants for the cafe as government of
country has framed various trade regulations that are required to be adhere by new firms
in order to take entry in the food industry.
 Bargaining power of buyers: In context to Buffet Cafe, there are a great number of
cafeterias within the United Kingdom that are holding a large number of customer-base.
Market share of the country has various options in order to buy or get the food services so
there is high threat of bargaining power of buyers for the respective organisation.

 Bargaining power of suppliers: Within food industry, there are a wide number of
suppliers that supply raw material to the businesses. In relation to The Buffet Cafe, there
are so many suppliers that would supply their products to the organisation at low cost as
compared to others. Hence, there is low threat of bargaining power of suppliers within the
industry.
 Threat of substitute products: These products are similar to the products of
organisation and offered to customers at low prices (Rutland, 2018). In context of The
Buffet cafe, the owner of the organisation would provide innovative and healthy food
products to its potential customers. Therefore, there is low threat of bargaining power of
suppliers for the cafe in the food industry.
Recommendations
From above discussion, it is recommended to the owner of The Buffet Cafe to optimally
use the organisational resources as it would help the business in enhancing its efficiency as well
as productivity and profitability within the business. It is also recommended to the owner of the
cafe to develop effective business strategies in order to gain competitive advantages over the
rivalries in the market. The business should use paper bags for delivering their food products
instead of using polythene bags that would maintain the environment in an effective way.
CONCLUSION
From above explanation of the report, it has been concluded that there are several aspects
that are associated with business which the organisation should taken into consideration for
achieving higher level of growth within the market place. Within this project, a cafe has been
operated in a sole proprietorship form and external and internal information required by business
has been included in this report. Moreover, different frameworks have also been described in this
project for analysing impact of external factors on business performance and competition level
within the industry.

REFERENCES
Books and Journals
Bougie, R. and Sekaran, U., 2019. Research methods for business: A skill building approach.
John Wiley & Sons.
Brondoni, S. M., 2018. Competitive Business Management and Global Competition. An
Introduction. In Competitive Business Management (pp. 21-42). Routledge.
Bush, M. C., 2018. A great place to work for all: Better for business, better for people, better for
the world. Berrett-Koehler Publishers.
Cristani and et.al, 2018. Future paradigms of automated processing of business
documents. International Journal of Information Management. 40. pp.67-75.
Davidson, R., 2018. Business events. Routledge.
Dumas and et.al, 2018. Introduction to business process management. In Fundamentals of
business process management (pp. 1-33). Springer, Berlin, Heidelberg.
Parboteeah, K. P. and Cullen, J. B., 2018. Business ethics. Routledge.
Pettinger, R., 2020. Introduction to management. Bloomsbury Publishing.
Rutland, P., 2018. Introduction: Business and the state in Russia. In Business and state in
contemporary Russia (pp. 1-32). Routledge.