Business Plan for Hot Cup Cafe: Launching Herbal Coffee in London

This business plan report details the launch of Hot Cup Cafe, a new herbal coffee business in Notting Hill, London. The plan includes an introduction outlining the business's objectives and services, followed by a discussion of business operations, including production and supply chain management. The report analyzes the external environment through a PEST analysis, examining political, economic, social, and technological factors. It also employs Porter's Five Forces to assess the competitive landscape, including the threat of new entrants, substitutes, and the bargaining power of buyers and suppliers. The plan covers the target market, business model, and competitive advantages, aiming to establish a successful herbal coffee business. The conclusion summarizes the key findings and strategies outlined in the plan, highlighting the importance of a well-defined business strategy for success. References to books, journals, and online sources are provided to support the analysis.

Business Plan

Table of Contents
INTRODUCTION...........................................................................................................................3
Main body........................................................................................................................................3
PEST analysis..................................................................................................................................4
Porters five forces:...........................................................................................................................5
TASK 2............................................................................................................................................6
(Covered in Poster)......................................................................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
The business plan is the document which help in describing the new business and the
service which is essential to provide better services to the customers. In other words, it helps in
describing the leadership, staffing and financing the operations in a well define manner
(Anagnostou, 2019) A good business plan is essential to help the organisation to achieve the
desire goal in the well define manner. The report is based upon Hot Cup cafe which is going to
start the new business of Herbal coffee located in Notting Hill London. Further this report
explains about the business operations effectively such as production management and supply
chain management. The quality management is to manage the competitive environment in the
well define manner.
Main body
Business operations refers to activities which business engage on the daily basis in order
to increase the value of the enterprise and earn a profit. The activities can be optimized to
generate sufficient revenues to cover the expenses and earn a profit for the owners of the
business. This ensure the growth of the company and management should plan to accommodate
the change which reduce the glitches in the company. The main function of business operations
is to plan, organize, coordinate all the resources which used in the organisation for conducting
raw material in the finished goods. Along with this it involves managing people, equipment and
technology which is essential for the company to achieve the desire goal.
Overview of the company:
In the context of Hot Cup Cafe, the company have efficient business operation which
help in making more customer base in the market. The firm use different supply chain in order to
reduce the cost and facilitate customer with the excellent service. However firm use proper
planning and they have well maintained staff which assist in delivering services to the end user.
Here is the company overview which is briefly explain below:
Industry: A industry is the place where the person operates its business activities in the
well define manner. For the new business plan, the company Hot Cup Cafe deals in service
industry which provide Herbal coffee in order to attract the customer.

Location: The company is starting its new branch in Notting hill London. It is a small
town mostly the working class as they are need healthy drink which keep them energize. Along
with this company is providing services to the different offices business people.
Target customer: The target customers are those people which usually provide business
to the company. The company have target all ages as they are launching herbal coffee which is
healthier than normal coffee (Brinckmann and et., al., 2019). They also promise that their coffee
are free of caffeine which makes it different (Amy Goodson 2019). Beside the main target
audience are those who are health conscious and need coffee which is different from other.
Business model: This is the formal structure which help organisation to support the
viability of the company and help in making achieving the organisational goal and objective. The
Hot cup cafe provide herbal coffee which is there business model as the firm is aware about the
health issues and assisting with them coffee which more tasty and healthy. This coffee is also
beneficial for those who have heart related disease which reduce the risk of causing ill in future.
Along with this they offer late and early option for those who are working in the corporates.
PEST analysis
This is the method where an organisation can assess the external environment which
influence the operations in order to become competitive in the market. Here is the PEST analysis
of Hot cup cafe in brief down below:
The political factor includes the rules and regulation of the country. This states that
different nation have their own regulatory bodies and the organisation have to follow all the rules
for the smooth functioning. In the case of Hot cup cafe, the UK have stable government which is
beneficial for the company to operate the business activities. Along with the nation also provide
funds and resources for the new business which makes easier for the firm to sustain in the market
for the longer time period (Grit, R., 2019).
These are the factor which include various elements such as recession rate, income and
local currency rate. In the context of Hot Cup cafe UK is a developed nation as this is be
competitive edge for the company to enter in the new business. Further the currency and per
capita income of the people are high which makes firm to operate their business effectively.
Beside this Brexit have impacted the business as it also slows down the business in many of the
country (Zhang, 2019).

The social factor indicates about the culture and background of the people. The people
belong to different culture as well as have different behaviour. The Hot cup cafe have
opportunity to increase its revenues based on increasing demand for speciality coffee, which is
due to a growing coffee culture and a growing middle class around the world. Along with this
company have vast market share to capture as with providing them health conscious coffee
(McKenzie and Sansone 2019).
The technology has changed the face of doing business. As the rise in mobile purchase
the business has become more easy from the previous days. Hot cup cafe has the chance to
improve its mobile apps and linked services to increase more revenues through mobile
purchases. The organization also has the possibility to improve its supply chain efficiency based
on new technologies coffee farmers use. The rise the coffee making are the major threat to the
company as people make their coffee at their homes (Götz, 2019).
Porters five forces:
This is the model which is used to examine the level of competition in an industry. It
helps to figure out the business itself and the position in the market. In the regards of Hot Cup
Cafe, it will help in analysing the bargaining power of the suppliers to the threat which is present
in the market. Here is the detail discussion of this model in the detail manner.
Threat of new entrants: There are different threat to the company and the major is the
new entrants in the market. The Hot cup cafe must provide high quality services to the customer
in order to gain competitive advancement in the market. Along with this company have to keep
their price low as this help in attracting more and more customers which also develop the brand
image in the market. An important factor that gives the Hot cup cafe brand a competitive edge is
its access to raw materials and suppliers.
Threat of Substitutes: There are many player of similar industry presents in the market.
The major threat of substitute to the company is Starbucks and Costa Coffee which are the major
player in the coffee business. Another source of threat in this area are the home made products
that the consumers can make at home. Apart from it the change costs frequently are the threat to
the company. In this case Hot Cup Cafe should provide better services and keep their price
constant this will reduce the risk and uncertainty present in the market.
Bargaining power of buyers: The bargaining power of the buyers are high in the case
of Hot cup cafe the company is new and they have strategies to attract more and more customers

as this will increase the revenue for the company. The company cannot keep their price high as
they are new in the market otherwise people can shift to another which will be loss for the
company. Beside this, coffee brand has diverse customers base and they are really price
sensitive. To sustain in the market they have to keep their price to the minimum.
Bargaining power of suppliers: The brand has its own supplier which provide raw
material to the company. Ethical sourcing is a another major policy for the company to reduce
bargaining power of suppliers. So Hot Cup Cafe usually use raw material directly from the
framer. It eliminated the mediators and started sourcing from the farmers which is beneficial for
the company to keep the price low (Byrnes, 2019).
Competitive rivalry: There have been intense rival present in the markets such as
Dunkin and McCafe. For the Hot cup cafe this is crucial to identify the needs and wants of the
customers and offer them quality services as this will aid in capturing larger customers base.
TASK 2
(Covered in Poster)
CONCLUSION
As per the discussed report it has been concluded that every organisation must develop
plan because it reduces risk and uncertainty present in market . Along with this, PEST has done
for identifying the external environment to start the new business. However, SOWT analysis
have been done to know about the strength and weakness of the company in a well define
manner.

REFERENCES
Books and Journals
Anagnostou, P., 2019. Business Plan, Oceanis Maritime Acquisition Shipping Group SAOCMA.
Brinckmann and et., al., 2019. Of those who plan: A meta-analysis of the relationship between
human capital and business planning. Long Range Planning, 52(2), pp.173-188.
Byrnes, M., 2019. Entrepreneurship in Marinas: Does a Business Plan Translate into a Successful
Business?.
Cunha, M.L.C.F.D., 2019. Business plan: Casa do Benfica de Maputo (Doctoral dissertation).
Glass, C., 2019. Business Plan for Southwest Michigan Trolley.
Gonzaga, J.S., 2019. Business plan implementation: An evaluation of learning and
experiences. International Journal of Advanced Research in Management and Social
Sciences, 8(2), pp.376-389.
Götz, J., 2020. Business Plan. In Seasonal Affective Disorder and Light Therapy (pp. 165-203).
Springer, Wiesbaden.
Grit, R., 2019. Making a business plan. Routledge.
Joseph, J., Orlitzky, M., Gurd, B., Borland, H. and Lindgreen, A., 2019. Can business‐oriented
managers be effective leaders for corporate sustainability? A study of integrative and
instrumental logics. Business Strategy and the Environment, 28(2), pp.339-352.
McKenzie, D. and Sansone, D., 2019. Predicting entrepreneurial success is hard: Evidence from a
business plan competition in Nigeria. Journal of Development Economics, 141,
p.102369.
Zhang, X., 2019. Development of business plan for a stretch therapy service (Doctoral
dissertation, California State University, Northridge).
Online
Amy Goodson 2019 .How Much Caffeine Is in Decaf Coffee. Online sources<>