Marvin & Smith Coffee Shop: Business Expansion into Italy

This report analyzes the expansion plan of Marvin & Smith (M&S), a London-based coffee shop, into Italy. The executive summary outlines the key considerations, including market analysis, logistic and ethical considerations, and structural challenges. The report examines the marketing mix (product, place, price, promotion, physical evidence, people, and process) tailored for the Italian market. It also explores the impact of the geographical area on organizational culture and supply chain, emphasizing the importance of adapting to the Italian environment and maintaining a strong supply chain. The report evaluates the impact of the expansion on profitability and liquidity, using financial statements to assess the company's financial health and decision-making. The conclusion recommends careful market analysis and strategic planning for a successful launch in Italy, considering the local preferences for coffee and the competitive landscape. The analysis also covers aspects such as the impact of Brexit and foreign law.

BUSINESS ESSENTIAL

Executive Summary:
The current report will be summarised in a manner that Marvin and Smith who are
owning 2 coffee shops in London and recently they had planned to take the attracting places for
their newly set up Italy. The method of arranging and firms of certain part which required to be
remember to do the resourcing, To influence successful material which to need to get from
different area too the amount need to keep up by the association. The firm culture will assume an
essential part to assemble a viable terms and circumstance for every last partners.

INTRODUCTION
The current case scenario is on the basis of coffee shop which Marvin and Smith required
to expansion in the Italy which is the part of European Union but recently the organisation is
associated at the London with the branding of M&S. To attract customer at the Italy for tailor
made coffee and tea. Further, the report will be covering marketing mix of Marvin the coffee and
tea which made of tailor, the hierarchy structure possibilities in expansion their business in Italy
and the area which the organisation is going to recover.
1. Justifying Italy would be best suited for M&S coffee shop by considering all the factors and
assuming that Brexit will not be causing any difference to trading.
The M&S (Marvin and Smith) is planning to expand their shop in EU and they think Italy
can be most suitable location for their business. The most positive thing about the Italy is their
environment which has better temperature seasonal and Mediterranean climatic situations. The
individual of Italy are effective much found of coffee and tea they drink such as cafe latte and
cappuccino or milky form of coffee by starting their day and refuse to take after the food. Mostly
citizen of Italy likely to beginning their day with a cup of a coffee particularity they prefer
cappuccino in breakfast. They are found of Italian roasted coffee in noon and in the dinner they
likely to drink espresso. In the Italy it has been found that citizen in that country which will be
more likely to drink roasted coffee and other custom are better than law of mysterious. From all
the day it on an average person of the Italy have been consumed Italian drink 3 to 4 cups of
coffee and it can be more important and valid justification as to Marvin and Smith coffee shop
which will be happy to give offer of each and every sort of coffee for the citizen of
Italy(Caporaso, Civitella and Sacchi, 2014). Same as the M&S London prefers to offering their
coffee beans from the farms of Uganda to increase their earning an individual earning source
which brings Gumutindo Coffee to utilise the finest coffee beans. In Italy which have been plan
to order the coffee beans from the location which the organisation get from the farmer who are
farming individual in the region of Uganda and particularly on eastern are of the nation.
Logistic consideration:
This related to the procedure of planning and firms of certain component which required
to be keep in mind to do the resourcing, To make effective material which have to get from
various location as well the quantity need to maintain by the organisation. So if the Marvin and
Smith wants of expanded their business for that they have to evaluate the situation of market in
1

the Italy where the requirement to setting up the shop mostly they had chosen is Rome the capital
of Italy.
Ethical consideration
They are huge significant consideration factors which required to be keep in brain before
introducing any enterprises. This distinguish between what is correct and what is incorrect in
conducting research of action for various areas.
Structural challenges:
It had been found that several challenges which require to opportunity for the shop of
coffee at Italy which required to considered before introducing or set there. The challenges can
be discuss such as follows:
Foreign Law: It is the most important consideration after the Brexit action taking by the Britain
affect the relationship of United Kingdom with the nation which are in the part of Europe. But
the foreign legislation of Italy is most leant so they are the easy shut the beverage shop at the
there(Lance and et.al 2017).
Pricing Strategies: It can be the another challenges which required to setting up the cost of
each and every kinds of coffee which they will be offering in tally. This can be happen by
evaluation the geographical area as well situation of economic of the nation.
2 Marketing Mix in relation to the coffee shop of Marvin and Smith expansion plan abroad.
For every firm it is the most important aspect marketing mix are the element which each
and ever enterprises used for setting up effective strategies. There are certain to marketing mix
which can be helpful for the organisation. The 7ps of marketing mix that can be product, place,
price and promotion, physical and process. The Marvin and Smith coffee shop to action to
develop their coffee shop in the Italy for which they required to form a certain marketing mix
which is the including all the marketing mix of the firm.
Product: this can be the most important component for the Marvin and smith required to give
the effective quality of goods and services to the customers(Sieger, 2015). It is important for the
organisation to required to understand the significance of coffee to the each and every person of
the nation which they are going to set up there business by offering better products.
Place: Marvin and Smith coffee shops have been a better and build an effective relationship with
the consumer and supplier. As they are set up their shops in one of the EU member nation Italy
in which they have brought an effective channel of distribution from Uganda where they required
2

to import coffee beans. The Marvin and Smith will be include atmosphere and environment of
the coffee shops and appropriate customer services.
Price: it will help to set up cost of the value of the goods and services offered by the
organisation to it consumer with the effective procedures they will be offering them the best
quality of goods. Marvin and Smith will be buying they will be provided best and effective
coffee beans from the Uganda and Making sure that employees of coffee shop is effective and
efficient. Price of each kinds of products which have been offered by the organisation((Meckling,
2015)). The component can be discus such as follows:
 Price of the competitor.
 Place of the shop and
 Revenue and profit of the organisation
Promotion: The beginning of the coffee shop which they have been required their goods and
services which is coffee to the consumer of Rome where they will be introduce their first coffee
shop.
Physical Evidence: This can be consist of Marvin and Smith tangible communication also inside
function like vehicle management for the customer and landscape.
People: This will be consist the individual or the employees which are terms to firm and the
manner they are treat to the consumer.
Process: the coffee beans which will be imported from Uganda, they be to be supplied each and
every channel of distribution and then coffee is prepared from the beans and served to the
consumer with the effective procedure of preparing the product.
3. How will the geographical area impact Organisation culture and Supply chain on Italy?
For the every firm it most important aspect for the firm which required to set up that can
be organization culture as well supply chain which can be discuss such as follows:
organizational culture: Marvin and Smith coffee shop required to beginning their coffee shop
in Rome Italy and then afterwards they required to expand their coffee shop in large area of the
nation. The firm culture will play an important role to build an effective terms and situation for
each and every stakeholders(Mellat-Parast,2015).
Supply chain: M&S café is London base coffee house and they are setting up their bistro in Italy
which is the piece of European Union. After Britain's choice of leaving EU the relationship of
numerous nations with that of UK was bothered. So before they are entering in to market of Italy
3

they likewise need to think about this impact on the relationship. They will supply the crude
material like espresso beans from Uganda and having a decent association with this nation such
as East African. This production network will influence land zone in term of Italy and
development of Marvin and Smith café as well(Özen, Pons and Tur, 2014). Marvin &Smith
coffee house ought to cover the more extensive land territory in Italy just to gain higher benefit
in nation and this will likewise help them to develop in other nation of Europe other than Italy.
4 Evaluation of the impact on decision making of profitability and liquidity of Marvin and Smith
coffee shop.
Given above is the financial statements of the coffee shop which is planning to open
another coffee shop after the 6 months in Italy. Till year end of 2016 they were having assets of
about £113000 so this tells us that they are having enough assets to open another coffee shop.
With this they are having no such external liabilities or debt which is helping them to maintain
their profitability and liquidity for coffee shop. They are planning and making decision about to
expand their business into European Union so this is regarded to as good step which is helping
them to have more amount of profits(Rosi, Tassotti and Mena, 2017). As in the market analysis
it was included that people of Italy are very much found of coffee and drinks it about 4-5 times a
day so this is positive sign from company to start up their business there as well.
However, the first and foremost thing which they need top do is to identify who are their core
and major competitors in the market of Italy especially there were they are planning to launch up
their coffee shop. They are also having very good supply chain that is not hindering any problem
or creating any issue this is in fact helping them to grow at more fast level. In the year 2016 they
were also having a profit of about £26800 which is good start for them as this was a net profit
after deducting all the expenses of firm. One this note they would also be given the Wi-Fi facility
this is enabling coffee shop to get the huge audience or customers from the new city which is
thus creating greater source of profitability and income.
CONCLUSION
From the report business essential it can be easily concluded that the shop which is
working in South of London and having 2 outlets. They are wanting to open another bistro in
Europe and likely in Italy. As this was set up in January 2016 and since that time they are doing
great business in London and acquiring supportable benefits. Yet, the possibility of them
4

developing their business in Italy will be a snappy choice so this won't be exceptionally right
time to set up the coffee house in Italy rather they should pause and dissect the market of Italy on
a more extensive profundity at that point design. So it is important for the organisation which
have to focus on the best possible outcomes in the firm. Therefore, They are found of Italian
broiled espresso in twelve and in the supper they prone to drink coffee. In the Italy it has been
discovered that resident in that nation which will probably drink simmered espresso and other
custom are superior to law of strange. From all the day it on a normal individual of the Italy have
been expended Italian drink 3 to some espresso and it can be more imperative and legitimate
defence as to Marvin and Smith bistro which will be glad to give offer of every last kind of
espresso for the native of Italy.
5

REFERENCES
Books and Journals
Baraibar‐Diez, E and et.al 2017. A Survey of Transparency: An Intrinsic Aspect of Business
Strategy. Business Strategy and the Environment, 26(4), pp.480-489.
Buckley, P.J and et.al 2015. International business strategy: theory and practice. Routledge.
Caporaso, N., Civitella, A. and Sacchi, R., 2014. Neapolitan coffee brew chemical analysis in
comparison to espresso, moka and American brews. Food research international. 61. pp.152-
160.
Gumusluoglu, L and et.al 2016. Fit among business strategy, strategy formality, and dynamic
capability development in new product development. European Management Review, 13(2),
pp.107-123.
Lance, K., 2017. # GetSocialSmart: How to Hone Your Social Media Strategy. CreateSpace
Independent Publishing Platform.
Meckling, J., 2015. Oppose, support, or hedge? Distributional effects, regulatory pressure, and
business strategy in environmental politics. Global Environmental Politics, 15(2), pp.19-37.
Mellat-Parast, M and et.al 2015. Linking business strategy to service failures and financial
performance: Empirical evidence from the US domestic airline industry. Journal of Operations
Management, 38, pp.14-24.
Özen, A.E., Pons, A. and Tur, J.A., 2014. Consumption of functional foods in Europe; a
systematic review. Nutricion hospitalaria. 29(3).
Rosi, A., Tassotti, M. and Mena, P., 2017. The Pocket-4-Life project, bioavailability and
beneficial properties of the bioactive compounds of espresso coffee and cocoa-based
confectionery containing coffee: study protocol for a randomized cross-over trial. Trials. 18(1).
p.527.
Spender, J.C., 2014. Business strategy: Managing uncertainty, opportunity, and enterprise. OUP
Oxford.
6