Hank & Patty Coffee Shop: Business Expansion Project in France

This report details a business project focused on Hank & Patty, a coffee shop aiming to expand its operations into France. The report begins with market research and the rationale for choosing France as the expansion location, considering factors like tourism, financial stability, and cultural aspects. It then presents a tailored marketing mix, including product offerings (snacks, pastries, cold drinks, and herbal juices), competitive pricing strategies, strategic placement of physical outlets and online delivery options, and promotional activities utilizing social media and travel agencies. The report further examines the implications of covering a wider geographical area, including management structure, personnel issues, and staff management. Finally, it evaluates the profitability and liquidity of the business, providing financial ratios such as gross profit, net profit, and current ratio to assess the financial health and potential for success of the expansion. The project offers valuable insights into the challenges and opportunities associated with international business expansion.

Business project
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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
1. RESEARCH AND DECIDE ON A COUNTRY........................................................................3
2. PRESENTING TAILORED MARKETING MIX......................................................................4
3. IMPLICATIONS CONSIDERED BY BUSINESS TO COVER WIDER GEOGRAPHICAL
AREA...............................................................................................................................................6
4. EVALUATING THE PROFITABILITY AND LIQUIDITY ....................................................7
5. VIABILITY OF OVERSEAS EXPANSION..............................................................................8
REFERENCES..............................................................................................................................10
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INTRODUCTION
The growth of the business can be determined only with the help of innovative idea and
procedures. This assists management to deliver good quality of services to its potential buyers
and accordingly retain them for longer time span. The present report is based on Hank and Patty;
a coffee shop is offering varied products for meeting expectations of a large number of buyers in
the marketplace. This corporation is planning to expand its business in France for attracting more
customer and building a good relationship with them. Further, tailored marketing mix is also
designed through which coffee shop can be expanded abroad for its higher rate of return and
increased sales turnover. In addition to this, issues which are faced by business at the time of
expansion are also explained which aids to meet expectations of buyers in an effectual manner.
1. RESEARCH AND DECIDE ON A COUNTRY
The expansion of business is done with the help of effective analysis of country where the firm
is going to expand. It assists management to understand varied factors and direct impact on the
same on the operation of the corporation. It facilitates corporation work in the upward direction
so that accordingly long as well as short-term objectives. This country is selected because
approximate 84.7 million visit the country for its most popular tourist destination in the world. It
grabs attention of many business men also who visits the country frequently for business
purpose. Here, attractive destinations like the Eiffel and famous landmark of Paris prove to be
effective for corporations like Hank and Patty (A unique array of attractions entice foreign firms,
2010).
It can be critically evaluated that countries like France tend to be the romantic point of many
couples for Honeymoon places and several other visitors. This has huge scope for businesses like
Hank and Patty. However, currently smoking ban-related issue affect business to a great extent
but the proposed expansion of corporation makes it possible for firm attract buyers. This is
because mostly buyers tend to focus on getting herbal coffee and juice such as cold drinks. For
example, France as the lucrative tourist destination has the inclusion of several kids of people
who either have the vegetable or non-vegetable food. At this juncture, this coffee shop would be
effective for all kind of buyers who access this particular destination for attracting more
customers (10 of the best cafes in Paris, 2017).
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In addition to this, financial stability and well-balanced economy assist management of Hank
and Patty to select the France as the most effective market for its expansion. However, financial
stability is the more important behind the growth of any sector which must be considered by
corporation effectively. This proves to be effective to reduce uncertainties associated with the
marketplace to a great extent. At the same time, financial stability reflects that Hank and Patty
can easily avail cost effective source of finance along with the inclusion of highly skilled and
competent workforce for the business.
It can be critically evaluated that country as French follow the different culture then at first it is
important to learn regarding the same to follow the same kind of practices in the daily operation
of the business. At this juncture, English as common language will be kept through which people
or customers, as well as business, can interact with each other. In addition to this, management
can analyze the internal situation of the firm and accordingly higher competent personnel along
with offering them suitable training to work in France (Huang and Sarigöllü, 2014). Moreover,
technological soundness will be ensured as France is the developed nation where all coffee shops
are adopting latest technologies for promotion and placing orders. In addition to this, rules and
regulation of nation must be complied by the owner of the business and accordingly taxation
related obligation can be fulfilled. This, in turn, it becomes easy to maintain the ethical conduct
of business. Furthermore, being development country France provide higher stability in financial
aspect and another related term (Liu, Li Chen, and Balachander, 2017). This makes it possible to
cater the need of all related parties and creating the competitive edge of Hank and Patty in the
international marketplace. It can be critically evaluated that contemporary issues like Brexit will
not have a significant impact on the performance of the business as the firm is going the start its
operation in the developing nation. Hence, France has been considered as the most suitable
country for expansion of Hank and Patty.
2. PRESENTING TAILORED MARKETING MIX
The marketing mix is the most important part of marketing field which consists of different
elements such as product, price, place and promotion along with extended elements such as
physical evidence, people, and process. This affects the operation of the business to a great
extent as suitable price strategy is adopted along with a selection of promotional strategy. It
enables the firm to integrate all operational activities and support stakeholders to increase the
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overall rate of return. This aids to cater to buyers and along with the competitive edge of the
business is also created. At this juncture, tailored marketing mix of coffee shop are explained as
follows- Product-It is the most important element of marketing under which product and services
of the firm are decided in advance (Leonidou, Katsikeas and Morgan, 2013). The product
for the current business will offer Snacks, Pastries, and cold drinks as well as herbal
juice. The main focus is laid on the good quality of products as people are health
conscious. However, the issue related to obesity and diabetes are increasing where it
becomes important to address which are being faced by customers. For this purpose,
mentioned products will be offered to buyers in the country like France. It is considered
as the most populous country where people visit frequently. Owing to this, management
select appropriate product for attracting more buyers and create attention towards the
same. It proves to be effective to cater their requirement and increase customer base in
the marketplace. Price-It is another element of marketing mix which covers the rate of return and
profitability derived from products and services. At this juncture, the price will be
competitive; Here management shed light on putting relatively low prices by competitors
strategy (Mintz and Currim, 2013). This would attract more buyers as travelers and
accordingly they can access the good quality of services at an affordable price. In
addition to this, discounting strategy can also be followed by management under which
membership card can be availed to buyers for getting the best quality product at relatively
less price. Place-Physical outlet will be started in France for offering varied coffee and other related
products in the marketplace. It would be effective to reach the buyers because the store
will be opened in the mall so that buyers can be attracted in the marketplace. It would be
effective to create a competitive edge in the marketplace (Fan, Lau and Zhao, 2015).
Apart from this, place as the physical store as well as online delivery will also be
provided for gaining attraction of more buyers. At this juncture, the appropriate mode of
communication is applied to deliver the end-product to users.
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 Promotion-It is the last element of marketing mix under which Hank and Patty will
promote the products in France by using social media marketing strategies for promoting
products and services in the marketplace (Helm and Gritsch, 2014). Further, print media
will also use for increasing the attention of buyers and making them understand related to
varied products and services in the marketplace. At the same time, travel agencies are
also contacted for the promotion of coffee shop so that visitors can directly approach it.
3. IMPLICATIONS CONSIDERED BY BUSINESS TO COVER WIDER
GEOGRAPHICAL AREA
There are different factors which must be considered by Marvin and Smith's coffee shop for
covering large geographical areas. This would be effective for a corporation to apply suitable
strategy and take corrective action accordingly so as to create a competitive edge in the
marketplace. This enables management to expand the business with greater success and meet
expectations of all related stakeholders effectively (Bahadir, Bharadwaj and Srivastava, 2015).
For this purpose following mentioned aspect can be considered by management of Marvin and
Smith's coffee shop to carry out all business activities effectively and shed light on all its critical
areas. Management structure-Management structure is the mot important aspect under which
corporation ensure that hierarchy is followed and personnel is well informed about their
tasks and duties. This facilitates to ensure that all related objectives are accomplished,
and people can easily get a higher level of satisfaction from Marvin and Smith's coffee
shop. However, management structure consists of different levels such as supervisors,
production department, and other related aspects through which employees ensure a
greater level of interaction (Sallis, 2014). This proves to be effective to increase their
motivation level by adopting the suitable strategy. In this manner, the company needs to
ensure that structure is defined effective whereby workforce can directly communicate
about their potential issues and get them resolved on time.
 Personnel and managing staff issues-This is another important aspect which can affect
expansion strategies of the business. This is because corporation needs to ensure its
successful operation with the higher rate of return. The workforce is considered as the
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most important assets behind the success of business where it is important to ensure
inclusion of highly skilled and competent personnel in the marketplace. Furthermore,
staff face issues related to managing their work during peak load and there might also be
an issue of lack of motivation. For example, in the case of firm expand the business in
India then cost can be reduced because workforce can be hired at a cheaper rate. On the
other hand country like France tends to be a bit costly (Lee, Cho and Kim, 2015).
The aforementioned aspects reflect that all activities must be integrated for gaining the
competitive edge in the marketplace with increased rate of return. Furthermore, management
structure positive affect personnel and staff issues. This is because if a structure is fair and
management allow employees to share their issues, then it becomes easy to resolve all their
issues (Sandoff and et. al., 2016). In this manner, motivation level of employees can be increased
effectively for accomplishing long as well as short-term objectives.
4. EVALUATING THE PROFITABILITY AND LIQUIDITY
The following mentioned table contain all information related to the performance of Marvin
and Smith's coffee shop. It covers detail related to profitability and liquidity ratio which has a
direct impact on overall growth and development of business. It has been explained as follows-
Particular Ratios
Gross profit 208000
Net profit Net profit/ sales *100 268000
Sales Gross profit/sales *100 360000
Gross profit ratio 208000/360000*100 57.77%
Net profit ratio 26800/360000*100 7.44%
Liquidity ratio
Current assets 35400
Current liabilities Current assets/current
liabilities
6200
Current ratio 35400/6200 5.7
 Profitability ratio-It is the important ratio of the firm which reflects information related
to the overall rate of return generated by business for particular business. Here, Marvin
and Smith's coffee shop is planning to expand business in France. At this juncture, gross
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profit of the firm is 57.77% which indicates that direct expenses of production are not
higher and accordingly company can easily recover its cost of production in the
marketplace. It can be critically evaluated that net profit ratio of the firm was 7.44%.
Owing to this, it is important to keep control on indirect expenses of business so that
accordingly overall rate of return can be increased in the marketplace. This aids to meet
expectations of all related parties and support them to ensure the well-being of business
in the marketplace. Hence, the financial situation of business is good, and it can easily
create competitive edge it he marketplace. It can be critically evaluated that issue might
face during expansion of the business France tend to be a costly country where taking
land on rent is also the costlier aspect. Hence, cost effective source of finance will be
accessed by the firm to expand business in France and cover large marketplace (Hopkins,
2015).
 Liquidity ratio-According to the aforementioned table, it has been found that current ratio
of Hank and Patty is 5.70 because of the lower portion of liabilities. It can be critically
evaluated that company has raised income through friends and family in the form of
personal loan. Owing to this, 100000 pounds is raised from mentioned parties whereby
overall cost is increased. In this manner, the ratio of current assets is reduced whereby
company might face the issue in meeting its short-term obligation in the marketplace. In
addition to this, long term obligation might also not be met on right time. It would affect
the overall operation of the business in the marketplace. In this manner, management of
Hank and Patty face the issue in managing overall operational activities effectively. This
indicates that corporation can easily expand the business by accessing cost-effective
sources of the source of finance. In this manner, Hank and Patty can easily expand the
business at large marketplace. It is reflecting that option of exploring new marketing
would be more effective for increasing overall profitability of the business in the
marketplace. Hence, the financial position of the firm can be improved through reducing
a cost of operation as the capital expenditure at initial stage might affect the rate of
return. Apart from this, leasing companies can be used for getting highly equipped tools
and machinery for the business.
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5. VIABILITY OF OVERSEAS EXPANSION
The overseas expansion of business can be made possible only with the selection of suitable
country where a corporation can secure its higher position with increased rate of return in the
marketplace. It would be effective to meet expectations of all related stakeholders in the
marketplace. The current marketplace as France has been selected for expansion of Hank and
Patty through which it becomes easy to increase customer base in the new market by offering
products and services at a relatively affordable price (Gulati and Posner, 2016.). At this juncture,
additional services such as Wi-Fi and IT equipment are also provided so that accordingly visitors
can get to know about te most suitable option related to a coffee shop where importance is given
not only to the quality of the product but also the services. For this purpose, service covers
ambiance, music and additional facilities like Wi-fi. However, promotion strategy must be
adequate under which management can ensure to select the best by available fund and related
services. This proves to be effective for a corporation to increase sales revenue by attracting
more and more buyer as ambiance will surely attract the higher number of customers for getting
good quality of products and services (Willard-Grace and et. al., 2014). It can be critically
evaluated that financial position of the firm is not up to the market as the net profit generated by
the same is the relatively very loss. Owing to this, project related to expansion might not be
successful due to a higher cost of production. For this purpose, efforts can be put to reduce the
overburden of finance by accessing the appropriate source of finance for the business. It can also
be be said that initial stage reflects higher cost and then accordingly by and by business will get
success with its strong performance in the marketplace.
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REFERENCES
Journals and books
Bahadir, S.C., Bharadwaj, S.G. and Srivastava, R.K., 2015. Marketing mix and brand sales in
global markets: Examining the contingent role of country-market characteristics. Journal
of International Business Studies. 46(5). pp.596-619.
Fan, S., Lau, R.Y. and Zhao, J.L., 2015. Demystifying big data analytics for business
intelligence through the lens of marketing mix. Big Data Research. 2(1). pp.28-32.
Gulati, M. and Posner, R.A., 2016. The management of staff by federal court of appeals
judges. Vand. L. Rev. 69. p.479.
Helm, R. and Gritsch, S., 2014. Examining the influence of uncertainty on marketing mix
strategy elements in emerging business to business export-markets. International Business
Review. 23(2). pp.418-428.
Hopkins, D., 2015. Improving the quality of education for all: A handbook of staff development
activities. Routledge.
Huang, R. and Sarigöllü, E., 2014. How brand awareness relates to market outcome, brand
equity, and the marketing mix. In Fashion Branding and Consumer Behaviors (pp. 113-
132). Springer New York.
Lee, C.H., Cho, D.Y. and Kim, Y.J., 2015. The Relation of Organization Structure, Organization
Culture and Organization Conflict of University Hospital Staff Members. The Korean
Journal of Health Service Management. 9(1). pp.95-107.
Leonidou, C.N., Katsikeas, C.S. and Morgan, N.A., 2013. “Greening” the marketing mix: do
firms do it and does it pay off?. Journal of the Academy of Marketing Science. 41(2).
pp.151-170.
Liu, Y., Li, K.J., Chen, H. and Balachander, S., 2017. The Effects of Products’ Aesthetic Design
on Demand and Marketing-Mix Effectiveness: The Role of Segment Prototypicality and
Brand Consistency. Journal of Marketing. 81(1). pp.83-102.
Mintz, O. and Currim, I.S., 2013. What drives managerial use of marketing and financial metrics
and does metric use affect performance of marketing-mix activities?. Journal of Marketing.
77(2). pp.17-40.
Sallis, E., 2014. Total quality management in education. Routledge.
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Sandoff, M. and et. al., 2016. How staff experience teamwork challenges in a new
organizational structure. Team Performance Management. 22(7/8). pp.415-427.
Willard-Grace, R. and et. al., 2014. Team structure and culture are associated with lower
burnout in primary care. The Journal of the American Board of Family Medicine. 27(2).
pp.229-238.
Online
10 of the best cafes in Paris. 2017. [Online]. Available through:
<https://www.theguardian.com/travel/2011/may/06/top-10-cafes-paris>. [Accessed on 2nd
February 2017].
A unique array of attractions entice foreign firms. 2010. [Online]. Available through:
<http://online.wsj.com/ad/article/france-attractions>. [Accessed on 2nd February 2017].
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