Cafe Business Plan: Managing Enterprise in the 21st Century

This report presents a comprehensive business plan for Mayorga Organics Café, a company specializing in organic coffee sourced directly from small farmers. It includes a detailed analysis of macro-environmental factors using PEST analysis, along with market and industry analysis to understand competitive dynamics. The report outlines marketing and pricing strategies designed to achieve specific development milestones, followed by a thorough assessment of the financial requirements for the business, including start-up costs, sales projections, and break-even analysis. Finally, it addresses potential exit strategies for the company in the event of business failure, considering options like liquidation and selling the business on the open market. The plan emphasizes the importance of a clear mission, vision, and objectives, as well as the need for continuous market research and strategic adaptation to maintain a competitive advantage.

Managing Enterprise in the 21st Century

Table of Contents
INTRODUCTION...........................................................................................................................2
MAIN BODY..................................................................................................................................2
Overview of the business.............................................................................................................2
Business Plan:..............................................................................................................................2
Macro- environmental overview..................................................................................................3
Market & industry analysis..........................................................................................................3
Marketing & Pricing strategies....................................................................................................4
Development Milestone...............................................................................................................4
Financial requirements.................................................................................................................5
Exit Plan.......................................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8
Books and Journal........................................................................................................................8

INTRODUCTION
In order to manage business in 21st century it is essential for business organization to adopt new
and modern methods to analyze the market and competitors so that they can be able to have
effective competitive strategies in the organization (Chang, and Andreoni, 2020). With the
dynamic environment it became very e essential for business organizations to work strategically
in the market. Mayorga Organics Café is a coffee shop which is famous for providing their
organic coffee to their customers. This report contains the business plan for Mayorga organics
Cafe with proper analysis of their macro environmental factors with the help of pest analysis and
also include market and industry analysis. Further this report also contains marketing and pricing
strategy of Mayorga organics Cafe so that its milestone can be developed and the financial
requirement for the business can be identified. In the last it also contains the exit plan that can be
adopted by Mayorga organics Cafe in case of failure of business.
MAIN BODY
Overview of the business
Mayorga Organics Café is a coffee company which is well known for their special
sourcing related to the high grade organic coffee full stop the companies famous to source their
organic coffee directly from small farmers in America since the year 1997. The company is well
known for their excellent services delicious food and drinks and also have high quality coffee to
offer their customers which helps them to attract more customers towards their coffee shop in the
market of United Kingdom.
Business Plan:
When an entrepreneur is beginning a new business or looking for methods to develop an
existing firm, a corporate plan is a critical tool in their strategy that will help them make choices.
A business plan is a notion that gives you information about the actions you're doing and allows
you to examine the resources that need to meet the aims and outcomes (Chursin, Grosheva, and
Yudin, 2020). As the company intends to develop an online delivery of organic coffee and uses
digital program that offers a variety of services to the user, so that the organization can offer its
aims and outcomes in a timely manner and provide all of the necessary amenities to the customer
so that they can gain even more and accomplish things.

Macro- environmental overview
Mayorga Organics Café is an organic coffee company that sells organic goods to
customers, thus it's critical for them to understand market demands as well as external variables
that have an influence on the organization (Henderson, 2021). The organization will do a pest
analysis, which is detailed below, in order to examine the external component.
Political factors: Because the company is dedicated to keeping employees safe in all types of
jobs. Because of the changes in policies and rules in the context of safety culture, Brexit has a
significant impact on the organization, posing several challenges in terms of training employees
on how to understand and create a safety culture that reduces costs and downtime while also
improving employee wellbeing and productivity.
Economical factor: In terms of economy, the United Kingdom is a country that plays an
important role (Henderson, 2021). The country boasts a high GDP and a varied economy, but it
also faces a number of issues. As a result, it is critical for the organization to contribute
appropriately to economic growth in order to get additional possibilities and fulfil their aims and
objectives in a timely way.
Social factor: This is the aspect that explains to the firm about the patients' and users' needs. As
a result, it has become critical for organizations to understand the needs of society in order to
remain competitive in the marketplace and deliver acceptable services to society.
Technological factors: As the company wants to employ a digital application to deliver
additional services to clients and users in order to meet their goals and improve their efficacy in
the marketplace, they've decided to go with it. As a result, it's become critical for the corporation
to study all of the technical aspects at play in the marketplace in order to adapt more effective
technologies and become more effective in the market.
Market & industry analysis
It is critical for the business to examine and study the industry so that they can run their
operations in the Marketplace correctly and efficiently, and reach their goals and objectives in a
timely way (Borowski, 2021). It is critical for an organization to study market competition in
order to give adequate services to consumers and ensure that they feel comfortable in all types of
environments in able to cater to technologies and achieve their goals and objectives. Every

corporation must create policies in the context of the employees' safety culture in order to
promote their productivity and well-being. As a result, in order to provide suitable services, the
organization is always improving its skills and services so that it may function in indivisible
safety and enhance the wellness of its users and clients. Furthermore, it is critical for the firm to
assess and discover client feedback so that it can address them and focus on its objectives.
Because the company wants to provide expertise in the organic coffee market and also assist the
company in identifying problems in the context of employee safety, it's become critical for the
company to analyses and investigate the market and industry in order to assist them in achieving
success and becoming a successful company. Organic coffees are pricey, but they're well worth
the money spent on a food item (Duin, Tham, and Pedersen, 2021). There will come a time when
the firm will need outside help and counsel. As more firms seek expert advice in areas such as
management, technology, marketing, and other areas, the consulting sector is growing. As a
consultant, they may give guidance to firms in need based on their knowledge and skills in a
range of fields.
Marketing & Pricing strategies
Mayorga Organics Café is obliged to use digital marketing tactics for their advertising in
examine the pricing and marketing plan for the firm. Social media marketing may be an efficient
marketing approach for promoting their digital application in the market so that they can attract
more and more clients. Because individuals do not trust online purchases, the corporation must
have reduced prices in advance in order to design their pricing plan. Pricing strategy might be an
effective method for attracting new clients.
Development Milestone
In order to develop the milestone for Starbucks the company as identify that when they
will be able to expand their business in international market and will be able to supply their
organic coffee product all over the world they will feel to achieve a milestone.
The milestone for the company is to expand their business in international market and
earn maximum customer support in the market (Sotnikova, and Zviagintceva, 2020). With the
increased dependence of people all over the world on organic products after covid-19 the
company has an opportunity to achieve there developed milestone.

Financial requirements
Mayorga Organics Café provides its consumers with digital application services, which
necessitates some financial help. Some costs are outlined below in order to predict the
requirement for financing in the business strategy.
Start-up cost: The cost incurred by a firm to commence its business strategy and operations,
such as application creation and maintenance, as well as promotional efforts, is referred to as
start-up cost (Kizi, and Ugli, 2020). All of these operations come at a cost to the firm, which will
be factored into the beginning costs. This cost is broken down into smaller components, which
are described below:
 Development of the application = £ 2000.
 Promotional Activities = £ 1500.
 Application Developer =
 Security deposit = £ 100.
 Advance fees = £ 100.
 Estimated cost of sales = £10 per unit.
 Selling price per unit = £50.
 Fixed cost = £ 1500.
 Variable cost = £3 per unit.
The evaluation of numerous criteria reveals that they have a significant influence on the sales
generated by the application. The application is expected to generate income from 200
consumers each month, and a reasonable cost statement may be anticipated based on this
information, which is shown below:
Particulars Calculation Amount
Sales £50*200 £10000
Less: variable cost £3*200 £600
Contribution Sales-variable cost £9400
Less: fixed cost £1500
Less: estimated cost of sales £10*200 £2000

Net profit £5900
The aforementioned cost analysis assists in determining the company' profitability and break-
even point.
Break even analysis - Break even analysis refers to the amount of sales made by a corporation
when there are no profits or losses (Magdinceva Sopova, Stojanovska-Stefanova, and Aleksoski,
2021). In order to make a profit, the corporation must pass this point of sale, and it is critical to
compute the following unbiased situation:
Breakeven point = Fixed cost/ (selling point – variable cost)
= 1500/(50-3) = 31.91 units or 32 units (approx.)
Profitability analysis - The above-mentioned break-even point will aid in determining if any
profit produced over this level will be profitable for the firm. The company's net income is
determined as follows:
Net profit margin for the company = net profit / sales*100
= (5900/10000)*100 = 59%
Exit Plan
Each businessman should know that if the firm is not doing well, it is best to shut it down
and plan their exit strategy ahead of time so that there are no problems in the future. Ending the
company at the appropriate time will assist the company in avoiding significant losses. It is
critical for businesses to try to improve their performance on a regular basis, but if nothing
succeeds, they should cease operations. There are a variety of exit fruits available through the
organizations listed below:
Liquidation: In this type of exiting, a liquidator is hired to sell the assets and pay the
business's liabilities (Straková, and Talíř, 2020). Mayorga Organics Café can choose this option
if they are unable to make a profit or are even losing money in the market. It is a stress-free and
quick way to close a business. All of this results in a negative rate of return on investment and
assets, as well as a decrease in the value of a company's goodwill.

Sell business in the open market: It is an alternative that has been offered to the business
owner to depart the business organization has terminated their business that determined market
values. This strategy has the disadvantage that if the company does not have a buyer for the
business, it will be difficult to sell the business on the open market; nevertheless, it has the
advantage of being faster to exit and collect money at the same time (Goecks, Santos, and
Korzenowski, 2020).
CONCLUSION
The above-mentioned business plan demonstrates that every company must have a proper
mission vision and objectives before beginning a new business plan. This mission, vision and
goal help the company in attracting customers to their new and unique product. In order to
succeed in the market, a company must conduct several types of analysis, such as micro
environmental aspects using pestle analysis, competitor environment, pricing, and market
research, as well as industry analysis. Apart from that, the firm must develop efficient strategies
such as marketing and pricing, as well as operational plans, among other things, in order to get a
competitive advantage. Because finance is such a crucial element of a business, Mayorga
Organics Café must estimate their financial needs using cost statements and other cost analysis in
order to determine their break-even point and revenue.

REFERENCES
Books and Journal
Chang, H.J. and Andreoni, A., 2020. Industrial policy in the 21st century. Development and
Change, 51(2), pp.324-351.
Chursin, A.A., Grosheva, P.Y. and Yudin, A.V., 2020, May. Fundamentals of the economic
growth of engineering enterprises in the face of challenges of the XXI century. In IOP
Conference Series: Materials Science and Engineering (Vol. 862, No. 4, p. 042049). IOP
Publishing.
Henderson, R., 2021. Innovation in the 21st century: architectural change, purpose, and the
challenges of our time. Management Science, 67(9), pp.5479-5488.
Henderson, R., 2021. Innovation in the 21st century: architectural change, purpose, and the
challenges of our time. Management Science, 67(9), pp.5479-5488.
Borowski, P.F., 2021. Digitization, digital twins, blockchain, and industry 4.0 as elements of
management process in enterprises in the energy sector. Energies, 14(7), p.1885.
Duin, A.H., Tham, J. and Pedersen, I., 2021. 9. The Rhetoric, Science, and Technology of 21st
Century Collaboration. Effective teaching of technical communication: Theory, practice
and application, pp.169-192.
Sotnikova, E.A. and Zviagintceva, Y.A., 2020. Managing Company Competitiveness in the
Digital Economy. Scientific and Technical Revolution: Yesterday, Today and
Tomorrow, 129, p.365.
Kizi, D.B.O. and Ugli, M.K.S., 2020. Roles of teachers in education of the 21st century. Science
and Education, 1(3).
Magdinceva Sopova, M., Stojanovska-Stefanova, A. and Aleksoski, O., 2021. Employee stress
management caused by the impact of the covid-19 virus: the Macedonian
case. SocioBrains, (80), pp.15-27.
Straková, J. and Talíř, M., 2020. Strategic Management and Decision Making of Small and
Medium-Sized Enterprises in the Czech Republic. In SHS Web of Conferences (Vol. 73,
p. 02005). EDP Sciences.
Goecks, L.S., Santos, A.A.D. and Korzenowski, A.L., 2020. Decision-making trends in quality
management: a literature review about Industry 4.0. Production, 30.