Foundation Business Essentials Coursework: Cafe Delight Business Plan

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Programme Title
Module Title Foundation Business Essentials - Introduction
Module Code (listed on
Moodle and in LTAFP) QAB020B0225
Module Convenor Ramen Aheer
Coursework Title Individual Coursework
Academic Declaration:
Students are reminded that the electronic copy of their essay may be checked, at
any point during their degree, with Turnitin or other plagiarism detection software
for plagiarised material.
Word Count 2168 Date
Submitted
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Foundation Business Essentials – Introduction
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Table of Contents
Task 1.............................................................................................................................. 3
Task 2.............................................................................................................................. 5
Task 3.............................................................................................................................. 8
Task 4............................................................................................................................ 10
Reference List................................................................................................................ 13
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Task 1
Part A
The name of intended business will be Cafe Delight that will provide coffee products
along with some food items to the customers. The business will be successful, as it will
have the geographic location in the Roehampton Lane, United Kingdom in which the
University of Roehampton has also been built. The students would find the cafe near
their university that would increase the sales of the products. The environment of the
cafe will be made as per the preference of youth so that they would feel delighted with
the aura of the company. The business will fall in the sector of hospitality industry, as
the cafe would provide hospitality services to the customers by providing the food and
beverages. The business will also have online operative location. This will be a
successful idea as when the customers would begin to like the products of the firm they
would order for the same during holidays.
The need of the consumers would be met by providing the desired products at
affordable range. The company will provide the students of the university with discount
offers to develop their loyalty to towards the business.
However, some competitors can affect the business of Cafe Delight. They are:
Costa Coffee The Village Cafe
Colicci The Hive
These competitors can affect the sales of the business of Cafe Delight because these
are the established business located nearby the university. These competitors can
attract the students that would affect the sustenance of the business. The market share
of the intended business will be affected as the competitors can lead to wastage of the
products.
Part B
Objectives of Cafe Delight:
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 To increase the sales by providing food products to the customers at
considerable range
The idea of providing food products at affordable range to the customers will attract
more students of the university that will assist the business by leveraging the sales rate.
 To enhance the customers’ experience by providing them with essential service
The provision of good service will create relationship between the customers and the
organisation that will maintain their loyalty towards the firm.
 To differentiate the products of the company from the competitors’
This specific objective will enhance the creativity and innovation capabilities of the staff
that would be helpful in creating differentiated products.
 To enhance the quality of the food products to attract more customers
The enhancement in the products’ quality will lure the customers into making regular
purchases. This will benefit the business by enhancing its image and leveraging sales.
The business of Cafe Delight will fall under the ownership of partnership. This will be
appropriate for the intended business because it would require more investment to
produce differentiated and delightful food products. The business intended will have
appealing designs that would be highly costly to manage by an individual. Therefore,
the partnership will let the business run by two-person without compromising with the
quality of food and infrastructure. Both the business owners will share the responsibility
as well as profit earned from the business as per this ownership (Light and Munk,
2016). The partnership business is easy to establish as well as the firm would not face
difficulty in raising funds for management of inventory or incorporation of technology.
There would not be deficiency in the availability of food products. In this way, the
management of business operations will be simpler with partnership method of
ownership.
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Task 2
Elements Factors Analysis
Political Weakness of sterling has
increased the cost of
importing raw materials for
making coffee products
(Worstall, 2019).
The rise in the cost of
importing cocoa from
different countries can
affect the business of Cafe
Delight in a negative way
as it would need to invest
more in importing for the
raw materials for
manufacturing coffee-
based products.
Economic The GDP growth rate of the
United Kingdom has been
decreased from 0.4% in July
2018 to -0.2% in July 2019
(tradingeconomics.com,
2019).
The reduction in the GDP’s
growth rate can affect the
sales of the coffee and
other products of Cafe
Delight due to shrinking of
the buying power of the
consumers.
Social The cafe culture in the
United Kingdom is strong as
people of the country are
coffee lovers (Gander,
2016).
Cafe has become a
socialised place for native
people (bl.uk, 2019).
This factor will affect Cafe
Delight’s business in a
positive way, as there will
be increase in the sales of
the coffee products.
The business idea of
introducing cafe will
beneficial for the owner as
it would attract customers
especially the university’s
students to spend leisure
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time with friends.
Technological Technologies such as Wi-Fi
are used in the cafe and
restaurant to make the
customers stay longer and
spend more on food
products (Scheck, 2015).
Incorporation of Wi-Fi
facility will affect the
business of Cafe Delight
positively, as the
customers would be
influenced by the free Wi-Fi
service and select the
organisation for spending
their leisure time. This will
increase the number of
customers and revenue of
company by making sales
of the products at a high
rate (Mahadevan and
Kaleta, 2018).
Legal As per the “Employment
Rights Act 1996”, the
employees of the United
kingdom have the right of
getting particulars of their
employability in written
agreement
(legislation.gov.uk, 2019).
They have the right to get
maternity or paternity leave.
The organisation as per this
regulation should not
dismiss the workers without
justification and prior notice.
Cafe Delight will be
affected by this particular
legislation of the UK’s
government, as it has to
adhere by the laws for
sustenance of business. It
has to provide the
employees of the
organisation written
agreement on their
employability to provide
them with details of the
company and their job role.
It has to provide paid
leaves to the workers
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during paternity or
maternity leave. The firm in
order to avoid clashes with
the government should
provide prior notice to the
workers before terminating
them as well as justify the
reason for this decision.
Environmental The “British Coffee
Association” supports in
minimising the
environmental effects due to
coffee production
(britishcoffeeassociation.org
, 2019). As per this
Association, the companies
should reduce carbon
footprints in distribution.
This environmental
association will affect Cafe
Delight positively, as there
will be increase in its sales.
This will be due to
enhancement in its image
among society if the
company follows the
sustainable procedure in
roasting as well as in
manufacturing process of
the coffee products.
Table 1: PESTLE Analysis of Cafe Delight
(Source: Created by the learner)
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Task 3
Part A – Defining your launch event:
There will be a launch event for Cafe Delight that will enhance its awareness among the
people. In this launch event, there will be introduction of the business, the functions and
products that will be produced and sold by the firm. In introducing the business,
emphasis will be put on the university’s students that will be the major customers of the
cafe. The discount offers as the facility such as free Wi-Fi that will be provided to them
will be informed. These offerings as well as the designs of infrastructure will be detailed
to the event attendees. It will be a social gathering therefore, the neighbours, friends,
and family will be invited. Special guests will be the students of the University of
Roehampton. Food will be served in the informal event that will include some of the
products of the menu of the organisation. This idea will increase the customers, as they
will be acquainted with the food products that will be presented to them in the cafe
(Rinallo, 2019).
The location of the event will be Parkstead House that is located in Holybourne
Avenue, London, UK. The day of the launch event will be Sunday and the event will be
started in evening. This location will be the best for the launch event of Cafe Delight as
it is located nearby the Roehampton University therefore; the students would not get
difficulty in being aware of the location of the venue. This venue is one of the popular
event palaces in this specific location that will assist in enhancing the profile of
business. There will be around 60 guests invited in the launch event that will include
students of the University of Roehampton, family, friends, and people from
neighbourhood area. The invitation to the students will be beneficial for the business, as
they would get to know what kind of hospitality service the firm is providing. This will
increase their visit to the cafe that will be helpful for success of business.
Part B – Producing a budget
Required items Price Source
Raw materials for making 15*60=£900 (liminicoffee.co.uk, 2019)
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coffee-based food products
Venue £200 (roehamptonvenues.co.uk,
2019)
Decorations £100 (moodevents.co.uk, 2019)
6 Employees for 2 hours 10*6*2=£120 (approvedindex.co.uk,
2019)
100 Leaflets £50 (leafletcompany.co.uk,
2019)
Paper cups £100 (eventsupplies.co.uk, 2019)
Total £1470
Table 2: Budget plan for launch event
(Source: Created by the learner)
The products listed above are significant for the intended launch event of Cafe Delight,
as it would enhance the visitors’ experience that would assist in raising the business’
profile.
The raw materials needed for making coffee-based food products will require cost that
will be based on the number of visitors.
The cost of venue has been assumed through the fact that most of the hotels and venue
charge the average amount that has been put in the budget plan.
Decorations will cost less as the environment and infrastructure of venue would be
effective enough to appeal the guests.
The cost of employees has been based on average charge that the staffs charged for
an hour. The duration of the event will be two hours therefore, the cost has been
determined based on this factor.
Leaflets would be required for inviting the guests for the event.
Paper cups will be necessary for serving food products to the guests.
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Task 4
Marketing Objectives
 To promote the firm through online promotion
 To make researches on understanding preference of the consumers
 To double the number of customers and sales within one year
The marketing objectives will serve to meet the business objectives provided above.
Through online promotion, the company will be able to make sales and through
researches, it would be able to increase the quality of products. It would be able to
increase sales through effective hospitality service to the customers. The products
produced by the firm will be positioned as high quality and low price. This will benefit
the business, as the customers specifically the students of university would not get
difficulty purchasing the food products, as the products would cost less.
The products manufactured in the firm will be served to mass market and not just a
specific section of people. This will increase the number of consumers and increase the
profit rate of organisation. The key messages of the intended business will be high
quality, good service and low price. The company will value the students by providing
them with free Wi-Fi facility and discount on every purchase.
Target Markets
The targeted market will be the university’s students as well as the people of mid-
range income. This targeted market will be useful for sustenance of business even
during decrease in purchasing power of the people. The university’s students will attract
the students of other university’s as well that will increase the sales.
Marketing strategies
The targeted market such as the university’s student will be attracted by providing them
with free Wi-Fi facility and discount offers. Feedback will be generated and
development in the quality of goods will be made. The staffs will make
communication with the customers during their stay in the cafe. Greetings will be
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made on their arrival and departure to influence their perception regarding the
hospitality service of firm. Promotion will be done through online website as well as
through banners. This will increase visibility of company and attract the consumers
(Pelet et al., 2016). Changes in the marketing mix will be done after the establishment
of business. This will assist in expansion of product line and business in different
locations.
Marketing Mix
Elements Description Justification
Price The pricing of coffee and
other food products would
be considered based upon
the income level of the
middle-class people.
This will attract the
consumers of every income
group.
Product The products will be
created after proper
researches on the
preference of the
customers.
Through this, the quality of
the products will be
enhanced to lure buyers.
Place The cafe will be located
nearby the university to
attract the students, as they
will be the chief customers.
This will increase the
visibility of the organisation
for the students of
university; thus, influence
their decision of buying
products from this firm.
Promotion Promotion of food products
will be carried out through
online method as well as by
using banners.
Through this, the people
would get to know about
the existence of the firm
and buy products from it.
Table 3: Marketing mix for Cafe Delight
(Source: Created by the learner)
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