Coffee Culture Business Plan: A Foundation Specification Document

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Foundation Specification Document
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Executive Summary
At the exact study, a business idea will be represented from the perspective of Coffee
Culture so that they can further increase their revenue generation at certain extension.
Moreover, the objectives of the business is closely associated with the increasing their
quality in terms of product quality and library capacity. Moreover, they are willing to
make celebrity endorsement for increasing their rate of business activity. In addition to
that, the organisation also has the budget of conducting their promotional activity so that
they can further become effective and relevant at their business operation.
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Table of Contents
Introduction...................................................................................................................... 4
Task 1.............................................................................................................................. 5
Part A............................................................................................................................5
Part B............................................................................................................................6
Task 2.............................................................................................................................. 7
Task 3............................................................................................................................ 11
Part A..........................................................................................................................11
Part B..........................................................................................................................11
Task 6............................................................................................................................ 13
Conclusion..................................................................................................................... 15
Reference List................................................................................................................ 16
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Introduction
At the exact part of the study, a proposed business will be introduced. The sector and
the industry of the proposed business methods, the geographic location as well as the
competitors of the proposed business idea will also be described at the part of the
study. In addition to that, proposed objectives for the business and the way of designing
the launch event will also be illustrated at the part of this study. Lastly, a PESTEL
analysis will be conducted for identifying the external business factor. Additionally, the
associated supply chain of the business will also be described at the last stage.
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Task 1
Part A
The name of this proposed business will be Coffee Culture. The organisation will sell
coffee and other beverages for with library facility serving their consumers alongside. In
addition to the coffee as well as beverage, the organisation also plans into providing
free WIFI service for their consumer base. Moreover, the organisation Coffee Culture is
opted to become famous for their library, where their consumers will find books,
magazines and many more. However, they have to pay extra for using the library
facility.
In recent context, it has been observed that there are many consumers who are willing
to read classic books, novels as well as well some other magazines while taking coffee
at their free time. Moreover, the library will also inherit a section for kids. Therefore, the
business will attract coffee as well as book lovers from different age groups. The
organisation will be a part of restaurant sector and since it provides library facility, it will
be a part of information service. It will be opened near Imperial College London for
attracting students of different cultural as well as educational backgrounds, therefore the
geographic location of the organisation will be at London.
The organisation will have a 2000 square feet physical location. However, willing people
will also have the opportunity of booking tables via online websites. Therefore, it will be
operated both online and offline (Lee et al., 2019). The normal people belonging from
UK are generally fond of consuming coffee at a daily basis and they are fond of
premium coffee such as espresso, barista and many more. Therefore, products offered
by Coffee Culture will surely have adequate consumer need if they are able to maintain
the quality of their products and service. Their main competitors will be The British
Library and Coffeehouse. Both of these public library as well as coffee shops are
incredibly famous for their coffee and beverage quality and both of these organisations
always serve their consumer base with a range of different books at their associated
library. Therefore, these organisations can be considered as the key competitors of
Coffee Culture.
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Part B
Every new business idea need some form of objectives for describing its business goal.
As a start up, Coffee Culture also have several objectives. A list has been illustrated
below, which will outline the business objectives of the Coffee-cum-Library Coffee
Culture has been described below:
 To become a successful coffee shop and library by maintaining the quality of
their coffees as well as beverages and reading facility
 To turn on their profitability margin from their very first month of operation
 To maintain at least 55% gross margin within the end of this financial year
Each of these objectives is quite relevant with the proposed business idea. As of the
first objective, they are willing to increase and maintain their food and beverage quality.
They need to take on this objective, as without maintaining the quality, it is not possible
for any start up organisation to become successful at their proposed business idea.
They are also opted to make profit from their first month of operation. It is also an
important business objective, as without profit generation, it will be impossible for them
to run the coffee shop effectively. Moreover, they has take on the objective of
maintaining 55% overall gross margin, which will further assist them towards
maintaining their product and service quality by not increasing the cost (Ferreira, 2017).
The last objective will be quite helpful towards maintaining the basic needs of their
potential and expected book lover consumers. It will increase their brand value that will
resulted towards increased profit margin.
The organisation will be operated within Limited Liability Corporation. An individual
will own 55% of the overall organisational share and other shares will be divided into
smaller parts (Yang et al., 2016). Other coffee shops such as Bould Brothers Coffee,
Coffeehouse and many more also follow Limited Liability Corporation that reduced the
risk of start up business idea. That is the reason why this organisation chooses limited
liability as a form of business ownership.
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Task 2
PESTEL analysis can be illustrated as one of the most suitable as well as extensive
method that can be taken into consideration for analysing the external environment of
the proposed business sector.
Factors Impact Analysis
Political  UK is quite stable in
terms of political
aspects.
 They positively
support free flow of
foreign direct
investment.
 There are no barriers
of opening new
shops at different
locations.
Since the political condition
of UK is quite stable in
recent context, it can be
described that the
organisation Coffee
Culture will be able to
implement their desired
business structure. Since
there are no political barrier
in respect of FDI inflow and
opening new branches at
different locations of UK,
the coffee shop can
maximize their number of
location for maximised
profit (Samper and
Quiñones-Ruiz, 2017).
Economical  UK is ranked as the
5th most advanced
country in terms of
economical
perspective.
 The country has an
inflation rate of 3.1%,
which states that
people belonging
Since UK is an
economically advanced
country and the average
spending power of UK is
quite high, it will be possible
for the organisation to earn
their expected profit.
However, the minimum
wage rate at restaurant
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from the country are
high spenders
(Barron, 2017).
 Current minimum
wage rate at the
industry is €7.83.
industry is quite high in
comparison with other
places of EU, which might
increase the operational
cost.
Social  People belonging
from different parts
of UK consume
coffee at a daily
basis.
 Most of the people
belonging from UK
fall into the category
of millennial.
 Education rate at the
country is quite high
in comparison with
other places of entire
United Kingdom.
People belonging from
almost every corner of UK
intake coffee at a regular
basis, therefore, Coffee
Culture will be able to make
a huge target consumer
base. Moreover, since most
of the population belong
from millennial category
and the current education
rate is quite high, their
library-cum-coffee shop has
a higher possibility of
making extensive brand
image at UK based market
sector (Briggs et al., 2017).
Technological  UK is a great hub in
terms of
technological
advancement.
 The numbers of
internet as well as
smart phone users
are rising at a
consistent manner
Increased number of smart
phone as well as internet
user provides Coffee
Culture the advantage of
reaching and targeting a
huge potential consumer
base. Moreover, advanced
technology made them
using automated machinery
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(Morland, 2017). for coffee making process.
It ultimately decreases the
overall operational cost.
Environmental  UK has made
several positive as
well as significant
improvements for
reducing the
negative impacts
from the overall
environment.
 The usage rate of
plastic is needed to
be minimised.
The organisation needs to
make reduce their overall
waste so that they can
further decrease negative
impact from their regulated
environment.
Legal  Employment Act
1996, Equality Act
2010 and some
other acts are
needed to be taken
into consideration for
successfully conduct
business operations.
 Organisations need
to maintain the food
and beverage
related regulations
that have been
introduced by FSA
and HACCP at
certain level.
The organisation Coffee
Culture has to maintain the
basic acts such as
employment, equality and
other acts for operating
their business in a
successful way. Their
coffee and beverages
should maintain HACCP
and FSA regulations so that
they can maintain the basic
quality (Zarrinbakhsh et al.,
2016).
Table 1: PESTEL analysis of UK coffee industry
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(Source: Created by the learner)
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Task 3
Part A
At the launching event of the coffee-cum-restaurant Coffee Culture, the management is
willing to conduct a social gathering. The event will take place at their newly opened
store. Since the organisation has the business objective of earning profit from the start
of their business, it is natural that they need to attract a potential consumer base from
the beginning of their business operation. Therefore, the organisation is willing to invite
Hilary Mantel, who is a famous novelist of UK. It will assist that organisation to attract
such consumers who are willing to read books while taking coffee. The event will be
conducted at a weak end so that they their potential consume base can visit the location
at the time of opening (Hodgson, 2017). It will take place at London and it will be
conducted on a Saturday when most people spend holiday.
Moreover, the management of the entire organisation is willing to invite the students of
Imperial College London since students are such part of an entire population who are
willing to read books and other novels at the time of taking coffee breaks (Echeverria
and Nuti, 2017). By doing so, the organisation will be able to increase their profit
generation and they can maintain their inflation rate, which are their primary objectives.
The organisation has taken the target of inviting more than 100 employees and they are
willing to invite media personals so that more people get to know about that place
(Knox, 2016). The media personals will be invited by telephones at the students will be
invited by visiting the college campus. The library-cum-coffee shop is willing to make
provide free sample of their offered coffee as well beverages so that the potential
consumers has the idea of their product quality (Belandria et al., 2016). The coffee shop
will also welcome positive and constructive criticism regarding the quality of their
products and services so that they can further increase their product quality as per their
primary objective.
Part B
The overall budget for the launching event of Coffee Culture has been described below:
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Elements needed Pricing Source
Venue €350 rockitfish.co.uk, 2019
Decoration €200 wimbledonrenovations.com,
2019
Advertisement Cost €275 paradoxconsulting.co.uk,
2019
Cost of hiring celebrity €800/hour hilary-mantel.com, 2019
Sitting arrangement for 150
people
€7.85* 150 = €1177.5 ikea.com, 2018
6 employees for 4 hour (€8*4)*6 = €192 Gov.uk, 2019
Budget for day meal €18*150 = €2250 lovebritishfood.co.uk, 2019
Total Budget= €5244.5
Table 2: Budget of the launch event
(Source: Created by the learner)
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