Business Plan for Coffee Culture: Development and Implementation

This report details the development and implementation of a business plan for "Coffee Culture," a coffee bar aiming to become a daily destination for local coffee lovers, particularly college students, in Sydney, Australia. The plan outlines the company's objectives, values, mission, and vision, focusin...Read More

Running Head: Development Implement a Business Plan
Development and Implementation of a Business Plan
Coffee Culture

Running Head: Development Implement a Business Plan
Executive Summary
Coffee Culture has a determination of becoming the daily need for the local coffee lovers, a
place to dream about when people will feel the need to take the stress out of their daily lives.
This report focuses on the company “Coffee Culture” which aspires to become famous within the
college students and aspires to become a much comfortable place to be at, meet the friends and
family or may be spend time alone with self and books. The development plan is discussed in the
report along with the implementation factors which will help the company to sustain the
competitive market and become one of a kind in Australian Market.

Development Implement a Business Plan 1
Contents
Executive Summary.....................................................................................................................................1
Company Overview.....................................................................................................................................3
Start Up Summary.......................................................................................................................................3
Products and Services..................................................................................................................................4
Market analysis...........................................................................................................................................4
Market Segmentation..............................................................................................................................4
Target Market strategy............................................................................................................................4
Competitor Analysis.................................................................................................................................5
Strategy and Implementation Summary......................................................................................................5
Competitive Edge....................................................................................................................................5
Sales Strategy..........................................................................................................................................5
Sales Forecast..........................................................................................................................................6
Web Plan Summary.....................................................................................................................................6
Management Summary...............................................................................................................................6
Management Gaps..................................................................................................................................6
Financial Plans.............................................................................................................................................7
Cash Flow................................................................................................................................................7
Break even Analysis.................................................................................................................................7
Projected profit and loss..........................................................................................................................7
Sustainability Summary...........................................................................................................................7
Bibliography................................................................................................................................................8

Development Implement a Business Plan 2
Company Overview
Coffee culture is a company which sells coffee and some other beverages and snacks in a 2000
square feet coffee bar located in Sydney, Australia. The owners cumulatively own 70% of the
total company.
Objectives of the company are to be selected as the best coffee place in the area by restaurant
guide and to turn its profits in the very first month of the operations1.
The values of the company would be to respect the culture of the clients, always work in
harmony, work ethically, perform good to sustain in the market and imbibe great culture within
employees.
The mission and vision of the company would be to create unique place for the customers, to
help the customer relax and release their stress, provide great ambience, employee satisfaction
and providing returns to the stakeholders2.
Company ownership: Coffee culture is registered as Limited Liability Corporation in Sydney. It
has two owners Chris and Todd. Chris is 51% partner of the company. Todd also shares the other
parts in company. Stakeholders include local government, business enterprises and health and
other institutions.
Start Up Summary
The start up expenses includes:
 Legal Expenses for licenses.
 Insurance coverage of $2,400.
 Consultant fee of $3000
 Other expenses include stationary and phone deposits of $3000 approx.
1 Bora B, Borah S and Chungyalpa, Crafting Strategic Objectives: Examining the Role of Business Vision and Mission
Statements (2017) 6(1) Journal of Entrepreneurship & Organization Management
2 Akeem A, Fatai Alani, Agwu, Vision and Mission in Organization: Myth or Heuristic Device? (2016) 4(3) The
International Journal Of Business & Management

Development Implement a Business Plan 3
Products and Services
Coffee culture offers its customers the best coffee in the area. Coffee is made up of the high
quality ingredients and follows strict preparation guidelines. It will provide espresso drinks,
brewed coffee, teas and refreshment beverages. All types of coffee with skimmed milk or high
fat milk will be served. With coffee and other beverages, snacks like sandwiches are also served.
Market analysis
Australian coffee consumption is on the steady growth. Coffee lovers within Australia are huge
in number. Gourmet coffees demand is also huge and appreciated by people. Australia, being the
place where the weather is pleasant all over the year except for one or two months being hotter,
coffee is the drink which is in demand by all the people. Coffee culture though will have to strive
to build a loyal customer base by offering a great tasting coffee in a relaxing environment.
Market Segmentation
Coffee culture will focus on the marketing activities so that it can reach the maximum number of
people. People working in the offices or even the college students who want to relax in a good
ambience, should be able to find only one place for the relaxation, and that should be Coffee
Culture. The market analysis study states that this age group of people is more prone to buy to
look forward for coffee products3.
Target Market strategy
Coffee culture will cater to people who want to go for the daily great tasting coffee in relaxed
atmosphere. Colleges students are the major target for coffee culture as this age of people are
always looking forward to relax and enjoy. A unique possibility of maintaining a positive and
huge client base is the target.
3 Tarun Kanti Bose, Market Segmentation and Customer Focus Strategies and Their Contribution towards Effective
Value Chain Management (2012) 4(3) International Journal of Marketing Studies

Development Implement a Business Plan 4
Competitor Analysis
Australia is one of the major coffee consuming countries. Almost 75% of the coffee consumption
is instant. Nestle Australia sales let the coffee sales share to the value of 58%. Nestle still
continue to dominate the market holding an 82% value of shares. Nespresso brand has 77% value
of shares.4 All these brands believe in the innovation to bring something new to the market and
keep developing themselves. To come up with new strategies to compete with such big brands is
the new possibility for Coffee Culture. The prices in the starting will be kept low to survive and
to attract the customer base.
Strategy and Implementation Summary
Coffee culture’s marketing strategy will be focused on getting the new customer base, retain its
current customers and getting customers to spend more time at the coffee shop. The ambience
should be the way that the customers are prone to visit again and again. Establishing a new
customer base is a huge and good paramount.
Competitive Edge
Coffee culture will be unique as it will not only provide brewed coffee but also provide the
ambience for everyone. Comfortable sofas, romantic lights and relaxing music will be the key
features of the ambience.
Sales Strategy
4 Impactbnd, How to Do a Competitive Analysis in 5 Easy Steps (4 April, 2017) https://www.impactbnd.com/blog/5-
ways-to-perform-a-competitive-analysis-establish-your-presence

Development Implement a Business Plan 5
Strategy for sales is to speed up the service by involving two employees at the same time. One
who will prepare customer’s order and the other will take the charge for the transactions5.
Sales Forecast
Costs are assumed at 20% for coffee beverages and 45% for retail pastries.
Web Plan Summary
The website of Coffee Culture will be attractive as it will have different kind of menus as well as
special offers on special occasions like Valentine’s Day or Christmas. Strategy would be to take
the database of the current customers in order to send the mails for attractive discounts and
offers.
Management Summary
Coffee culture is majorly handled by Chris and Todd. Chris did his management degree in
Hospitality Management and Todd being his friend and an Engineer, will speculate the
architecture and internal system of the business. The management team will involve a full time
manager who has 5 years of work experience in this field. Responsibilities include developing
and marketing strategy, Dealing with materials and all other managerial duties.
Management Gaps
Despite having the experienced managers and owners, the industry will retain the consulting
services of espresso services. The consultants who have helped build the company’s customer
base and coffee culture6.
5 S. Kiumarsi, Jayaraman, K, Salmi mohd Isa and Asra Varastegani, Marketing strategies to improve the sales of
bakery products of small-medium enterprise (SMEs) in Malaysia (2014) 21(6) International Food Research Journal
6 Smepals, 5 Great ‘Gap in the Market’ Start up Ideas (12 November 2015) https://smepals.com/startup/5-great-
gap-market-startup-ideas

Development Implement a Business Plan 6
Financial Plans
Coffee Culture will capitalize the strong demand for quality coffee. Owners have provided the
company with the sufficient startup cost capital. Coffee culture will maintain a healthy 60%
margin which is enough cash for the company to grow7.
Cash Flow
Cash flow will be healthily managed which will allow timely debt servicing and funds available
for future.
Break even Analysis
With average fixed cost of $20,300 in FY 2010 and average margin of 65%, the break even
analysis would be $31,300 per month.
Projected profit and loss
Annual projected sales of $584,000 in FY 2010 translate into $24.00 of sales per square foot,
which is in line with the industry averages for the size of coffee bar.
Sustainability Summary
The environmental impacts can be deforestation, water pollution, agrochemical usage etc. The
triple bottom line includes three things: People, planet and profit.8 Trading of the raw materials
should be done in a way that the farmers get their share fairly, environmental impacts should
always be taken care of and profit is the last thing which coffee culture desires after satisfying its
customers.
7 Note, Financial Planning Research Journal (2016) 2(1) Journal of Financial Planning of Australia
8 Golfenvironment, Sustainability Summary (December 2015)
https://www.golfenvironment.org/assets/0003/8479/IF_Sustainability_Summary_web.pdf

Development Implement a Business Plan 7
Bibliography
Bora B, Borah S and Chungyalpa, Crafting Strategic Objectives: Examining the Role of Business
Vision and Mission Statements (2017) 6(1) Journal of Entrepreneurship & Organization
Management.
Akeem A, Fatai Alani, Agwu, Vision and Mission in Organization: Myth or Heuristic Device?
(2016) 4(3) International Journal Of Business & Management.
Bose Tarun Kanti, Market Segmentation and Customer Focus Strategies and Their Contribution
towards Effective Value Chain Management (2012) 4(3) International Journal of Marketing
Studies.
Impactbnd, How to Do a Competitive Analysis in 5 Easy Steps (4 April, 2017)
https://www.impactbnd.com/blog/5-ways-to-perform-a-competitive-analysis-establish-your-
presence
S. Kiumarsi, Jayaraman, K, Salmi mohd Isa and Asra Varastegani, Marketing strategies to
improve the sales of bakery products of small-medium enterprise (SMEs) in Malaysia (2014)
21(6) International Food Research Journal.
Smepals, 5 Great ‘Gap in the Market’ Start up Ideas (12 November 2015)
https://smepals.com/startup/5-great-gap-market-startup-ideas
Note, Financial Planning Research Journal (2016) 2(1) Journal of Financial Planning of
Australia
Golfenvironment, Sustainability Summary (December 2015)
https://www.golfenvironment.org/assets/0003/8479/IF_Sustainability_Summary_web.pdf