Strategic Planning: Coffee Hub Start-up in Adelaide, Australia

This report presents a strategic plan for Coffee Hub, an Italian café start-up in Norwood, Adelaide, Australia. The business aims to appeal to coffee and beverage lovers by offering innovative products like pod coffee and self-service coffee machines. It focuses on satisfying customer needs such as stress relief, energy boost, and enhanced concentration. The plan addresses the market environment, including political and social factors, competition from existing coffee outlets, and funding sources. A key value proposition is the introduction of designer coffee products with artistic designs. The report also identifies direct and indirect competitors and discusses financial strategies involving investments from partners, angel investment, and bank loans. Desklib provides a platform to access such business reports and solved assignments.

Running head: STRATEGIC PLANNING
Strategic Planning
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2STRATEGIC PLANNING
Selected firm
The firm that has been selected is the café outlet that is Italian Café in Norwood in
Adelaide. The name of the coffee outlet will be Coffee Hub. The purpose of this business will
mainly be to appeal to the taste and the preference of the coffee lovers and also the ones who are
the beverage lovers. The main purpose of this business will be to introduce into the market many
new and innovative products like pod coffee, self coffee making services from the machines. The
purpose is to make readymade and a wide range of coffee to all the customers who are lovers of
coffee and the other such products. Customers in Norwood Adelaide will have a preference for
coffee
 Customers want coffee to get rid of their stress and work pressure
 Customers want coffee for boosting up their energy level so that they can work proeprly
 Customers want coffee as it is helpful for the students like college goers and the working
professionals as they will be helping them in concentrating over their studies, exams and
also their day to day work stress
The business idea is to make sure that the all the customers are getting the proper and the
right kind of coffee flavor that they are looking for. In order to excel in the market, they will be
introducing many new products like-
 Coffee flavored chocolates and candies (Lin, 2013).
 Cappuccino is one of the important coffee products that will be used and served
with designs on them
 Cascara drinks and many other such newer products of coffee

3STRATEGIC PLANNING
Value proposition
This coffee outlet will be mainly using the most advanced technological advancements
both in the operation and the production of the coffee so that they can easily reach out to the
customers on the local and the Global level as well.
They will be introducing a new value proposition by using the new designer coffee products. In
other words the coffee that will be provided to the customers will have beautiful designs drawn
over them (Polesel et al., 2017). This will be very refreshing and also much entertaining for the
customers. Customers will naturally like to consume a coffee range that has beautiful designs
like heart, smiles or other such designs.
Customers needs to be satisfied
 The needs that this newly set up business will satisfy are as follows
 The customers will be able to free themselves from the stress and work pressure
 Customers consuming the coffee in this outlet will be getting a huge amount of
energy. These coffee products will act as energy products and boost up the energy
level of the customers.
 Customers like office goers and the school students will be able to understand
about the values of consuming this energy drink.
Underlying issues
Market environment
General and Industry Environment

4STRATEGIC PLANNING
The political scenario of Australia will be useful in providing the necessary resources for the
proper operation of the business. The market competitiveness is higher due to the presence of
the already existing coffee outlets in Australia, like Single Origin Roasters, Sydney. Social setup
of Australia is an amalgamation of multicultural people. Thus the new business will be able to
get all the newer and the dynamic business ideas from their large workforce. Thus this will help
them to make an appeal to all the people from the workplace. However, increasing numbers of
coffee outlets in Australia is increasing the bargaining power of customers. Source of suppliers
is moderate as they will be investing in the already existing café outlets or they might also want
to invest in the upcoming café outlets. Threat of new entrants is less as the growth of café
markets is expected to stay stable on the coming years.
Market Characteristics and Direct and Indirect Competitors
With the vibrant coffee culture of Australia, the coffee industry this country has grown
significantly over the last 5 years. The industry revenue is expected to grow by 2.5% over the
next 5 years. In such a market, it is expected that Coffee Hub will gain a moderate level of profit
from its business to be operated in Australia. Direct competitors are The Grind, Norwood The
Lost Deli, Caffe Buongiorno. They might also receive a very tough competition from the
indirect competitors like the some snacks outlets.
Sources of funding
The coffee business will be deriving their finance from the three partners who will be investing
in this business. Therefore the source of funding will never be problems as the three different
partners with different sources of finance will be able to provide money as and when needed.
Angel investment and bank loan are also considered as the major source of funding.

5STRATEGIC PLANNING
References
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Polesel, J., Klatt, M., Blake, D., & Starr, K. (2017). Understanding the nature of school
partnerships with business in delivery of vocational programmes in schools in
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