University Project: Idea Evaluation for Coffee Shop Establishment

This project assesses the viability of establishing a coffee shop in Perth, Australia, by evaluating various factors such as high coffee consumption rates, customer demand, and competitive landscape. The analysis utilizes the POEM framework, emphasizing customer needs and market trends. The project outlines the skills required, cost-effectiveness, and potential profitability of the business, including a revised business canvas model and cash flow projections under different scenarios. The evaluation considers gaps and improvements through brainstorming, product issues, customer feedback, and supplier involvement. The conclusion highlights the importance of idea evaluation in business development and provides a detailed overview of the project's findings.

Idea Evaluation
STUDENT NAME
INSTITUTIONAL AFFILIATION

Introduction
 Organizations are increasingly exploring various products and
services.
 The selection of the most viable business idea requires creative
processes.
 The evaluation processes seek to develop a decision-making
framework.
 The paper will explore coffee shop establishment idea.

Idea Evaluation
 Establishment of coffee shop in Perth, Australia.
 Idea is immensely contributed by evaluation of several factors.
 The most prolific factor based on the increased coffee consumption in
the area.
 Making the idea likely to be profitable.
 Several of the forces that include:
 Clients
 Actual Product
 Timing
 Competition
 Financial strength

POEM Framework
Customer Product Finance
 Customers ought to be clearly indefinable
 Possibility of market segmentation
 Clients accessibility
 Clients loyalty
 Focused and tight niche
 Market-to-team fit
 Cash flow requirements
 Reasonable margins
 Demand and supply constraints
 Sunk costs
Timing Competition
 Latest competition surge
 Aligment of secular trends
 Commoditization signs
 Fitness in competition
 Entry barriers
 Defendable position
 Limited competitors

Idea Selection
 Coffee shop is a factor of environmental
analysis.
 Coffee consumption rate is high.
 A successful business idea has a strong
backing of customers.

Idea Selection
 Few skills that are required to execute the idea.
 The processes are cheap and quick.
 The business more profitable and doable.
 Low investments in preparation equipment and
recruiting workers.
 Availability of skills plays a critical role in facilitating
the success of the concept at hand.

Idea Selection
 Choice of the business idea is enhanced by the growth in the
industry.
 Unique brands that serve their client's interests.
 The coffee shop hopes to increase the size of their mugs.
 The idea will allow the implementation of customer-oriented
pricing strategies.
 The scenario will be achieved by engaging in research and
development.

Improvements to be made on
the Selected Business Idea
 A successful business idea is a component of
research and development.
 The idea must be followed by a severe
information gathering.
 Among the gaps and improvements that could
be addressed include:

The gaps and improvements that
could be addressed
Brainstorming Product Issues.
Reviewing of Customer Complaint
Feedback from the Industry.
The involvement of Suppliers and
Business Partners.

Revised Business Canvas
ModelKey Partners
Investing in business partners, firms and suppliers for the purpose of gaining more knowledge
Key Activities
Networking and ding more research and development campaigns.
Implementation of strategies aimed at improving brand image and reduction of technicalities.
Development of efficient distribution channels.
Value Propositions
Interaction with diverse customers to target them, their needs with the aim of making them potential clients
Receiving and sorting recommendations from suppliers, business partners, and industries.
Rewards to loyal clients as a way of product promotion.
A customized and personalized service delivery to the clients.
Efficient skills incorporation and development of initiatives to enhance increased brand image.
Customer Relationships
Facilitating personalized and one on one modes of communication.
Implementation of the use of mass media and social media marketing.
Customer Segments
The customers include existing customers in the market that must be pouched through product differentiation and
vigorous pricing strategies.
Customers of the diverse backgrounds which include existing market, merchants, and primary clients for the company.
Key Resources
Raw materials are likely to be sorted by developing a good working relationship with suppliers and other business associates in the food and beverage industry.
Investing heavily on transportation
Storage Facilities
Human Resource and Machinery.
Channels
Distribution networks ought to be customer-oriented that favor personal selling. This will enhance the collection of feedback from the customers and
attending to their concerns
Cost Structure
Fees connected to the retail chain store management of the coffee shop.
The charges associated with the registration.
Development and Maintenance Charges
Employee fees
Production and Cost of Operations
Revenue Streams
Advertising policies and implementations.
Bulk buying form the respective suppliers will facilitate award of trade discounts and cemented relationships.

Coffee Shop Cash flow
Projections (Estimates in
dollars) Year One Year Two
Best Case Scenario Worst Case Scenario
Cash at the start 7500 -4,770
Total Cash in 9500 6,650
Total Cash out 11,160 10,160
Totals 5,840 -8,380

Conclusion
 In conclusion the process of idea development and
implementation is a lengthy process.
 Idea evaluation is an integral step which provides the ground
through which the viability can be analyzed.
 The business canvass model has been revised to incorporate the
changes that crop upon idea evaluation.
 The paper has provided cash flow projections in case of idea
implementation both in worst and best-case scenarios.