Business Plan and Market Research for Coffeeforu Coffee Shop

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Assessment: Case Study
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Table of Contents
Introduction......................................................................................................................................3
Task 1...............................................................................................................................................3
Task 2...............................................................................................................................................7
Task 3...............................................................................................................................................9
Task 4.............................................................................................................................................10
Task 5.............................................................................................................................................11
Conclusion.....................................................................................................................................13
References......................................................................................................................................14
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Introduction
Small businesses are the new trend in the modern world. These small businesses can help to
create more jobs in the society. It can also help to enhance the economy of the country. The
small businesses provide with the required changes that are necessary in the business worlds and
initiates innovation in the business operations. In this study, analysis of setting up a small
business and the requirements that are necessary for setting up a small business to succeed is
discussed in detail.
Task 1
In the present context, the small business which is going to be set up is a new coffee shop that
can have a range of products which includes coffees, tea, snacks and cold drinks for the people.
The company is to be named as Coffeeforu. The company will have new innovative products for
the customers at a very low price rate. The organisation needs to compete against giant
multinational companies that already have a strong and loyal customer base. The business also
needs to implement strong marketing strategies. Well developed marketing strategies can help
Coffeeforu to create awareness of their brand in the mind of the people. For setting up a small
business this can be considered as an achievement. Many company like Starbucks, Lavazza and
others are already well settled brands in this industry. Coffeeforu has a huge task to compete
against these brands and build an identity of its own. The business has a budget of 20,000 Euros,
if the amount is spend with proper planning and strategies can help the business for long term
growth.
Owing to globalisation the market is available for both big multinational companies and small
local enterprises. So, if the small firms desire to succeed in the market it is vital to offer
something new to the customers. It is a small UK based coffee shop in the city of London that
can have the potential to attract more new customers. Coffeeforu can build a customer base of
their own with targeting specific group of people that are basically youngsters in an age group of
18 to 25. The company can be a influential retailer of snacks, coffee and tea like Starbucks,
Lavazza and others.
In order to achieve these targets, Coffeeforu will implement the following start-up business plan:
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Business Plan for Coffeeforu
Mission
 New innovative products
 Customer centric services
Strategic goals
 Make the talent of innovative products visible
 Identify the new trends and requirements of the customers
Products
 Coffee espresso, Tropical Iceberg, Cappuccino, Fresso ice-creamed tea, French fries,
cookie crumbles and related food items
Market
 Coffeeforu is a start-up, thus, it is necessary for the organisation to follow Market
Penetration pricing strategy. This can help the organisation to gain loyal customer base.
Distribution
 Local food suppliers
 Promotion through leaflets, brochures, official pages on social media platforms
Customer Segments
 The youngsters belonging to the group of 18 to 25
 Spreading Awareness in Customers
 Adoption proper Marketing Strategies
The above business plan can help Coffeeforu to succeed and sustain in the high competitive market.
The visual identity is very important for Coffeeforu in order to attract customers. The customer
needs to find the outlook of the coffee shops attractive and innovative. Any technological fault in
the coffee shop should be dealt with utmost urgency. The hygiene of the coffee shop needs to be
maintained in a proper manner. People must not wait for long hours for their orders or bills. The
comfort of the customers must be of prime focus.
Coffeeforu will consider the following logo in order to attract customers:
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Coff eef or u
Figure: Logo of Coffeeforu
(Source: Created by Author)

Coffeeforu will have proper values and ethics in order to serve their customers. The experience
of the people needs to be optimal. This will drives the consumers to visit the coffee shop again.
The employees of the organisation need to be well behaved and the services that are provided
must be customer centric (Wallace and Sheldon, 2015). The staff members of the concerned
organisation will be treated with equality. Also the management of the company will help them
to achieve diversity in the workforce. The customers must not be discriminated on any factor.
Coffeeforu needs to develop the business operations to be ethical and in the favour of the
environment. The employees of Coffeeforu also need to have certain advantages. The employees
must be well respected and any discrimination in the work place should not be tolerated. The
employees must be properly motivating and well engaging so that they can provide the services.
They must be well rewarded to in both monetary and non monetary aspects. The operations in
the organisation must be well delegated. Coffeeforu also needs to incorporate ethical business
methods so that the organisation has a positive impact on the environmental and social sectors of
the surroundings (Dion, 2017).
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Task 2
What primary research can be conducted? Why?
Questionnaire can be an appropriate method of primary research that can be implemented by
Coffeeforu for conducting the research directly to from the consumers or the specific group of
people. Questionnaire can help Coffeeforu to develop marketing strategies that will help them to
build a series of questions for the people. Primary research helps to understand the demands and
expectations of the consumers. The demands can later be incorporated in the business operations.
It can be an effective approach of research as it can help Coffeeforu to understand their
customers. The questionnaire can include following questions:
 Coffeeforu is a restaurant that will be launching some new snack items with tea and coffee.
Do you want to taste something new and creative item?
 How often do you visit any coffee shops near you?
This can help the team of Coffeeforu to build strategies that are effective and efficient.
What secondary research can be conducted? Why?
Direct observation can be implemented by Coffeeforu to gather and analyse reports or studies
that are already present for the specific field of study. The concerned organisation can use this
technique as it has a limited budget mostly conduct secondary research as it is rapid and more
affordable as compared to primary research (Bryman, 2017).
What qualitative research can be conducted? Why?
Ethnographic research techniques will help Coffeeforu to determine the understanding of the
opinions and motivations that are required to incorporate in the business methods (Johnston,
2017.). This particular research method can help to understand the trends that are prevalent in the
market that is important for the concerned organisation. The data collected with the help of
qualitative research includes focus group, interview of any specific individuals and observing the
change in the trends. This method can be very useful for Coffeeforu as it can help to uncover
trends and opinions by understanding the problems in detail.
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What quantitative research can be conducted? Why?
Survey Research can be used to quantify certain problems by generating data that can be
transformed into statistics and it can help Coffeeforu to quantify attitudes and behaviours and
different other variables. This research can help to measure data from online surveys and other
such surveys that are available. This research method includes data collection techniques that are
more structured as compared to qualitative data collection method (Fusch and Ness, 2015).
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Task 3
Resolving dilemma and giving justification for decision
In the given scenario Coffeeforu is facing a dilemma in order to make a significant decision for
its growth in the business. The popular website has given opportunity to the concerned
organisation to help in them in marketing strategies. But the popular website has been treating
their employees very badly. There have been reports against harassment, bullying and other
unethical activities against the website company. It is essential for Coffeeforu to work in the
guidelines of ethics as it can help them to earn good name in the market. The moral values of the
company need to be high and efficient (Jafarkarimi et al., 2016).
There also has been a report against a giant multinational company that has been implementing
measures that has a negative impact on the environment. They are polluting the ecology of the
surroundings and also the products that they are offering to the consumers are unhealthy.
Coffeeforu in its business operations needs to maintain the positive impact on the environment.
They must not have any negative impact on the environment and health of people in order to
expand its business.
Cooperating with such a website can be against the moral values of the company. There can be
several other opportunities that can come in the way of Coffeeforu. It needs to keep its focus on
providing optimal services to the people and maintain its ethicality. The inability of people to
determine the solution of the ethical dilemma in the professional world can have severe
consequences. In order to solve the dilemmas many restaurants have developed a code of ethics
that can help to prohibit any ethical dilemma related quality and cost (LaRossa and Bennett,
2018). The customers of the modern world are aware of the methods by which organisations are
performing business operation; this also needs to be considered by Coffeeforu.
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Task 4
How to comply with Equality and Diversity law while selecting applicants?
In order to comply with Equality and Diversity law, in the process of selecting applicants
Coffeeforu needs to consider the “Equality Act 2010”. The management of the concerned
company will have effective recruitment if it can hire the right skills and qualification of
employees who are qualified for the job. For example, Sodexo has a good practice of embracing
equality and diversity in the work culture. The company has 40% women employees as staff
members. Coffeeforu can consider this example and incorporate in its work culture in order to
employ two members of staff.
What rights employees will have?
The employees of Coffeeforu can incorporate the following rights in the work culture
“Equality Act, 2010” can help the concerned company to establish quality on the basis of
gender and ensuring women to be equal to men in all the areas of the organisation ( Wintemute,
2016). In order to establish equal wages and salary for the employees, the management of
Coffeeforu can set guidelines under the “Equal Pay Act, 1970” (O’Reilly et al., 2015). This
legislation will help to prohibit the unequal pay and working conditions for the employees. The
employees will be considered equal despite any gender and ethnicity. Also the employees of the
respective organisation will be ensured of health and safety in the work place under “The Health
and Safety at Work Act, 1974”. This legislation determines that the employers will initiate
certain measures to reduce risk in the place of work (Sirrs, 2016).
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Task 5
Describe the business’ assets, liabilities, expenses and gains
In order to understand the assets, liabilities, expenses and gains of Coffeeforu the given balance
sheet can be considered,
Projected Balance sheet for Coffeeforu
Assets
Current Assets
Capital
Other Current Assets
Year 1
20,000
0
Year 2
20,000
0
Total Current Assets
Long term Assets
Accumulated Depreciation
20,000
0
0
20,000
0
0
Total Long term Assets 0 0
Total Assets 20,000 20,000
Liabilities and Capital Year 1 Year 2
Current Liabilities
Amount Payable
Current Borrowing
Other Liabilities
0
0
0
0
0
0
Long term Liabilities 0 0
Total Liabilities 0 0
Start-up Expenses 20,000 20,000
Start-up Gains 0 0
This estimated balance sheet can help Coffeeforu to understand the assets and liabilities that are
required to have a successful business venture.
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