Detailed Case Study: Cofti Villa Coffee Shop Business Plan Evaluation

This case study examines the business plan for Cofti Villa, a coffee shop. It delves into market research techniques, analyzing the UK coffee shop market and identifying the target customer base and location. The study addresses an ethical dilemma faced by the business owner regarding a discounted advertising opportunity, emphasizing the importance of stakeholder trust and ethical conduct. It also explores equality and diversity laws, particularly concerning zero-hour contracts, and outlines the rights of employees under such contracts. Furthermore, the case study provides a detailed breakdown of the coffee shop's assets, liabilities, expenses, and gains, including a cash flow analysis. The document concludes with methods for solving potential cash flow problems.

CASE STUDY

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
TASK 2............................................................................................................................................2
Conducting market research for developing business.................................................................2
TASK 3............................................................................................................................................3
Solving ethical dilemma..............................................................................................................3
TASK 4............................................................................................................................................4
TASK 5............................................................................................................................................5
Describing business assets, expenses, liabilities and gains.........................................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
The present report reflects evaluation of case study which reflects business plan of coffee
shop with its target, location and all other necessary information. It will evaluate its research
techniques with their significance and then representation of solving ethical dilemma. In the
similar aspect, it will articulate about equality and diversity law with context of zero hour
contract and categorised business assets, liabilities, expenses and gains.
TASK 1
Industry
The UK coffee shop market had attained growth in its turnover which is about 7.3% to
£9.6 billion in year 2017 as per Allegra World Coffee Portal. Even its outlets had accomplished
growth by 1215 over last 1 year which had shown growth of 5.3%. There will be development of
business as coffee shop in UK as it will be giving customised or tailored coffee with organic
coffee beans and beverages.
Location
The coffee shop will be located in Leeds in United Kingdom in commercial area within
walking distance from University and connecting to neighbourhood of engaged downtown of
commercial area. The premises are commercially zoned with basic requirements of water and
electricity hook-ups as it has huge spacing. There will be presence of kitchen, espresso bar and
storage area. The size of coffee shop will be medium sized with 1500 sq. ft. with all necessities.
Target customer
The business will be catering people who has desire of getting their regular cup with the
best taste with relaxing atmosphere. These consumers vary with age as its location is near to
university then its more consumers will be college faculty and students. It had been articulated
that these clients always gravitate with better taste in coffee. Henceforth, multiple college
students consider coffee shops to be highly convenient studying or spot of meeting with their
peers with absence of necessity for repaying covering charges. Thus, it will be giving unique
possibility with objective of building trustworthy customer base.
Business model
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This coffee shop will be updating with revenue business model with total amount of
money has been created with maker of coffee shop. There will be generation with context of
sales occurring through week, month and regular aspect as well. The revenue will be gathered
with money paid through coffee, muffins, tea etc. There will be no consideration of performing
business. This coffee shop will be based on two aspects as number of sales and average receipt
total. In the similar aspect, number represents how many consumers walk via door for driving
espresso drive via window and to buy something. If there is presence of more buying consumers
where more sales and revenue with presence of coffee business (Snihur, Thomas and Burgelman,
2018).
Business name
The name of business is based on concept of combination of categories of coffee and tea
with quality as Cofti villa as this will be giving multiple varieties of coffees and tea prepared
with organic beans.
Visual identity
There will be consideration of the best presentation of design of restaurant with the best
customer service which brings back to its consumers. Apart from all these, branding and brand
development with visual concerns with coverage of logo signs, attractive interior design, menu
with website as well. In this aspect, its interior will be designed in modern way with furnished
wooden furniture along with very welcoming staff.
Business value
The Cofti Villa would be sourcing all organic ingredients especially coffee beans and tea.
This will be contributing to its society as there is wastage which will be managed through
restaurant by feeding poor people. Further, staff will be recruited by undertaking equality and
diversity act as it shows absence of discrimination with context of gender, caste, religion etc.
TASK 2
Conducting market research for developing business
Primary research
This is replicated as new research which is carried for answering specific questions along
with issues. Generally primary research engages questionnaires, interviews or surveys with small
groups and individuals. In this development of coffee shop in United Kingdom, there will be
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involvement of questionnaires to consumer and population of UK with needs of consumer.
Primary research is very important because gathering information is on accurate and timely
basis. It provides huge control about gathering data with application on later perspective for
nurturing response.
Secondary research
Secondary is considered as information which is researched on previous aspect with other
objective and available publicly. It is also replicated as desk research as it includes research
reports published in library, Internet and surveys along with internet. In this coffee shop, it will
be using scholarly reports, internet and surveys with major findings because it shows relevance
related to past data and finding articulated prior to this study (Nilsson, 2018).
Quantitative research
It is considered as structure method of gathering and analysing data extracted with
multiple sources. There is involvement of application of statistical, conceptual along with
mathematical tools for deriving outcome. In this coffee shop, the problem will be solved with
outcome of survey with descriptive statistics such as mean, mode, median etc. It is very
important as it is highly objective and reliable as it could use statistics for generalising the
findings. As it observes for relationship among variables as establish effect and because which is
highly controlled circumstances.
Qualitative research
This type of report is highly explorative as it is dependent on gathering verbal,
observational and behavioural data which could be elaborated in subjective aspect. There will be
presentation of thematic presentation as per outcome of survey which is not wide with outcome
along with each manner. This is performed for understanding theoretical aspect as it helps in
providing external information.
TASK 3
Solving ethical dilemma
Business owner has been provided opportunity to be published in website at discounted
rate.
The business of website is giving low prices with huge discount but it could reduce cost with
context of promotion of their coffee shop.
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 Thus, it will be providing popularity of this coffee shop as there is presence of huge
coverage of audiences and customers.
Solution
The Ethical dilemma faced through coffee shop in this particular situation, it has to select
among right and wrong. It is refereed as moral situation when choice had to be undertaken
among equally and undesirable situations. The management of coffee shop doesn't want to miss
this opportunity but it couldn't risk its brand image and demotivation in employees. According to
fair practices, stakeholders are given huge priority with objective of business for maximising
margin. The management should lay special emphasis on employee motivation, productivity and
positivity in its services provided through code of ethics.
Furthermore, employees are stakeholder as essential contribution to coffee shop along
with business involvement when its morals got decreased. The ethical principals and morals are
on basis of psychology and code of conduct which will give direct impact to performance,
effectiveness and profitability of business entity. In this aspect, they will attain disconnected with
their business by entering in contract with this type of unethical organization with bad behaviour
to item employees.
Thus, it should not grab to opportunity of discount marketing because it will hamper trust
of its stakeholders which is high priority to its business. It is clearly identified that no
organization must indulge in unethical practice with its own interest as it must take steps for
purpose of improving employee involvement and services so it will provide direct effect on
brand positioning and to gain popularity with efficient outcome (Rau, Astrachan and Smyrnios,
2018).
TASK 4
Equality and diversity is considered as very important with context of key organizational
areas such as selection of staff. There are multiple aspects for purpose of integrating equality and
diversity values with reference to process of selection. The Equality act protects people in
employment through victimisation, discrimination, harassment or any other determinant due to
protected features such as marriage, disability, civil partnership, gender reassignment, maternity,
religion, pregnancy, race and sexual orientation. This act gives protection to all workers as
employers must ensure that zero hour workers must not be treated in less favourable or felt
victimised due to above stated features. The compensation level couldn't be awarded through an
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employee who has faced discrimination in workplace which is unlimited. Further, employees
must ensure about adapting equal opportunities practices and policies in their business, training
staff on significance of equal opportunities and for undertaking action or step against one who
disobeys it.
It is highly essential for hour contracts which is traced at initial aspect for relationship
and contract has set intended status of individual perspective. The employers must be aware
about legal rights of employees, self-employed individuals and workers and to ensure about right
zero hours arranged with context of specific requirements (Bowl, 2018).
Rights of Zero hour employees
The employee who is working under zero hours’ contract has presence of statutory
employment rights. In the similar aspect, the rights of its employees is related to statutory sick
pay, minimum notice period when employment is ending, time off emergencies involving
dependents, statutory redundancy pay, statutory maternity or paternity leave and pay, right for
request of flexible working and protection against unfair dismissal. There are various other rights
which are national minimum wage, protection through unlawful deduction with wages, right to
work no more than 48 hours on average in one week, protection through unlawful discrimination
and whistle blowing (Equality and Diversity in selection, 2018). For instance, McDonald has
offered this type of fixed contract to approx. 115000 UK workers (zero hour).
TASK 5
Describing business assets, expenses, liabilities and gains
Assets: It is considered as resource which is owned through business in monetary value
which could be easily transformed in cash. The government, individuals and companies own
assets as for business entity which might advantage in multiple aspects by owning or application
of its asset. The assets of coffee shop include, coffee beans, coffee filters, beverages, office
supplies and office equipment such as espresso machine, coffee maker and coffee grinder,
microwaves, blender, serving area equipment, PC, phone and file cabinets.
Liabilities: It is elaborated as legal financial debts along with obligations which arose
during course of multiple business operations. Its liabilities are insurance, worker's
compensation, current borrowing and accounts payable.
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Expenses: It comprises economic cost as business incur via its operations for earning
revenue. Generally, businesses are allowed for writing off its tax, deductible expenses with its
income tax returns which decreases their taxable income along with its tax liability. The
expenses are payment to suppliers, salaries and wages of staff, equipment depreciation, factory
leases, legal expenses for gaining licenses, marketing expense, rent and stationery along with
phone and utility deposit.
Gains: It is considered as economic benefit which is outside normal operation of
business which is typically through increment in asset's value. It might be realised via multiple
reasons as excess of money or through fair value of property is obtained for exchange or sale of
asset (Haji and Mohd Ghazali, 2018).
Particulars Figure (in pounds)
Cash inflows
Opening cash inflow 20000
Total revenue 10000
Other income 7985
Cash inflows (total) 37985
Cash outflows
Payments to suppliers 4000
Salaries and wages 8000
Equipment depreciation 2000
Factory lease 3400
Legal expense 4985
Marketing expense 5000
Stationery 3000
Utilities 5000
Other expenses 1500
Cash outflows (Total) 36885
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Cash Deficit 1100
Methods for solving cash flow problems
The cash flow problems could be solved by creating and using a business budget as this
situation is cyclical so budget is necessary along with forecasted budget for gaining financing. In
the similar aspect, to extract line of credit where it is also referred as working capital credit lines
where loan undertakes money by altering account to observe that when payment is backed for
obtaining funds in later perspective. There must be development of the best relationship with
reference to vendors and to ask for worth with repayment of bills and even it could help for cash
flow.
CONCLUSION
From the above study it had been concluded that Cofti Villa will attain success by
following location and strategy in UK where primary and secondary research both are very
important.
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REFERENCES
Books and Journals
Bowl, M., 2018. Differentiation, distinction and equality–or diversity? The language of the
marketised university: an England, New Zealand comparison. Studies in Higher
Education. 43(4). pp.671-688.
Haji, A. A. and Mohd Ghazali, N. A., 2018. The role of intangible assets and liabilities in firm
performance: empirical evidence. Journal of Applied Accounting Research. 19(1). pp.42-
59.
Nilsson, J., 2018. Know your customer: Client captivation and the epistemics of market
research. Marketing Theory, p.1470593118787577.
Rau, S .B., Astrachan, J. H. and Smyrnios, K. X., 2018. The F-PEC revisited: From the family
business definition dilemma to foundation of theory. Family Business Review. 31(2).
pp.200-213.
Snihur, Y., Thomas, L. D. and Burgelman, R. A., 2018. An ecosystem‐level process model of
business model disruption: The disruptor's gambit. Journal of Management Studies.
ONLINE
Equality and Diversity in selection. 2018. [Online]. Available through
<https://www.sheffield.ac.uk/hr/recruitment/selection/equality-and-diversity-in-selection>.
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