Coffee World: Business Plan and Competitive Analysis Report

This report provides a comprehensive analysis of 'Coffee World,' an entrepreneurial venture focused on organic coffee. It begins with an introduction to the business idea, identifying the target audience as health-conscious consumers. The report delves into the motivation behind the venture, highlighting the role of innovation and risk-taking. It explores Peter Drucker's 7 sources of innovation, applying them to Coffee World's strategy. A detailed competitor analysis is conducted, examining the competitive landscape in the UK market, including major players like Costa and Caffe Nero. The report also assesses market viability, including market research and a gap analysis, and outlines how Coffee World plans to differentiate itself. The report also discusses the strengths, weaknesses, risks, and opportunities for growth. It concludes with a summary of the key findings and recommendations for the business.

Identifying
Entrepreneurial

Table of Contents
INTRODUCTION ..........................................................................................................................1
MAIN BODY ..................................................................................................................................1
1. Background information about those sources that inspired your idea and what motivated
you personally in wishing to set up your own business..............................................................1
2. An introduction to your business idea and what it is, and who and where your potential
customers and target audience are ..............................................................................................3
3. A competitor analysis that looks at the competitive marketplace. Look at failures and
successes. What you can do differently? Is this a growth area with low and medium risk?......4
4. Gap analysis and how you are looking to close the gaps. What is the situation now and
what is the future? What are the objectives of this business idea and how do you wish to
achieve them?..............................................................................................................................5
5. Market research to support viability for your business idea and identify market potential
using a range of sources that could be both primary and secondary...........................................7
6. Why your business idea is viable and workable and how you qualify this belief. What are
the strengths and weaknesses? How will you overcome the risks and the potential
opportunities for growth and development in the future? ........................................................8
CONCLUSION ...............................................................................................................................8
REFERENCES .............................................................................................................................10
.......................................................................................................................................................11

INTRODUCTION
Entrepreneurs plays a vital role in the growth of economy as they are regarded as an
individual who exercise initiative by organising a venture to take benefit of an opportunity and
as the decision maker, decides what, how in order to accomplish organisational goal in an
effective an efficient manner. However, entrepreneurial spirit is defined by innovation and risk
taking as well as it is an essential part of nation's ability to succeed in a n ever changing and
increasingly competitive global marketplace (Alvarez and Barney, 2010). Despite the broad
term of opportunity, there is a accord that a successful entrepreneurial opportunity is one which
trigger new venture creation or expand market share of existing venture. This report is based
upon introducing a new coffee venture which will made using organic ingredients to target health
conscious customers. Along with this, developing a business ides, Drucker's 7 model has been
applied for analysing possible sources for new and innovation business idea, competitor analysis
is applied to examine the competitive marketplace. Finally, to identify market potentiality
various range of sources has been implied is also mentioned here.
MAIN BODY
1. Background information about those sources that inspired your idea and what motivated you
personally in wishing to set up your own business.
Entrepreneurial opportunity is recognized as creativity based process as it is an activity
which employs a creative thinking i. e. thinking out of box in order to analyses or identify
business opportunity and challenges for attaining high productivity and profitability. However, in
order to sustain in a competitive market, an productive or impressive strategy or ideas helps the
firm to attain profit maximization. In context to new venture i. e. Coffee World is mainly focus
to capture high level of customer satisfaction by delivering best quality of products. In order to
survive in the market, an efficiency is doing right things and at the same time effectiveness is
implying the accurate things (Ananth, Ramesh and Prabaharan, 2010). In present scenario of
world, every individual has high level of stress in professional and personal life so in order to
lead a happy life they prefer to have a cup of coffee. This is the main motivation behind
establishing a new venture i. e. Coffee World. However, creativity and innovation have a pivotal
role as a source of entrepreneurial opportunity and thus it help in the existence of entrepreneurial
venture. Thus, Peter Drucker's (Father of management) believes in ensuring business focus on

doing right things for this an organization should be flexible in nature and make use of business
opportunities and identify challenges or threat in order to gain competitive advantage. So,
Coffee world implies Drucker's 7 key sources of opportunity for innovation for accomplishing
their profit margin and sustainability in market. The Drucker's 7 ways are as follows:
The Unexpected:The business world is full of surprises where not only the unexpected
failure but also the unpredictable success that comes to an organization serve as a great source of
inspiration for innovation (Calhoun and et. al., 2010). Both, unexpected failures and success
should stay unnoticed and neither overlooked as an opportunities for change. Thus, unanticipated
situations is a powerful element tool in Coffee World as it inspire their managers to get another
perspective on situation (it can be positive or negative) and help them to take advantage of
possibility that emerge.
Industry and Market Disparities : These two components i. e. industry and market which
is dynamic in nature as it keeps on changing along with the advancement of technology and this
creates challenge to company in attain productivity. Hence, Coffee World leaders needs to keep
an eye on the changes in marketplace and treat those occurrence not as threat but more like
opportunity to grow.
Incongruities : Developing appropriate research to determine target customers plays a
crucial role in the growth of business on the other hand unproductive research leads to drastic
failure of company. Thus, Coffee world should take initiative to determine incongruity by
collecting customer reviews, feedback and complaints in order to accomplish higher level of
efficiency.
Process Vulnerabilities : This source is more task focused rather than situation centered.
In this company analyses their potentiality in order to survive in industry for longer period of
time. However, Coffee World identifies their strength and weakness in order to create more
effective and innovative solutions (Eckhardt, 2013).
Demographic shifts: Companies are influenced in one way or another by the change of
demographics and these modification affect markets by determining the demand of product in
terms of type of customers and quantities of product are consider. Therefore, Coffee world
manages business opportunities by satisfying the customers or demographic factor such as age,
education, employment etc. in obtaining high proficiency.

Changes in perception : This source changes over time, and nowadays, due to the
involvement of technology and the power of social network affect customers perception and also
impact firm's efficiency. Thus, Coffee world adapt this changes in perception as a possibility to
grow because it serve as an open road for business to innovate, develop new products and
services that help in meeting out the perspective of customers.
New knowledge: This is often used as byword for innovation at the same time
technology and scientific breakthrough also cannot be overlooked by business. Therefore, Coffee
World can apply new knowledge in every aspect of company as they can acquire latest and
creative ideas or views which allow them to accomplish profit maximization (Fuentes and et. al.,
2010).
From the above stated sources of innovation, Coffee World can enrich their productivity
by implementing impressive and innovative technology or ideas in business operation.
2. An introduction to your business idea and what it is, and who and where your potential
customers and target audience are
Entrepreneurial activity is an important element for generating economic growth as it
contributes to the creation of new products and services. Along with this, in order to obtain high
level of efficiency, company should have an impressive and creative business idea which guides
or directs them to accomplish their organizational goal in an effective and efficient manner.
However, business idea is a starting point or initial stage for any current or future entrepreneurs.
This is an essential component because it is the beginning of new life of a business or an
entrepreneur. Hence, business idea is a concept which act as the major source for financial gain
which is usually centered on product or service that is offered for money. Furthermore, it help
company in several ways and it generate many benefits like innovative ideas, different groups of
people, flexibility, uniqueness etc. But, an idea is important only in initial stage of start up. The
results from good business ideas impact in all phases of development of firm, but also in large
part depend on other entrepreneurial activities. In context to Coffee World , they develops a
business idea which helps them to identify their capability as well as can ascertain their potential
customer in order to gain high level of proficiency and efficiency. The business idea of Coffee
World are as follows:
Coffee World profile

By analyzing or examine the opportunities in business environment, there is high
demand and competition of innovative technology among industry which impact the productivity
of business operation and function (Sarasvathy and et. al., 2010). Along with this, UK
population is highly conscious about their health which enable them to introduce a new venture
which is highly focus on maintaining a better relationship between company and customer and
keep them healthy and fit. Moreover, Coffee World main aim is to crate a unique place where
customers can socialize with each other in a comfortable and relaxing environment while
enjoying the best brewed coffee and pastries in town. Along with this, they are dedicated to help
customers to relieve their daily stress by providing piece of mind through great ambiance,
convenient location, friendly customer service and products of consistently high quality.
What it is
Coffee World manufactures organic coffee in order to maintain customer health and does
not side effect them in any way. As its coffee is high inn antioxidants, vitamins and minerals as
well as it boost the immune system and guards against the diseases. Along with this, it contains
moderate amount of caffeine which provide natural energy boost and keep customer healthy and
fit (Tontini and Dagostin Picolo, 2010).
Who
Coffee World's product is mainly for health conscious people in order to keep or prevent
customers from all harmful diseases and improve their satisfaction level as well as enhance their
morale in an effective way.
Where
Coffee World is located in commercial area which is very much convenience to
customers to have a sip of coffee and reduce their stress and tension and feel peace in their mind
and soul.
3. A competitor analysis that looks at the competitive marketplace. Look at failures and
successes. What you can do differently? Is this a growth area with low and medium risk?
A competitive analysis play a crucial role in company's marketing plan as it help them to
evaluate their current strategy and enable them to establish products and service unique. As
well as allow them to adopt impressive attributes in order to attract the attention of target
market. However, competitive analysis means assessing and analyzing comparative strength and
weakness of competitors which include current and potential goods or services development and

marketing strategies. However, the current scenario of UK market every population is in
tendency to drink coffee which create a best opportunity for existing company to grow as well as
for new venture to build their position among competitors. Along with this, there is a high trend
of having a coffee shop in every office block as they believes that coffee shop becomes a social
hub where people socialize , work, meet tinder dates and so on (Renko and et. al., 2015). Thus,
this existing demand and desire of UK population created a platform for Coffee World to grow
and enhance their productivity by delivering best and organic product or services. Along with
this, UK market contains high level of competition or there is high degree of rivalry among
competitors which impact the business operation of Coffee World. Some of the competitors in
UK market are Costa, Caffe Nero, etc. which becomes the threat to Coffee World business
function (Is the UK reaching coffee shop saturation point?, 2017). Furthermore, health conscious
customers are arising in UK day by day which is one of the biggest way for Coffee World to
enhance its productivity and profitability. They produce their product in a best quality and in an
affordable price which improves the morale and enrich their satisfaction level towards company.
However, Coffee World's new flavor i. e organic coffee itself is a unique product as it not only
use for drinking purpose but it also can use as a scrub for facial purpose which is the easiest way
for them to attract customers. By this strategy, Coffee World can gain competitive advantage and
can capture the market effectively an efficiently. The SWOT analysis of competitors in UK
coffee sector are s follows:
Basis Strength Weakness Opportunity Threat
Costa Second largest
coffee chain in
the world as it
serve in 31
countries and well
known for its
taste.
Prices of products
are high
It has a platform
for corporate tie
up because there
are many
restaurants chain
across UK where
Costa Coffee can
set up strategic
alliance.
It faces high level
of competition
from Starbucks
which is not
allowing Costa to
settle and is
expanding
aggressively in
UK.
Caffe Nero It uses brand Dependent on Possibility to High challenge

name to sell own
branded products
and contains big
market share.
very few supplier. expand its
business
operation to
internet cafe in
order to gain
competitive
advantage.
from bargaining
power of supplier.
4. Gap analysis and how you are looking to close the gaps. What is the situation now and what is
the future? What are the objectives of this business idea and how do you wish to achieve
them?
Gap analysis is a method of assessing differences in performance between business
information system to determine whether business requirements are being met and if not what
steps should be taken to ensure they are met successfully (Yuan, 2013). However, gap signifies
the space between where the business are (present state) and where the firm wants to be (target
state). Thus, gap analysis is also referred as a need analysis and assessment or need gap analysis.
As, Coffee World is new comer or newly establish venture in UK market whose main focus on
health conscious people in order to keep them safe and healthy. Their main objective is to attain
high profitability by delivering best quality of product and services. Moreover, thereby adding
more flavor in coffee in order to become the best choice for customer. However, there are several
tools of gap analysis which enable the company to examine their potentiality for achieving
business goals or objectives. Coffee World adopt McKinsey model to analyses their capability to
grow in a competitive world. McKinsey 7S element is classified into two groups i.e. hard
element which is tangible and they can be controlled on the other hand soft element that is
intangible as they cannot be controlled by company. Hard element are strategy, structure, system
whereas soft are shared value, style, staff, skills. The McKinsey 7S for Coffee World are as
follows:
Strategy: It is a plan which is developed by company to accomplish sustained
competitive advantage and successfully compete in market. However, Coffee World should
create sound strategy about marketing of their products with the aid of social media platforms

which have wide access in respect of the different consumers. This helps in achieving business
goal and it is reinforced by strong vision and mission or values (Hills and Hultman, 2013).
Structure: It represent the way business divisions and units are organized and include
information of who is accountable to whom. Thus, Coffee World follow an effective
organizational structure in order to reduce conflicts or disputes among employees. Coffee World
adapts flat structure as this will help to improve communication.
System: It is the process and procedure of company which reveals business daily
activities and help them in decision making. Therefore, Coffee World put their main focus on
organizational change and determine the potentiality of each employees for obtaining business
goals (Morris and et. al., 2012). Here, main aspect is about innovation in the taste and process of
marketing. This will help to brought changes in the old aspects and help to bring new trends.
Shared value: It states the norms and standards which helps in guiding and controlling
the business function effectively. Hence, Coffee World sets fair and unbiased standards and
principles which enable the employees to maintain working culture and improves their morale. In
this regard, they follow government policies and legislation which help to improve their
standards.
Staff : They are the foremost element in organization as it is concerned with what type
and how employees be recruited or hired, trained or rewarded. Thus, Coffee World adapt an
impressive strategy like social media, conducting job fare etc. to recruit the talented or skilled
workforce for attaining high productivity and profitability.
Skills : It is the abilities which firm's employees performs within the premises as it
involve capabilities and competencies. However, Coffee World evaluate its subordinates
performance and provide them proper training program in order to develop their skills as well as
enhancing the company's brand value (Popp and Holt, 2013). Continuous appraisal of
performance method is adopted and the method of training which is used in known as simulation.
Style : It signifies the way organization is managed by top level managers for achieving
the high level of proficiency. However, Coffee World adapt democratic leadership style which
treats employees as best asset and involve them in business decision making and problem solving
process which enrich their morale effectively.

5. Market research to support viability for your business idea and identify market potential using
a range of sources that could be both primary and secondary.
There are two main sources for data collection which provides the accurate scenario of
customer demand and preference in order to achieve organizational objective effectively (Autio
and et. al., 2014). Moreover, for this data collection, sample size is 50 respondents and targeted
audience is health conscious people.
Primary data
Questionnaire
1. Are you aware about the organic introduce in a market?
 Yes
 No
2. How frequently you consume coffee?
 Daily
 Twice in a week
 Twice in a month
 Never
3. Do you agree that coffee has the capability to reduce the stress of an individual?
 Yes
 No
4. Can the product stand out to meet the requirements of changing trends?
 Yes
 No
5. Any recommendation for the new product development
1. Are you aware about the organic introduce in a market? Frequency
Yes 40
No 10

Mean 25
STDEV
21.2132034
356
Median 25
Interpretation: The above shown graph states that out of 50 respondents 40 people are aware
about organic coffee and rest of the 10 individuals are not aware about coffee product. However,
as the demand of coffee is increasing day by day and each brand coming up with several
features or additional flavours. Thus, in such case, Coffee World is able to capture the attention
of wide range of population due to intense growth of health conscious people among UK.
2. How frequently you consume coffee? Frequency
Daily 20
Twice in a week 10
Twice in a month 10
40
10
Yes
No

Never 10
Mean 12.5
Median 10
Mode 0
Daily
Twice in a week
Twice in a month
Never
0
2
4
6
8
10
12
14
16
18
20
20
10 10 10
Frequency
Interpretation: From the above drawn graph, out of 50 respondents 20 people says that they
consumes coffee daily and 10 applicant have coffee twice in a week. Moreover, 10 individuals
drinks coffee twice in a month and remaining 10 sample denies to have coffee. As per the
analysis, it has been evident that majority of the population consume coffee on daily basis so in
such case it impose huge competition over Coffee World. Thus, Coffee World's new organic
product is able to acquire best position among marketplace in a better way.