LSC UoS BA Business: Brew Bean's Cafe Business Plan Report

This report presents a comprehensive business plan for Brew Bean's Cafe, a new cafe concept in London, UK. The report begins with an introduction outlining the business goals and the cafe's offerings. The main body includes the rationale for launching the business, detailing its vision and mission to provide a unique and enjoyable customer experience. It then delves into a detailed industry and market analysis using PESTLE analysis to assess political, economic, social, technological, legal, and environmental factors. A competitive analysis, employing Porter's Five Forces, evaluates the competitive landscape and identifies the cafe's competitive advantages. The report also includes a segmentation, targeting, and positioning (STP) analysis, along with a marketing strategy utilizing the 7Ps, addressing product, price, place, promotion, physical evidence, process, and people. Market growth strategies are discussed, followed by a section on resources required for the venture, including funding sources, and a risk analysis. The report concludes with a summary of key findings and recommendations, supported by references.

Business
Plan

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Rationale for launching the business and its vision and mission.................................................1
Industry and market with a clear demonstration of an understanding of the variables at work
here including a macro/micro analysis of the market place.........................................................1
Competitor analysis and the competitive advantage and its reasons of successful market.........3
Segmentation analysis, providing market statistics.....................................................................4
Marketing strategy, using the 4P’s or 7P’s if it is a service ........................................................4
Market growth strategy................................................................................................................6
Resources required for the venture including the source of finance............................................7
Risk analysis................................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business goals refers to the written document in which the goals are written and helps in
attaining the goals in an organisation. It help in implementing the targets and help in achieving
the goals in an desired manner(Baliga and Rodrigues, 2015). Business plan is an important
document which help in attracting the investment from the investors to invest more in the
business. Present report is based upon the new business idea of the cafe Brew bean's which is
located the UK, London and this cafe provides various services to its customers. The topic
covered under this report is the vision and mission of the company, its competitive advantages,
segmentation analysis, marketing strategies and the market growth of the company.
MAIN BODY
Rationale for launching the business and its vision and mission
Importance of the Brew bean's Cafe:
 Brew bean's cafe is located in the area where there is no competitors available and
provides the thing in a unique way.
 The cafe provides various services with in a reasonable rates which beats the competitors
easily and can earn more revenue.
Vision:
Vision of the Brew bean's cafe is to provide the happiness and safe environment to the
customer by providing them delicious meals and providing the unique things to the customer.
Some entertainment concepts are also included in the cafe which help in creating the wide
experience for the customers.
Mission:
Mission of the Brew bean's Cafe is to do a proper welcoming of the customers and
making them feel special and make them comfort. Special services are provided to them with in
a reasonable rates. Brew bean's Cafe provide the services in an unique way and to create the
hospitality venues with great experience.
Industry and market with a clear demonstration of an understanding of the variables at work here
including a macro/micro analysis of the market place
Micro and the macro factors of the market place can be identified and can be understand
by doing the PESTLE analysis it helps in analysing the political, economical, social,
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technological, legal and the environment factor by which the external organisation is influenced.
In this model carious factors are being studied especially the economic and the political factors
which affect the business. In UK opening a new business required proper strategy to run the
business in the long run. The pestle analysis of the Brew Bean cafe is described below:
Political factors: It is a factor which help in determining the factors of the economy
which was influenced by the government. Government will impose the new taxes and they new
business have to pay them. In UK political factors are the major issue in which the new business
have to pay the tax and the interest rates.
Economical factors: It helps in determining the performance of the company and its
effect in the long term business. If the inflation rate of the company will rise it will effect the
prices of the company to survive in the market for the long run. Brew berry cafe will make the
price normal so that everyone can afford it but due to change in the economic factors sometimes
price may fluctuate n an easy way.
Social factors: Social factors refers to the environmental or the market factors in which
the buying trend of the company is determined according to the taste and the preference of the
customers. Brew berry cafe can change its menu according to the season and according to the
taste and the preference of the people. Like the new dishes are more preferred by the people so
the menu will get updated.
Technological factors: These are the factors which affect the operations in the industry by
adopting the new technologies which help in business to run in the long run and update
according to the trends. Brew berry cafe used the new technologies which is most preferred and
was according to the new innovations which was liked by the people and get attracted with the
new changes and the interiors of the cafe.
legal factor: This factor affects the both internal and the external factors of the
organisation which the company or the business have to follow strictly. The strict documentation
is needed in the legal factors. Brew berry cafe should have the legal documents so that in future
no crisis will occur and should have license and the proper brand name and should follow all the
laws.
Environment factor: This factors is affected by the external environment and these factors
are because of the climatic or season change factors. In Environment factors resources from the
organisation will taken and should optimized normally without wasting. Brew Berry Cafe should
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use the resource in the proper manner so that there is no wastage and can fulfils the needs of the
people according to the trends. Brew berry cafe interior should be environment friendly so that
no issues will arise in the future.
Competitor analysis and the competitive advantage and its reasons of successful market
Competitors analysis of the company helps in finding its strength and the weaknesses of
the competitors so that the market share can be gained easily in the future(Burns and Dewhurst,
2016). There are various competitors for the Brew bean's cafe like the bakery shops. Cafe can
analyzed its competitors by the Porter's 5 models described below:
Porter's 5 forces models helps in identifying the competitive environment of the company
which helps in influencing the profitability of the company and the measures taken to correct the
negative impacts.
Threat of Substitute goods: It refers to the product or the service that can be used in the
place of the substitute goods. The goods which do not have the close substitutes have high price.
Brew Bean cafe can have substitutes if the cafe around it had low price and services are better
the customer will shift automatically.
Bargaining power of Buyers: It refers to the power of the buyer who has ability to shift to
other company if the services are not provided at minimum cost. If the cafe has its substitutes
then should provides the best services with good quality and with the reasonable cost so that the
buyers cannot shift to other cafe.
Rivalry among existing competitors: It refers to the competition between the companies
and providing the services better than the competitors and their qualities are most preferred by
the company. Brew Bean's cafe has its rivalry with its competitors as the cafe will have the
many competitors which provide services better to gain the attraction.
Barriers to entry: The power of the company can be easily analyzed by its new entrants
and they require less time and the cost to enter in the market and can run in long run. The cafe
have this threat regarding the new entrants as new cafe will established with the same
technologies the attraction of the customers will shift automatically.
Bargaining power of Suppliers: If there are few suppliers of the product in the market the
customers will depend on them and have to pay the high prices of the products. The cafe has
strong bargaining power as the cafe should use the technologies which are unique and cannot be
copied and the customers get attracted with this only.
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The brew berry cafe should have the high bargaining power so that the attraction of the
customers cannot be shift easily and should not have the substitutes by which the company can
earn more in the future and can run for long period(Gabler, 2017)
Segmentation analysis, providing market statistics
STP refers to the segmentation, targeting and positioning which help in developing the
marketing strategies so that the proper actions can be taken by the company in a suitable manner.
It helps in communicating the benefits to the customers to get the desired results. STP helps in
analyzing the company position with its competitors position. Brew Beans cafe is using this
technique to identify the benefits of the company and helps in reducing the risk.
Segmentation: It helps in dividing the group of the people who has same characteristics
and the needs and can be differentiated. Brew beans cafe should target the customers who have
same likes and prefer light music with other hospitality activities.
Targeting : It helps in targeting the customers who can easily shift to innovative ideas
and enjoy the new services and the technology of the company. Brew beans cafe target the
customers on the basis of the ages and the person prefer light music with an cozy environment.
The cafe should target the person who are like the innovations in the food and get attracted with
its interiors.
Positioning: It helps the positioning of the product in the market in comparison to its
competitors. It identifies the position of the brand in the market and to take the decision
regarding the issues so that position will maintained in the future and for the long run in the
market. Brew Beans cafe should maintain the market position by offering the best services in the
market with the best qualities which help the business to run in the long term and can raise
benefits(Galai, Hillel and Wiener, 2016).
Marketing strategy, using the 4P’s or 7P’s if it is a service
Marketing Mix- This can be defined as foundation of organization which uses to
promote the products and services that can help to increase the organizational productivity and
profitability. Brew Beans Cafe is applying the marketing mix for reaching the targeted customers
and increasing performance that are as explained:
Elements Description
Product This means items and things which are developed by
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organization for the purpose of running their business and
increasing the sales. Brew Beans Cafe is medium size Cafe
that provides range of products and services. All type of dishes
and fast food are available in organization that is demanded by
customers.
Price Price is important factor for all customers as it encourages
them to buy the products if prices are affordable(Watson,
McGowan and Cunningham, 2018). The selected organization
is planning to adopt the comparative pricing strategy which
will help to increase the number of customers and maintain
higher profitability.
Place This refers as place where organization is established and
operating their business by managing all activities. Brew
Beans Cafe is newly established cafe that is providing products
and service in London, UK. The number of employees are up
to 50 who understand the demand of their customers and
provide the products accordingly.
Promotion For organization it is important to select the best option and
channel of promoting the products(McKenzie, 2015). The
selected Cafe is using news papers, social media, print media
and other sources for providing the information and messages
to customers that can help to increase the organizational sales.
Physical evidence This means things and structure which can be by customers
who comes and getting the products. The physical evidence of
Brew Beans Cafe is light music with designing lights, Cozy
interior, roof top, and hospitality idea in delivering foods that
is unique. This will help to influence the number of customers
and manage the all functions effectively.
Process In providing better quality of products and services
management uses natural process and also uses digital
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activities which can help to manage the all workings and
develop the business performance effectively.
People This means people who are engaged in organizational activities
by getting their role and responsibilities effectively. In Brew
Beans Cafe, marketing manager, sales manager, production
manager, finance manager, distributor and others are
understanding their roles and perform the all functions
accurately that increases performance.
Therefore, marketing mix is uses by management of Brew Beans Cafe to promote their
products and services in changing environment and attain the higher profitability by managing
all works and using the promotional channel. By using this, selected organization can reach the
targeted customers and attain the business objectives (Johnson and Garvin, 2017).
Market growth strategy
It refers to the plan or the actions helps in achieving the higher level of the market share
in the organization so that there is a growth in the company and company can run for long run. It
is a plan which helps in increasing the sales and help in market development. Brew Beans cafe
helps in achieving the market share in the environment and used different strategies to achieve.
For identifying the Market growth strategy Ansoff matrix is used:
Ansoff matrix refers to the tools and the strategies used by the firm to analyze its
growth. The risk is associated with the each strategy which affects the growth and profit of the
business. Brew Beans cafe use this cafe to analyze its growth:
Market penetration refers to the increase in the sales of the old product in the existing
market only. Brew beans can use this strategy as it helps in increasing the target customers of the
existing product and can earn revenue.
Product development refers to the developing of the new product in the already existing
market so that the customers get attracted and to know the preference of the new product by the
customers. Brew Beans cafe can use this strategy by using the innovative techniques in the cafe
to attract the existing market.
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Market development focuses on the existing product and entering into the new market
and the innovation can be done easily in the existing product only and provide its services in new
market. Brew beans Cafe can use this strategy by opening its branch in the new market where the
customers get easily attracted to it (McKeever, 2016).
Diversification refers to entering the new market with the new product development as it
helps in good growth. Brew bean cafe can use this strategy by providing varieties of serveries
according to the taste and preference of that community.
Resources required for the venture including the source of finance
There are different sources of funds in the organization which are required by the
business and to start the business funds is necessary. These funds help in business to get start and
the individual can have their own income and earnings so that they can earn their livelihood and
can live their life easily. Brew berry cafe is also in need of the funds before starting the business.
Capital is required before starting the business so that the business can run in long run. There are
different sources of funds used by the company which are described below:
Bank loans: This is the best source of finance in which the money is granted to the
employees with fixed interest rate. The bank charge the security from the person taking the loan
so that id the amount is not paid the bank will keep that security. Brew Berry cafe can take the
loans from the bank and can repay it after some period of the time when the company start
earning the revenue.
Savings: Saving is also the other source of getting the money so that person can start the
business and used the savings to purchase the assets of the companies and do not have burden of
repayment. Brew Bean cafe can use the saving for starting up of the business so that the have
no burden of the repayment if they won't be able to earn the revenue.
Particulars amount
Raw material 2000£
Labours 1000£
Land 8
0
0
0
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£
furniture 2500£
Consumable goods 1000£
Dishes and Flatwares 100£
Machinery 3000£
Marketing 500£
Salary 1000£
Total 20000£
The total finance required is 20000£ for the starting up of the business so that they can
fulfill all the requirements. For the finance the cafe should prefer to take the loan from the bank
which is the best way so that they easily start their business and have the amount to keep to meet
the future requirements and can be used at the time of emergencies.
Risk analysis
Risk analysis helps in identifying the issues in an organization which also has a negative
impact on the business also(Dixon, 2016). These factors are considered in the mind before
starting the business so that future risk cannot be occurred and the precautions will be taken
before starting of the business. The process of the risk that can be occurred in the cafe is
described below: Identify the risk: There are different types of risk in the Environment which includes the
legal, environment and the market risk. In this the risk is involved and easily visible to
the stakeholder and can take measures to correct them. Brew Beans cafe identify the risk
like the environmental financial and the technological issues in the future. Analyze the risk: After identifying the risk the seriousness of the risk is analyzed and the
measures to be taken to correct them so that this do not affect in the future. Brew beans
cafe should analyses its risk in the future so that cafe should already prepared with the
risk and can take measures to correct them. Evaluate or Rank the risk: Risk are to be ranked in the organization the factors which
have high risk should be firstly prioritized and solve them first because the can cause
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more loss to the company. Brew Beans cafe search the factors which have high risk and
treat them first. Treat the Risk: The risk occurred is to be solved and the corrective measures to be taken
to solved the risk as early as possible so that no more loss will occur. Brew Beans cafe
should take the measures to correct and to solve the risk(Khoshnevis Yazdi, Homa Salehi
and Soheilzad, 2017).
 Monitor and review the risk: After the solution there should be a proper monitoring of the
risk is to be done so that the risk cannot occurred in the future. Brew Beans cafe should
analyze the risk on the regular basis so that it cannot occurred in future again.
CONCLUSION
From the above report it has been concluded that the business plant is a blue print
prepared by the people before opening the new business that can run in long run. The overview
of the company is done by finding its mission and the vision and the competitive analysis can be
done by using the porter's 5 models and help in finding its strategies by doing the STP analysis
and the 7ps of marketing mix is done to identify its opportunities and the Ansoff matrix is done
because of the market growth strategy.
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