Five Star Coffee Shop: Detailed Business Strategy Report

This report details the business plan for Five Star Coffee Shop, a new venture aiming to offer healthy coffee options in London. The report includes a thorough introduction, followed by mandatory tasks like analyzing different types of healthier coffee the shop will offer. A PESTLE analysis assesses the political, economic, social, technological, environmental, and legal factors influencing the business. The marketing section outlines objectives, target market, and a marketing mix strategy, including product, price, place, and promotion. The supply chain management section focuses on sourcing raw materials and managing the supply chain effectively. The report aims to provide a comprehensive overview of the business strategy, market analysis, and operational considerations for launching Five Star Coffee Shop.

NEW BUSINESS:
COFFEE SHOP

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 MANDATORY.................................................................................................................1
Part A..........................................................................................................................................1
Different kinds of Healthier Coffee which will offer by Five Star coffee shop.........................3
Part B...........................................................................................................................................4
TASK 2 PESTLE.............................................................................................................................4
TASK 4 MARKETING...................................................................................................................5
TASK 6 SUPPLY CHAIN MANAGEMENT.................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
In order to launch the new business in the market, it is very important for analysing the
business environment. There are various components which influence business activities such as
political, social, technological, cultural, legal etc. In the present assignment, Five star Cofee shop
is a new business which will offer healthy coffee to all age group and all income level customers.
TASK 1 MANDATORY
Part A
In the present time, every firm have some creative strategy by which it expands its
existing business. In order to survive in the competitive market, company required to use some
innovative idea and creativity related to product and services. In the United kingdom (London),
the new coffee shop is going to operate which name is Five Star coffee shop. This new shop will
situate near The 68-86 Bar Restaurant in London. This is located at Cromwell Road, Kensington
in London. This new Five star Coffee shop will offer various type of Coffee such as Espresso,
Double Espresso, short Macchiato, Long Macchiato, Ristretto, Cafe Latte, Flat White, Piccolo
Latte, Mocha, Affogato etc. These all coffee have different flavour and taste along with different
prices. One of the most quality of this new Five Star coffee shop is that its all coffee will healthy
and good for health (Hutt, 2010). These Coffees can drink by all age group of customer and all
income level customer because it will available in reasonable prices. The major feature and
quality of this new Coffee shop is its healthy coffee which will help to customer in reducing their
stress and frustration. In the London, this Five Star Coffee shop will one of the coffee shop
which will provide healthy Coffee to each income group customer because it will available in the
reasonable price which can afford by all income group of customers. Five Star Coffee shop will
deliver Coffee product by both online and offline basis. It will establish its own website and
application by which customer can place the order for Coffee at any time. In addition to this, in
order to promote the Coffee, Five Star Coffee shop will use social media and print media. In
addition to this, innovative and heather coffee will also available at physical Store in the
commercial area of London so as every one can easily arrive. The major competitors of this new
Five Star Coffee shop are as follows-
1. Allpress Espresso
2. Climpson and Son
3. Ozone Coffee Roaster
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4. Prufrock Coffee
As per the mentioned name of competitors it has been analysed that there are various rivals of
the new Five Star Coffee shop in the London. However, the major competency of New Five star
is that it will produce healthy coffee for customer which these mentioned Coffee shop does not
offer (Innes and et.al., 2010).
Different kinds of Healthier Coffee which will offer by Five Star coffee shop
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Part B
In order to get an effective success and outcome it is very important for the business
enterprise to design an adequate business objective. For the Five star coffee shop in the UK, it
has several objectives which are as follows-
 To Enhance market share- Five Star coffee shop will objective is to enhance the market
share by deliver high quality of coffee to all income group customer. This new coffee will
available in the reasonable prices thus every one can easily purchase it any time. This
strategy help in increasing market share of the business unit.
 To Meet customer expectations- The five star coffee shop will another major objective is
to meet customer expectation related to coffee. The innovative coffee will satisfy the
need of all age customer related to coffee. (Kabir and et.al., 2016) This coffee will
healthy so customer can drink any time.
 To deliver high quality Coffee in reasonable price- Five Star coffee shop will another
objective is related to the cost which is closely related with the quality of products. Cited
venture have objective is to improve the quality of coffee but control overall cost.
Five Star Coffee shop owner will prefer sole trader in order to establish new business. The major
advantage of the sole trader is to that owner can able to maintain full control of their business
and sole trader can retail all the profits of their business.
TASK 2 PESTLE
In order to survive in the competitive market of the London, it is very important for the
Five Star Coffee shop is to conduct business environment audit. With help of PESTLE model,
firm can analyse its business environment and its various components which affect each activity
of cited venture. Following are some factors which affect Five Star Coffee shop- Political- This factor can largely affect the Five Star coffee shop because in this includes
governmental rules, regulation, code of conduct, taxation policies etc. Cited venture have
to follow and consider each code of conduct and rules which imposed by the government
of UK. Economical- This is another major factor which affect the Five Star Coffee shop in the
London. In this includes economic condition of the country such as recession, inflation,
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interest rate etc. Five Star coffee shop required to analyse economic condition of London
and according to economy, five star will set its pricing strategy of coffee. Culture and social- This factor includes customer culture, region, background, taste,
preferences, life style, education, income level , value, belief etc. It is very important for
Five star shop to understand the actual requirement of customer and analyse their taste
and preferences (Keerasuntonpong, Dunstan and Khanna, 2015). Most of the customer
are health concious thus company required to focus on the healthy ingredients while
producing coffee. Environmental- This factor includes natural factor like weather, climate, air, water etc.
According to the environmental condition, Five star coffee shop required to maintain the
quality, quantity and features of coffee because during the winder season, most of the
customer prefers to drink hot coffee and in summer most of the customer prefers to drink
cold coffee.
 Legal- This factor includes governmental law and legislation related to business,
customer and employees which required to follow by Five star coffee shop. For example,
customer right act, employees health and safety act etc (Laswad and Redmayne, 2015).
TASK 4 MARKETING
Marketing Objective
 To develop its own band image in the market
 To attract the large number of customer toward healthy Coffee
 To enhance profitability in every year by 10% To deliver high quality and healthy coffee to all income group of customers
Target Market
Five Star's new healthy and innovative coffee will deliver for all age group customer like
children, male, female etc. This new coffee will good for health so every age group customer can
easily drink. In addition to this, new healthy coffee will defiantly satisfy the need of heath
concious customer and green customer because it will produce by all healthier ingredient which
will not give any side effect for customer (Lovelock, 2011). Thus, it can be said that Five star
coffee shop will focus on the demographical segmentation under which it will focus on all age
and all income level of customers.
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Marketing strategy for target market
In order to communicate with customer about this new Five Star Coffee shop and its
healthier coffee, cited venture will use social media and print media. In the context of social
media, it will design its own page on the Facebook, twitter, instagram etc. because most of the
customer using social media channels. In addition to this, Five star coffee shop will also develop
its own website and phone application through which customer can easily place their order about
the Coffee. With help of social media cited venture can easily promote its product and services.
Furthermore, cited venture also use print media under which it will promote its innovative and
healthier coffee with help of newspaper, magazines etc.
Marketing Mix
Following are marketing mix for the Five star coffee shop-
Element Description Justification
Product Various kinds of healthier
coffee is major product of
the Five star coffee shop
such as Espresso, Double
Espresso, short Macchiato,
Long Macchiato, Ristretto,
Cafe Latte, Flat White,
Piccolo Latte, Mocha,
Affogato etc. It will also
coffee hot and cold coffee.
These healthier coffee will
satisfy the needs of the
health concious customers.
Price It will use penetration
pricing strategy under which
it will set lower prices at
initial level.
By help of this pricing
strategy, Five star coffee
shop offer coffee to all
income level customer. This
coffee can affordable for all
income customers.
Place Coffee will available at both
physical store and online
basis. In the context of
online mode, five star coffee
shop will develop its own
website on the internet so
customer can easily place
the order. On the other
coffee will also available on
the coffee shop in
commercial are of London
so every one can easily
arrive.
Both physical store and
online placement can help
customer because they can
easily purchase the coffee by
online as well as by physical
basis.
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Promotion Five star coffee will use
social media and print
media. It will design its
own page on the Facebook,
twitter, instagram etc. In
addition to this, With help of
social media cited venture
can easily promote its
product and services.
Furthermore, cited venture
also use print media under
which it will promote its
innovative and healthier
coffee with help of
newspaper, magazines etc.
This strategy will provide
information about the
innovative and healthier
coffee to all level customers
either they use newspaper or
social media for news
updates.
TASK 6 SUPPLY CHAIN MANAGEMENT
Supply chain management is one of the most important activity within the business unit
by which its manage its resources, network and activities. Corporation requires managing its
supply chain for manage its quality and quantity of product and services. In the context of Five
Star Coffee shop, it will use raw material from three different suppliers who supply different
material to the Five star coffee shop (Niinomi and et.al., 2014). In a simple term it can be said
that supply chain management is a process by which product and services deliver from
manufacturer to final consumer. In this process those people are included which helped to deliver
the product from manufacturer to final consumers like wholesaler, supplier, agent, distributor,
producer etc.
Element of the supply
chain
How is this going to be
addressed in the business
Why is this the correct way
to operate?
Suppliers of ingredient of
coffee
It is very important for the
Coffee shop to bring the
coffee ingredient from the
effective supplier who
deliver high quality of
coffee raw material (Pei-
With help of supplier of raw
material and ingredient,
shop will able to produce
high quality of coffee and
attract large numbers of
customers.
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rong and Bureau, 2014).
Five star coffee shop will
take the coffee raw material
and ingredient from the
good and reputed supplier in
the London who have
effective good will in the
city. With help of high
quality of raw material and
ingredient, cited venture can
able to produce high quality
of heather coffee (Ross,
2016)
Suppliers of packaging
accessories
It is also very important to
deliver the coffee in the
attractive package and cups.
Looking and packaging will
also attract the customers in
the large manner. In order to
serve coffee, five star coffee
shop will purchase the raw
materials of packaging from
the good supplier
Packaging and looking will
also help to attract the
customer. Thus, cited
venture will use high quality
of raw material for
packaging and looking for
coffee cups.
CONCLUSION
From this entire report it has been concluded that in order to launch the new business it is
very important for business unit to analyse its external and internal business environment. There
are various components which can largely affect activities and function, thus company should
understand each element impact on the business. Five Star coffee shop will use penetration
pricing strategy so as every income group customer can easily purchase. It will use both social
and print media to promotes its healthy coffee in the London.
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