Business Expansion Plan Report: Marvin and Smith Coffee Shop in Paris

This report analyzes Hank and Patty's business expansion plan, focusing on establishing a coffee shop in Paris, France. It begins with an introduction to the commercial industry's importance, followed by an examination of market research, including France's attractiveness as a tourist destination and the significance of transportation and ethical business practices. The report delves into the market mix, detailing product, price, place, promotion, packaging, and people strategies. It also explores the implications of expanding into a wider geographical area, considering organizational culture and competitive advantages. The analysis includes an assessment of the impact of profitability and liquidity on decision-making, with financial figures provided to evaluate the company's performance. The report concludes with an overall visibility assessment of overseas expansion, summarizing key findings and recommendations for Hank and Patty's business venture.

Business Essential

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Q.1 Research regarding expansion plan:.....................................................................................1
Q2. Market mix for expansion plan:...........................................................................................2
Q.3 Marvin and Smith's implications to include a wider geographical area: .............................3
Q.4 Impact of profitability and liquidity on decisions:...............................................................4
Q.5 Overall visibility of overseas expansion: ............................................................................6
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Commercial industry is one of the crucial component for any economy as this is the most
important activity which could assist a country to grow itself. Business means to generate and
renders services on a day basis and after that disperse them in society for satiating their needs
and desire and economy can have its sustained growth. Under this report, Hank and patty, is
looking for expanding its business somewhere in Europe. They wants a perfect tourist location
where they can set up their business in order to gain sustainable development. Diverse strategies
and decisions relating business are to be made by assisting financial statements of their present
business. Such kind of project elaborates diverse aspects and recommendations regarding this
plan (Lai and et. al., 2014).
TASK 1
Q.1 Research regarding expansion plan:
There are diverse firms under the territory of Europe and most of the locations are
tourism oriented places. France is the most attractive destination and have a beautiful locality in
the European Union. This is said that the Marvin and Smith uses their best option for expanding
Hank and Petty shop in France best location. Huge number of visitors visit France as this is the
best place for visitors attraction and this will attract more consumers effectively. This will be
crucial for the firm to pay attention towards the transportation facilities as if the particular
location have the good transportation system, then in that case this would be convenient for the
the visitors to come there and enjoy the coffee shop.
Location of coffee shop is required to establish in such a place where huge number of
people love to drink coffee drinks. Being an attractive and beautiful tourist place, Paris can be an
option for the Marvin and smith to incorporating their new business. In Paris, the transportation
facilities is strong and visitors can conveniently hang around the places. It is one of the most
important option for Hank and Patty because, there is a no extra need to invite customer there.
This is likewise essential that the behaviour of workers needs to be ethical and effective.
As, if the people would be affected with the hospitality and services in that case, they would
frequently come to visit the place and enhance revenue for the firm's operations. For this, this is
most crucial that the customer who enters in the coffee shop needs to be attended in such a well
manner.
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This is likewise to be adopted that the products and services of the cited firm must have
effective quality and attract customers in such a way so that the consumer can visit again. This is
crucial for long term development and growth of any firm, there is a strong need to pay equal
attention and also pay more wages for their additional efforts which would encourage or
stimulates for their extra and innovative activities which would promote them to be more polite
and desperate to the job. Customers are the key components who could frame or destroy their
business operations. Therefore, there is strong need to make an effective and strong relationship
to consumers which can helps the firm to generate more sales. By satisfying them effectively,
more consumers would love to take services from the Hank and Petty coffee shop. There is also
need to have effective bill system and need to have ethical practices which can help out the firm
to effectively following all the applicable laws (Prewitt and Weil, 2014).
Marvin and Smith is required to have entire knowledge relating to the rules, regulations,
policies and various regulatory norms as this is the lack of these components which is going to
be more unsafe for unsafe of their business and also this can be proved to be more harmful for
them also. This is likewise essential to take in the consideration the requirement and demand of
coffee lovers so that the more sales can be generated in the long run.
Q2. Market mix for expansion plan:
Marvin and Smith make a research for the expansion of their business in Paris, France.
Hank and petty shop uses finest coffee beans. Which are imported and from Gumutindo. Marvin
and Smith provides coffee shops in the UK market and covers their business strategies and
prepare those plans successful. In this recent time, they are thinking for expanding their business
in Paris, France. With the help of marketing mix so that the firm can make effective business
plan and also assist internal and competitive analysis of business strategies. 7Ps of marketing
mix are mentioned as under:
Product: Business plan is related to the coffee shop. Henceforth, product is essential for the
firm development that Hank and Petty coffee shop uses finest coffee beans and great quality tea
leaves and herbal infusions are available with them. Cited coffee shop likewise offers snacks
like- pastries, juices, mojitos and flavoured shakes. Hank and Petty's products has power to
influence consumers by providing great quality of coffee drinks and others so that the consumers
demands are satisfied.
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Price: This is essential that the prices of the cited products must be reasonable and affordable for
the people who come to visit coffee shops. The price of the products must have cost efficient and
revenue enhancing. The price covers all the costs which are related to it. If consumers are willing
to get the products for then in that case, then those products must be worthable to the price that
they are willing to pay.
Place: This is the component of the marketing mix under which the coffee shop is going to
incorporate. The location of coffee shop must be available at such a place which is easy to
accessible to the ultimate consumers and also must have effective transportation services. A
marketplace must be chosen by the firm that are going to adopt by it (Ragas and Culp, 2014).
Promotion: To stimulates product and services, there are so many promotional tools but
effective is chosen by the cited coffee shop. There are basically so many advertising tools like-
television advertisement, newspaper, poster and other ways. These would attract visitors to come
and visit shops.
Packaging: This provides an effective impression on the people out there for coffee. Packaging
of products must be attractive which the pull the visitors to visit the cited coffee shop. Not only
packing of cited coffee shop goods but the interior of shop which must be fascinating to eyes of
people.
Positioning: This normally means where the coffee drinks of the Hank and Petties stands among
various contenders and same nature products. Position of a good demonstrates the image,
reputation and components that makes the product diverse and better among whole its
substitutes.
People: Staff must be chosen of those people who are accountable and aware related to their
duties. They are polite in behaviour and covers product attitude towards work.
Q.3 Marvin and Smith's implications to include a wider geographical area:
This is being observed that Marvin and Smith need to initiate their business of a coffee
shop market of Paris and it will be another experience for them. For this, it is vital for them to
have a entire information about the market of Paris and their economy related conditions. With
respect to this, cited coffee shop confront such huge numbers of suggestions which incorporate
broad geological area of various countries. It is needed for any agent to evaluate the economic
situations, cultural implications nature of individuals living in that region. Subsequent to
contemplating these components, any objectives or targets can be settled. If it is tied in with
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building up a coffee house in market of any domain then it is needed to assess the impacts and
entire interior and in addition outside issues to decide the current circumstance. Nature of
products and ought to be of such nature that don't injured the feelings of those individuals with
respect to their country and culture. These suggestions might have affect on following issues:
Organisation culture: This is a kind of framework which shares esteems, suspicions and also
convictions by which individuals behaviour in any association is represented. These qualities
greatly affect individuals of any association that how are they dressed and how they execute their
obligations. These qualities impart a crucial part in incorporating issues on individuals relating
what are they intending and in which way they are putting forth their items to their clients. It is
essential that the rules and regulations made by legislature of Paris ought to be agreed in a
satisfactory way and before creating something new, its effects ought to be evaluated. The
correspondence system must be strong in an adequate way to diminish gap between various
national cultures.
There are such a huge numbers of various techniques which are to be affected at each
step of arrangements. It is critical for a business to have an extraordinary administration in
association with social complexities. It is noticed that an legitimate culture will be dull, although
without a leader it is exceptionally hard to keep a business operates easily (Romano, 2013).
Gaining competitive advantages: For Hank and Patty, there are such a huge numbers of issues
and challenges that must be enquired by them to enhance useful upper hand over different items
and elements in Paris. It is fundamental that the product and services of cited coffee house ought
to be much better than their contenders. For that staffs can be paid too much in contrast with
their competitors in order to deal with their work effectively. Coffee shop must upgrade its
services and item's quality. They ought to likewise give complementary snacks. There are
distinctive purpose of perspectives that are to be considered in association with achieve upper
hands. The business ought to be in a decent and ideal business position, for that, it is important to
determine the diverse attributes by which an organization can be separated from different rivals
in market. It gives an edge over their adversaries and ability of creating more prominent
estimation of business than different associations in same region. At this price ought to be fixed
at such rate where optimum fulfilment to a client could be accomplished and business will be in
a advanced benefit acquiring position.
Q.4 Impact of profitability and liquidity on decisions:
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There is huge impact of the profitability and liquidity on the decision making of
management of company. It is observed that if the profitability and liquidity of company is good
then it increase their decision making power. In given case, financial statement of Marvin and
Smith is shows the profitability of company. Form the given figures it is observed that they are
generating good net profits. After evaluation of P&L account of company observed that the net
profit of company is 26800 and year end sales of their products is 360000. This shows Marvin
and Smith has good profitability and their is no need to change in the existing policies and plans
of company and this will improves their decision making about other important factors. On other
hand, if the such profitability is not good then the management has to make necessary changes in
their policies and strategies which reduces their decision making about increase the business
activities of company (Urner, 2016). But from the given figures, it is observed that the company
has expend much more in achieving the given figure of sales. To determine about the
profitability there is need to calculate Gross profit margin and Net profit margin.
Here given,
Gross profit= 208000
Net profit= 26800
Sale= 360000
Gross profit margin= Gross profit
sales
= 208000
360000
= 0.5777*100=57.8%
Net Profit Margin = Net profit * 100
Sales
= 26,800/360,000*100
= 7.4%
From the above calculation, it is observed that the Gross profit margin of company is
57.8% and Net profit margin is 7.4%. This shows that the the company has good profits and have
required amount of funds to start their business activities in France.
Liquidity position of company
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Current assets: 35,400
Current Liabilities: 6,200
Inventories: 8,000
Current ratio: Current assets
Current Liabilities
= 35400/6200= 5.7
Liquid ratio: Liquid assets
Current Liabilities
= 35400-8000/6200= 4.4
Form the above calculation of ratios of company shows about their liquidity position. The
current ratio of Marvin and Smith is 5.7:1, this shows that company has more amount of assets
then their liabilities. This will helps the company to easily pay off their liabilities. On other hand,
the liquid ratio of company is 4.4:1.
Above calculation shows that the company has adequate funds and assets to establish
new shop in France. This enables the company to make effective plans and strategies and takes
effective decisions about important aspect which helps to create better communication and
coordination among the staff members. This will makes the clear all situations and helps the
management to identifies financial requirements if any.
Q.5 Overall visibility of overseas expansion:
In the provided case, overview of expansion plan in Paris is elaborated. Such place has
diverse characteristics which represents that this is the best alternative for Marvin and Smith to
expand their business operations. This is analysed that for making stability in the European
market, this is an essential to have the strong business plan and market mix strategies. This
would assist to face issues which is going to develop in future. This is essential to overview
towards culture of any nations and taste, interest etc. for framing appropriate situations in the
market for the firm (Wilson, 2014).
Before going to open any firm, this is essential to review the market and business
environment of such nation henceforth, it could takeover market. This kind of analysis is
beneficial for assessing negative and positive aspects of any economy. There are various issues
and deviations those are essential to be managed by the Marvin and Smith to incorporate their
business in overseas. This is a tough procedure which are used to identify price of the Hank and
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Patty's coffee shop their operations in overseas. This is a complex procedure to identify price of
the product and services so that the cost efficient manner. These are the important components
by which the coffee shop can get the sustainable development in that intended market
(Zakrajsek, 2013).
CONCLUSION
It has been concluded from the above report that, There is huge contribution of research
on successful implementation of the business activities at new place. Such research information
is used by 2 entrepreneur to start their business activities in UK and expand their operations in
new country. There are many factors which persist in business environment which affects the
functions of company. Internal factors includes customer preferences, supplier, employee etc.
and external factor includes political, economical, social, technological etc. research about these
factors helps the company to expand theurgic business effectively and increase their profitability.
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Online
Using the Marketing Mix to Strengthen your Marketing Strategy. 2016.[Online]. Available
through: <http://www.dreamalatte.com/coffee-shop-business-plan-marketing-mix/>.
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