Level 5 Business Plan: Lead & Manage Small Business - Love Coffee

This draft business plan outlines the strategy for opening 'Love Coffee House,' a café in Christchurch, New Zealand. It includes an environmental analysis using PESTLE, examining both internal and external factors influencing the business. The plan addresses the impact of the Bi-cultural partnership as outlined in the Treaty of Waitangi, focusing on business activities and relationships. Stakeholder identification and a communication plan are detailed, along with key business functions such as operational, HR, financial, marketing, regulatory, compliance, and risk management plans. The report also incorporates the organization's mission, vision, and ethical considerations, providing a comprehensive framework for the proposed café business. Desklib offers similar solved assignments and past papers for students.

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NEW DIPLOMA IN BUSINESS
LEADERSHIP AND MANAGEMENT
LEVEL 5
506 (v1)
LEAD AND MANAGE A SMALL BUSINESS
(LEVEL 5, 20 CREDITS)
PROJECT– PART 2
STUDENT’S NAME: ABHEY
STUDENT ID:174024C
DATE OF SUBMISSION:
ATTEMPT: 01
DUE DATE:XXX
TUTOR: SEYED EBRAHIMHOSSEINI&
DR. ABDULLA NIYAZ
Contents
Executive summary.........................................................................................................................3
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1. Introduction..............................................................................................................................4
2. Draft Business Plan (Research)................................................................................................4
2.1 Internal and external environment....................................................................................4
2.1.1 Internal environment..................................................................................................4
2.1.2 External Environment................................................................................................4
2.2 Bi-cultural partnership......................................................................................................4
2.3 Stakeholder communication plan......................................................................................4
2.4 Business functions.............................................................................................................4
2.4.1 Operational Plan............................................................................................................4
2.4.2 HR Plan.........................................................................................................................5
2.4.3 Financial Plan................................................................................................................5
2.4.4 Marketing Plan..............................................................................................................5
2.4.5 Regulatory and Compliance Plan..................................................................................6
2.4.6 Risk Management Plan (Business Continuity) Plan......................................................6
2.4.7 Mission and vision.........................................................................................................6
2.5 Ethical considerations.......................................................................................................6
3. Conclusion................................................................................................................................7
Executive summary
This draft business plan pertains opening of a café under the nomenclature ‘Love Coffee House’
at Christchurch. Business concept has already been developed.
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In this report, environment analysis of internal and external environment has been made by
applying PESTLE analysis. Impact of the Bi-cultural partnership, as embedded in the Treaty of
Waitangi, on the business activities and relationships of proposed business has also been
analysed and addressed. The business plan also consists of identification of internal and external
stakeholders and development of stakeholders’ communication plan. Business functions
comprising of operational, human resources, financial, marketing, regulatory and compliance;
and risk management plan have also been formed part of the extant business report. Mission and
vision of the proposed business organisation and ethical consideration have also been included in
the report to make the report make it realistic and model business plan.
1. Introduction
A new business has to be started in Christchurch, New Zealand for which a model and
perfect draft business plan has to be developed. The task of first part of the business plan i.e.
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developing a business concept has already been accomplished and the concept has been
developed on the basis of research made from the primary and secondary sources of research.
Opening of a café under the name ‘Love coffee House’ at Ilam, Christchurch has been
proposed .Now a successful draft business plan has to be developed for the proposed Café
business.
For developing a model and perfect plan, first of all environment analysis of internal as well
external environment will be conducted and impact thereof on the business will be discussed
in detail. Thereafter stakeholders will also be identified outlining their relationship with the
business. Vision and objectives of the organisation are to be incorporated in the draft
business plan.
In order develop an effective plan, tasks and strategies that need to be undertaken pertaining
to Operational Plan, Financial Plan, HR Plan, Marketing Plan and Risk Management. Plans
are required to be clearly laid down in this business keeping in view the ethics of the business
which also required to be clearly brought down in the report.
2. Draft Business Plan (Research)
Business plan research is to develop a plan on the basis of research and analysis of internal and
external environment and analysing the impact of Bi-Cultural Partnership as embedded in
Waitangi Treaty upon the activities of business proposed. Business plan should include
stakeholders’ identification and communication plan. Business functions like operational, HR,
marketing, financial and risk management plans are also discussed in a good business plan. A
good business plan must consist ‘Vision and mission’ of the business organisation.
2.1 Internal and external environment
Environmental analysis is a strategic tool. It is a process through which all the external and
internal elements which affect the organization's performance are identified.
The analysis comprises assessing the level of threat or opportunity the factors might present.
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These evaluations are later translated into the decision-making process. The analysis helps align
strategies with the firm’s environment1.
A SWOT analysis is used to identify the key internal and external environmental factors that are
seen as important to achieving organizational goals. A good SWOT analysis will help an
organization minimize the weaknesses and threats while taking advantage of the strengths and
opportunities.
Analysis of environment is one of important tools in the hands of an organization with which it
can assess the impact of the elements, within and outside the organization, on the operations and
performance of the company. Evaluations made from the said analysis are effectively used for
taking decisions and making assessment of threats and opportunities.
2.1.1 Internal environment
The Internal Environment of an organization is composed of the elements within the
organization, including current employees, management, and especially corporate culture, which
defines employee behaviour. Although some elements affect the organization as a whole, others
affect only the manager. In other words an internal environment in business is a combination
of conditions, events, factors, and entities that lead to decisions within a company. Leadership
styles and organizational culture are parts of the internal environment.
The SWOT Analysis
SWOT is a structured planning tool that can be used to evaluate the strengths, weaknesses,
opportunities, and threats involved in running a business venture. Using a SWOT analysis can be
used to help a business determine the advantages or disadvantages of changes they want to make
based on internal and external factors2. A SWOT analysis can be broken into two distinct parts.
The strengths and weaknesses are based on internal environmental factors. Opportunities and
threats are based on external environmental factors.
1 Crawford, Ben. 2013. Built for caffeine.
2 Sarsby, A. (2016). SWOT analysis.
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A SWOT analysis is used to identify the key internal and external environmental factors that
are seen as important to achieving organizational goals. A good SWOT analysis will help an
organization minimize the weaknesses and threats while taking advantage of the strengths and
opportunities.
SWOT analysis acquaints and apprises of strengths, weaknesses of an organization. Strengths
and weakness both the effective tools to improve its performance and increase the business and
maintaining the quality of products to enhance its credibility in the market3.
SWOT analysis of the proposed Love Cafe
Strengths
Love Café needs to stand out from the rest as it will compete with other neighbourhood
favourites. To identify its strengths is to pinpoint its niche within the market such as serving
homemade desserts or having distinctive ambiance. At least one or two things will be identified
that will drive customers to the café repeatedly. The major strengths include engaging the experts
in the hotel management who have experiences in such a business. Its flawless location with
access to many customers is also an advantage.
Weaknesses
Every business has a weakness. It could be that due to its budget, it will have to keep its location
small or that it won't be able to order premium blends from overseas. Its weaknesses will be
those areas that it either does not perform well in, are missing the mark on or at an overall
disadvantage. It's easy and enjoyable to focus on the dynamic products and services it will offer,
however, it's just as necessary to consider those that could pose a problem.
Opportunities
Creating new opportunities is where it can plan for growth in products such as adding a "coffee
of the month" and special discounts for frequent customers. Both short-term and long-range
goals will be listed so that café can anticipate logistical needs for all aspects.
Threats
Competition is an obvious threat to the business, but there are other key factors, the café will
take into account. The café will keep on asking question itself "Will customers continue to
3 Sarsby, A. (2016). SWOT analysis.
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frequent coffee shops or is this fad?" and "How will product cost affect the business?" Café
house will anticipate potential threats to the business and list them out with strategies to meet
these probable threats.
Application of VRIO analysis to proposed LOVE Café
Valuable: Solid brand image – Yes, a solid brand image is a profitable asset that an aide in
developing the client base and an awesome notoriety is likewise useful for showcasing.
Unique flavours and nature of espresso – Yes, a significant asset for it is the essential reason that
clients rush to LOVE Cafe.
Client benefit – Yes, a profitable asset that supplements the nature of Cafe items and aides at
client maintenance.
Store condition – Yes, a profitable asset prompting increment in prevalence and useful for client
maintenance.
Store network – Yes, an exceedingly profitable asset that helps source great quality crude
material and holds the nature of items
Worldwide presence – Yes, a significant asset that makes LOVE Cafe more focused and more
grounded than contending brands.
Rare:
Solid brand image – Not so uncommon, yet a test for the contending brands.
Unique flavours and nature of espresso – Yes, the huge speculation goes into obtainment and the
formation of extraordinary flavours.
Client benefit – Can be accomplished by different firms as well. In any case, requires an interest
in staff preparing and uncommon core interest.
Store condition – Can be accomplished by different firms as well. In any case, requires an
interest in store cosmetics, staff preparing, and uncommon core interest.
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Store network – Difficult to accomplish for others in light of the fact that requires both venture
and methodology.
Worldwide presence – Difficult to accomplish for others on account of the huge budgetary
venture included.
Inimitable:
Solid brand Image – Difficult to copy yet conceivable in the long term.
Unique flavours and nature of espresso – Difficult to copy on account of the costs and system.
Client benefit – Somewhat hard to copy.
Store condition – Somewhat hard to mimic.
Worldwide nearness – Difficult to mimic in light of venture.
Organized:
Solid brand picture – Yes
Unique flavours and nature of espresso – Yes, Starbucks' flavours are all the rage and a critical
part of Love Café’ advertising and client maintenance system..
Client benefit – Yes, another critical truth that has made Love Cafe Popular.
Store condition – Yes, it is a vital part of Love Café' advertising and client maintenance
technique.
Production network – Yes, Starbucks sources 99% of its espresso morally. Remarkable quality
beans are sourced from around the globe giving the brand an edge.
Worldwide nearness – Yes, and it enables Starbucks to create high income
Value Chain Analysis
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2.1.2 External Environment
An external environment is composed of all the outside factors or influences that impact the
operation of business4. The business must act or react to keep up its flow of operations. The
external environment can be broken down into two types: the micro environment and the macro
environment.
 The micro environment consists of the factors that directly impact the operation of a
company5. There are five factors that affect the micro environment: suppliers, customers,
marketing intermediaries, financiers, and public perceptions.
 The macro environment consists of general factors that a business typically has no
control over6. The success of the company depends on its ability to adapt. There are six
factors that affect the macro environment, and these include economic, socio-cultural,
political, legal, technical, and environmental considerations.
.
For better understanding the external environment, PESTEL analysis is applied. A PESTEL
analysis is a framework or tool used by marketers to analyse and monitor the macro-
environmental (external marketing environment) factors that have an impact on an organisation.
The result of which is used to identify threats and weaknesses which is used in a
SWOT analysis. PESTLE is a mnemonic which in its expanded form denotes P for Political, E
for Economic, S for Social, T for Technological, L for Legal and E for Environmental. It gives a
bird’s eye view of the whole environment from many different angles that one wants to check
and keep a track of while contemplating on a certain idea/plan.
 Political: Government regulations and legal factors are assessed in terms of their ability to
affect the business environment and trade markets7. The main issues addressed in this
4 Harrison, Andrew L. 2013. Business environment in a global context.
5 Bhandari, Arabinda, and Raghunath Prasad Verma. 2013. Strategic management: a conceptual framework
Mennen, Miriam. 2010. Micro and Macro Environmental Analysis of the Health Care Sector in the US and
France
Suvák, Vladislav. 2018. Care of the self: ancient problematizations of life and contemporary thought.
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section include political stability, tax guidelines, trade regulations, safety regulations, and
employment laws.Changes in government policies and spending can affect the business.
 Economic – Through this factor, businesses examine the economic issues that are bound
to have an impact on the company. This would include factors like inflation, interest
rates, economic growth, the unemployment rate and policies, and the business cycle
followed in the country.
 Social – With the social factor, a business can analyse the socio-economic environment
of its market via elements like customer demographics, cultural limitations, lifestyle
attitude, and education8. With these, a business can understand how consumer needs are
shaped and what brings them to the market for a purchase.
 Technological: These factors pertain to innovations in technology that may affect the
operations of the industry and the market favourably or unfavourably. This refers to
automation, research and development and the amount of technological awareness that a
market possesses.
 Legal: These factors have both external and internal sides. There are certain laws that
affect the business environment in a certain country while there are certain policies that
companies maintain for themselves. Legal analysis takes into account both of these
angles and then charts out the strategies in light of these legislations. For example,
consumer laws, safety standards, labour laws etc.
 Environmental: These factors include all those that influence or are determined by the
surrounding environment. These factors are not limited to climate, weather, geographical
location, global changes in climate, environmental offsets etc.
PESTLE analysis can prove to be an effective for marketing plan and be used for analysing
the basic factors that define the foundation of a business's success at a fast pace. Time and
again, society adapts new traditions to follow and social media has a huge impact on the way
people think and act. Pestle analysis will be applied to the business of Love café and possible
impacts will be noted and strategies prepared accordingly.
Customer Analysis
Cadle, James, Debra Paul, and Paul Turner. 2011. Business analysis techniques:
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2.2 Bi-cultural partnership
The Treaty of WAITANGI is crucial agreement that was signed by representatives of the British
Crown and Maori in year 1840. The main purpose of the Treaty was to enable the British settlers
and the Maori people to live together in New Zealand under a common set of laws or
agreements9.
Bi-cultural partnership is partnership that reinforces collaborative sharing of knowledge, wisdom
and experience within the organization. Waitangi treaty provides a common set of laws or
agreements in this regard. As such Waitangi Treaty has great importance for any business
organisation and has enormous impact on the business activities and relationship of proposed
business, accordingly impact of bi cultural partnership10.
The importance of bi culture partnership in terms of Waitangi cannot be undermined in the
proposed business of Love Coffee House as nowadays the people of different communities will
be working together without any doubt and misunderstanding.
The proximity of the business to the sea provides accessibility to the premium blends from
overseas which also provide a good chance to upgrade the services
Love Coffee house will have to build up trust, positive working together culture, on the basis of
appropriatevalues and ethnical foundation.
The Love coffee house will have to undertake following activities to achieve its objectives.
Activity 1: Trust building: It will provide attractive trading terms to suppliers and provide
superior quality to customers as per there need.
Activity 2: Working Collectively:
Culture of working collectively will be developed.
Activity 3: Fulfilling the expectations of customers:
9 Orange, Claudia. 2015. An illustrated history of the Treaty of Waitangi.
Codman-Wilson, Mary Lou. 2012. Of bananas & hard-boiled eggs: thriving in a foreign culture through the
journey toward biculturalism.
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Love coffee house will be best quality products. By producing and selling super quality products
it will fulfil the requirements and expectations of the consumers.
Activity 4: Love Coffee House will follow all ecological laws and other environment regulations.
Activity 5: Partnership: Utmost good faith is the main characteristic obligation of partnership.
Love Coffee House will develop strong and successful partnership in the areas where it operates.
The organization’s name “Love Café” provides a catchy insight of the organization which
will play the role of drawing in customers. The nature of espresso is awesome to attract clients
and aims at maintaining the clients. The café’s network helps to source quality crude materials
and remain more focused. The brand name is difficult to copy hence will maintain their clients
and public image.
.
2.3 Stakeholder communication plan
Stakeholder is a person who is a person who has something to gain or lose through the
outcome of planning process or project11. The stakeholders who include the owners, managers,
employees, customers, suppliers, and the government all contribute to the running of the
business. The major communication channels will include the emails and phone numbers as
well as official letters for matters relating to the government12. A website for the café will also be
provided for communication.
First of all before proposing the communication plan internal and external stakeholders are
identified their and their relationship with business is outlined.
Internal stakeholders’ identified for the proposed business:
11 Southekal, Prashanth Harish. 2014. Implementing the Stakeholder Based Goal-question-metric (Gqm)
12
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The internal stakeholders expect to take part in all the business undertakings as they are the key
pillars.
 Owners: Owners may be proprietor, partners or directors. Investment in business is made
by them in the business. They are directly impacted by the profit gained or loss incurred
by the business organisation.
 Manager: They are the persons who are employed by the business organisation and are
responsible for managing the affairs of business.
 Employees: Persons appointed by the organization to carry out day today activities either
on regular or contract basis.
External stakeholders identified:
They expect to be involved in the business regularly as they play an important role in the running
of the business.
 Suppliers: Suppliers are persons or organisations that supply to the business organization
goods and material required to run the business.
 Customers: Persons who use products provided by the business organisation are termed
as customers.
 Government: Government policies have greater impact on any business. Government
brings acts and makes law with regard to fair business and protecting the interests of
consumers and employees too.
A stakeholder communications plan outlines who you need to communicate with, about what,
how you’re going to do it, and how often. There are also a few important considerations such as
timing and budget. An effective stakeholder communications plan will support your organisation
in achieving its stated goals and objectives support or improve your operational effectiveness
support or improve your relationships with those who are important to ensuring your success
(often called key stakeholders or your target audience) deliver measurable results to your
organisation. Stake holders’ communication plan is essential for proposed business for its
success13.
Freeman, R. Edward. 2010. Strategic management: a stakeholder approach. Cambridge: University Press.
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2.4 Business Functions
Business Functions business function comprise of following:
2.4.1 Operational plan:
The Operational plan the coffee house gives a picture of what generally goes into the day-to-day
activities of your coffee shop, and what goes on behind the cup of coffee your customers will
experience.
Objectives: In business, operational objectives (also known as tactical objectives) are short-term
goals whose achievement brings an organization closer to its long-term goals14. The main
operational objectives of love coffee house will be
1. Being a new business survival will be main objective.
2. To increase sales and revenue.
Strategies / tasks to be undertaken, persons responsible to implement strategies, timeline and
funds provided for each strategy have been depicted in the chart below;
Table 1
Strategies and the Responsible Persons.
Strategies Timeframe Person Budget
Lavinsky, Dave. 2013. Start at the end: how companies can grow bigger and faster by reversing their
business plan.
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Responsible
A significantly higher
quality, better tasting coffee
product. Daily basis Manager No additional
funds required
An ambiance superior to all
other coffeehousesa
Change in
ambience at three
months interval
Manager $ 1000
 The only coffeehouse
downtown to provide
evening entertainment. Weekend Manager Trophies $
200
 Conduct visits to schools Monthly Manager $1000
 Advertisement through
local media. Daily basis Manager $ 500
 Effect regular
communication with
members 18-25 through
newsletter
Daily basis Manager $ 1000
From above it is clear that for the success of business and achieving goals and objectives of the
business organisation developing of operational plan of the business is of vital importance.
Providing high quality coffee and evening entertainment will help to draw more clients.
Advertising it will also ensure that more clients have information about the services provided.
All the necessary components of a Model Operational Plan have been included in the
Operational Plan of Love Coffee House developed and hope its proper implementation will
certainly result in success of the business.
2.4.2HR Plan:
Human Resources plan is an important part of any business. Human resources play an important
role in the success of business. Human Resources plan for Love Coffee House is discussed as
under: The human resource will be responsible for recruiting qualified personnel and planning
the job responsibilities.
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Objectives of HR plan:
The following will be objectives of human resources plan
1. To appoint one full-time qualified and well trained manager
2. To appoint or hire other employees as per its need like Cashier and Part-time workers, Table
Attendants and Dishwasher. Staff for Marketing, Consulting, and accounting will however be
outsourced.
Strategies and tasks
The following strategies and tasks have been identified to be undertaken for human resources
plan.
To determine human resources requirement, this would involve the following:
* Writing for job specification and description of jobs which involve delegation of duties.
* Advertisement for jobs.
* Recruitment process viz. short listing, interview, selection and recruiting
* Hiring part time workers from the students earning money for college tuition or a trainee
on his first job.
Table 2
The persons who have the responsibilities of each of the strategy and task
Serial
Number
Strategy Responsible person
1 To determine human resources
requirement
Manager
2. Writing for job specification and
description of jobs
Manager
3. Advertisement for jobs Manager
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4. Recruitment process viz. short
listing, interview, selection and
recruiting
Manager
5. Hiring part time workers from the
students earning money for college
tuition or a trainee on his first job.
Manager
The timelines in which the strategies /tasks must be completed
Serial
Number
Strategy Time line
1 To determine human resources
requirement
2 weeks
2. Writing for job specification and
description of jobs
1 week
3. Advertisement for jobs 2 weeks
4. Recruitment process viz. short
listing, interview, selection and
recruiting
4 weeks
5. Hiring part time workers from the
students earning money for college
tuition or a trainee on his first job.
2 weeks
Table 3
Financial Cost Calculation and timespan
Manager Total package $40,000 On contract, 40 hours per
week
Cashier Rate per hour $ 20 30 per week time-time
position
Workers Rate per hour $ 15 part time 20 hr per week
Table 4
Calculation of the cost
Position No. of staff Hrs per week
Manager 1 40
Cashier 1 30
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Workers 4 20x4=80
Human resources plan for love Coffee House has been developed taking into consideration all
the key aspects like objectives of the plan, strategies and tasks to be undertaken, timeline for
each task and financial aspect of each strategy to make it practicable and success.
2.4.3Financial Plan
Financial planning for a business is the task of determining how the organization will afford to
achieve its strategic goals. Usually, an organization creates a financial plan immediately after the
vision and objectives have been determined. The financial plan describes each of the activities,
resources, equipment, and materials that are needed to achieve an organization's objectives as
well as the timeframe.
Developing a financial plan is critical to the success of any organization. It validates the business
plan, by confirming that the objectives set are achievable from a financial point of view.
Objectives:
1. To know about sales forecast, projected income, expenses and profit of the business
2. To know projected assets and liabilities
Strategies and tasks to be undertaken:
1. Sales forecast: A spread sheet will be set up projecting sales over the course of three
years. Set up different sections for different lines of sales and columns for every month
for the first year and either on a monthly or quarterly basis for the second and third years.
2. Create an expenses budget: It is need to understand how much it's going to cost to
actually make the sales you have forecast and prepare a expenses budget accordingly.
Expense budgeting is one of the important aspects of financial plan.
3. Develop a cash-flow statement: This is the statement that shows physical cash moving
in and out of the business. In a new business cash-flow projections will be broken down
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into 12 months. Use a separate business bank account to keep a clear record of the money
coming in and going out of the business.
4. Income projections/ Profit and loss statement: This is pro forma profit and loss
statement, detailing forecasts for your business using the numbers that are put in sales
forecast, expense projections, and cash flow statement.
5. Assets and liabilities statements: Projected balance sheet is needed which deal with
assets and liabilities and project the net worth of the business at the end of the fiscal year.
6. Breakeven analysis: The breakeven point ensures expenses match your sales or service
volume. If your business is viable, at a certain period of time your overall revenue will
exceed your overall expenses, including interest." This is an important analysis for
potential investors, who want to know that they are investing in a fast-growing business
with an exit strategy.
Draft Financial plan for Love Coffee House
Build an emergency Fund:
As part of budget, an emergency fund needs to be planned. Unfortunately we cannot plan the
unexpected. We just know that it will happen sooner or later. To cover in case of an emergency
(i.e. unemployment, injury, car repair, etc.) you need an emergency fund to cover three to six
months of living expenses.
An emergency fund does not happen overnight. It needs to be part of your budget and financial
plan.
Table 4
Strategies Timeframe Person
Responsible Funds
Sales forecast One year Manager No funds
required
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Creation of expenses
budget Three years Manager No funds
required
Develop a cash flow
statement One year with monthly
bifurcation Manager No funds
required
Develop income
projections
One year with monthly
bifurcation Manager No funds
required
Breakeven analysis NA Manager No funds
required
Build an emergency Fund For one year Manager As per projected
Table 5
Draft financial plan for Love Coffee House
Area of spend First year ($) Second year ($) Third year ($)
Cost of goods sold 209000 224000 234000
Operating expenses
Salary 60000 60000 60000
Rent 24000 24000 24000
Capital expenditure (furniture&
equipment)
10000
Misc. 3000 8000 5000
Operating expenses 97000 92000 89000
Total 306000 316000 323000
Table 6
Revenue forecast
Type of revenue First year ($) Second year ($) Third year
($)
Sales 296000 320000 340000
Investment / funding
Total 296000 320000 340000
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Table 7
Profit and loss forecast
Profit and loss forecast First year ($) Second year ($) Third year ($)
Estimated revenue 296000 320000 340000
Estimated costs 306000 316000 323000
Estimated profit/loss (10000) 4000 17000
Table 8
Balance sheet
Current Assets Ist year 2nd year 3rd year
Cash 3500 2000 2000
Inventory 3000 7500 6000
Total current assets 6500 9500 8000
Long term Assets
Property, Plant and equipments 10000 9000 8100
Accumulated depreciation 1000 1900 810
Net long term assets 9000 8100 7190
Total Assets 15500 17600 15190
Current liability
Account payable 4000 5000 2500
Others 200 300 300
Total current liabilities 4200 5300 2800
Long term liabilities
Capital and retained profit 11300 12300 12390
Total Liabilites 15300 17600 15190
The above financial plan for plan for Love coffee house will be helpful in financial management
of business affairs of the organisation.
2.4.4Marketing Plan
The Market plan plays a crucial role in the operation of the business and is very important
section ofa good business plan.
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Objectives of Marketing Plan
1. All the customers are satisfied with their café experience every month.
2. To have the break even by the end of the first half year.
The strategies and tasks that needs to be undertaken
1. Products of high quality will be carefully selected to the entire satisfaction of the customers
keeping in view their taste and demand.
2. The Products will be provided at reasonable rates.
3. Management will continuously monitor its daily sales revenue so that amendments can be
made where and when required.
4. The situation will be regularly monitored to ensure that funds invested are adequate.
5. Loyalty cards will be issued to regular customers and additional discount provided to these
card holders.
6. Special discount of 10 %to students.
Table 9
The persons who have the responsibilities of each of the strategy and task
Serial
Number
Strategy Responsible person(s)
1 Products of high quality will
be carefully selected to the
entire satisfaction of the
customers keeping in view
their taste and demand.
Manager
2. The Products will be
provided at reasonable rates.
Manager
3. Management will
continuously monitor its daily
sales revenue so that
amendments can be made
Owner/Manager
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where and when required.
4. The situation will be
regularly monitored to ensure
that funds invested are
adequate.
Owner/Manager
5. Loyalty cards will be issued
to regular customers and
additional discount provided
to these card holders.
Manager
6 Special discount of 10 %to
students.
Manager
Table 10
The timeline in which strategies/tasks must be completed
Serial
Number
Strategy
1 Products of high quality will
be carefully selected to the
entire satisfaction of the
customers keeping in view
their taste and demand.
On-going basis
2. The Products will be
provided at reasonable rates.
At all times
3. Management will
continuously monitor its daily
sales revenue so that
amendments can be made
where and when required.
Daily basis
4. The situation will be
regularly monitored to ensure
that funds invested are
adequate.
Weekly
5. Loyalty cards will be issued
to regular customers and
additional discount provided
to these card holders.
Three months and the
reviewed
6 Special discount of 10 %to
students.
Three months the reviewed
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Table 11
Provision of funds for each strategy/task
Serial
Number
Strategy
1 Products of high quality will
be carefully selected to the
entire satisfaction of the
customers keeping in view
their taste and demand.
No funds required
2. The Products will be
provided at reasonable rates.
No funds required
3. Management will
continuously monitor its daily
sales revenue so that
amendments can be made
where and when required.
No funds required
4. The situation will be
regularly monitored to ensure
that funds invested are
adequate.
No funds required
5. Loyalty cards will be issued
to regular customers and
additional discount provided
to these card holders.
$200
6 Special discount of 10 %to
students.
No funds required
Marketing plan for Love Coffee House has been developed taking into consideration all the main
components of a model and perfect business plan. Marketing plan is of greater importance for the
growth and profitability of the business and achieve strategic goals.
2.4.5 Regulatory and Compliance Plan
Regulatory compliance describes the goal that organizations aspire to achieve in their efforts to
ensure that they are aware of and take steps to comply with relevant laws, policies,
and regulations.
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Compliance refers to the complex set of processes, rules, tools and systems used by
corporate legal departments to adopt, implement and monitor an integrated approach to business
problems.
Objectives
1. To achieve organisational goal by complying the laws and regulations.
2. To avoid complications in business due to non-adherence to the rules and regulations and
policies of the government and statutory bodies.
The following strategies will be undertaken:
a) Tax compliance: On time Tax payments and submission of information to
the tax authorities on the required formats.
b) Environmental compliance: Compliance of ecological laws, regulations and norms.
c) Reporting compliance: Submission of compliance report in time to avoid penalties.
d) Human Resource management: Six HR compliance categories: payroll, benefits, risk &
safety, hiring, employee relations, and termination have been examined in survey and results
indicate that HR managers are confident to comply with payroll and benefits laws and
regulations.
Table 12
Strategies Timeframe Person Responsible Funds
 Tax compliance As per time schedule
fixed by tax
Accountant/
Manager
As per tax
liability
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department
Environmental
compliance On-going basis Manager $ 1000
 Reporting
compliance
As per schedule given
by concerned
department
Manager $ 200
 Human Resource
management Weekly Accountant/
Manager
As per
requirement
Love coffee House regulatory and legal compliance will be up to the marks. Tax payments and
necessary reporting on proper formats will be made on time. Ecological laws and other
environmental regulations will also be followed in true spirits.
2.3.1 Risk Management Plan (Business Continuity) Plan
Risk is an event that has a probability to occur. It may or may not occur. It may have either a
positive or negative impact to a project when it occurs. If either of these uncertain events occurs,
there may be an impact on the project cost, schedule or performance. It is through risk
management where tools and techniques are applied to monitor and track those events that have
the potential to impact the outcome of a project (Werther Jr and Chandler, 2010). Risk
management is an ongoing process that continues through the life of a project. It comprises of
processes for risk management planning, identification, analysis, monitoring and control.
Risk management plan is the document wherein the processes, tools and procedures that will be
used to manage and control those events that could have a negative impact on the project are
listed. This plan addresses • Risk Identification • Risk Assessment • Risk Mitigation • Risk
Contingency planning.
Objectives that is aligned with business and marketing strategy
1. To mitigate probability and impact of events adverse to the project.
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2. To exploit the positive impact of event to the project.
The strategies and tasks that needs to be undertaken
1. Risk identification
2. Risk responsibilities
3. Risk assessment
4. Risk response
5. Risk mitigation
6. Risk contingency planning
7. Tracking and reporting
8. Processes to Address Immediate Unforeseen Risks
Table 12
The persons who have the responsibilities of each of the strategies and tasks
Serial
Number
Strategy Responsible person
1 Risk identification All stakeholders
2. Risk responsibilities All stakeholders
3. Risk assessment All stakeholders
4. Risk response Identification: all
stakeholders.
Approval: Project manager
with concurrence from
CO/PO/COTR
5. Risk mitigation
6. Risk contingency planning Project manager
7. Tracking and reporting Project manager
Table 13
The timelines in which the strategies /tasks must be completed
Serial
Number
Strategy Timeline
1. Risk identification Any time
2. Risk responsibilities Regular basis
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3. Risk assessment Immediately
4. Risk response Immediately
5. Risk mitigation Immediately
6. Risk contingency planning On regular basis
7. Tracking and reporting Immediately
Table 14
The amount of financial resources provided to complete each strategy or task
Serial
Number
Strategy Financial resources
provided
1. Risk identification No funds involved
2. Risk responsibilities No funds involved
3. Risk assessment No funds involved
4. Risk response No funds involved
5. Risk mitigation No funds involved
6. Risk contingency planning No funds involved
7. Tracking and reporting No funds involved
Major risks identified and their mitigation
The following four main risks have been identified and their mitigation has been discussed .
 Natural disaster: A natural disaster is a major adverse event resulting
from natural processes of the Earth; examples include floods, hurricanes, tornadoes,
volcanic eruptions, earthquakes, tsunamis, and other geologic processes.
By obtaining insurance cover against natural disasters mentioned above risk can be can
be mitigated
 Damage to reputation: Is a competitor spreading nasty rumours about your business, or
has a customer’s negative blog post.
 Lawsuits: Wrongful termination, accidents and workers’ compensation, libel, and sexual
harassment are just a few of the many types of litigation that business owners may face.
To protect, purchase a business liability insurance policy that covers legal fees and any resulting
damages.
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 Illness, disability, or death. If you or a key partner or employee becomes ill, disabled, or
— even worse — dies unexpectedly, where would that leave business? When someone
who plays an essential role in your business is out of commission, whether temporarily or
permanently, it can put a major strain on operations and jeopardize the company. Make
sure that key persons have life, health, and disability insurance that covers them and their
family. Consider taking out key employee insurance on anyone who your business
couldn’t do without.
Risk management planning is must to save the business from collapse. An attempt has been
made to develop a perfect risk management plan of the proposed business of coffee house by
including therein risks the objectives of the plan, tasks to be undertaken, assigning the
responsibilities to stakeholders with timeline and funds allocation for implementation of
each strategy. Major potential risks have also been identified and their mitigation has also
been discussed.
2.4.6Mission and vision
Mission of Love Coffee House is growth with profit and the vision will make its best effort to
create a unique place where customers can socialize with each other in a comfortable and
relaxing environment while enjoying the best brewed coffee or espresso and pastries in town. We
will be in the business of helping our customers to relieve their daily stresses by providing piece
of mind through great ambience, convenient location, friendly customer service, and products of
consistently high quality. Love Cafe will invest its profits to increase the employee satisfaction
while providing stable return to its shareholders. Love Coffee House is to provide a substantial
income and to create a business and working environment where both the customer and
employee are treated with dignity and respect.
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2.4 Ethical considerations
Business ethics is a form of applied ethics or professional ethics that examines ethical principles
and moral or ethicalproblems that arise in a business environment. It applies to all aspects
of business conduct and is relevant to the conduct of individuals and entire organizations. In
other words moral principles that govern a person's behaviour or the conducting of an activity are
called ethics. Business ethics refers to contemporary organizational standards, principles, sets of
values and norms that govern the actions and behaviour of an individual in the business
organization.
Professionalism is the conduct, aims, or qualities that characterize or mark a profession or
a professional person.
An organisation’s s ethics helps to shape the behaviour of its employees. When a company
values integrity, fairness and honesty, every aspect of the business often improves. Ethics guide
how people conduct themselves in every aspect of their lives, including the workplace. Many
human resource professionals, as well as hiring managers, understand the importance of hiring
people of integrity (Hill, 2008). Honest, hardworking employees increase overall morale,
improve a company's reputation and help ensure a business's long-term success. So conducting
business ethically and striving to do the right thing are vital to the long term success of the
business accordingly adoption of ethical considerations and professionalism is relevant to the
proposed business Love Café House for its success. Ethical considerations and professionalism
identified for Love coffee House are:
1. Fairness indealings in business: Organisation should be fair in its dealings and transparency
must prevail.
2.Love coffee house will value integrity and honesty and hardwork: The organisation will
develop the moral values in its employees.
3. Good behaviour of managers and employees: The organisation will a sense of good behaviour
amongst its staff.
4. Creation of sense of trust and mutual respect among stakeholders by establishing healthy and
fair work culture.
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The following strategies have been suggested to develop ethical behaviour and professionalism
in Love Coffee House.
 Empowerment:
One way to improve the ethical climate of an organization is to give employees more power
over their work. If employees have an ethical code and more control over their work
outcomes, they are likely to justify your trust in them to make the right decision.
Empowerment also can produce better results from employees, such as more creative
solutions to business problems, when implemented effectively. Give employees a reason to
act more ethically and to be more innovative -- such as to keep their autonomy over their
work -- and you will also increase your company's efficiency. Strategy will be adopted in the
proposed Love Coffee House.
 Communication
Communication policies and procedures will be improved and made efficient in Love Coffee
House so that information will flow more smoothly and frequently between employees and
managersIt will help managers to communicate the expected ethical behaviours more clearly. It
will be ensured that any allegations are investigated promptly.
 Discipline
It cannot be expected that all employees comply with the ethics policy without some kind of
discipline. Consequences for violations of the ethics policy will be enforced in Love Coffee
House evenly, regardless of the offender's high or low status.
 Change:
Monitoring of ethics policy will be monitored on regular basis and necessary changes in rules
and procedures will be made in the organization, even it affects ways of doing things that
save time or money or increase profits. From a business standpoint, the short-term losses
should be outweighed by the resulting improvement in the long-term reputation of your
business.
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3. Conclusion
Business plan for Love coffee house has been drawn above keeping aligned with its objectives ,
goals, mission and vision of the organisation and all the necessary components of an ideal
business plan like discussion on internal and external environment, applicability of bicultural
aspect based on Waitangi treaty and stakeholders communication plan included in the business
plan sub components like operational, financial, marketing, HR and risk management plan with
special focus on working out strategies and their implementation for each sub plan based on
business ethics and professionalism. It is hoped that that business plan of Love Coffee House
will be of immense help for the success of the business and achieving the goals of the
organisation.
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