Strategic Analysis Report: Smith Coffee Shop Expansion in Belgium

This report examines the strategic considerations for Smith Coffee Shop's expansion into Belgium. It analyzes the challenges and opportunities, including logistical, ethical, and structural factors. The report assesses the choice of Belgium as a target market, considering its coffee culture and market competition. It delves into logistical challenges such as supply chain management and ethical considerations like fair trade. Furthermore, the report explores structural challenges related to management structure and personnel management, highlighting issues in information sharing and employee management. The report concludes with recommendations for addressing these challenges, emphasizing the need for an effective management structure and improved personnel management to ensure a successful expansion into the Belgian market. The report uses references to support the findings.

BUSINESS ESSENTIALS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
(1) Justification regarding choice of country, logistical, ethical consideration and structural
challenges for expanding........................................................................................................1
(3) Implications of needs for expansion ................................................................................2
CONCLUSION................................................................................................................................3
REFERENCES ...............................................................................................................................5

INTRODUCTION
For expanding business, there are various factors that has to be analysed such as micro
and macro. Thus, it is very important to analyse those factors so that strategies can be developed
accordingly. This report is based on Hank Marvin and Patty Smith, they want to open new coffee
shop in another country. For this they have to analyse which country will be the best for their
business to expand. Also, in this report the implication of needs for expanding business in
Belgium is discussed (Bloom and et.al., 2015).
MAIN BODY
(1) Justification regarding choice of country, logistical, ethical consideration and structural
challenges for expanding
Hank and Petty wants to open their coffee shop in Belgium, but there are many
challenges regarding expansion of business. So for this several aspects has to be taken into
consideration regarding the choice of country. These are as follows :-
Choice of Country : For expanding the business proper analysis must be done to identify
the country environment, rules and regulations, culture, etc. Hank and Petty is planning to open
coffee shop in Belgium. (Dawson and et.al., 2016). Hank and Petty has chosen Belgium to open
their coffee shop.
Belgium is the best country to expand business for Smith Coffee Shop. This is because
this country has a proper culture and people there like to drink coffee often. Apart from this,
Belgium has only few coffee companies so Smith coffee can expand their business.
Logistical Consideration: It refers to the supply of raw materials from the place to
origin to production. In order to open their coffee shop in Belgium. Smith coffee shop already
exists in London so they just have to supply raw materials from there. Besides this, they need
effective logistics management. As the coffee beans are imported from Uganda so it will increase
some cost to Smith coffee shop. Therefore, it must be consider by developing effective plan.
Apart from this, risk assessment and time management planning must be done to ensure proper
arrival of raw materials. This will help in meeting the demand of market and gaining market
share (De Jong, Maya and Van Lith 2015).
Logical consideration refers to developing a proper procedure on how expansion will be
done. For expanding business in Belgium, Smith coffee needs to have a proper plan and
1

strategy. They must decide on how they will promote their products and services. Without
having a logical consideration, this organisation cannot operate in Belgium.
Ethical Consideration: It refers to the values and ethics that is related to business
activities. It is related to moral principles of business that includes well being of employees and
their security. They provide effective training to employees by using the Baristas method.
Moreover, coffee shop works on specific theme of playing board games with customers in the
evening,
Belgium ethics are based on fair trade and equality. In addition, their employees respect
customer values and ethics. Therefore, in Belgium, Smith coffee has to operate in similar way.
They have to treat people with respect. Nevertheless, ethics of people of Belgium are different.
Therefore, employees must be provided training on how to deal with people.
Structural Consideration: It includes the structure of business through which operations
are performed by sharing information. In order to expand business a proper management
structure must be developed so that operations can be performed effectively. Smith coffee buys
coffee beans from Uganda. Belgium is one of the countries in Western Europe bordered by
France Therefore, Hank and Petty should ensure for searching the best location, layout and
transportation facilities. It will help in easy transportation of coffee beans. (Eisenberg, 2017).
The main challenge that is faced by Smith coffee in London is regarding the structure. It
is because this organisation does not have a proper structure so that operations can be performed
effectively. So in order to expand in Belgium, smith coffee needs to hire new employees. This
will increase their expenses.
(3) Implications of needs for expansion
For opening new coffee shop in Belgium. There are various things that must be implied
by Hank and Smith. It will help them to operate smoothly in Belgium and generating more
profits. There are many implications that must be consider by them. These are as follows :-
Management Structure: An effective management structure helps in integrating
operations so that goals and objectives can be achieved. It also helps in communicating with
other so that operations can be performed. In context to the case study Smith coffee shop is
having two coffees shops in London. But the management structure implemented is leading to
issues in sharing information. Thus, they must develop an effective structure so that it can be
applied at global level (Fiereck, 2015).
2

In order to expand their business in Belgium, the management structure that has been
implemented by Marvin and Smith is outdated. Therefore, even if they expand in Belgium, it will
be difficult for them to work with the existing system. In addition, if proper structure will not be
there, then information will not be shared effectively that might affect the operations (Klingner,
Llorens and Nalbandian, 2015). Therefore, in order to solve this issue, Marvin and Smith must
implement a new structure so that it can operate effectively in Belgium.
Issues of Personnel and Managing Staff- It is very important for business to identify and solve
employees issues so that operations can be performed effectively. It will also help in increasing
the efficiency of staff and creating a better organisational environment. Also, it is useful in
increasing customer satisfaction and treating them with respect. Smith coffee shop provide
training to employees on Baristas method. But they hire staff on the basis of areas such as their
attitude and behaviour.
Therefore, Hank and Petty should manage all issues in staff and personnel management
for the cafe.
 Personnel management issues consists of poor motivation and hiring of employees.
 The basis for recruiting and selection of staff is issues faced by business.
 Issues of personnel management like planning of manpower.
 These issues are affecting staff management for establishing the new cafe in Belgium
(Tucker and Rennie, 2014).
These issues are arising due to poor management structure. Due to this, employees are
unable to work and coordinate effectively. In addition, Marvin and Smith are not having proper
structure of hiring employees in organisation. Therefore, it is necessary to solve this issue so that
coffee shop can be operated effectively in Belgium. If this issue is not solved then it will lead to
decrease in customer satisfaction and Smith coffee shop will lose their market share.
CONCLUSION
In this report, it is concluded that for expansion of business in other countries several
aspects must are considered such as ethics, logistics, etc. so that business operations are not
affected. It will help in analysing them so that perfect location can be selected. Company must
have proper structure and management so that it can be implemented in similar manner. Hank
3

and Petty are planning to open coffee shop in Belgium (Proserpio and Zervas, 2017). But they
are facing several issues related to structure and personnel. Thus, it must be solved before
expansion so that operations are not affected. Also, it will be beneficial in hiring candidates and
providing proper training to them.
4

REFERENCES
Books and Journals
Bloom, N. and et.al., 2015. The impact of competition on management quality: evidence from
public hospitals. The Review of Economic Studies. 82(2). pp.457-489.
Dawson, L. and et.al., 2016. Addressing ethical challenges in HIV prevention research with
people who inject drugs. Journal of medical ethics, pp.medethics-2015.
De Jong and et.al., 2015. Prenatal screening: current practice, new developments, ethical
challenges. Bioethics. 29(1). pp.1-8.
Dresang, D. L., 2017. Personnel management in government agencies and nonprofit
organizations. Routledge.
Eisenberg, M. A., 2017. Legal models of management structure in the modern corporation:
Officers, directors, and accountants. In Corporate Governance (pp. 103-167). Gower.
Fiereck, K., 2015. Cultural Conundrums: The Ethics of Epidemiology and the Problems of
Population in Implementing Pre‐Exposure Prophylaxis. Developing world bioethics. 15(1).
pp.27-39.
Klingner, D. E., Llorens, J. J. and Nalbandian, J., 2015. Public personnel management.
Routledge.
Proserpio, D. and Zervas, G., 2017. Online reputation management: Estimating the impact of
management responses on consumer reviews. Marketing Science. 36(5). pp.645-665.
Senathip, T., Mujtaba, B. G. and Cavico, F. J., 2017. Policy-Making Considerations for Ethical
and Sustainable Economic Development. Economy. 4(1). pp.7-14.
Tucker, J. D. and Rennie, S., 2014. Social and ethical implications of HIV cure research. AIDS
(London, England). 28(9). .p.1247.
5