Business Plan of Coffee Culture-Free-Samples-Myassignmnthelp.com

Question: Discuss about the Development and Implementation Business Plan of Coffee Culture. Answer: Company Overview Coffee culture is a company which sells coffee and some other beverages and snacks in a 2000 square feet coffee bar located in Sydney, Australia. The owners cumulatively own 70% of the total company. Objectives of the company are to be selected as the best coffee place in the area by restaurant guide and to turn its profits in the very first month of the operations[1]. The values of the company would be to respect the culture of the clients, always work in harmony, work ethically, perform good to sustain in the market and imbibe great culture within employees. The mission and vision of the company would be to create unique place for the customers, to help the customer relax and release their stress, provide great ambience, employee satisfaction and providing returns to the stakeholders[2]. Company ownership: Coffee culture is registered as Limited Liability Corporation in Sydney. It has two owners Chris and Todd. Chris is 51% partner of the company. Todd also shares the other parts in company. Stakeholders include local government, business enterprises and health and other institutions. Start Up Summary The start up expenses includes: Legal Expenses for licenses. Insurance coverage of $2,400. Consultant fee of $3000 Other expenses include stationary and phone deposits of $3000 approx. Products and Services Coffee culture offers its customers the best coffee in the area. Coffee is made up of the high quality ingredients and follows strict preparation guidelines. It will provide espresso drinks, brewed coffee, teas and refreshment beverages. All types of coffee with skimmed milk or high fat milk will be served. With coffee and other beverages, snacks like sandwiches are also served. Market analysis Australian coffee consumption is on the steady growth. Coffee lovers within Australia are huge in number. Gourmet coffees demand is also huge and appreciated by people. Australia, being the place where the weather is pleasant all over the year except for one or two months being hotter, coffee is the drink which is in demand by all the people. Coffee culture though will have to strive to build a loyal customer base by offering a great tasting coffee in a relaxing environment. Market Segmentation Coffee culture will focus on the marketing activities so that it can reach the maximum number of people. People working in the offices or even the college students who want to relax in a good ambience, should be able to find only one place for the relaxation, and that should be Coffee Culture. The market analysis study states that this age group of people is more prone to buy to look forward for coffee products[3]. Target Market strategy Coffee culture will cater to people who want to go for the daily great tasting coffee in relaxed atmosphere. Colleges students are the major target for coffee culture as this age of people are always looking forward to relax and enjoy. A unique possibility of maintaining a positive and huge client base is the target. Competitor Analysis Australia is one of the major coffee consuming countries. Almost 75% of the coffee consumption is instant. Nestle Australia sales let the coffee sales share to the value of 58%. Nestle still continue to dominate the market holding an 82% value of shares. Nespresso brand has 77% value of shares.[4] All these brands believe in the innovation to bring something new to the market and keep developing themselves. To come up with new strategies to compete with such big brands is the new possibility for Coffee Culture. The prices in the starting will be kept low to survive and to attract the customer base. Strategy and Implementation Summary Coffee cultures marketing strategy will be focused on getting the new customer base, retain its current customers and getting customers to spend more time at the coffee shop. The ambience should be the way that the customers are prone to visit again and again. Establishing a new customer base is a huge and good paramount. Competitive Edge Coffee culture will be unique as it will not only provide brewed coffee but also provide the ambience for everyone. Comfortable sofas, romantic lights and relaxing music will be the key features of the ambience. Sales Strategy Strategy for sales is to speed up the service by involving two employees at the same time. One who will prepare customers order and the other will take the charge for the transactions[5]. Sales Forecast Costs are assumed at 20% for coffee beverages and 45% for retail pastries. Web Plan Summary The website of Coffee Culture will be attractive as it will have different kind of menus as well as special offers on special occasions like Valentines Day or Christmas. Strategy would be to take the database of the current customers in order to send the mails for attractive discounts and offers. Management Summary Coffee culture is majorly handled by Chris and Todd. Chris did his management degree in Hospitality Management and Todd being his friend and an Engineer, will speculate the architecture and internal system of the business. The management team will involve a full time manager who has 5 years of work experience in this field. Responsibilities include developing and marketing strategy, Dealing with materials and all other managerial duties. Management Gaps Despite having the experienced managers and owners, the industry will retain the consulting services of espresso services. The consultants who have helped build the companys customer base and coffee culture[6]. Financial Plans Coffee Culture will capitalize the strong demand for quality coffee. Owners have provided the company with the sufficient startup cost capital. Coffee culture will maintain a healthy 60% margin which is enough cash for the company to grow[7]. Cash Flow Cash flow will be healthily managed which will allow timely debt servicing and funds available for future. Break even Analysis With average fixed cost of $20,300 in FY 2010 and average margin of 65%, the break even analysis would be $31,300 per month. Projected profit and loss Annual projected sales of $584,000 in FY 2010 translate into $24.00 of sales per square foot, which is in line with the industry averages for the size of coffee bar. Sustainability Summary The environmental impacts can be deforestation, water pollution, agrochemical usage etc. The triple bottom line includes three things: People, planet and profit.[8] Trading of the raw materials should be done in a way that the farmers get their share fairly, environmental impacts should always be taken care of and profit is the last thing which coffee culture desires after satisfying its customers. Bibliography Bora B, Borah S and Chungyalpa, Crafting Strategic Objectives: Examining the Role of Business Vision and Mission Statements (2017) 6(1) Journal of Entrepreneurship Organization Management. Akeem A, Fatai Alani, Agwu, Vision and Mission in Organization: Myth or Heuristic Device? (2016) 4(3) International Journal Of Business Management. Bose Tarun Kanti, Market Segmentation and Customer Focus Strategies and Their Contribution towards Effective Value Chain Management (2012) 4(3) International Journal of Marketing Studies. Impactbnd, How to Do a Competitive Analysis in 5 Easy Steps (4 April, 2017) https://www.impactbnd.com/blog/5-ways-to-perform-a-competitive-analysis-establish-your-presence Kiumarsi, Jayaraman, K, Salmi mohd Isa and Asra Varastegani, Marketing strategies to improve the sales of bakery products of small-medium enterprise (SMEs) in Malaysia (2014) 21(6) International Food Research Journal. Smepals, 5 Great Gap in the Market Start up Ideas (12 November 2015) https://smepals.com/startup/5-great-gap-market-startup-ideas Note, Financial Planning Research Journal (2016) 2(1) Journal of Financial Planning of Australia Golfenvironment, Sustainability Summary (December 2015) https://www.golfenvironment.org/assets/0003/8479/IF_Sustainability_Summary_web.pdf Bora B, Borah S and Chungyalpa, Crafting Strategic Objectives: Examining the Role of Business Vision and Mission Statements (2017) 6(1) Journal of Entrepreneurship Organization Management Akeem A, Fatai Alani, Agwu, Vision and Mission in Organization: Myth or Heuristic Device? (2016) 4(3) The International Journal Of Business Management Tarun Kanti Bose, Market Segmentation and Customer Focus Strategies and Their Contribution towards Effective Value Chain Management (2012) 4(3) International Journal of Marketing Studies Impactbnd, How to Do a Competitive Analysis in 5 Easy Steps (4 April, 2017) https://www.impactbnd.com/blog/5-ways-to-perform-a-competitive-analysis-establish-your-presence S. Kiumarsi, Jayaraman, K, Salmi mohd Isa and Asra Varastegani, Marketing strategies to improve the sales of bakery products of small-medium enterprise (SMEs) in Malaysia (2014) 21(6) International Food Research Journal Smepals, 5 Great Gap in the Market Start up Ideas (12 November 2015) https://smepals.com/startup/5-great-gap-market-startup-ideas Note, Financial Planning Research Journal (2016) 2(1) Journal of Financial Planning of Australia Golfenvironment, Sustainability Summary (December 2015) https://www.golfenvironment.org/assets/0003/8479/IF_Sustainability_Summary_web.pdf