A Business Plan of Coffee Shop

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Acknowledgement

I would like to show my gratitude to all those people who have lend a helping hand to me in completing this study and without whom completing this project could have been an arduous task to do. Specifically, I would like to thank my friends, study mates, facilitator and family to provide impetus and constructive remarks about the initial drafts. I am indebted to all the authors, scholars and researchers who provide me with the mammoth amount of material and information to imbue knowledge and information in me.

ACKNOWLEDGEMENT2

EXECUTIVE SUMMARY7

1.1 Objectives8

1.2 Keys to Success8

1.3 Mission9

1.4 Company Summary9

1.5 Rationale for the Business Idea9

1.6 Structure of the Work10

CHAPTER TWO: BUSINESS CONCEPT12

2.1 Company Ownership12

2.2 Start-up Summary12

2.3Comapny Location and Facilities15

2.4 Product/Service Feasibility16

2.4.1 Identified Gap16

2.4.2 Product16

2.4.3 Product Description17

2.4.4 Product Feature17

2.5 Positioning17

2.6 Sales Literature18

2.7 Scale and Growth Anticipation18

CHAPTER THREE: FEASIBILITY19

3.1 Primary and Secondary Market Research19

3.2 Market Analysis Summary24

3.3 Market Segmentation25

3.4 Target Market Segment Strategy26

3.5 Industry Analysis28

3.5.1. External Analysis29

3.5.1.2 Five Forces30

3.5.1.2PESTEL Analysis31

3.5.1.3 Buying Pattern32

3.6 Marketing and Promotion32

3.6.1 Brand Loyalty33

3.6.2 Customer Retention33

3.6.3 Customer Information33

3.7 Organisational Feasibility34

3.7.1 Managerial Experience34

3.7.2 Expertise/Competency35

3.7.3 Training36

3.7.4 Skills Development36

3.7.5 Business Systems37

3.8 Financial Feasibility37

CAPITAL BUDGETING TOOLS42

3.8.6 Investment Appraisal43

3.8.6.1 Payback Method43

3.8.6.2 Net Present Value43

3.8.7 Breakeven Analysis43

3.9 Resource Requirement Evaluation44

3.9.1 Manpower44

3.9.2 Capital45

3.9.3 Technology Gap Recognition46

3.9.4 Planning47

CHAPTER 4: STRATEGIC ANALYSIS AND BUSINESS MODEL48

4.1 Strategic Analysis of the Business Idea48

4.1.1 Ansoff Matrix48

4.1.2 Kaplan and Norton50

4.1.3 Hamel and Prahalad52

4.2 Value Chain and SWOT53

4.2.1 Value Chain53

4.2.1.1 Primary Activities54

4.2.1.2 Support Activities55

4.2.2 SWOT55

4.3 Sources of Competitive Advantage and Sustainability56

4.4 Selection of Strategies for Success57

4.4.1 Recommendations for the scenario revealed from Porter 5 Forces Analysis57

4.4.2 Recommendation of strategy using SPACE Matrix57

4.4.3 Recommended Strategy Using Grand Strategy Matrix59

4.4.4 Recommended Strategy Using the Concept of Marketing60

4.5 Development of Appropriate Business Model60

4.5.1 Osterwalder: The Configuration of Activities to Implement the Chosen Business Strategy61

CHAPTER FIVE: BUSINESS PLAN63

5.1 Overall Evaluation of the Proposal of Business Development63

5.2 Business Plan Schedule63

5.2.1 Gantt chart64

5.3 Discussion of Critical Risks65

5.3.1 Success Factors65

5.3.1.1 Positive Growth in the Industry66

5.3.1.2 Diversity of Functions of Coffee Shop66

5.3.2 Failure Factors67

5.3.2.1 Big Brand Names67

5.3.2.2 Threat of Substitutes68

5.3.2.3 Different Drinking Habits68

5.3.2.4 Awareness among Consumers about Health and Wellness69

REFERENCES70

APPENDICES73

Sales Forecast73

General Assumptions74

Executive Summary

In this business plan, a business idea is put forwarded to open up a coffee shop. This coffee shop would be a multi-storey cafe that would entail different themes. There would be different floors for different market segments. Such as there would be one floor for youth with music, bright colours and a lot of entertainment options, one floor for intellectuals who want to go to a coffee shop to read a book or to indulge in healthy and constructive discussion and there would be one floor for women with fashion magazines and a projector that would display latest fashion. This coffee shop would be opened in commercial areas of London. This coffee shop would make the usage of technologically updated machines to make coffee to provide unique taste. The coffee shop would be a three storey shop located in Oxford Street, London. This building to open up a coffee shop would be obtained through ...