BUSINESS REPORT

New Business Assessment Report



New Business Assessment Report

Task A

Introduction

Start-up coffee and bakery retail by the name of Joy's Jawa & Bakery (JJB) is planned to be established in the various areas of UK, starting with establishing first bakery retail in Edinburgh, Scotland. The bakery is expected to capture the interest of the target market by its wide range of pastry and coffee products. JJB plans to acquire larger market share of the target customer base because of the industry experience of partners as well as the increasing demand for bakery products and hot beverages. The business is aimed at serving the upper and middle income local residents as well as tourists.

The Corporation

Joy's Jawa & Bakery will be established in the Edinburgh, Scotland with equal ownership and management by its two partners. Mr. David Peterson is highly talented and experience in various business areas including marketing, sales, and management; since he was the vice president of marketing in The Bakehouse Co and Circle Cafe. On the other hand, Mr. Ronald Roy will provide experience and skills in the areas of administration and finance, as he was the chief financial officer at national coffee store chain, Beanscene.

Products & Services

Joy's Jawa & Bakery will provide a wide range of espresso and coffee products, which will all brewed by using superior quality Columbian grown imported coffee beans. So, the bakery will serve all of its customers by offering espresso and coffee products to each of the customer that would suit them, down to the smallest detail. In addition, JJB will also offer fresh pastry items and other bakery products at all times throughout the business operations.

The Market

In the United Kingdom, the retail coffee market has recently experienced swift growth. United Kingdom's climate remains cool marine type, particularly Edinburgh has a temperate maritime climate. The summers are moderate and the winters are mild, although the weather can get chilly at times, which stimulates the demand for hot beverages (WWO, 2013, n.d). Therefore, this area is chosen to establish JJB, where the bakery intends to create large customer base. In order to meet this goal, the business will concentrate its marketing and business strategies on local residents as that will be the central target market of JJB. This will lead to a healthy and steady revenue base for ensuring sustainability and growth of the bakery. Besides, the business is also expecting tourist traffic to consist of approximately 35 percent of the income, based on the market analysis. Highly competitive and high visibility of products and services are critical for capturing the interest of this market segment.

Material, Labour, & Other Expenses

The costs and expenses associated with materials, labour, and other general and administration expenses will be incurred by undertaking certain assumptions. So, the financial plan for JJB is based on significant assumptions including following:

It is assumed that the economic growth will be slow, without major slump.

It is assumed that there will not be any unexpected changes in technology which would make our ...