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Question

This 1500 word assessment allows you to explore how important an effective Business Plan is to the potential success of a business: how it can clarify your business idea, help to define your long-term objectives, and how it is vital for convincing a bank or an investor to support the business.

The assessment will test your skills in a number of ways, for instance:

• Your knowledge of the syllabus
• Your ability to apply those concepts in a practical situation
• Your understanding of the concepts behind the development of suitable market research and sales planning
• Your ability to identify key areas for research
• your ability to display good, clear professional writing skills

The Business Plan will include the following:

1. An Executive Statement (10 marks)

2. A vision, or mission statement (10 marks)

3. A Market and Competitor Analysis (25 marks – maximum 600 words)

4. A Sales and Marketing Plan (25 marks – maximum 600 words)

5. Presentation Skills: Further marks will be awarded for presentation style, use of correct referencing and professional and persuasive writing skills

 (10 marks)

6. A further 20 marks will be allocated for effective use of the Phase 3 Supplementary Information that will be released on the VLE on the morning of January 8, 2014.

Solution

Through this paper an analysis of Tony's Coffee Emporium has been attempted.  Tony's Coffee Emporium sells three kinds of coffee namely Italian, Jamaican, and Indian. Tony's Coffee Emporium is enjoying almost 100% market segment. In fact they are enjoying a monopoly position in the market. There is another shop with merely 2% market segmentation. The biggest opportunity that faces Tony's Coffee Emporium is its strategic location, which has given it the uniqueness to cater to a very wide range of customers. This paper analyzes the financial position of the organization and the various challenges and threats it faces. The paper also analyzes the various opportunities that the organization can make better use of.

BUSINESS EXPANSION PLAN OF TONY'S COFFEE SHOP

An Executive Summary Of The Plan

The Product

Tony's Coffee Emporium sells three kinds of coffee namely Italian, Jamaican, and Indian. The coffee seeds are procured from M/S James & co., one of the best known and reputed dealers in coffee seeds in the world. Other ingredients viz, condensed milk, and chocolate are procured from M/S Nilgiri, an India based dairy farm, which is counted among the best dairy product manufacturers in the world. These chosen ingredients make the coffee-drink produced by Tony's Coffee Emporium tasty and healthy. The kitchen, where the grinding, blending, and mixing is done is absolutely dust and moisture proof. This makes zero presence of any unwanted element in the drink to be served to the customers.

Opportunity

The biggest opportunity that faces Tony's Coffee Emporium is its strategic location, which has given it the uniqueness to cater to a very wide range of customers. Its location neighbors are big land-marks of the city, namely, railway station, shopping plaza, football ground, park, cinema hall, and a primary school. It has the potentiality to become a favorite hang-out for the people visiting the above mentioned places.

Opportunity In The Market

There is vast opportunity to expand its market due to the following reasons;

1. i) there is high demand for good quality coffee among the Londoners and others visiting this part of the city,
2. ii) no coffee shop in the vicinity can parallel the taste of the coffee served by Tony's Coffee Emporium, neither their service to customers can be matched by other shops,

iii) the shop's strategic location makes the demand for its product fairly steady and rising,

1. iv) the area is in need of a warm and friendly place where customers can relax in elegant lounge, comfortable furnishing and décor with soothing warm tones.
2. v) the shop will remain open seven days a week, and will offer special theme nights,
3. vi) the garden setting will be a fun and a casual atmosphere for the summer crowd.

Financial Projection

Annual financial involvement

Revenue	37500pound
Direct/variable cost	15000pound
Contribution margin	22500pound
Overhead	10000pound
Profit	12500pound

Funding Requirement

The firm needs 100000pound soft loan to support the expansion project. Break-even point will be reached at the end of third year, from which onward profit shall start to occur. (Anon 2004)

Management skill

The partners of Tony's Coffee Emporium, namely Tony has experience in working in a large London hotel, whereas John has worked as marketing manager of chain of health club. So they have enough management skill to run day-to-day operation of the business as well as taking long-term managerial decisions.

Mission and Vision statement

Mission

 i)To ensure that each guest receives prompt, professional, friendly, and courteous services

ii)To maintain a clear, comfortable, well-maintained premises for all the guests and staff.

iii)To provide at a fair price—nutritional, well flavored, tasty coffee—using only quality ingredients.

iv)To ensure that all guests and staff are treated with the respect and dignity they deserve.

v)To thank each guest for the opportunity to serve them.

By maintaining these objectives Tony's Coffee Emporium shall be assured of a fair profit that will allow

them to contribute to the community we serve.

Vision

'Our coffee shop will change the way you think about 'a cup of coffee' . Tasty and healthy coffee, full service comfort, friendly staff and relaxing atmosphere and the best prices in the town give you an experience that will leave you serene.

Market and Competitor Analysis

Tony's Coffee Emporium has developed a data base of present customers who consume on a regular basis and customers who have consumed only occasionally as the opportunity presents itself. Research conducted by them has verified that there is a market segment large enough to justify the investment intended. A significant number of consumers are concerned about where the ingredients are coming from, what are the process involved etc., which shows they are internalizing the experience they are having while having Tony's coffee. The following figures emerge from the analysis;……

 

 

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