Elma and Henry Smith having worked together for years in the food and catering industry and having the same dream to run their own business decided to open their own coffee shop.Elma and Henry spent 12 months researching and planning the details of their coffee shop to decide on the best location, who their target market was,how much capital they would be able to raise,hey competitors, what suppliers they would use and what products and services they would offer in their coffee shop and so forth. Then in January 2015 Flitz and Smith\’s coffee shop was opened in Islington in North London.
In order to stand out from other coffee shops that seem to be flooding the market in London, Elma and Henry decided on the following:
:To use the finest coffee beans from the Fairtrade Growing Women in Coffee Foundation in Kenya which focuses on enabling female farmers in Kenya to earn an independent income and to run their own farmers (Fairtrade,2015)as research had shown that ethical concerns were high amongst potential customers in this location. High-quality tea and herbal infusions would also be sourced from the Fairtrade Foundation in Kenya.
: To offer an environment that is both relaxing with a Kenyan feel to it (to continue the Kenyan influence ) as well as being practical for customers\’needs (including access to a power point socket for charging phones/laptops,etc.and WI-FI)
; to ensure that staff (including Baristas)were trained to the highest standard and were offered a wage and development opportunities that were above and beyond their competitors.
: to offer themed evenings such as board game night and chat with Nanna (for a chat and advice).
Filiz and Smith\’s coffee shop has a strong ethos of promoting fair trade and equality and expect their staff to respect and value these beliefs and to promote and demonstrate such attitudes and behaviour in the workplace. Staff are also expected to help out with the themed evenings where applicable such as playing short board games if customers have no-one to play with. These are areas which they highlight during the recruitment process.
Since their initial shop opening , Filiz and Smith\’s have opened an additional three coffee shops in and around London. However ,the initial information system that was set up for the coffee shop was only structured and set up to manage the information with regards to one or possibly two coffee shops. Elma and Henry are therefore beginning to realise that this initial information structure is quickly becoming outdated in terms of their business needs because of their continued expansion. As the demand for their Kenyan inspired coffee shop with themed evenings increasing and because International tourists have even started seeking out these coffee shops, as they are becoming known abroad , Elma and Henry have decided to focus on an overseas expansion plan.
Elma and Henry have therefore decided to focus on an expansion plan and want to open up one of their coffee shop in a European Union country. However ,they are unsure as to which of these countries to expand their coffee shop into and have asked you to carry out and write up your research.
Income Statement for Filiz and Smith\’s for the period ended 31st December 2015.
Less Cost of goods sold…………….F360.000
Less Closing Inventory……..(8,000)…(152.000)
Gross Profit ………………….. 208,000
Salaries and Wages ….. 34.000
Rent and Rates….. 80.000
Other expenses ……………8.000
Depreciation- Equipment….. 6.400
Depreciation- IT Equitment …..4.000
Statement of Financial position as at 31st December 2015 for Filiz and Smiths Coffe shops.(2).
value / /value
Fixtures and Fitings/40.000./..8.000./…32.000
Drawings….. (20.000) 6.800
Total capital and liabilities.. 113.000
A.Elma and Henry raised the 100.000 capital through friends ,family and personal loans. They each raised f50.000
B.The second shop opened after 6 months, the 3rd and 4th opened after 9 months.
C.Coffee machines and associated equipment cost f5,000.Each shop has two machines.
D. IT Equipment includes all required Wi-Fi computers.
E. The business currently has no formal loans or external debt.
ANSWERS ALL OF THE FOLLOWING QUESTIONS.———————————-
Research and decide on country (within the European Union) that Filiz and Smith\’s coffee shop could expand infor..Justification for your choice must be given regarding choice of country,logical considerations ,ethical considerations and the structural challenge of expanding into that country.
2).Present a tailored marketing mix in relation to the coffee shop expansion plan abroad.
(Approx, (300-400 words).
3).What are the implications of the need for Filiz and Smith\’s to cover a wider geogeaphical area in terms of a different country?Consider any impact this may have on any two of the folloeing and show how these issues are interlinked;
d)Gaining competitive advantage.
e)Personal and managing staff issues.
(Approx,250 wordsper each point)
4). Using the following financial information,evaluate how their profitability and liquidity may impact on decision available to them.
5)Write a concluding paragraph about the overall viability of overseas expansion at this stage.
Case Study Assessment;
Structure of the task.
Q1 Justify chosen country;
;Why this country?
;Ethical considerations- Fairtrade adoption,staff welfare etc. and way?
;Structural consideration-location,layout,transport,etc and why?
;Logistics -based on location – supplier deliveries ,customers to provide your services/
products etc and why?
Q2 MARKETING MIX.
A.ELABORATE AND LINK ( to Q1 and case study)to coherently justify tailored marketing mix.
Q3 What are the implications of the need for Filiz and Smith\’s to cover a wider geographical
area in terms of a different country ?Consider
any impact this may have on any two of the following and show these issues are interlinked;
a)information system,b)organization culture.c)management culture.d)gaining competitive advantage.e)personal and managing staff issues.f) supplay chain.
Whichever 2 you pick look back to Q1 AND q2 as well as the case study material to inform and enhance ideas you present here.
Q4.Using the following financial information ,evaluate how their profitability and liquidity may impact on decision available to them.
1.Identify ratios and values for;
a.gross profit and analyse what it means;and
b.net profit and analyse what it means.
2.Identify Return on Capital Employed (ROCE)and analyse what it means
a. Current ratios and analyse what it means
b. Acid test ratio and analyse what it means
Q5. Write a concluding paragraph about the overall viability of overseas expansion at this stage.
DO LAST once all previous 4Qs done.
and now something from me Mr writer;
Ariel Size 12
Word document (not pdf)
1,5 line spacing
first page of sheet please leave empty to write down some infor. about topic, tutor, student ID number etc.
Harvard referencing system and any research online for materials in regard to task should be referenced on the last page of sheet.
Less Cost of goods sold…