Business Case Study

Despite many challenges on the product being accepted in a foreign country, time is required for the product to be tested and demand shoots after some time. Café culture, lifestyle, coffee drinker’s facts The cultural and lifestyles in Germany has attracted a relative number of tourists that are visiting compared to other countries hence setting a coffee shop is a viable idea. The coffee shops will be set since the tourist's demands are high in the European Union countries. It has proved to be the third largest market for coffee after USA and Brazil for the deep coffee culture (Bekker, 2008). The Germans like coffee thus increasing the consumption of coffee in the country hence improving markets for businesses. Most tourists from the neighboring countries may pass and meet in Germany in their journey to touring other countries (BEKKER, 2008).

The Germany wide roads and high speeds of networks as well as modern airports with efficient ladings and personnel have helped a lot in the transport the coffee to other countries thus earning revenues. Location logistics- deliveries and customers to provide your services/products The better location factors favor the profitability of the business. Planes from London have a direct line to Germany hence the cargos are being transported through air transport due to perishability nature to some of the products. The delivery of coffee is now efficient as it can be delivered to where it is required without any delay. Marketing strategy is also very important to popularize the coffee and realize profits too. Since this coffee is in its initial stages of introduction to the German market, it will not be sold at the same price like established markets for coffee.

The selling prices in the in the UK will be slightly more because of the established market. The expenses in the production are relatively high and therefore the need to make a profit will ensure they sell higher than Germany to stabilize the German market. For instance, as little as 3 euros one may buy coffee in the UK. The efficient road networks similarly will ensure people visit the premises efficiently hence in one way or another are enticed to buy the product. They will also involve in the promotion of the product through advertisement, road shows and will increase sales. Many people like trying a new product in the market to gauge the differences from the usual one. If they find it better they may change to that product thus, setting the business with unique products will help in promoting the product.

Transporting the processed coffee nearer to the customers requires an efficient and elaborate transport system that is present in Germany thus makes it to the most selling coffee country. A service delivery has to be developed before expanding. This means that the business has competed favorably in the market, more profit has been made and thus the need for expansion. The management has to employ additional staff and purchase additional supply with the hope of competing with other firms to gain the competitive advantage. Impacts on Management Structure The management will make all the decisions regarding all the operations of the business. Every firm has its unique management structure that is liable to any operations contrary to the set objectives. Knowledge is paramount on the business operations whereby branding the café to attract customers over the whole globe.

The product should speak for itself to the customers and client hence it is within the powers of the management to bring the business to level that it competes favorably with others. The Marvin and Smith’s coffee shop management will collaborate with internet providers to ensure their marketing strategy and sales will be done through an online platform. The senior management will evaluate and manage all the risks associated with the business and provide all the possible solutions from the business point of view. Competitive Advantage Marvin and Smith’s coffee café compete fairly with the other businesses that are offering the same product. The researchers and students will be attracted by the free services as they can do their research in the comfort of taking coffee.

They will also provide unique themed weekends or game night that will attract many customers into the premises and as a result, they will buy coffee. This makes the coffee more popular and profit margins will be realized as a result of increased sales. All these factors will bring the business to a competitive advantage. Evaluation of how their profits and liquidity may impact on decisions available to them Gross Profit The business can do well without any deductions that are made such paying loans to lending institutions. The Return on Capital Employed (ROCE) and its meaning The return on capital employed measures how the business is efficient and whether it is making profit or loss. It is also all that the business has used in order to generate the profit that makes it relevant to operation.