Hank Marvin and Patty Smith Coffee shop Case Study

Document Type:Case Study

Subject Area:Business

Document 1

This is based on the fact that such businesses experience stiff competition from rival businesses dealing in similar products. Proper management, however, will enhance favourable competition and market dominance. It is important to note that coming up with a new business idea in a foreign country may be hard to come by but with the availability of flowing capital as well as the proper business environment, such a project can be a success. European countries have become the epicentre of coffee consumption. For example, the streets of major cities across Europe have been dominated by cafés. According to recent research findings, Germany is regarded as the 3rd largest market for coffee on behind the US and Brazil. Funnily enough is the fact that coffee is consumed more than water and alcohol in this country.

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Based on these facts, Germany, therefore, presents an enormous market for coffee cafés. Studies posit that the young coffee drinkers are the ones that offer a booming market as they consistently crave for more coffee. Besides, in Germany, owning a coffee machine is somewhat considered as a status symbol. Therefore, the welfare of staff members occupies a precious part in the Germans. Structural considerations- Location, layout and transport The fact that Germany is centrally located offers it with an advantage over other European countries. Geographically, Germany is surrounded by countries such as Poland, Ukraine, Italy, France as well as the United Kingdom. Therefore, its layout is proximal to the neighbouring countries. Evidently, there are high probabilities of tourists destined to other countries stopping in Germany before they can proceed with their journey.

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Otherwise, the cafés in this region will always boom through continuous supply of consumer goods. The Marketing Mix Product The coffee that Hank and Patty's shop will be dealing with is that containing the flavour from East Africa. This product is characterized by a special and unique mix of ingredients found in the finest coffee beans originating from Gumutindo Coffee, a fair trade supplier that has its base in Uganda. The cafeteria may decide to offer the coffee to the customers while relaxing. On the other hand, the consumers are also entitled to take ways. This will be aimed at ensuring that the couple's coffee shop survive at the early stages of its establishment in another country. An example of this situation is where an original price in Britain is at 2.

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8 Euros, in Germany, it will be lowered to 2. 6 Euros. On the other hand, the resulting price after the lowered one for the sake of the Germans will be at 3 Euros in the UK to cover the expenses in Germany. The distinctive transport system especially the road network will play a pivotal role in ensuring supply delivery will not be hampered in any way even during harsh weather conditions. There is also a broad security network in these cities that will ensure low costs due to no risk management prospects. Promotion Most of the businesses have been subjected to closure due to no proper infrastructure for promoting the products. Among the most effective promotion strategies that will help put the coffee shop and its products on the German market, map include the formation of partnerships in seminars and conferences as well venturing into online advertisement platforms.

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The business culture also has the mandate of organizing themed nights. The coffee shops will, therefore, ensure they are acquainted technologically so as to meet the increasing changes in the field of operations. Managing of the coffee shops will also mean that a manager who is oriented towards balancing profit-making, equity among the staff, caring for the welfare of the staff as well as the provision of quality services to the customers. This is because most of the managers are only profit oriented. Competitive Advantage The Hank and Patty’s coffee shop is already a household name in the UK. It is here that it has been rated high on customer satisfaction. Profitability and liquidity Gross profit The business made gross profits besides having no standing loans.

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