Document Type:Case Study

Subject Area:Business

Document 1

A firm should act locally despite being an international brand to appeal to the domestic consumer desires and expectations. On an overview of the European market, I preferred Amsterdam, Netherlands as the suitable location that would better fit Marvin and Smith's Coffee Shop expansion strategy based on a PESTLE analysis and data on coffee consumption. The level of coffee consumption in the Netherlands stands at 8. 4 kg per capita that translates to one Dutch drinking an average of 1. 84 cups per day. The branded signage of Coffee shops around Amsterdam demonstrates the popularity of coffee among the local populace. Moreover, the Dutch drink (espresso) assortment that constitutes the Arabica and Robusta flavor. Arabica holds 60% of market popularity. The blends are either produced locally or imported from countries that boast of producing high-quality coffee and adheres to ethical standards of production (Global coffee consumption, 2015/16 | Statistic.

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n. According to Boone & Kurtz (2013) in every business environment, there are significant market elements that require a detailed attention to the organization to ensure their contemporary marketing plan is alive to the underlying market essentials. The introduction of Marvin and Smith Coffee Shop in the European market through Amsterdam, Netherlands presents a challenging initiation of an item on the market that is forested with aggressive local competitors that serves the growing coffee consumer population. The marketing elements to be considered include the product, price, promotion, and place that represent an important role towards successful performance in the new market. Product A marketing mix is an important tool that will guide the steps towards the success of introducing the coffee shop into a market with complex business activities and stiff competition.

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The product seeks to address the gaps that the market has overlooked for an extended period since most consumers desire a product that initiates innovation in offering a different experience of the Dutch middle-class coffee consumption. Place The location of the coffee shop will be in the central business district since the target market is the working middle class. The job pressures and the recreational culture of the people in Amsterdam require the proximity of the coffee shop to be where the people can easily access. The location is pivotal judging from the efficiency of the infrastructure and the lifestyle of the middle working class in Amsterdam. The location would gain substantive popularity since human traffic is eminent around the central business district.

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A corner location in the business district will offer the best position for coffee enthusiasts to unwind (Toften, and Hammervoll, 2013). The creation of a workforce that focuses on the best staff who understands the better ways of handling consumers demonstrates the establishment of a business model that fascinates consumers (Toften, and Hammervoll, 2013). The employees should take on innovation as the tool that offers a different experience that will offer a competitive edge to inspire consumer action to shift allegiance to Marvin and Smith coffee brand. The management of personnel and staff issues on a global market requires the recognition of the benefits that come with embracing diversity as a pool for different attitudes to driving the growth of the organizations brand.

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The organization should include the local people in the management and as staff to project an image of an entity that the entity seeks to improve the lives of the local community. Amsterdam consists of people from different culture even though the Dutch forms the majority; a multicultural staff composition enhances the capacity to understand different cultures together with the expectations of different groups of people. The liabilities of the company provide an avenue for Marvin and Smith to raise finances from outside to fund their working capital in the decision to expand. The net profit of £ 26, 800 indicates the gains made in 2016 after realizing impressive revenue of £ 360,000. The organization will make decisions based on the performance of the other coffee shops in London to project the expected returns and underlying cost for the business.

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The available data on the operations of the coffee shops come in handy when it comes to developing the strategic plan for the new market frontiers regarding the assets and capital required to expand. The statement of financial position presents the entity as being free of any credit risk due to the reasonable debt to equity ratio. The initiative to seek the opportunities in Amsterdam is viable based on coffee consumption market and culture together with an enabling environment for the business activities. The expansion strategy requires being designed on a model that appreciates the underlying issues which define how better to exploit the existing business prospects in the new market. The analysis of the Amsterdam, Netherlands market presents an opportunity that would work best for the expansion strategy (Boone, and Kurtz, 2013).

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