Business requires essential resources and research in order to expand its operational activities. The report will cover research on Denmark in order to expand business of Marvin and Smith’s coffee shop there. The tailored marketing mix model is also included in this report. Implications of the need for Marvin and Smith’s to cover a wider geographical area in terms of a different country will be discussed and impact of liquidity and profitability on decisions available for business will
1. Research on a country (within the European Union) that Marvin and Smith’s coffee shop could expand into
It can be said that Hank Marvin and Patty Smith both had a dream of running business to their own which is also accomplished by them effectively. Not they want to expand their markets as so much customers are responding well. There are so many foreign travellers also started to seek these coffee shops (Anthony and Garner, 2016). In respect to this, they are now becoming known in abroad as well and decided to focus on an overseas expansion plan effectively. The old information system is not enough and also outdated for business expansion.
In respect to this, Copenhagen will be the best Scandinavian country and also the capital of Denmark comprising the Jutland Peninsula and numerous islands for business in order to expand operational activities. Denmark, Copenhagen is a Scandinavian country and full of nature beauties such as forests, rivers, mountains and beaches that Coffee shop business is appropriate in this country (Waxman, 2017). Denmark, Copenhagen has a temperate seasonal climate dominated by humid westerly winds. The nations is surrounded with oceans and climate is also cool. There are so many reach people out there and also the life style is also amazing. Traditional environment is also good and culture diversity is also popular in nation. One of the most important ethical consideration of Denmark employees that they are loyal and integrate with business and its activities. They work hard and promoted after a certain amount of period effectively. There is no corruption in this nation. Some crucial factors should be considered by business in terms of ethics that there is a fear of unknown and male money makers. The people have low sense of business and and also relatively low in international thinking that strategies must be formulate by business owners in order to expand business activities and operations. The total number of people out there is 57.3 lakhs according to the 2016 data analysis (St Clair-Jones and Quinn, 2018). The growth rate is 0.4 which is good for the business. The environment is also cool that coffee shops will be loved by local people. The nation is also very effective in terms of tourists that number of people visit for the travelling purpose. Transportation is little difficult but possible in many ways. Based on location, business is able to fin its suppliers and people who can help to expand business activities. There are also some structural considerations should be followed by firm such as laws and legislations maintained by the government in order to run business smoothly and effectively. The trading environment is good and also supported by government in order to enhance economy and country development. Agriculture is taking place in Denmark and also compatible with the needs of social, economical, political and sustainability (Calabretta and Gemser, 2015). The main competitors for the firm will be Democratic coffee, Copenhagen and The coffee collective effectively. Hamburg and Frankfurt are also the main competitors and must be considered by firm in order to manage and control their business operational activities. There are so many coffee shops in Denmark that people love coffee out there because of the coll environment. Staff welfare will be main point here for the business that employees obligations and rights must be considered. Overall, Denmark is good for business expansion and operational activities in order to enhance profitability and production (Sheldon, 2018).
2. Marketing mix
Marketing mix is important for the business that it helps to understand plan and strategies in order to offer products and services in the market for the purpose of business expansion effectively (Rosenberg Sr, Chauvet and Kleinman, 2016). The model will also help to capture and promote unique selling points of business products and services, differentiate and analyse competitors. This will help Hank Marvin and Patty Smith coffee shop business to be expand in Denmark effectively.
Product: The first P from four P's of marketing mix model is product and service. Product can be a tangible or intangible service that fulfils customer requirements and demands (Rosanne Burson and Dianne Conrad, 2016). The coffee shop business products are Coffee with finest beans from Gumutindo, suppliers are from Uganda, high quality tea, cold drinks, snacks and pastries are also available for customers in Denmark. Variety of products and services will help business to manage their expansion in Denmark towards customers effectively.
Promotion: It can be said that promotion is required for every business in order to provide information regarding products and services offered by firm in the market towards customers effectively. This will also help to differentiate products and services from others in the same industry (Chen and Liu, 2016). Promotional activities such as advertisement, public relations, email marketing, social media marketing, video marketing and search engine marketing and many more. Promotional activities will help Hank Marvin and Patty Smith coffee shop business to provide information regarding their products to customers in Denmark (Pearson, 2017).
Price: Price refers to the money paid by customers in order to purchase products and services from organisation effectively. Price changes according to the customer requirements and demands or also affect from the bargaining power. The firm should establish affordable price for the customers in order to enhance sales and profitability. The youngster population in Copenhagen is low that pricing strategy will determine the sales and profitability of particular business (Patten and Newhart, 2017). The liquidity also has a impact on decision making that managers are able to convert their assets into cash if required for the new project effectively. The business should try to increase their profitability from existing branches that it helps to enhance capital for new business in Denmark efficiently.
Place: Place is a distribution channel for business to provide products and services to customers. Place should be reachable and effective enough to attract customers in the market effectively (Clark and Sousa, 2017). Place is where the consumer interact with business products that it should be attractive and clean and also associated with latest technologies in order to improve and develop business performance and sales. This will help to expand business operational activities in Denmark and lead towards profitability.
3. Impact of following issues on coffee shop
Gaining competitive advantage: Competitive advantages are conditions that allow a company or country to produce a good or service of equal value at a lower price or in a more desirable fashion effectively (Mansfield-Devine, 2016). This will help to increase sales and profitability with superior margins as compared to the other rivalry firms in the market. Competitive advantage will also help business towards its expansion activities by providing strengthen in terms of working capital and production. It is the work of management to apply resources in a effective manner which consumes low cost. It can be said that gaining competitive advantage is not a easy work for business that in a different country people are addicted to the previous popular brand and does not replace their choices easily (Creusen, 2015). This issue is interlinked with competitive advantage that in a different country it is not easy for firm to maintain competitive advantage. In order to do that, The business should analyse its competitors and their strategies to find what is missing in their own effectively.
Personnel and managing staff issues: It is very difficult for the firm to recruit and manage staff at new branch. Employees from different countries have various nature and culture diversity that management requires effective communication to manage and handle them. The business should set expectations and objectives for employees in order to engage them with business operational activities. This will help to increase profitability and production by managing human work force and resources effectively. In a different country the issues are linked to personnel and staff problems in terms of misunderstanding, conflicts and obligation issues. 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 (Foresti, Farinosi and Vernier, 2015). Thus, the business should try to find best and quality workers in order to increase sales by assisting customers effectively. This will help to achieve individual as well as business goals and objectives.
4. Impact of profitability and liquidity on decisions
It can be said that the business has total assets of 1,13,000 at the end of 2016 year. Total capital and liabilities are also 1,13,000. Hank and Patty raised the £100,000 capital through friends, family and personal loans. They each raised £50,000 effectively. 30,000 is reduced from total cash that 3 more branches are established and each of them requires two machines. A new venture requires enough capital to establish in a new country Denmark effectively. It is the work of management to apply resources in a effective manner which consumes low cost (Luchs, 2016). Profitability and liquidity has a significant impact on decisions that profitability describe how much capital is now available for the firm in order to start a new business in a different country. The liquidity also has a impact on decision making that managers are able to convert their assets into cash if required for the new project effectively. The business should try to increase their profitability from existing branches that it helps to enhance capital for new business in Denmark efficiently. It also affect business decisions regarding management of resources such as human resources that business should set expectations and objectives for employees in order to engage them with business operational activities. This will help to increase profitability and production by managing human work force and resources (Goonatilake and Maldonado, 2018). This will require interview and recruitment process which is time consuming as well as costly for the firm. It will affect the price of products and services, production and location arrangement for staring a new venture effectively. The business should increase its competitive advantage that it will help business towards its expansion activities by providing strengthen in terms of working capital and production. This will help to increase sales and profitability with superior margins as compared to the other rivalry firms in the market. This will reduce the impact of weak financial position and will lead towards effective decision making to start a new shop in Denmark effectively.
5. Concluding summary
From the above analysis, it can be understood that establishing new venture is a challenging, complex and time consuming task. Management needs to analyse the market area where the venture will operate. They have to identify target markets, competitors and channels of transportations (Kubrusly, 2015). In this context, the study conducted in depth analysis of the coffee shop which will going to establish in Denmark by Hank Marvin and Patty Smith. Ethical and logistical considerations with structural challenges should be determined by business for the expansion in a different country effectively. In depth analysis of the culture, behaviour of customers, key competitors and target market has been made in the study (Hyde and Reeve, 2015). The 4ps of tailored marketing mix model will help to understand place, price, product and promotional needs for the business in order to expand. Implication need for Marvin and Smith’s coffee shop to cover wider geographical area also affect the competitive advantage and management of staff. The main competitors for the firm will be Democratic coffee, Copenhagen and The coffee collective effectively. The business should try to increase their profitability from existing branches that it helps to enhance capital for new business in Denmark efficiently. It also affect business decisions regarding management of resources such as human resources that business should set expectations and objectives for employees in order to engage them with business operational activities. Hamburg and Frankfurt are also the main competitors and must be considered by firm in order to manage and control their business operational activities. Moreover, with the help of marketing mix, the product, price, promotion and place strategies of the coffee shop has been evaluated in the study (Karnaukhova and Polyanskaya, 2016). In order to sustain in the competitive environment, the management of coffee shop needs to analyse all the factors adequately that could drag their performance and productivity greatly. Eventually, the impact of issues such as management and competitive has been discussed in the report. From the financial statement provided by the management, it can be concluded that due to robust profitability and revenue of he organisation, the management can establish the branch in Copenhagen with efficacy.
It can be analysed from the above report that research is a very important part that helps Marvin and Smith’s coffee shop business expansion activities. Ethical and logistical considerations with structural challenges should be determined by business for the expansion in a different country effectively. The 4ps of tailored marketing mix model will help to understand place, price, product and promotional needs for the business in order to expand. Implication need for Marvin and Smith’s coffee shop to cover wider geographical area also affect the competitive advantage and management of staff. The previous financial information impact on decisions regarding business expansion activities is also crucial. A concluding summary of project provides all the information required for business expansion in Denmark.
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