Introduction
In order to enlarge the business to earn or to increase the standard of living, the coffee business is considered one of the best in the world for greater interest. The Internet’s guidance in generating e-services has been ground-breaking for workers and their clientele. Unluckily, there has been an extensive hole among exciting submissions of the Internet that assist in enlarging facility customization while preserving or even refining distribution capability and out-and-out failures in which corporations that have made courageous assurances have been futile to distribute on even a share of their recruits. In order to raise the low coffee prices in recent years, maintainable coffee manufacturing and documentation have been a rational policy for many manufacturers to distinguish their merchandise in the marketplace and swing their manufacturing cost assembly away from more involvement demanding methods. While the normally recognized indicator of 90% of cafes flop within the first year is wrong, roughly 60% of cafés do flop within their first three years of a process (Parsa et al., 2005). The difficulty for businesspersons opening a cafe is to check the reduction of risk for this business.
One way to lessen this threat is to generate a corporate strategy. Thus, the key objective of this paper is to create a professional business strategy that will not only help the cafe’s development and design for the forthcoming but will also help the cafe expansion investment, which is another simple cause of the café’s failure. The two supreme causes of café’s failure are pitiable preparation and under-capitalization (Parsa et al., 2005). A professional business strategy is not a fixed manuscript but a manuscript that must be altered as the business progresses and propagates. A consequent aim of this business strategy is to generate the basis of a business strategy that can be altered as the business propagates from the beginning of a solitary cafe into a more established and increasing cafe group (Burrow, 2011). The café named Marvin and Smith Coffee café will be inaugurated in Seville, Spain because it is one of the best coffee cafes. Enormously hot and dry seasons with icy, rainy winters, Seville, the major metropolitan area in Southern Spain, is a city of extravagance. It is easy to promote a first-time tourist to Seville (Espinosa et al. 2001). They are regularly sizzling, an exhausted-looking person with a manual who duds down at a vacant bar and attempts to demand a three-course dinner along with the coffee at 6 pm. Chances are, they will be in for a long wait and coffee in Seville is not just about what you drink; it is about how, when and where you drink coffee. Each does so in its own way, on its own terms.
Description
Any cafe that is challenging to assist good coffee in this part of the world wishes to be correspondingly skilful at making cold drinks and warm lattes. Cafes should be warm and convenient in the colder months but also perky and renewed in the summer’s heat. This is a guide to some of the places trying to provide the best cup of department coffee in one of the most historic cities of Spain, Seville. The city has adequate cathedrals, painting galleries, tombstones and an exhibition hall to seal numerous sunrises. Many cafes in the city make Seville the best place for coffee along with the other local specialities, which include seafood, especially squid from the near Atlantic Ocean and gazpacho, cold tomato-based soup that is cooked with bread, garlic and olive oil. Several of Spain’s utmost-inspired tapas can be established in some of Seville’s most momentous bars. Many tourists from around the globe visit Museo de Bellas Artes for evening meals and a cup of coffee during the winter season. Later, after a night of enthusiastic twirling, many head home with their eyes unwrapped for an innovative churro seller selling typical Spanish doughnuts dunked in heavy hot chocolate. Otherwise, you can join the work-bound residents and the unusual unskilled visitors at an early morning cafe and start again.
Ethical Considerations
Ethical matters in this case study must adhere to the logistics of the research plan. Ethics and logistics are, therefore, extremely interconnected. If you’re thinking of opening your own coffee shop, there are numerous considerations that are essential to be made earlier (Geereddy, 2013). In addition to the business strategy and finance decisions that practically any business will need to ponder, opening a cafe has a number of distinctive trials that will need to be addressed (Meert, 2008). However, there is not just one general track to monitor when opening a café; rather, there are a number of stages that you will want to take time to work on. The preparation in the initial phases of opening up will support and strengthen your coffee café’s victory in the future (Ko & Chiu, 2006).
Structural Challenges
If the objective is to be economical internationally, one should have a prepared team that is ready for the challenge. One important attention is the structure of the business and the locality of the team. Similarly, the opening of a new coffee café and company structure should be in place, and achieving a complete consideration of the native rules and procedures leading to objective marketplaces is important. From levy consequences to substitution rules, directing lawful necessities is a dominant purpose for any popular worldwide corporation (Foo, Bajuri & Wong, 2013). In this regard, Seville is considered one of the best cities in Spain for coffee café because of the historical cultures, eye-catching scenarios, other food outlets, and the interest of the people in Seville city for this business (Kilian, Pratt & Villalobos, 2006).
Competitive marketing for Hank Marvin & Patty Smith
To expand the publicity, client base, and income of the cafe, probabilities assumed several thoughts regarding the marketing opportunities accessible for this coffee café. As a small business, it probably doesn’t have an infinite marketing budget, but that doesn’t mean that it can’t still design and implement an operational marketing policy. However, Marvin and Smith’s coffee café is a big outlet, and there is an adequate budget for marketing. However, in online and offline marketing, marketing plays an integral role (Cannuscio, Block & Kawachi, 2003).
Online Marketing
The world of online marketing is a giant one, and drumming it into it can yield a numeral of encouraging outcomes for this cafe. Website marketing is usually inexpensive, and it is comparatively easy to set up a business in this city. Similarly, a blog can be extremely constructive for digital advertising and search engine optimization (SEO) struggles, as new and consistent content can help to construct a cafe’s online expertise and pull new clients to the business (Lee & Yeu, 2010). Similarly, social media platforms such as (Facebook, Instagram, Twitter and others) are very significant in the current world, and it is the passage through which many industries are associated with current and potential consumers. These sites only have a free sign-up process that starts the business pages, etc. From this marketing, Marvin and Smith Coffee café will be more advertised in the local market when their posts are boosted at very low rates and can reach the maximum number of people. One of the most influencing ways to advertise this business is through review sites. For a cafe, it’s true that several people will look up different varieties of coffee analyses before visiting. So, for this reason, good analyses can be much more valuable than bad reviews that can rigorously damage the status. So, the focus must be on providing a good service (Szmigin, Carrigan & McEachern, 2009).
Offline Marketing
In a world where there is an increasingly digital market, it’s imperative to recollect the down world, too. There are still a number of more customary offline marketing methods that can be extremely operational in enhancing the business. This will be done in Seville city through networking, posters, and flyers at different crowded places in the city. Visiting schools, colleges, and Universities would be extremely valuable because students should be there with the normal pricing, probably less than the market prices like other renowned brands such as (Khamsa Cafe – Est. 2009 – Brixton). It is really important to grab the customer’s intentions first and then go for the earnings.
Before opening the cafe, the choice of products must be kept in mind. This is one of the main points for starting the business, but this can be a more detailed method. In coffee cafes, a drinks-based menu or full food menu and working kitchen can also be added.
Gaining competitive advantage
The coffee market is extremely competitive, especially in the conservative zone. Nearly 70% of trades are occupied by bigger corporations and business giants, while the smaller or local coffee sellers subjugate the 30%. An increasing number of clients are willing to pay higher prices for high-grade coffees. However, it is still a lesser and more selective group of buyers; further buyer teaching is required. The price situation for coffee occupation is resulting from the terminal markets. So, the impact of Hank and Patty café on the regional area will be more valuable for their brand than in a smaller area. So, if the impact of stock resources and further investors on the incurable markets becomes too subjugated, citations from the incurable market do not replicate the actual price. In this case, buyers and sellers might make their own actual pricing methods and settlements in the forthcoming projects. But, overall, this is legal for the highest coffee quality. Though this has so far been extraordinary, in uninterrupted trade, coffee manufacturers and buyers can settle on a price without observing incurable markets. In order to avoid this competition. However, this coffee market in Spain is highly influenced by assumptions because of the destruction of the Brazilian crop (López-Artíguez, Soria, & Repetto, 1993). Higher manufacturing prices, unfavourable weather situations, and climate modification are the results of this failure (Topik, 1998). But Marvin and Patty can gain this advantage with their new and possible techniques.
Supply Chain
When it comes to obtaining goods and facilities from overseas, handling contractors and supply chains can also be a complicated procedure. Unluckily, the length and difficulty of supply chains increase the chance of functioning with contractors who have immoral and even unlawful business practices. One of the biggest apprehensions is the danger of compulsory work and worker manipulation in international business (Waxman, 2006). To educate attentiveness and support native and international businesses in answering this matter more efficiently. So Marvin and Patty should have an acute knowledge of such important things, and they need to be highlighted.
Financial Ratios
Gross Profit Margin
Gross Profit margin = Gross profit/sales revenue x 100
Gross profit margin = 208,000 / 360,000 x 100 = 57.77%
Gross profit margin is an economic metric recycled to measure a corporation’s economic strength and corporate model by revealing the amount of currency left over from incomes after accounting for the cost of things sold. Gross profit margin, also known as gross margin, is calculated by dividing gross profit by revenues. In this, 57.77% is the gross profit of sales. It is considered moderate but not that efficient (Yang, Qing, & Liu, 2014).
Net Profit
Net profit margin = Net profit / Sales x 100
Net profit margin = 26,800 / 360,000 x 100 = 7.44%
Net profit margin is the percentage of revenue left after all expenses have been deducted from sales. In this, 7.44% is the net profit of sales, which is considered highly efficient.
Return on Capital Employed (ROCE)
ROCE = Net profit / Share capital + Reserves + Non – Current liabilities x 100
ROCE = 26,800 / 100,000 + 6,800 + 0 x 100 = 25.09%
It is the ratio of net profit to share capital plus long-term liabilities, expressed as a percentage. It is the ratio of how well a corporation uses all its sources of continuing backing to create a profit. In this, the ROCE is 25.09%.
Liquidity on the current ratio
Liquidity current ratio = Current assets / Current liabilities
Liquidity current ratio = 35,400 / 6,200 = 5.71
It measures a corporation’s capability to fulfil temporary and permanent responsibilities. To measure this skill, the current ratio ponders the current total assets of a company related to that company’s current total liabilities. In this, 5.71% is the company’s liquidity current ratio.
Liquidity acid test ratio
Liquidity acid test ratio = Current assets / Current liabilities
Liquidity acid test ratio = 27,400 / 6,200 = 4.419
This ratio measures the capability of a corporation to use its nearby cash or fast assets to quench or withdraw its existing responsibilities directly. In this case, 4.419 is the liquidity acid test, which is considered to be a good ratio.
Conclusion
The expansion of any business in the international market is not easy. It needs determination, hard work, and an optimistic approach to excel in these circumstances. There are numerous aspects to ponder before increasing the business in an alternative country. These are topographical locality, traditional modifications, rules and principles and moral contemplation. According to the above case study, Marvin and Patty Smith should start their business of the coffee shop in Seville, Spain. There are certain advantages as well as certain disadvantages, but the “Hardworking is the key to success” approach is needed to excel in this country. If they implement and associate their own administrative culture with economic benefits efficaciously, it can be supposed that the coffee shop will be one of the finest bases of income for any of the organizations. However, the economic benefit is a temporary advantage which must be preserved for as long as possible if the organization desires to flourish in Seville, Spain. It can only be accomplished if the coffee shop continuously expands on client overhaul, high-value coffee and tea, new recipes and reasonable marketing promotions along with some of the traditional food or beverages also be useful as well.
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