Instructions All submission of coursework will be online via Turnitin on the module's Moodle site. The Roehampton Harvard Referencing system should be used for any resources used as part of your research. Final submission deadline is Monday 7th August 2017, 2pm Your student number MUST be included in your document on each page and a word count given at the end of the document. Word count: 2,500 words - guidance has been provided regarding recommended word count for each question. Use appropriate academic sources, referenced in accordance with the University of Roehampton’s Harvard Referencing guidelines: http://www.roehampton.ac.uk/Referencing.aspx Formatting • Arial. Size 12 • Word document (not a pdf) Assignment 1 Hank Marvin and Patty Smith have worked together for years in the food and catering industry and, having the same dream to run their own business, decided to open their own coffee shop. Hank and Patty spent 12 months researching and planning the details of their coffee shop to decide on the best location, who their target market was, how much capital they would be able to raise, key competitors, what suppliers they would use and what products and services they would offer in their coffee shop and so forth. Then in January 2016 Marvin and Smith’s coffee shop was opened in Wandsworth in South London. In order to stand out from other coffee shops that seem to be flooding the market in London, Hank and Patty decided on the following: • To use the finest coffee beans from Gumutindo Coffee, a Fairtrade supplier in Uganda that focuses on enabling farmers in Uganda to earn an independent income and to run their own farms, as research had shown that ethical concerns were high amongst potential customers in this location. High quality tea and herbal infusions would also be sourced from Fairtrade registered Foundations in Eastern Uganda and, where possible, East African inspired snacks, pastries and cold drinks (e.g. fresh mango juice) will be offered. • To offer an environment that is both relaxing with an East African feel to it (to continue the Ugandan influence) as well as being practical for customers’ needs (including access to a power point socket for charging phones/laptops, etc. and free Wi-Fi) • To ensure that staff (including Baristas) were trained to the highest standard and were offered a wage and development opportunities that were above and beyond their competitors • To offer themed evenings such as board game night and chat with Nanna (for a chat and advice) Marvin and Smith’s coffee shop has a strong ethos of promoting fair trade and equality and expect their staff to respect and value these beliefs and to promote and demonstrate such attitudes and behaviour in the workplace. 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. These are areas which they highlight during the recruitment process. Since their initial shop opening, Marvin and Smith have opened an additional two coffee shops in and around London. However, the initial information system that was set up for the coffee shop was only structured and set up to manage the information with regards to one or possibly two coffee shops. Hank and Patty are therefore beginning to realise that this initial information system structure is quickly becoming outdated in terms of their business needs because of their continued expansion. As the demand for their East African-inspired coffee shop with themed evenings increasing and because International tourists have even started seeking out these coffee shops, as they are becoming known abroad, Hank and Patty have decided to focus on an overseas expansion plan. They have therefore decided to focus on an expansion plan and want to open up one of their coffee shops in a European Union country. However, they are unsure as to which of these countries to expand their coffee shop into and have asked you to carry out and write up your research. Income Statement for Marvin & Smith’s Coffee Shops’ for the period ended 31st December 2016 £ £ Sales 360,000 Less Cost of goods sold Purchases 160,000 Less Closing Inventory (8,000) (152,000) Gross Profit 208,000 Less Expenses Electricity 32,400 Salaries & Wages 34,000 Rent and Rates 80,000 Telephone 8,400 Other expenses 8,000 Depreciation - Equipment 6,400 Depreciation – Fixtures 8,000 Depreciation – IT Equipment 4,000 (181,200) Net Profit 26,800 Statement of Financial position as at 31st December 2015 for Marvin & Smith’s Coffee Shops’ £ (Starting value) £ (Depreciation) £ (Ending value) Non-Current Assets Equipment 40,000 6,400 33,600 Fixtures and Fittings 40,000 8,000 32,000 IT Equipment 16,000 4,000 12,000 96,000 18,400 77,600 Current Assets Inventory 8,000 Cash 27,400 35,400 Total Assets 113,000 Capital 100,000 Profit 26,800 Drawings (20,000) 6,800 106,800 Current Liabilities Trade Payables 6,200 Total capital and liabilities 113,000 Notes a. Hank and Patty raised the £100,000 capital through friends, family and personal loans. They each raised £50,000 b. The second shop opened after 6 months, the 3rd and 4th opened after 9 months. c. Coffee machines and associated equipment cost £5,000. Each shop has two machines d. IT Equipment includes all required Wi-Fi computers. e. The business currently has no formal loans or external debt Answer ALL of the following questions using credible reference sources for every question: 1. Research and decide on a country (within the European Union) that Marvin and Smith’s coffee shop could expand into. Justification for your choice must be given regarding choice of country, logistical considerations, ethical considerations and the structural challenge of expanding into that country. Note that you should assume for the purposes of this assignment that the Brexit negotiations will make no difference to the trading environment as it is at present. (Approx. 500 – 600 words) 2. Present a tailored marketing mix in relation to the coffee shop expansion plan abroad. (Approx. 400 – 500 words). 3. What are the implications of the need for Marvin and Smith’s to cover a wider geographical area in terms of a different country? Consider any impact this may have on any two of the following and show how these issues are interlinked: a. Information systems b. Organisation culture c. Management structure d. Gaining competitive advantage e. Personnel and managing staff issues f. Supply chain (Approx. 300 words per each point) 4. Using the following financial information, evaluate how their profitability and liquidity may impact on decisions available to them. (Approx. 400 – 500 words) 5. Write a concluding summary about the overall viability of overseas expansion at this stage. (Approx. 300 words) Marking Schema All work will be marked according to the following marking schema: 1. Evidence of research (30%). Have you shown that you have researched around the subject, used appropriate references and have you made use of these sources to inform and enhance your answers? 2. Logical flow and application (20%). Have you addressed all the required points of the task in a logical and consistent manner, demonstrating some ability to apply theory to practice? 3. Explanation and Understanding (30%). Have you shown understanding of the wider business issues affecting Marvin and Smith’s Coffee Shop? Have you explained and justified your answers to an appropriate level? 4. Professionalism (20%). Is your work tidy and well laid out, with appropriate structure and standard of concise and effective written English? Have any diagrams and illustrations used been well chosen and correctly presented and is the work of appropriate length? Note that you are expected to show you are ready and able to engage with a level 4 degree course so superficial answers will not be awarded pass marks. A good set of answers will therefore be well researched and presented, argued logically and effectively, using examples from credible sources to illustrate your points and referenced in line with the University of Roehampton’s Harvard Referencing guidelines.