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Quality Coffee and Relaxing Environments

Question:

Discuss about the Renewable Agriculture and Food Systems.

The Coffee Club intends to offer its customers with superiorly tasting coffee beverages within the region. This can be attained through using superior quality ingredients along with strictly following guidelines of coffee preparation. The layout of the store, marketing activities along with menu listings is intended to focus on increasing sales of its espresso beverages (Finch 2016). Along with teas, brewed coffee and espresso drinks certain refreshment beverages will also be offered by the coffee shop. For the consumers those prefer making their coffee at home, The Coffee Club will offer high quality coffee beans. The company will offer good coffee beverages along with offering free magazines and books that its consumers can prefer reading along with enjoin a great cup of coffee (Messner 2013).

The Coffee Club will offer all the vital office amenities in order to operate effective business (Shin et al. 2015). The company considers using flexible and vibrant workplace setting along with superior quality beverages. The coffee shop intends to offer superior services such as total coffee bar, training along with education space, training or event space, private offices, conference room, office mailing address shipping and receiving services. The food and the beverages that will be offered will be based on the “country cooking” themes (Sutton 2013). Focusing  on the demands of the niche market, the coffee shop will consider offering limited selection of newspapers those are out-of-town along with architecture and several lifestyle magazines. The Coffee Club is intended to grow if it makes sure that it is capable to offer superior service in every aspect (Coles 2014). Moreover, the company will also make sure that the company presents its business in as positive way. For such reasons, the company will be highly selective consumer services so that the consumers are always attracted to the coffee shop and its services.

Coffee consumption in UAE has indicated significant growth with espresso coffee indicated highest growth. Coffee drinkers within the Northwest region of UAE are observed to be most demanded ones. They consider consuming freshly brewed espresso coffee drinks along with demanding superior service (Council and Hawkins 2016). The region having outgoing and liberal population along with rainy winter has traditionally served as a good place for setting up coffee shop. The Coffee Club will strive to maintain a loyal consumer base through providing superior tasting coffee within a relaxing surrounding of its coffee shop (Nadiri and Gunay 2013).

The Coffee Club will focus on the marketing conduct on reaching the students of the university along with faculty and people working with offices situated nearby the new coffee shop along with the sophisticated teenagers. The market research has indicated that these serves as the target consumer groups those are most likely to purchase espresso coffee products (Beuchelt and Zeller 2013). Since espresso, coffee consumption is universal all through distinct income categories and majorly relies on higher education level that is near to the university campus, which will offer access to the target consumer groups.

Office Amenities and Reading Materials

The Coffee Club will consider catering to individuals those who desire consuming everyday cup of superiorly tasting coffee within a relaxing surrounding. The consumers of the company are distinct in age. However, the new coffee shop’s location near to the university campus indicates that most of the consumers of The Coffee Club will be college faculty and students. Market research indicates that there are certain consumers those are attracted towards superior tasting coffee (Higdon 2016). Moreover, numerous college students considers coffee bards to be a helpful place for meeting and studying location where the target consumers considers coffee shops to be a proper place to meet with its peers devoid of the necessity to bear cover charges (Condrea, Rizea and Sârbu 2014). For The Coffee Club this is supposed to offer exceptional possibility for developing a loyal consumer base. General trend regarding quality among UAE consumers also play a vital role in the current growth of the espresso coffee beverages. In addition, these factors include desires for small indulgencies for certain beverages those are unique along with offering effective selling opportunity for the coffee shops (Balogun, Bartunek and Do 2015).

The Coffee Club’s marketing strategy will be centered on attaining new customers, retaining the existing consumers along with motivating the target consumers to spend more and make repeated purchase. Maintaining a loyal consumer’s base is deemed to be of great importance as such target consumer group along with generating most of the sales can also offer favorable referrals (Adams 2016). Considering the market research, The Coffee Club intends to develop certain strategies along with assuring its effective implementation.

The Coffee Club will position itself as an exceptional coffee shop in which its consumers cannot just enjoy freshly brewed espresso coffee but can also spend superior time within an ambient surrounding. Moreover, the new coffee shop also considerers to develop a strategy of developing excellent surrounding of the coffee shop through setting comfortable chairs and sofas, calm relaxing music tat can facilitate consumers to get rid of their humdrum life that can also differentiate the new coffee shop from its business rivals (Higdon 2016).

The Coffee Club has developed effective sales strategies to manage the sales transactions. To increase the effectiveness of consumer service at least two employees will be servicing consumers while one employee might be developing effective consumers order, the employee will be taking great care of sales transactions. All the sales information will be mentioned within the computerized point-of-sale that will be evaluated for the marketing purposes. The marketing strategy of the Coffee Club will consider using filers and banners, use consumer referrals  along with cross-promotions with several other businesses within the community (Condrea et al. 2014). In addition, consumer’s retention program will be employed for making sure that the consumers are returning and is considering spending more within coffee shop.


The new coffee shop must consider advertising within the company premises. The coffee shop must have a façade that can clearly discriminate the company from the competitors. Clear and visible store can be set up outside along with coffee menus posted outside. The new coffee shop can set up clear as well as visible signage for the store (Adams 2016). Sales promotion and advertising if employed together with time to offer the new coffee shop with new consumer visits.

Targeting the University Campus and Surrounding Areas

In this case, the sales growth of coffee beverages is expected to increase by 10% each year, while the same for coffee beans and pastries and others is assumed to increase by 8% and 6% respectively. On the other hand, the direct cost of sales for coffee beverages, coffee beans and pastries and others is expected to rise by 8%, 5% and 4% respectively.

Arthur Catman and James Robert will majorly own the Coffee Club. Mr. Robert has a bachelor degree in Business Administration of ABC University. The person has seven years of work experience as an independent consultant of business. In the previous years, the person owned XYZ Travel Agency, which the person runs profitably for four years. Mr. Robert has superior business contracts within the region that he can use to help the new business to gin high profits (Morris 2013). Mr. Catman holds a bachelor degree in Psychology from ABC University. For over the past five years the individual has worked as manager of a RBC Restaurant that is highly successful Italian hotel within the region (Sadgrove 2016). Under the management of this individual, the restaurant has significantly enhanced sales along with maintaining less than average level of operating costs. Moreover, due to the investor’s commitments they might not be able to get involved within the everyday management decisions of The Coffee Club. A professional manager that will be appointed will be responsible to oversee all the operations of the coffee shop (Messner 2013). Two full-time baristas will remain in charge of preparing coffee. Four distinct part-time employees will be hired that will address the staffing requirements. In the second as well as third year of business, another part-time employee will be appointed to deal with the increased sales volume.

The management team of The Coffee Club will encompass of a full-time manager who will be appointed for managing the everyday operations of the new coffee shop. The person had over three years of managerial experience within the specific industry (Sutton 2013). The individual’s responsibilities will encompass staff management, inventory ordering, and supplier dealing, marketing strategy development along with carrying out everyday management responsibilities. It is also believed that the employee has suitable experience for the particular role. Certain profit sharing arrangement for the manager will be taken into consideration relied on first year operational findings (Morris 2013).


There are certain gaps in the management team appointment by the company and The Coffee Club must be aware of such gaps. Despite the experience of the owners and managers within the specific industry, the company will consider gaining the consulting services of XYZ espresso services. These consultants have helped in developing the business idea for The Coffee Club. The company has more than ten years of experience within retail coffee industry and the company has successfully opened several coffee shops across the UAE consultants. This will be used for market research, consumer satisfaction surveys. This will be along with offering further input within analysis of new business opportunities.

The company will also consider introducing management team and along with major members. This can be possible with mini bios on their backgrounds through focusing on their education along with experience and education. The company can include information such as skills, abilities, previous records of accomplishment along with certain achievements for supporting the management team being an exceptional fit for the business.

Particulars

Amount (in UAE Dirham)

Start-up Funding:

Start-up Expenses to Fund

                               17,700

Start-up Assets to Fund

                             185,000

Total Funding Required

                             202,700

Assets:

Non-Cash Assets from Start-up

                             110,000

Cash Requirements from Start-up

                               75,000

Additional Cash Raised

                                       -  

Cash Balance on Starting Date

                               75,000

Total Assets

                             185,000

Liabilities and Capital:

Liabilities:

Current Borrowing

                               15,000

Long-Term Liabilities

                               25,000

Accounts Payable (Outstanding Bills)

                                       -  

Other Current Liabilities (Interest-Free)

                                       -  

Total Liabilities

                               40,000

Capital:

Planned Investment:

Owner

                             117,700

Investor

                               45,000

Additional Investment Requirement

                                       -  

Total Planned Investment

                             162,700

Loss at Start-up (Start-up Expenses)

                              (17,700)

Total Capital

                             145,000

Total Capital and Liabilities

                             185,000

Total Funding Required

                             202,700

References:

Adams, D., 2016. It Takes More Than Casual Fridays and Free Coffee: Building a Business Culture that Works for Everyone. Springer.

Balogun, J., Bartunek, J.M. and Do, B., 2015. Senior managers’ sensemaking and responses to strategic change. Organization Science, 26(4), pp.960-979.

Beuchelt, T.D. and Zeller, M., 2013. The role of cooperative business models for the success of smallholder coffee certification in Nicaragua: A comparison of conventional, organic and Organic-Fairtrade certified cooperatives. Renewable Agriculture and Food Systems, 28(03), pp.195-211.

Coles, L., 2014. Marketing with social media: 10 easy steps to success for business. John Wiley & Sons.

Condrea, G.E., Rizea, R.D. and Sârbu, R., 2014. How Coffee Companies Can Stay Competitive. SEA–Practical Application of Science, (03), pp.510-517.

Council, T.D. and Hawkins, A., 2016. Robertsons Tea & Coffee Shop.

Finch, B., 2016. How to write a business plan. Kogan Page Publishers.

Higdon, B., 2016. Strategies Independent Coffee Shop Owners Require to Survive Beyond Five Years.

Messner, W., 2013. Making the compelling business case. Decision-Making Techniques for Successful Business Growth, Palgrave Macmillan, Houndmills, UK.

Morris, J., 2013. Why espresso? Explaining changes in European coffee preferences from a production of culture perspective. European Review of History: Revue européenne d'histoire, 20(5), pp.881-901.

Nadiri, H. and Gunay, G.N., 2013. An empirical study to diagnose the outcomes of customers’ experiences in trendy coffee shops. Journal of Business Economics and Management, 14(1), pp.22-53.

Sadgrove, K., 2016. The complete guide to business risk management. Routledge.

Shin, C.S., Hwang, G.S., Lee, H.W. and Cho, S.R., 2015. The Impact of Korean Franchise Coffee Shop Service Quality and Atmosphere on Customer Satisfaction and Loyalty. The East Asian Journal of Business Management, 5(4), pp.45-57.

Sutton, G., 2013. Writing winning business plans: how to prepare a business plan that investors will want to read and invest in. RDA Press, LLC.

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