TASK 1

Introduction

STAR COFFEE SHOP is a local coffee shop in Uxbridge. Near the Uxbridge college. Star
coffee shop Opened in 2007. The business has operated a catering kitchen and specialized
in full-service catering and event planning for upscale events in the region. Star coffee shop is
a famous daily necessity for local coffee addicts, a place to dream of as you try to escape the
daily stresses of life and just a comfortable place to meet your friends or to read a book, all in
one.

The shop owner is ANTON. The shop is operate in a 1500 square foot shop within a
walking distance from the Uxbridge college. The coffee shop start up fund £ 25000. Their
employees 7, all are part time workers Star coffee shop provide coffee, tea and break fast.

Coffee varieties are:

Cappuccino
Cappuccino con panna
Flavoured Latte
Tea
Latteccino
Schlagobars
schwarzer

Portfolio of a small business

Star coffee shop is a famous coffee shop in Uxbridge area.

Star coffee shop Objectives

*Become selected as the "Best New Coffee shop in the area" by the local restaurant guide.
*Maintain a 65% gross margin.
*Consistently providing finest coffee items.

Goals

* Personal income around £ 35000 per year.

* create a relaxed atmosphere where customers can hang- out.
* Create & employee a good & competent employee who are sincere, loyal & committed to
their work.

Discuss the performance of the business and analyse the role of performance measures
in the organisation

Star coffee shop opened in 2007 with initial capital £ 25000. The coffee shop to successfully
opened and maintain. Operations through year one. The shop first year income is £ 10000.
The star coffee shop provide good customer service so their income increasing year by year .
The star coffee shop got their initial investment within the two years.

The coffee shop Sales

Year £
2007 20000
2008 30000
2009 40000

Gross profit
Year £
2007 30000
2008 35000
2009 45000
The coffee shop net profit
Year £
2007 15000
2008 30000
2009 35000

Gross profit ratio of star coffee shop

Year £
2007 150%
2008 117%
2009 112.5%

Net profit ratio of star coffee shop

Year Ratio
2007 75%
2008 100%
2009 87.5%

The star coffee shop performance is very well.

Identify strength & weaknesses of the business

Strength Weakness
 Good Atmosphere  Opposite coffee shop
 Skilled employees  Lack of resources
 Good customer service  Higher price than competitor
 The best products  Coffee price increasing
 Provide breakfast  Cultural & political issues
 Demand for coffee
 Good relationship with suppliers
 Strong financial foundation

Strength and weaknesses thoroughly examined

Strengths

Good atmosphere : star coffee shop located in good atmosphere for relaxation. And getting
coffee and break fast for student and other customers.

Skilled labours: Star coffee shop labours are speed, and having good customer service skills.

Good customer service:

The best products: Star coffee shop provide freshest coffee beans, cleanest equipment,
premium serving containers, consistent flavour. That ‘s are strength for a shop because
quality product.

Provide break fast:

Demand for coffee:The demand for coffee shops and quality products at competitive prices is
enormous in the uxbridge area. College student are interested in coffee that is strength of our
coffee shop.

Good relationship with suppliers: star coffee shop good relationship with suppliers so that is
strength for star coffee shop.

Strong financial foundation: star coffee shop have strong financial foundation. Thatis used to
attractive the customers in advert& market .

Weakness
Opposite coffee shop: coffee shop are popular in Uk. So star bucks near the coffee shop that
is weakness.

Lack of resources: star coffee shop have 7 labours. All are part time workers. Some time

Higher price than competitor: star coffee shop provide coffee price higher than competitor .
Some times that is weakness for a shop.

Cultural & political issues: now coffee is not dieting drink effect of green tea. And issues of
political issues.

TASk 2

Identify ways in which existing performance can be maintained and improved

The star coffee shop uses a strategy of total quality—in product and service. Our promise is in
our location, the products we sell, the people we attract and the atmosphere we create.

 People want a better-tasting coffee drink

 Coffee drinkers want a more inviting coffeehouse environment
 Coffee drinks are considered an affordable luxury
 The coffee shop industry is largely unaffected by the economy and world events
 The star coffee shop offers several unique advantages over all other coffeehouses

The star coffee shop compared to the other coffeehouses in the greater Pleasantville area
includes the following:
*A significantly higher quality, better tasting coffee product.
*Our current location can arguably be considered the best in the market—in the heart of the
downtown shopping, dining, entertainment and cultural district in Pleasantville and adjacent
to the historic Egyptian Theatre.
*An ambiance superior to all other coffeehouses in the area with upscale "Cote d'Azur" look. It
features stained glass decorations, art glasswork, Mediterranean Riviera style furnishings and
outdoor dining.
*The only coffeehouse downtown to provide regular weekend evening entertainment.
*A wider variety of popular drinks than our competitors, including flavoured coffee drinks, tea.

Discuss ways of overcoming weaknesses identified

All of us set goals. Sometimes we achieve goals. Most of the time, we do not achieve goals.
Some people keep on setting the same goal, and never succeed once.
Some people are not successful in achieving goals, due to the fact that they do not overcome
their weaknesses. Some people are successful in achieving easy goals, but are not successful
in achieving lofty goals.
Opposite coffee shop: To make advertisement and prizes & coupon to provide the customers.

Lack of resources: to recruit anew staff.

Suggest new areas in which the business can expand

Our coffee shop located in Uxbridge. Now we are suggest to open a new coffee shop in
Heathrow airport. Because that is a very crowded area by travellers and workers .so that will
success.

The greatest locations - visibility, high traffic pattern, convenient access.

The best products - freshest coffee beans, premium serving containers, consistent
flavour.
The friendliest servers - cheerful, skilled, professional, articulate.
The finest reputation - word-of-mouth advertising, promotion of our community mission of
charitable giving.

Evaluate strategies of overcoming existing weaknesses

Sales strategy

There will be several sales strategies put into place, including posting specials on high profit
items at coffee shop. Star coffee shop will also develop window sales techniques such as the
Barristers asking if the customer would like a fresh- baked item with their coffee.

Promotion strategy

The long-range goal is to gain enough visibility to leverage the product line into other regions
and generate inquiries from potential inventors.

* Maintaining a public relation service

* Advertisements such as leaflet - people to know where to coffee taste.

Discuss ways of maintaining strengths of the business

* Good atmosphere : to maintain the location such as clean & tidy up.

* Skilled employers : to provide training and motivation for employers that is encourage the
employee for speed & good service.

* The best product: to provide quality coffee for customers. Maintain the quality and mixtures.

* provide breakfast : that is strength for coffee shop so we provide variety breakfast for
customers.

Task 3

Identify and review the existing objectives of the business.

Star coffee shop Objectives

*Become selected as the "Best Coffee shop in the area" by the local restaurant guide.
*Maintain a 65% gross margin.
*Consistently providing finest coffee items.

Star coffee shop is achieved the first objectives in now. Because their daily customer is 500
per day. So the star coffee shop best coffee shop in uxbridge area.

Consistently provide finest coffee items : star coffee shop used the high quality coffee beans
to coffee and speed service to the customer .

Discuss the effectiveness of the existing business plan

Star coffee shop has:

Provided a customer with quality product at a competitive price.
Provided the customer with a more convenient method for obtaining their desired product.
Demonstrated how star coffee shop appreciates their loyalty and patronage by donating money
to their personal cause.

Market analysis

The star coffee shop focused the two markets

* uxbridge college students
*someone travelling to or from work, out shopping.

Market segmentation
The star coffee shop focused its marketing activities on reaching the University students and
faculty, people working in offices located close to the coffee bar and on sophisticated
teenagers. Our market research shows that these are the customer groups that are most likely
to buy gourmet coffee products. Since gourmet coffee consumption is universal across
different income categories and mostly depends on the level of higher education, proximity to
the Uxbridge campus will provide access to the targeted customer audience.
Target market segments strategy
The star coffee shop provide to people who want to get their daily cup of great -tasting coffee in
relaxing atmosphere. Such customers vary in age, although our location close to the uxbridge
college means that most our clientele will be college student & faculty.
Our market research shows that these are discerning customers that gravitate towards better
tasting coffee. Furthermore, a lot of college students consider coffee bars to be a convenient
studying or meeting location, where they can read or meet with peers without the necessity to
pay cover charges. For us, this will provide a unique possibility for building a loyal client base.
Market needs

General trend toward quality among U.K. consumers definitely plays an important role in the
recent growth in gourmet coffee. Additionally, such factors as desire for small indulgencies, for
something more exotic and unique, provide a good selling opportunity for coffee bars.

Identify in which the business plan can be improved

The star coffee shop marketing strategy will be focused at getting new customers, retaining the
existing customers, getting customers to spend more and come back more often. Establishing
a loyal customer base is of a paramount importance since such customer core will not only
generate most of the sales but also will provide favourable referrals.

The star coffee shop position itself as unique coffee shop where its patrons can not only
enjoy a cup of perfectly brewed coffee but also spend their time in an ambient environment.
Comfortable sofas and chairs, dimmed light and quiet relaxing music will help the customers
to relax from the daily stresses and will differentiate the star coffee shop from incumbent
competitors.

The star coffee shop barristers will handle the sales transactions. To speed up the customer
service, at least two employees will be servicing clients--while one employee will be preparing
the customer's order, the other one will be taking care of the sales transaction. All sales data
logged on the computerized point-of-sale terminal will be later analysed for marketing
purposes.

In order to build up its client base, the star coffee shop will use banners and fliers, utilize
customer referrals and cross-promotions with other businesses in the community. At the
same time, customer retention programs will be used to make sure the customers are coming
back and spending more at the coffee bar.

Task 4

Identify factors that influence change in the business

Businesses are affected by an external environment as much as they are affected by the
competitors. Global factors influencing business are legal, political, social, technological and
economic.

Social factors - These factors are related to changes in social structures. These factors
provide insights into behaviour, tastes, and lifestyles patterns of a population. Buying patterns
are greatly influenced by the changes in the structure of the population, and in consumer
lifestyles. Age, gender, etc all determine the buying patterns and understanding of such
changes is critical for developing strategies which are in line with the market situations. In a
global environment it is important that business strategies are designed keeping in mind the
social and cultural differences that vary from country to country. Consumer religion,
language, lifestyle patterns are all important information for successful business management.

Legal factors - These factors that influence business strategies are related to changes in
government laws and regulations. For a successful business operation it is important that the
businesses consider the legal issues involved in a particular situation and should have the
capability to anticipate ways in which changes in laws will affect the way they must behave.
Laws keep changing over a period of time. From the point of view of business it is important
that they are aware of these changes in the areas of consumer protection legislation,
environmental legislation, health & safety and employment law, etc.
Economic factors - These factors involve changes in the global economy. A rise in living
standards would ultimately imply an increase in demand for products thereby, providing
greater opportunities for businesses to make profits. An economy witnesses fluctuations in
economic activities. This would imply that in case of a rise in economic activity the demand of
the product will increase and hence the price will increase. In case of reduction in demand the
prices will go down. Business strategies should be developed keeping in mind these
fluctuations. Other economic changes that affect business include changes in the interest
rate, wage rates, and the rate of inflation. In case of low interest rates and increase in demand
Businesses will be encouraged to expand and take risks. Therefore, business strategies should
have room for such fluctuations.

Political factors - This refers to the changes in government and government policies. Political
factors greatly influence the operation of business. This has gained significant importance off
late. For example: companies operating in the European Union have to adopt directives and
regulations created by the EU. The political arena has a huge influence upon the regulation of
businesses, and the spending power of consumers and other businesses. Business must
consider the stability of the political environment, government’s policy on the economy etc
Technological factors - These factors greatly influence business strategies as they provide
opportunities for businesses to adopt new innovations, and inventions. This helps the
business to reduce costs and develop new products. With the advent of modern
communication technologies, technological factors have gained great impetus in the business
arena. . Huge volumes of information can be securely shared by means of databases thereby
enabling vast cost reductions, and improvements in service. Organisations need to consider
the latest relevant technological advancements for their business and to stay competitive.
Technology helps business to gain competitive advantage, and is a major driver of
globalisation. While designing the business strategies firms must consider if use of technology
will allow the firm to manufacture products and services at a lower cost. Firms can select new
modes of distributions with the help of technology. It has become easier for companies to
communicate with their customer in any part of the world
Identify the impact of change on the business and employees

Employees:
People naturally do not like change, regardless of whether it’s positive or negative. The feeling
of fear, ambiguity, unknowns, loss of control and power, and the like result in people not
feeling naturally comfortable with making a change that could potentially put them in a better
situation. These feelings result in paralysis to act, and can often result in people acting
irrationally and not in the best interests of an organization. So, with any change initiative is
the absolute and mandatory requirement that the change initiators think through what the
impact may be to the employee population, who ultimately have to adapt to the new changes
in order to best serve the customer.

Business:
*Competition (what are they doing?)
*Customer behaviour (needs, wants, and desires)
*Industry out look (local, national, global)
*Demographics (the change populations, there density, etc.)
*Economy (are we peaking, or moving negatively)
*Political movements and/or interference
*Social environment
*Technological changes
*General environmental changes

Evaluate resistance to change management strategies.

 At all times involve and agree support from people within system (system =
environment, processes, culture, relationships, behaviours, etc., whether personal
or organisational).
 Understand where you/the organisation is at the moment.
 Understand where you want to be, when, why, and what the measures will be for
having got there.
 Plan development towards in appropriate achievable measurable stages.
 Communicate, involve, enable and facilitate involvement from people, as early and
openly and as fully as is possible.

Swot analysis

SWOT is an abbreviation for Strengths, Weaknesses, Opportunities and Threats

SWOT analysis is an important tool for auditing the overall strategic position of a business
and its environment.
Once key strategic issues have been identified, they feed into business objectives, particularly
marketing objectives.

Swot analysis of star coffee shop

 Strength Weaknesses
Good atmosphere Opposite coffee shop
Skilled employers Lack of resources

Good customer service Higher price than competitor

Provide break fast Coffee price increasing
Demand for Cultural & political issues
Good relationship with suppliers

Strong financial foundation

Opportunities Threats
Growing population of daily Internet Competition (restaurants, street carts,
users supermarkets, other coffee shops,
other
caffeine based products)

Expansion into retail operations Coffee price volatility in developing

countries
Technological advances Numbers of competitors are
increasing.
New distribution channels (delivery) Security risk at crowded time.
People started to become more health
conscious

Strategies for measuring performance thoroughly examined and at least one strategy
implemented

Marketing strategy

A marketing strategy defines objectives and describes the way you're going to satisfy
customers in your chosen markets. It does not have to be written down but it is easier to
communicate to outsiders, like your bank manager or other investors, when it is.

Market Segmentation
Star coffee shop customer is comprised of five target groups.
Affluent local residents
Tourists
 Local business people
Students
Travellers passing through
These groups are all potentially strong customer segments. The benefit of this mix of
customers is that it helps maintain consistent business throughout the year. For example,
while tourism is strong all year long in Pleasantville, it peaks during the summer months.
Conversely, the student population is not as strong during the summer as it is from
September through June of each year.
The other customer segments (local residents, local business and pass-through traffic on
provide a consistent foundation all year long.
Also, by appealing to several market segments, star coffee shop does not become overly
dependent on any single consumer group. For example, several local coffeehouses with
primarily student customers do poorly during the non-school months. They must also market
themselves anew each year to the incoming students.

Market Segment Strategy

Overall, our strategy is to maintain a constantly high customer count by leveraging our appeal
to five groups of potential customers.
Local Residents. Approximately 200,000 people live within five miles of our star coffee
shop. The most affluent of these live even closer, within three miles. It is a short 5
minute drive to Star Coffee shop for most of our potential local customers. Excellent
public parking is available within 100 yards.
Local customers form the loyal core of our business. We will reach out to them through
local marketing, involvement in the Chamber of Commerce, support of local charitable
organizations and sponsorship of events and youth sports teams.

Tourists. Uxbridge has excellent year-round tourist activity. About 5 million people
will visit the area during the next year. While hotels are virtually sold out during the
summer months, tourism all year is exceptionally strong. This is due in large part to
the temperate climate, weekend or day-trip visitors from the greater Onto polis area and
an unusually large number of special events (e.g. film festivals, concerts, art shows)
scheduled throughout the year.
With a troubled economy and fears of terrorism, more people are opting for the
relatively inexpensive, easy and safe short trip to Uxbridge for recreation. And,
according to the Chamber of Commerce, 90% of all tourists visiting Uxbridge will pass
by the Star Coffee Shop location.
We will target these potential customers with ads in local tourism guides.
Local businesses. Many local businesses, both private and government, are within two
blocks of Star Coffee Shop . Lucre Galleries, the prime shopping centre of Uxbridge, is
one block away. The county courthouse is two blocks away. Star coffee shop is in the
heart of the shopping and dining area.
Because much of the employee parking is out of the immediate area with shuttle service
to downtown, most people stay near their place of employment during breakfast, lunch
and for after-work relaxing. A significant number of these local business people find
Star Coffee shop an inviting and convenient destination.
Coffee service brings in additional revenue and promotes Star coffee shop among
employees at these businesses.
 We will also reach business customers through Chamber of Commerce activities and by
personally visiting the shops and businesses to distribute discount coupons and
menus.
Students. The area has more than 30,000 students in Uxbridge College most of whom
are under the drinking age, have few places they can go to meet their friends.
Coffeehouses have proven to be very popular with students—even high school students
—as an "in" place to go that's also affordable.
To reach students we offer special student discount cards, pass out free coffee coupons
at student events and offer entertainment on weekends.
Students represent an excellent customer segment for several reasons:
 Students bring an energy and youth to the coffeehouse
 By attracting students we generate excellent word-of-mouth
 Students represent a large base of potential part-time employees
 Often under the drinking age, students need an affordable place to hang out with
their friends

References
 The Essence of small Business Adrian Buckley
 The financial times Guide to business start up 2007.
 The new one for the Lloyds TSB Small Business Guide - Sara William.
 Setting up & Managing your own Business Colin Barpw.