• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Coffee Delight

Extracts from this document...

Introduction

Business Studies Using all the information available to you, complete the following tasks * Analyse the case for Coffee delight plc expanding further in the UK * Analyse the case for Coffee Delight PLC opening outlets in Romania * Make a justified recommendation on which option the company should use [34 MARKS!] Coffee Delight plc is a late arrival in the UK coffee shop market, they operate combined coffee bars and sandwich shops with Internet access available in most outlets. The company uses space intensively to give a busy active feel for the customers. Market research shows that Coffee Delight is established in the UK market and well known, they are always seeking to lower costs of production. Coffee Delight has very competitive prices for virtually all of their products they feel this is the best way to win over customers. ...read more.

Middle

However coffee delight will have to enter the market quite quickly to achieve the full benefits of the growth. Romania's market is set to exceed the growth of the UK's however this will also attract more competitors to start up in Romania. The UK market is also dominated by large business and coffee delight only has a tiny amount of market share, these large business's have more resources and create stiff competition for companies such as coffee delight plc. APR from the Romanian projects is very attractive at 17% which is substantially higher than the ROCE achieved by the company in 2006. Aswell as this the costs of running the business in Romania are very low, therefore would maximise profits. However the directors have also considered expanding the business in the UK market. ...read more.

Conclusion

Romania have different laws to the UK, also different customs and a different culture therefore this will have to be studied in depth before a final decision has been made. There is also a high degree of risk in setting up a business in a foreign country, it will depend on the attitudes of the management teams and shareholders to risk. There is also a limited amount of data available to coffee delight. Competitors also have a major say in whether the decision will be worth it, for example if they have the financial capacity to enter the Romanian market and to provide tough competition but this is not working then the Romanian market may not be as attractive as first thought. Finally the company have no experience of operating outside of the UK therefore they would need to hire specialist managers and staff with these expertises. From the above points I feel that Coffee Delight should concentrate on expanding in the UK market. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Case Studies and Analysis section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Case Studies and Analysis essays

  1. Marketing plan for Trung Nguyen coffee company.

    Their mild coffee is tailored to Korean tastes. * Cafe Nescafe has 25 outlets in Korea, and is planning to expand to 90 in five years. They have several small take-away outlets, and serve 45 different drinks, plus a selection of pastries. * Java City Coffee, which opened in October 2002.

  2. NHS change management

    Organizational culture and change Senior (1977) describing that some element of culture can be supportive for change and some other can be defense against the change process. Organizational Culture and Change Source: Senior, 1977. For implementing the cultural change we can use the normative systems model for cultural change.

  1. PEST is a planning tool which is used by a business to evaluate and ...

    This PEST factors could also be significant to Ginsters as it could directly affect their ability to achieve the aim / objective of becoming the savoury product UK market leader, this is because if Ginsters has lost customers due

  2. Investigating Internet Marketing

    with the same measures as the customer; he/she can also choose the face and the hair. After that the customer can dress the model so it is possible to see how he/she would look like. The website is offered to customers who want convenience i.e.

  1. Unit 9: Marketing Strategy

    in the local area which I know, family members and high number of pensioners as I really wanted to find out whether they would be enthusiastic about a local bakery. 30 out of the original 65 responded and I was surprised to see that a high percentage of pensioners had

  2. The main purpose of this research is to know and analyze whether the Olympic ...

    types such as the experimental research type and the non-experimental research type. The specific research design is been selected depending upon the type of the research problem within the research process. The experimental research design is more useful and well suited for the different types of the projects that will

  1. Business plan. The business that I am going to produce is a personalised logo ...

    this is because accounts roles are to put business finances into accounts to then let the business know what the overall result is and using that data, how they can improve their business, however as you are paying for their time this could result to being very costly.

  2. Unit 32 P3 explain how the developments in the consumer market have impacted on ...

    Ordering service- the ordering service is where the business must guarantee that there customer?s get the products they ordered alongside the county they are in and also then receive the products in the correct time.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work