arsh pass 6411

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Unit 6411 Page 1 of 19 Unit 6411 Identify and access business development opportunity for small business enterprise Name arshdeep singh dhillon Executive Summary In this assignment the research work on basis of development of new business. Compare Market position of product with other competing products.Apart from this it describe what changes are required to increase the market value of product.It also define what factors effect for the development of business and what changes required. The other part of this assignment is it explains some polices and rules to starting new business in New Zealand.In which assess all the economic environment areas like inflation, international trade and international market fluctuations. Moreover it defines the porter analysis in which it explains the what factors effect on the product in market. Further explains all possible opportunities for development of product. Further it investigate all opportunities and impact of acquisition and acquisition of complimentary enterprises.In which it explains how acquisition is help for the growth of business.

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Page 1: Arsh pass 6411

Unit 6411

Page 1 of 19

Unit 6411

Identify and access business development opportunity for

small business enterprise

Name arshdeep singh dhillon

Executive Summary

In this assignment the research work on basis of development of new business. Compare Market

position of product with other competing products.Apart from this it describe what changes are

required to increase the market value of product.It also define what factors effect for the development

of business and what changes required. The other part of this assignment is it explains some polices

and rules to starting new business in New Zealand.In which assess all the economic environment

areas like inflation, international trade and international market fluctuations.

Moreover it defines the porter analysis in which it explains the what factors effect on the product in

market. Further explains all possible opportunities for development of product.

Further it investigate all opportunities and impact of acquisition and acquisition of complimentary

enterprises.In which it explains how acquisition is help for the growth of business.

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PART A

Introduction – Coffee club is one of the most popular coffee businesses in New Zealand.

First store was opened in November 1989 at Brisbane's Eagle Street Pier. In 2005, First cafe

opened in North Island, New Zealand. Presently, coffee club have its café in all New Zealand

and providing good service and food to their customers and extending its business day by

day in New Zealand. The Coffee Club NZ wins Food & Beverage Best System of the Year in

the New Zealand Franchise Awards. In November 2013, The Coffee Club celebrated both 24

years in Australia and 8 years in New Zealand providing Good Food, Great Service and

Excellent Coffee.

Product- coffee club is known for providing superior products and services. They are

serving best as compare to other coffee companies, so the product quality of the coffee club

is new and fresh .they using the coffee beans rather than coffee powder which is best for

sale and for attract more customer.

Price -The price of coffee club product are very affordable and according to demand of

customer its very reasonable. As its competitor of coffee guy and coffee right price is very

high .The coffee club set its price according to the customer pocket which customer can

enjoy its product and to compete competitor as well.

Place - the coffee club now situated in every big market and on main street in New Zealand

so every people can easily access and enjoy its hot coffee in the morning business hours .

The coffee club is available on every corner of the country to ensure that it is easily

accessible to the customers. On the other hand, the coffee club provide very good customer

service to their customers, they have very experience employees in company and train to

staff to be friendly and serve good quality food and service.

Promotion – the coffee club is a very famous brand in the coffee industry so most of people

know about its best service and product .Every week the coffee club offer some promotion

on product like some combo deal or less price and they put this advertisement on TV or local

newspaper for more sale.

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Part -1 task – 2

Q 1 The political environment

Direct assistance to small business enterprises.

Direct assistance is an important part of any small business for its start-ups and

growth. In direct assistance government provide many kind of helps to small

business like financial, technical and many more. Forms of helps which they provide

are the following:

Business start-up assistance – In this direct assistance provide programmes related to

start up a business. Programmes like free business advice, also give training how to start

business.

Business development and improvement_ In this direct assistance provide helps to

existing business that seek to improve their performance by grants government subsidies on

different aspects.

Infrastructure support-In this government provide practical support like government may

improve the cost of improving road and rail links to a port to encourage the trade by sea.

Tax concessions-In this government provide tax subsidy which reduces the overall tax

liability of business.

Trade assistance-In this direct assistance provide information related to export credits,

foreign market intelligence and training courses related to various countries rules and

regulators to export things have been provide to small business.

Business Incubators-Business incubators are the form of business assistance which

support business resources and service and also help business to enter the market place

and secure their existence.

Business Assistance in New Zealand-In new Zealand central government and local

government also provide assistance to small and medium enterprises .They provide support

in start-up assistance, research and development and technological assistance and also

regional .

Policy: The coffee club will apply to the Inland revenue for tax concessions to decrease our

operating costs and taxes to pay

Impact on current operation – the coffee club is doing very good in market. It has good

sale and running smoothly.

Impact on potential development: this will help to increase the business as well as we can

open new shops.

Changes to the business environment for specific industries or business sectors.

Policy: All employees will be paid time and ½ if they work on these public holidays

Our business environment will be affected when the bill to “amend the Holidays Act 2003 “to

provide for the transfer of the public holidays for Waitangi Day and ANZAC Day if they fall on

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a weekend”(clause 4, the “purpose clause” ).This means if Waitangi Day and ANZAC Day

fall on Saturday or Sunday then holiday will be observed on either the Friday or Monday.

Impact on current operation: staff working on public holiday gets extra pay like time half

and also gets day off which is a advantage of them. Also if a student working part time gets

extra hours to work because they are allow working on public holiday and gets more salary

Impact on potential development:

Business gets more trading hours and makes more profits. Also they part time workers get

more hours to work and full time workers gets salary whether they work or not.

Change to current legislation and regulations

Commerce Act 1986: The purpose of this Act is to promote competition in markets for the

long-term benefit of consumers within New Zealand.

Resources Management Act 1991: The purpose of this Act is to promote the sustainable

management of natural and physical resources.

Sale of goods Act 1908: The purpose of the Commerce Act is “to promote competition in

markets for the long-term benefit of consumers” .

Employment Relations Act 2000: For the purposes of this Act, personal grievance means

any grievance that an employee may have against the employee's employer or former

employer

Income Tax Act 2007: The main purposes of this Act are—

(a) to define, and impose tax on, net income:

(b) to impose obligations concerning tax:

(c) to set out rules for calculating tax and for satisfying the obligations imposed.

http://www.legislation.govt.nz/

Policy – the coffee club will have a policy to pay minimum pay to its employees time to time

including holiday pay and sick leave. It has also to pay time and half pay to its employees if

they are working on public holiday

Impact on current operation: with this policies relationship between employees and

management become good and work together towards achieved of goals of the coffee club.

Impact on potential development – the coffee club future operations relating to policies

include the need to administer and deal with any issues raise with regarding any of

products or services analyses products and customer services and develop new products;

and facilitate the coffee club internal business operations, including fulfilment of any legal

requirements.

2 -

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Inflation – Is the increase on price of goods and services. As we talking about the

coffee club sale and about coffee club café in New Zealand so the inflation rate of

New Zealand is 0.90% which is good so the purchasing power of people is increasing

for an example if the inflation rate is 5% then the 1$ valued product will increase by

$1.20 in a year and purchasing power of people will go down, so 0.90% is good for

company and people. http://www.tradingeconomics.com/new-zealand/inflation-cpi

Implication on business development - if the price will increase then people will

not buy thing. Due to inflation the sales of the coffee club will decrease. Because

people will spend more money.

Unemployment - Unemployment effect on the company’s sales because people

will not have money to spend on coffee if they will not have the job how they can buy

their daily coffee routine less consumption reducing more jobs. If sale will be high

then the company sets more branches and there will be more jobs, currently

unemployment rate of New Zealand is 6.2 so it’s not too bad so the sales of coffee

restaurant almost good.

Interest rate - when interest rate is high company will buy fewer loans from the

company effecting there credit availability. The coffee club is reputed brand in New

Zealand, so ANZ bank is providing 5.7% interest rate on business loan which is good

for the coffee club to open more restaurant in all over the New Zealand with less

deposit and low interest rates. https://www.anz.co.nz/ratefee/interest.asp

Share market fluctuations - share market fluctuation will increase the cash flow in

the banks and daily new prices of the company will maintain the sales and it will keep

balance in G.D.P of the company .Business will be confident because more sales

make the positive impact on the bank so the bank will be happy to give more money

on interest to the businesses so the business can run smoothly if businesses will be

increase obtusely the employment rate will increase .people will do more trade and it

will also help to rise the country economy .More business investment will make the

trust on the bank and helps to open more banks in the country .so these kind of

fluctuation in the share market can brings more change.

Availability of credit – availability of credit is also a big factor in every business

because if company will have sufficient credit, company can use it to open more

branches and can use in case of loose. Company can make more diction with

confidence if they have enough credit to improve service and product. Company can

also cover its risk and loose with help of credit, company have.

Business confidence – business confidence is also biggest thing to run a business.

If company will have enough confidence to make diction and take more risk to make

any change in business. Company can compete with its competitor and make

business more success in market by providing good food and service.

Investment spending – to improve business, company need to invest more money

in market which company will have more branches in country and will have more

income from business. But in case of investment, company need to study on that

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case before investment. It’s very important to study on that place and business idea.

With the help of investment spending, company can compete with their competitor.

3 –

International trade - international trade for every nation has own important. Every

nation need to make balance in import and export because it effect on GDP of

country, employment and value of dollars. Exports and imports levels are influenced

by economic growth at home and aboard by the competitive position of New Zealand

product in international market and foreign good in New Zealand markets.

Currency fluctuation – currency fluctuation is also main factor to study for very

nation. Value of dollars as compared to other nations is cause to inflation in country.

If value of dollars New Zealand dollars will raise, it will effect on export service which

become more expensive, other nation have to pay more to new Zealand product. If

the value of New Zealand dollars will goes down then inflation will increase in New

Zealand which lead to increase price of product. Import service will also be affected.

Regulations for entry specific international markets – the world trade

organization deal with the global rules of trade between nations, its main function is

to ensure that trade flows as smoothly, predictably and freely as possible. Every

nation need to come under this low to do international trade. If any nation goes out

from these rules, they would not be come under fair trade. The purpose of these

trade monitoring reports is to enhance transparency of trade policy development

around the word and to provide WTO members and observer with an up to date

picture of trade in the implementation of trade liberalizing as well as trade restricting

measure, in particular in times of economic crisis when protectionist pressures tend

to surge.

Balance of payment - balance of payment accounts are the most comprehensive

measure of New Zealand’s international economic transactions with other countries.

balance of payment data is provide for data total New Zealand transaction with all

nation and separate transaction with particular nation and region of the world. The

balance of payment data is in current dollars. The balance of payment reflects New

Zealand’s participation in world market overall. It point out the relative important of

international product markets to the New Zealand economy and indicates those

market that are gaining or losing ground. It also highlights shift international

investment, including the effect on interest flows and entering and leaving New

Zealand. The extent to which New Zealand consumes ad product for world markets

effects the GDP.

4 –

Population trends - every company think about the public trend that what they want

and what they like, they have to find about the all information about age,trend,jobs

eating habits etc. In the New Zealand people want fresh food and quick service so

according to the population view every company have to decide their products, price,

and the better location so for the coffee club this trend of population is very profitable

because New Zealand is very cold country and most of people live in the city area

and they are coffee lower because of cold environment people love to buy coffee in

their morning time. Here we can say for business development, we have to search on

population trend first.

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Building permits - building permits effect the business because if you want to make

a building or construction you have to apply for it with the city council before you start

it you should consult them sometime you can’t open the desired business there

suppose you want to open a liquor shop in area but if city council have to give add to

residents or a particular firm for example in the west of Auckland people cannot open

the super liquor because only trust liquor can open their liquor store because the

Waitakere council commit to the trust company that no any other liquor company

open their liquor in that area accept the trust liquor, so we should go for permit

enquiry before think about to open a business.

Business surveys - business survey is important to know the behaviour of people

like what they want and what they like to eat .which kind of customer we can see

there and how much they can spend, because these all information can make us

confident to make some good plan about our business for example if The coffee club

is doing the business survey and they will go for the busy places in city or near the

university because people need coffee before they start to their work or study.

5- Cultural indicators -

Language – New Zealand is a English language country so the most commonly

spoken languages after English, there are many other local and international

language like Maori, Samoan, French, Yue and German. 95.9 % people speak

English.

Implication for business development: we can advertise our product in main language

like English all people are able to understand English and we can get profit due to this.

Migration trend: New Zealand is a tourist country, people come to New Zealand and

like to stay for long time and also people migrate from other courtiers. These

releases provide statistics on the number of overseas visitors, New Zealand

resident’s travelers, and permanent and long-term migrants entering or leaving New

Zealand.

Implication for business development: this will beneficial for development of any

business. Due to this we can make more sales.

National ethnic population: New Zealand is a multicultural country. People in New

Zealand lives, Maori, pacific, Asian, and European ethnic population of New Zealand,

based on different combinations of culture, mortality, migration, language and inter

ethnic mobility assumptions.

Implication for business development: to improve our business the most important thing

is people to sell the product.

Outcome 2 – monitors and evaluates new processes and theologies

Business process is a collection of related, structured activities or tasks that produce a

specific service or product for customers. A business process begins with a mission

objective and ends with achievement of that objective. the two kind of business process are

the following ;

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Management processes: The process that governs the operation of a system is called

management processes. Here management is explained with reference to its basic functions

which include planning, organising, coordinating and controlling. Similarly, management is

described as a process which involves various elements. Management process is a

continuous one and is run by the managers functioning at different levels. In management

processes managers plan, organise, lead, motivate and control human efforts in order to

achieve well defined goals.. The management process suggests functions to be performed

by the managers.

This will be monitored by duty manager who assigned different duties to different team

members. Customer services team members are given duties to work on the frontline with

smiling face and friendly voice. And who are serving those customers who pull up on wheels.

In the kitchen food services team members working.

This will be evaluated by top management that no matter which area we work in, our

duties more or less the same. We will prepare, store, pack and deliver great tasting food to

our customers according to service. We should always keep in mind our work standards:

cleanliness, hospitality, accuracy, maintenance, product and speed of service. Our

customers are number one and our brand is powerful. We'll give you all the training

necessary to ensure we keep our customers happy.

Potential contribution to business development: Management processes also

contribution to business development because if we have good management processes then

everything in business is properly managed and helps in achieving objectives.

Operational processes: The process that constitutes the core business and creates the

primary value stream is called operational processes. In operational processes various

processes are involve like purchasing, manufacturing, advertising, marketing, and

sales. Bringing raw material and goods into you company and how you produce products

and services to ensure that you obtain the total lowest cost of the products and services you

buy .this is done with the help of operational processes. After this, you also have processes

that manage your distribution. Are you efficiently delivering your products or services to your

customers? Are you effective at reaching your customers through your distribution

channels? Advertising and marketing of products and services is also very important process

because through them customers know about the products and their function.

This is monitored by top management to see that different departments working properly or

not.

This is evaluates by top management that .

This is evaluates by company then it objectives are achieved

Potential contribution to business development: There contribution will help to expand

business by way advertising to people and help to attract more customers

7- Technology

1- Latest coffee machine

Impact on current business operations:Will make nicer and faster coffee.This will help us

to increase the business because with cookies many people like to have coffee as well as I

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have seen many visitors visit and ask for coffee so I thought that we should start coffee with

cookies.

Potential contribution to business development: due to this we can get more income as

well as we can develop our small business.

2- Security cameras

Impact on current business development: this will helpful for us to know everything what

is happing in the business and if there is something wrong happing then we can improve

that. With the cameras we can also check that all employees working well or not and if find

we something then we can give training to them.

8 -

Competitor product/service Own product/service

The coffee guy also provides cookies

same like subway on cheap rate as

compare to its competitor.

Opportunities: 1. it will be a good

opportunity for our business to decrease

the price of cookies.

2. This will be a good opportunity to

develop our business to sell cookies in

special offers.

Coffee right: they are providing

sandwiches, snakes and coffee in cheap

rates to customers.

Opportunities: 1. this will be a good

opportunity to start selling sandwiches,

snakes at low cost.

2. By starting coffee we can get more

profit.

9 - Conduct an assessment of at least two of your own products and services using

each of the following factors:

factors Product 1: cookies Product 2: slab and slices

Potential

contribution to

sales volume

It will help to

increase sales and

number of

customers which

will come out as

good result. And I

can measure the

income.

It will help to determine the

time period over which you

want to calculate sales

volume. And also helpful

will calculate the sales over

a one month period or over

an entire year.

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Market growth Market growth rate

is the annual rate

in which the market

for a product is

growing expressed

as a percentage.

Market growth rate

is a key indicator of

the health of a

company.

Market growth rate is

calculated by comparing

market size in the current

period with the market size

in one or more previous

periods. A one year growth

rate might be acceptable

for the company’s purpose,

but often a more

meaningful metric will be

growth over several years.

Market share Market share is to

marketers what

profit is an

accountant. Market

share is a

company’s sales

divided by the total

industry sales. For

example, the

central market is

worth 90 million in

a particular year

and sanitarium’s

cereal sales for

that year amount to

$45 million.

Market share represent the

share of the market held by

a company, expressed as

a percentage. This is

measured in terms of

industry sales.

Profitability Selling cookies on

cheap rate is

beneficial for

company because

its attracting to

customers which

help to increase

profit because

cheap cookies help

to increase sales of

coffee.

Company getting more

profit from slabs and slices

because company making

it fresh which good to eat

and healthy.

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10 -

S.W.O.T Coffee guy: cookies Coffee right : coffee right

Strength 1. Cheaper

2. Easy assess

1. Cheaper

2. Providing good quality

Weakness 1. Sometimes not fresh 1. Some people do not like cheaper

coffee.

Opportunities 1. More people like to

eat cookies as well as

the price is

reasonable which is

good for business.

1. People happy to buy cheaper coffee

which is good in quality as well.

Threats 1. More competition

2. More variety in market

1. High competition

11 Market research for potential markets.

For the continuous development of the business market research is very important to develop

new opportunities for the growth and expansion of the business in the future. For the coffee

guy there are two potential markets.

Botany Town Centre:- Botany town centre is a potential market for the coffee to expand

the business and open a new branch or store for the development of business. Following are

the descriptions of potential capacity of the market.

Who are the customers:- Potential customers in botany town centre are employees mostly

from the various countries. The coffee main customer base is the employees so it will be

potentially viable for the coffee guy to develop its business in this market.

What do they like:- Employees and workers mostly likes to have coffee or tea in their

brakes and they prefer some light meal like biscuits and cookies with them. So it will be

convenient for them to buy their own taste coffee. So the coffee guy can come up with a

variety of products available and at a reasonable price.

Why do they buy:- The employees and workers have less break time and they want to get

fresh in the mean time and they are very tired from their work so they want a coffee or a cup

of tea to get refresh and return back to work. That is why the sales will cross good records

there and will be a potential contribution for the product

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City centre:- city centre is also a potential market for the coffee to develop new market for

expansion of business. The characteristics of city centre are here under.

Who are the customers:- The potential consumers in city centre are the families and many

migrant students. So they will welcome the coffee guy as it will bring them their own taste in

multiple products. And the business of the coffee guy will expand a lot there.

12 Two Opportunities for business development:-

For the businesses it’s very important to do market research and grab the opportunities

available in the market for sustainable development in the future of the business. The coffee

guy has opportunities to develop its range of different products like chocolate chip and baked

muffin.

Chocolate chip:-

Potential contribution:- Chocolate chip is a very popular product in today’s market. If the

coffee guy is able to promote the complete range and various flavors of chocolate chip then it

will be able to increase its demand in the market which will increase the sales and the

potential contribution of the business development.

Market Growth:- Currently the market growth of the chocolate chip is slow but if the coffee

guy is able to grab the opportunity via strong marketing and promotional strategy and

increasing the demand of the product. It will be able to potentially increase the growth of the

chocolate chip and the business as well.

Market Share:- The market share of the chocolate chip is very low because there is not

enough width and depth in the product range. If the coffee was able to develop the range of

the chocolate chip with the strong advertisement and promotions. It would be able to increase

the market share of the chocolate chip.

13 -

1 - Potential contribution to sales volume - we are selling coffee which is liked by all

people. Once people have coffee then they will become customer for whole life. We can

decrease the price of product to increase the sales and other promotional deals for new and

regular customers. As well as we can start cookies at cheap rate to increase the sales.

2- Market growth - market growth means increase the demand of a particular product over

time. At present coffee club have business in New Zealand and in other counties but now we

are promoting our business and starting new shops around New Zealand. We are starting

new product like cookies etc and selling coffee at cheap rate to increase the market growth.

3- Market share - the percentage of an industry or market’s total sales that is earned by a

particular company over a specified time period. The coffee club business is getting success

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day by day because of its good coffee and service . We will start cookies on cheap price to

get more profit.

4 – Profitability - we are earning huge amount of money because of our coffee and we are

starting cookies which will give benefit to our business. By virtue of this we can earn more

money.

14 -

Width Breadth

Coffee Hot Chocolate

Flat white

Moccachino

Short black

Long black

Latte

Cappachina

Sandwich Chicken

Ham

Beef

Veg

Muffin Chicken

Ham

Beef

Veg

Services

Customers services

The coffee club is sell these products with good service.

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15 - Existing product: coffee

Opportunity- the coffee club coffee is selling coffee for in cheap price which sell of coffee

club will increase and help to get more profit. It has various type of coffee like hot chocolate,

short black, long black,moccachino flat white etc, company is selling these coffee on cheap

price which attract customer to buy coffee. Sell of more coffee help to increase profit for

Contribution to potential business development: if we decrease the price of coffee then

we can sell more coffee which is customer will buy more coffee with because company have

more good deals and variety for selection. People prefer fewer prices as compare to high

price.

16 - Opportunity

Start cookies

Contribution to business development: due to start selling cookies we can develop our

business because mostly people who come to buy coffee, will also like to have cookies with

coffee. So due to this we can earn more money.

Sandwich

Contribution to business development: In New Zealand mostly people like to eat

sandwich in breakfast which is really good with coffee to start a good day. This will be very

beneficial for the coffee club business.

17-

Joint ventures - A joint venture is a business enterprise undertaken by two or more

persons or organizations to share the expense and profit of a particular business

project .In this both parties take an active part in the formulation of business strategy

for new business joint ventures also give the chances to smaller company to work

together with other company and also take an opportunities to increase sales and

alternate increase market growth

Contribution to business development: joint business will very helpful for us to develop

our business. With the help of joining with other business we can promote our business and

we can get profit.

Soft and hard networks: for development of any business soft and hard networks

are necessary. If we have a good network then it will help to develop our business.

Good networks will help to promote our business worldwide and will be successful. it

will also help do business with foreign countries as well as company will get foreign

currency and we can improve our weakness.

Introduction of new partners- Introduction of new partners means the introduction

of capital by person which become partner and now dividing profits with them .This

will increase capital and makes business better

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Franchising: Franchising means granting rights to another party (Franchisee) to sell

or distribute the products or services .In other words starting same business in other

location as a franchisee.

Exporting: exporting is defined as selling in another country the goods or services

that you offer domestically. It is most common way for small business to operate in

other countries and provides the lowest levels of risk and investment when

conducting internationally, increasing the company’s chances of success.

18 - Merger means a combination of two companies to form a new company. By doing it

companies will working together and give competitor to other companies and also hoping to

gain a greater market share.

Franchise name: the coffee club has own name and they are working from long time with

this name. they have copy right for this name. So they have their legal name and no one can

use this name.

Contribution to business development: franchisee name is very helpful and important for

development of any business because people go for company name because they are

aware about company product and services. Franchisor’s success depends on the

franchisee.

Coffee - they have number of coffee type and flavor and they are making fresh and provide

good service to customer. So this is a legal right of them and another business cannot copy

this.

Contribution to business development: they use fresh martial to make coffee and they

have many types and flavored which are liked by all age groups.

19 - Opportunity –

Coffee guy - they are selling coffee on cheap price. Mostly people prefer cheap so they buy

coffee mostly people do not like to spent more money so coffee guy are selling more.

Contribution to potential business development: the coffee guy is selling coffee on

cheap price most of people like to buy that coffee if the coffee club decreased its price so

they will get more income.

Coffee guy is selling coffee on cheap and they are located is near market and working

places so they are getting profits. Moreover, college students and working people prefer this

coffee.

Contribution to business development: the coffee club business does not have cookies. If

they start cookies then they can earn more money.

20 and 21 -

Opp. Benefit Sales

vol

Profit

est.

Analys

is cost

vol.

Break

even

analysis

Cash

flow

projecti

Capit

al

requir

emen

Mart.

Shr.

Attractiveness and

availability

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profit on t

Start cookies Profit high mediu

m

High medium Mediu

m

Yes yes yes

Franchising Market

share

Mediu

m

low High medium Low Yes yes Yes

Coffee Market

share

high high High high Low Yes yes Yes

Coffee guy Less

competition

Mediu

m

high Low high Mediu

m

Yes yes Yes

22.Changes –

Decrease the price of coffee – the coffee club should decrease the price of their coffee so

that they can develop and increase sell of their business and earn more. Due to this change

they can increase the sales as well as this will reasonable for all people they can easily buy

cookies.

Bigger shop - The coffee clubs have very small size of shops. Due to size problem, its

customers don’t have enough space to sit and have coffee. So company need to increase

size of shop which people will like to come and have coffee. It will also increase the sale of

coffee and more profit. This will make reputation in the market and this change will attract

the customers.

Improve customer service – the coffee club is very famous coffee café in the market and

they have more sale and busy café, so sometime, customers have to wait to order and

receive. They need to hire more staff to provide good and fast service. Customer need not

be stay in row or wait which customer will be more happy and satisfied with service.

Present position: the coffee club is doing well in market and going business smoothly and

they are selling their coffee on good price . They are earning more from this small business.

Future position: if they will make these change like decrease price of coffee and cookies in

future, outcome will be positive and get more profit because they will have more sale in

store. Moreover, they will compete other competitor, will have more good deals and combs

to attract customers which will come out in good result and improve sales.

23 –

We are going to start cookies in coffee club, to start their act nee to buy some stuff relate to

cookies like pan to cook cookies and microwave which cost around $1000. Moreover need

hire more staff to cook and serve these cookies with good service. And also need to buy

raw material for cookies. Which will cost round $500 in starting. It will help to increase sale

and profit.

At second step, we need more staff for customer service and to work in kitchen. They will

place order and serve customer with fast and good way which cost around $500 per.

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At the end, need enough space to sit customer to have coffee and cookies which customer

will attract more for coffee and cookies. To do this act , need to hire more space for sitting

which cost around $5000.

To fulfill these requirements, need to arrange amount which we can get by improving more

sales and also get help from bank.Also some investments may be sought from potential

investors.

24 -

Compatibility: compatibility is a stage in which two things can exist or occur together

without any problem. We are going to start cookies with coffee. We will hire more stuff to run

it smoothly, will sale coffee and cookies on cheap price and improve sale and profit because

in new Zealand people prefer to buy cookies with coffee it will be a good out and profit.

To start selling cookies, need more staff to provide good and fast service to customers, by

selling cheap cookies with coffee, will attract the customers to buy more coffee with cookies

because they getting cheap cookies with coffee, this way, will increase sale and profit. Hire

more staff to make customer happy by provide good and fast service. Customer have not to

wait for long time to get their order.

Appropriateness: appropriateness means is doing right thing. To run a business in right

way everything should in order and according to procedure. O make all in order coffee club

need more space in shop for comfort of customers. Which customer can buy coffee and

cookies and sit on shop and enjoy their coffee and cookies. This way customer will be more

happy and satisfied with service and buy more coffee and cookies. It will increase sale of

sho and take business to further step to success.

Effectiveness of structural changes for the business enterprise – to improve sale and

improve business, these change will be help full to attract customer by providing more

facilities to customer which will come out as good sale and business.

25

Operational- we are going to start selling cookies with coffee and also will have more space

to increase size of shop. We will sale cheap cookies which increase sale of shop. Moreover,

will open more coffee shop around new Zealand. This way, we can develop our business

and make in more common among people. Customer will have easy access to shop which

will increase sale of coffee shop.

Technical – to provide fast and good service to customer, need to make some change in

shop, need to extend size of shop and hire more staff to serve order fast and right way.

Customer have not to wait for long time, they can get their order on time, will be satisfied and

happy with service.

Structural changes on people: to develop our business we have to change the whole

structure. We have to change in customer’s service as well as we have to make changes in

shop’ size and redecorate the shop to attract more people.

26.

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Operational – to provide quick and good service, need more staff because to serve coffee

and cookies, customer have not to wait for long time. We are extending our business, going

to start selling cookies, so it will be busy shop. We need to more space for customer to sit

and enjoy their coffee and cookies. This way, we can attract more customers and improve

income.

Technical – technical change is also important to run business smoothly. As we going to

start selling cookies with coffee, need to make some change in shop, need more staff to

serve, cook and to take order and need to buy stuff required to make cookies. Moreover,

need more space for customers because they will feel more comfort if they have enough

space to sit in shop. They will be more happy if we make all these change for them.

Structural changes: if we have enough space in shop then customers will be more happy

to come and buy coffee. they can come inside the shop and there will no need to stand

outside on the street moreover this will be comfortable for other people who have to pass the

street and sometime there is great rush due that they feel difficulty to pass the street.

27 -

Three changes in customer services are following:

Bigger shops: The coffee clubs need to make change in size of shop for comfort of

customer. If we have enough space in shop to sit customer will feel more relax and like to

buy more coffee and cookies form shop.

Business development – to provide good service, need more space for customers for

sitting. Customer can enjoy their coffee and cookies by sitting in shop they have not to take

away or sand anywhere. They have not to wait in for their order by standing. They can sit

after placing their stuff will serve them at their sitting place. This type of customer service will

make them more happy and satisfied. They have not to stand out side of shop for waiting

their

1. Two cashiers: Need more staff to provide quick and good service because

we are going to start selling cookies with coffee, it will be a busy shop. With help

more staff, can provide good service and customer have not to wait for

Business development – More staff will be help full to provide quick and good service. It

help to increase the sale and develop business

2. Start cookies - we are going to start selling cookies with coffee. People like to have

cookies with coffee in New Zealand

Business development: if we start cookies with coffee so this will be a competition to other

small business as well as we will develop our business and increase sale and income .

28-

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The coffee club is this small business. Its running very smoothly. we are selling coffee

sandwich and muffin. To develop this business, need to make change in business. We are

going to start selling cookies with coffee on cheap rates which help attract customers to buy

coffee and cookies and improve sale to get more profit. We will have more verity and flavor

to choose for customers. Moreover, will have daily special deals and discount for regular

customers and provide them discount coupons. To start this act, need more staff to provide

good and quick service to make customer happy and satisfied. Customers have not to wait

for order, they will get their in very short time.Due to these changes we can develop our

business.

29 -

Making change with time and required is sign of good business, we are also making change

in the coffee club and adding more products to attract customers and improve sale to get

more profit. We will have more option to offer to customer, will have daily special and

discount for regular customer and loyalty card, so they can get free coffee and cookies after

9 coffees. Need to make change in staff; we need more staff to provide quick and good

service to customer which they have not to wait for their order for long time. In new Zealand

people like to have cookies with coffee. It will be good idea, customer can buy coffee and

cookies at one place as well as on cheap price as compared to other business. This way, we

can increase our sale and make our customer happy by providing good and quick service to

customers which help to increase sale and get more income and take our business to further

step toward success