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A report for Real Coffee LTD - Essay Example

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A Report for Real Coffee LTD Table of Contents Introduction 3 Part 1: External Analysis 3 Consumer Buying Behaviour 3 Increasing Competitors 3 Industry Analysis 4 Part 2: Internal Analysis 5 Marketing Issues 5 Human Resource (HR) Issues 5 Operational Issues 5 Financial Issues 5 Part 3: Conclusion and Proposals 6 References 7 Introduction With the advent of globalization, the recent business context has made it gradually important that small and medium enterprises also focus on their gradual expansion beyond the geographic boundaries of their home nation…
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Download file to see previous pages Under such circumstances entrepreneurs face non-negligible challenges in controlling and executing the business functions in a smooth fashion, given the obstacles in the form of staff management, delegation of power and business opportunities identification as well as their subsequent achievements (Welter, 2010). Correspondingly, it has been viewed that Real Coffee Ltd., which is a small chain of coffee shops has been facing challenges to maintain a desired level of employee retention rate. The main objective of this paper is therefore, to provide a detailed analysis of the external and internal analysis of the business. Based on the analysis, the discussion further intends to provide rational suggestions that would help in understanding on how curtained changes in the business can help Real Coffee Ltd. to meet its organizational goal. Part 1: External Analysis Consumer Buying Behaviour UK is observed to be amongst the top ten countries that dealt in coffee around the globe as of 2011. It is worth mentioning that coffee is also measured to be the third-favourite non-alcoholic drink in the country. Over the year, it has been viewed that in the UK, the chain of coffee shops had grown 5.6% and contributed almost 29.1% market share by 2005. However, it has been viewed that independent and local coffee shops only grew by 2% and faced considerable amount of challenges over the year. Economic disturbance in the UK is also assumed to have affected the customer’s behaviours of drinking coffee. For instance, it was viewed that the coffee market grew by 17% from 2005 to 2009, again out of which, 57% of the total consumers 47% of the customers preferred sitting in coffee shops and 8.3 preferred take away services (Business Case Studies LLP, 2013). Moreover, it has also been viewed that today’s teenagers and young adults frequently visit cafes, which replicates it to be a growing trend. A thorough understanding of the consumer buying behaviour also revealed that about 37% of the coffee consumers prefer black coffee in the UK, while the remaining 63% like to add sweetener with it. 57% of the total consumers further stated to prefer having it at breakfast (Liang & Wu, n.d.). Increasing Competitors Globalization and the rapid technological aspect is not only considered to be a boon for every individual and business house, which aims at establishing themselves at the global market, but is also stated to be a course for small business houses with limited resources. Coffee market in the UK is considered to be one of the largest industries. With the increasing adaption of coffee by the people worldwide, whereby many multinational organizations are being established in the nation creating greater competiveness for smaller coffee shops, it has been viewed that although, small shops provide better quality products at lesser price, people prefer going to branded stores like Costa and Starbuck as a symbolisation of economic status in the society (Hospitality & Catering News, 2013). According to a survey conducted by Euromonitior international (2012), it was viewed th ...Download file to see next pagesRead More
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