a coffee shop

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Paris is France's capital city. The city has a population of around 3 million inhabitants. It is located in an uninhabitable region of the country. The site is on the banks of the Seine River, in the center of the Parision basin, near the confluence of the Seine and the Marne rivers. This location is a popular tourist destination that draws tourists all year. Establishing a coffee shop in this area ensures customer retention, maintaining the business's long-term viability. The city is near the river banks thus, the place is cold, therefore, and it is assumed that the coffee business can thrive well under cold conditions. Therefore, I recommend Marvin and Smith to establish their coffee shop in France, Paris because of the aforementioned characteristics of the town.

Ethical Considerations

Fair-trade are established to protect the workers welfare. Although recently have been criticized of failing to ensure employees get decent packages. Smith and Marvin should cover this guide. They should ensure that coffee suppliers and their workers get attractive price and salaries respectively. Exceptionally, workers may be paid less salaries if the employer is facing s financial crisis. Problematically, fair-trade norms they do not control salaries of the organizations operating on small scale. Currently, fair-trade organizations are researching on the issues of pay on small scale organization. Considerably, Smith and Marvin should align their workers salary in line with France fair-trade organization.

Structural Consideration

Location

Location matters a lot in setting up a business. Therefore, the ideal location of establishing a coffee shop is the ultimate place where the business is accessible by most individuals whose issues the organization is striving to solve. Therefore, in these scenarios the client’s will access the big coffee. However, in advanced geographical places, the business should be established in market base to boost the coffee shop.

Layout

Before deciding on the layout, it is recommended to master the art of brewing a cup of coffee and be confident that the cup is perfect and attractive to the client. Also, the shop layout should be infront. Thus, the customers will have varied expectations and tastes. The shop’s audience should be targeted. Finally, getting clients in the business is the f beginning. It is equally significant to design the interior of the shop.

Transport

The Coffee shop should partner with the taxi services providers in the town. Preferably, the most efficient providers should be selected.

Logistics

The logistics of establishing coffee shop are similar to that of any business. The business will use in e –commerce in procuring their goods .They should focus on both domestic and foreign tourist who visit the tourist sites around the town.

Marketing Mix

The application of the marketing mix to the coffee shop helps to standardize an organization’s marketing strategy and improves the marketing section of the company’s business plan. The marketing mix comprises of the market, industry, internal, and competitive analysis. Contemporary companies use 7 P’s to solidify their strategy. As Marvin and Smith analyze their marketing mix, they should pay attention to the information available in the marketing section of their business plan. Thus, as they expand their business to Paris, the marketing strategy will be useful as they will be in position to indentify and fill the gaps in the marketplace. Precisely, the strong marketing plan will be significant in solving client need and be ahead of their competitors.

Product

They should prepare a menu and often evaluate their business if they are meeting the needs of the market. The product they are selling should be detailed enough to be understood by their customers.

Price

This section comprise of the cost of production and the selling price to the clients. The price should be based on the location of the business. In addition, the price should cover all the costs to avoid making losses, however, all items should not be taken to the price center. The coffee shop can use pricing methods such as value pricing, cost plus pricing, and competitive pricing.

Promotion

They should plan on their communication channels with their clients. The type of advertising strategy to spend cash on. Marvin and Smith should think on how to utilizing social platforms to advertise their products. They may use facebook, email, instagram, and Whatsapp.

Place

They should try to analyze the place where their main customers will be coming from for coffee. In addition, the operational details should also be covered to support the business plan. While deciding on the location, they factor in elements like, parking, main streets, square footage, and industrial vs. homey feel.

Packaging

Marvin and Smith should assess the visual factors of their coffee. Considering the impression it gives to the clients passing via the door, receiving drinks and taking off. Therefore, this needs to be incorporated in their logo, and packaging of their coffee and the appearance of their workers.

Position

They should assess their position in relation to their competitors and in minds of the clients. In addition, the price should also be assess and determine whether the business is over or under pricing.

People

Marvin and Smith they should focus on their target market and clients as addressed in the marketing section. They should also employ skilled staff in their coffee shop particularly people with experience from hotel industry.

Marvin and Smith should critically analyze their marketing mix and gain an insight of the significant of this strategy in setting their coffee shop in Paris market. Thus, they will be in position to grasp the industry, competition, and market.

Implications of Covering a Wider Geographical Area

Organization Culture

The development of the organization depends on the assessment and selection of the variables that ascertain the efficiency of the company. The corporations and leaders are willing to have workers commitments which enhance their productivity .The managers of the company wishes to introduce workers with rules, objectives, and values of the institution which is significance in understanding the organization culture (Chenhall 2015 ,p.395). The management is in charge of educating the workers about the cultural values of the organization and t help them understand how their system, works. The administration should build a culture of learning in the company.

Organization culture has a positive effect on worker’s performance in the company. Dussault and Dubois (2013, p.1.) asserts every staff has a different culture and therefore they need to adjust and fit into the values and rules of the organization. Covering wider geographical area will result in adopting culture, this enhances the effectiveness and efficiency of the workers. Dubois (2013, p.1.) employee’s performance leads to the increase in net income of the company. Organization which employees work as a team achieves its objectives very easily. Arguably, an established culture in the organization is significant for the new workers to adopt to the company’s culture. Therefore, worker’s commitment and team work is core role in helping the workers to adopt to new beliefs and values of the company and improve the overall performance.

Personnel and Managing Staff Issues

When an organization increases its coverage, there is need for human resources to make decisions revolving around workforce diversification. However, their decision will be based on the timely data. The access to the geographical information is essential in staff allocation to various regions. Factually, a nation that maintains one public service framework, for example like the New Guinness maintains its pay structure and all employees of national public service were employed permanent(Khandelwal 2014, p.99.). In Philippines the staff from national public service is consolidated with the state workers establishment.

Covering wider geographical reach leads to the reallocation of the existing employees to the new established organizational structures. The process of allocation of workers causes discord and high anxiety due to fear of change, career ambitions and personal preferences (Khandelwal 2014, p.100). For example, the skilled managers are less, then the central tier worker fell notably uncomfortable to assume the new task as technical advisers and experts may oppose the change. For example, in guinea the middle line technical workers who were unskilled and could not work and the expert advisor during decentralization opposed the revision of the organizational culture.

Another implication of wider geographical reach leads to decentralization of the personal files of the staff and must be transferred to the administration that is in charge. The new management of the staff will now compile all the relevant information of the staff, particularly, their salary, qualifications and training, previous performance, transfer files. This is a mammoth activity. For example, in Mexico, devolution of the health sector led to the transfer of the 116,000 workers from central state to the devolved governments (Gould-Williams 2013,p.28).The transfer of the staff records provides the scope of mistakes, which can later destroy the relationship in the organization.

Influence of Profitability and Liquidity on Decision Making

Profitability

The management of the company needs to understand the profitability of the firm before making decisions. Thus, there is need for assessing the company’s financial statements since they help in predetermine the organization ability to raise returns from its undertakings. Therefore, Marvin and Smith’s decisions will focus on the ratios like return on investment (ROI) and assets (ROA). By evaluating this ratio, the two partners will be in position to project their profits from Paris in France.

According to the financial statements presented, the coffee firm has the return on assets of (26,800 / 113,000 = 23.71%) this ratio is obtained by dividing net income over total assets. The ROA measures the income generated by the assets in fiscal years compared against average total assets. The ratio measures the efficiency of the company. Therefore Marvin and Smith decision should be based on the figures resulting from these ratios.

The main reason why Marvin and Smith are going international is to maximize their revenues. Therefore, basing on the profitability ratio they will be in position to observe the ability of their coffee shop in converting their assets into the profits and make their decisions accordingly. Also, before they make their decision, they can look at the ROA for the coffee shop because assets are mostly the main investment for most companies. In this case, they should make investment decisions. In summary, the profitability ratio helps the management in making decisions revolving around the organization’s assets.

Liquidity

The capacity of an organization to change current assets into cash is a fundamental regards of the business owners because the problems arising from cash crisis can negatively affect the effectives of company’s operation and s profitability. Marvin and Smith need to incorporate these ratios in decision making because if they are ignored they are likely to increase the gap between you and your company’s success.

Liquidity ratios are significant in decision making. These ratios analyze the capacity of an organization to settle their debts as and when they fall due or when their long-term obligation becomes current. The ratio influences the decisions of the management since the cash levels of the company keeps fluctuating hence the need for consistency in decision making.

Liquidity does not only measure the cash level of the company, but also indicates how easy or hard a company can raise funds or convert their assets in cash. Therefore, Marvin and Smith’s decisions about their investment should be based on this ratio. Considerably, the current ratio of their business is (35,400 / 6,200 = 5.70) this ratio is determined by dividing current assets over current liabilities. The ratio indicates that the coffee shop has the ability to settle its debt since the ratio is above the threshold.

Summary of the Overall Viability of Overseas Expansion

In summary, the paper has analyzed the significant of expanding the coffee shop in the international market. Basing on the assessment of various factors the shop is likely to perform well in Paris because this place is a tourist destination which attracts visitors throughout the year. Setting up a coffee shop in this location guarantees the customer hence ensuring continuity of the business. The city is near the river banks thus, the place is cold therefore, and it is assumed that the coffee business can thrive well under cold conditions. However, there are certain implications which will have to the business. For example, the expansion of the business, covering wider geographical reach leads to decentralization of the personal files of the staff and adoption of different culture and must be transferred to the administration that is in charge. In my opinion, the business will first establish a small shop in Paris before expanding on large scale depending with the performance of the smaller one. Also, it is significant for business to operate in international market as it promotes peace and harmony globally due to creation of employment opportunities in the country in which the organization has opened up a branch.

References

Chenhall, R.H. (2015). Integrative Strategic Performance Measurement System, Strategic Alignment of Manufacturing, Learning and Strategic outcomes: an exploratory study. Accounting, Organizations and Society, 30(5), 395-422.

Dussault, G. and Franceschini, M.C., (2016). Not enough there, too many here: understanding geographical imbalances in the distribution of the health workforce. Human resources for health, 4(1), p.12.

Dussault, G. and Dubois, C.A., (2013). Human resources for health policies: a critical component in health policies. Human resources for health, 1(1), p.1.

Dasanayake, S. W. S. B and Mahakalanda, I. (2015). A Literature Survey on Organizational Culture and Innovation. Global Business and Management Research, Boca Raton, Florida 539-550

Gould-Williams, J., (2013). The importance of HR practices and workplace trust in achieving superior performance: a study of public-sector organizations. International journal of human resource management, 14(1), pp.28-54.

Khandelwal, K.A., (2014). Organisational commitment in multinationals: A dynamic interplay among personal, organizational and societal factors. ASBM Journal of Management, 2(1), p.99.

November 17, 2022
Category:

World Sociology

Subcategory:

Europe Overpopulation

Subject area:

Paris Population People

Number of pages

9

Number of words

2276

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