Strategic Plan For Coffee Shop | Barken Coffee House

Vision statement

Discuss about the Strategic Plan for Coffee Shop.

Our vision statement at Barken Coffee House is to be a global leader in coffee provision and franchising.

On the other hand, our mission is to provide hospitality venues where our number one priority is to provide utmost guest experiences for all our clients. We believe in adding value to our business partners through providing a Barken stop Coffee shop experience that is founded on the tradition of success and exceptional product quality.

The Current Potion

Key partners Save Time On Research and Writing Hire a Pro to Write You a 100% Plagiarism-Free Paper. Get My Paper Currently Barken is privately owned and is operated by an appointed manager who is also the shop’s Barrister	Key activities Selling of coffee beverages as well as confectionery and other premade food items	Value proposition The best coffee beverages in the whole of Michigan	Customer Relationships Positive customer relationship. Customers continually provide positive feedback about the uniqueness of our coffee and the services of our staff	Customer Segment Regular customers are from the surrounding businesses and passersby also form occasional clients
Key Resources A standard espresso coffee machine and a refrigerated counter display unit	Channels Barken’s website, Specific shop telegrams, emails and our twitter handle
Cost Structure Our cost structure by now is relatively on the lower side with a basic operation of $3000 in a month			Revenue Streams The revenue streams in entire from the shop owner who invests randomly $3000 dollars in a month

The future state

Key partners As per the wish of the current stakeholders of the shop, Barken is most likely to remain a private owned Coffee Shop.	Key activities Barken intends to offer three basic products: Coffee products, coffee beverages and additional pastries. We intend to make Coffee beverages our main seller and will be sold in three types of cups that differ in terms of sizes. We will also offer coffee products like French presses and grinders	Value proposition Consistently deliver brewing excellence through our products and service relationships.	Customer Relationships Our relationship with our customers shall not end once the purchase is made. We intend to have clients provide customized and relevant after-sales support so as to help our customers get the top most experience at Barken.	Customer Segment Our target customers in the future will be coffee-holic, music lovers, the young professionals, and business personnel are that work around the areas of Michigan. Subsequently, this will be an additional figure from the already established customer base.
Key Resources In addition to espresso coffee machine and a refrigerated counter display unit, we intend to add additional eateries equipment’s to effectively enhance service provision.	Channels Direct Mail generated from our website data, we have plans to make our website a fully e-commerce functional hence also became a revenue source.
Cost Structure The capital structure will hopefully be at 50% of the equity investment as well as 50% of dept. financing. Investments put in place will be expected to meet the shop’s major milestone.			Revenue Streams Our intent business model projects that the shop will have an income of over $150000 in revenue during the very first year of its operation set at a gross margin of 65%. This will be made possible through franchising and extra entertainment sessions

The value chain analysis

The value chain analysis of Barken will be comprehensively analyzed through the use of a SWOT analysis which will touch on important aspects of the Coffee shop operations. A comprehensive example include the support activities as well as the primary activities enacted by the shop (Chang & Chen, 2015). Support activities take the form of Procurement and firm infrastructure while primary activities are in form of inbound logistics and services.

It is also relatively important to examine the internal as well as the external environment of Barken through the SWOT analysis in order to plan for success (Brooks, Heffner & Henderson, 2014).

Strengths

• Brand name and outstanding quality products
• Innovativeness in Coffee preparation
• High social commitment
• Customer loyalty
• Customer orientation from management team

Weakness

• Poor marketing and communication with new potential customers. The shop is more focused and oriented towards maintaining already built relationships.
• The shop has an unclear vision. It had grown quickly by talking a broad differentiation strategy leading the management team to ignore core business markets.
• Lack of a marketing team hence lack of focus on marketing specific services or product to targeted customers. If this happens however, it is more generalized.

Opportunities

• Competitive advantage over other coffee houses in the industry. Since Barken emphasizes in luxury coffee provision segment, its primary clients include people from the elite levels of the society, In return quality comes first.

• The opportunity for expansion into developing market areas in other areas.

Threats.

• Competition from the new entrance in the industry.
• Though substitution is a relatively small risk, the chances of it getting more intense with time are high. Currently, Barken is still relevant as the best providers of quality services.
• Potential competitors also pose a significant challenge; it is also quite unfortunate that the shop lack sufficient knowledge to face of the challengers (Dictionary, 2016).
• New markets come with new challenges; this is because the enterprise requires familiarity with extended marketing tips and the area of weaknesses that regional coffee houses may have.

Crucial components

• The management team
• Products and services
• Customers
• Our competitive edge
• Marketing strategy
• Financial Forecast

Slightly more thsn half of American’s above the ages of 18 drink coffee on a daily basis (Igou & Coe, 2016). The average American, in this case, spends over 20$ in a week on coffee expenditure. Although the industry is controlled by giant shops such as Dunkin Donuts and Starbucks, small upcoming coffee shops like Barken have found solid techniques of acquiring the market share to net over 12 billion yearly (Hill, Jones & Schilling, 2014). Subsequently, this is thanks to the fact that there is a relatively high-profit margin on coffee (Phadermrod, Crowder & Wills, 2016). Simply put, a coffee shop is a highly profitable end over if all the right channels are enacted. In relation, this phrase will examine Barken’s strategic plan for the next five years.

Executive Summary

Barken will offer organic as well as gourmet coffee to our clients. We consider ourselves more than an average run-of-the mill stop coffee joint since we offer varieties of coffee beverages. Our plan for an entertainment galore in the shop will provide a hub of opportunities for Michigan’s young artists.

The management team

Although the coffee shop as per now has a small management as well as the support team, we intend to grow in the next one regarding both the management and the staff. Currently, Barken has one manager who oversees every management aspect in the shop and two staffs who take care of our customers. The plan is to expand our staff to accommodate more customers at the same time (Frynas, 2015). With the kind of the background Barken has, it is going to be possible to get efficient human resources from the neighborhood and hence enhance the chances of working towards our vision and mission

Mission statement

Products and services

Barken’s primary products come in three products: Coffee products, coffee beverages, and pastries. We intended to make coffee beverages our main seller and sold in three types of cups that differ in sizes. We also alternatively offer coffee products like French presses and grinders for those on the lookout for a match regarding home quality

Customers

The shop targets consumers like coffee-holic, lovers of music, the young professionals, and business personnel are that work around the areas of Michigan. We intend to have longer ours of operations to widen our already existing customer base. Technically, we intend to use social media platforms of our guest musicians so as to reach a wider audience base and hence increase customer retention abilities for the shop (Wheelen & Hunger, 2017).

Our competitive edge

Our competitive edge as compared to other coffee houses includes the following:

• The current location of the shop can be considered one of the best outsources in the market. Subsequently, this is because it is in the heart of the central business district in Michigan.
• We provide significantly unique and better-tasting coffee
• The only coffee house that provides regular weekend evening music entertainment
• We also intend to expand our products to accommodate a wider variety of favorite drinks.
• Our plan for an internet website in the next two years will enable us to include sales of products such as coffee beans, and other items like tea, gift items and gift baskets.

Marketing strategy

The majority of our competitors rely on entire word of mouth marketing strategy to generate business (Tovstiga, 2015). As for Barken’s we intend to engage in an ongoing aggressive marketing program aimed at establish profitability as quick as possible hence enabling continued growth for the shop. Our central strategy aims to position Barken as the Lexus of coffeehouses, with a purpose of offering high-quality products as well as superb service in our superior environment (Zikmund et al., 2013).

Launch Marketing Plan

• We intend to promote awareness, organize for direct traffic and enhence our brand image through the use of several techniques:
• Direct mail to customers
• Local print and broadcast media
• Public relations
• Design as well as packaging
• Enhanced Community involvement
• Superiority in terms of location 
• Financial Forecast

Barken’s business model projects that the shop can hopefully generate over a maximum of $250 000 in revenue in the very first year of operation and at a gross margin of 60%. We are hopeful that we will surpass the break point and became lucrative near the end of the first trimester of our second year in operation.

One page reflection on the Impact of the used strategies on the environment and society and how to mitigate the negative impacts

One thing is for sure, the strategies employed by Barken to make it a giant coffee house mitigates some positive contributions to the society in general as well as the environment. Take for example our plan to make ourselves an integral part of the local as well as the world community (Babin & Zikmund, 2015). Consequently, this will generate good will, live up to our mission statement and create the opportunity to forge important contracts with key people. Some of the community involvement goals that are likely to make an impact include:

• Sponsor local sport teams
• Offer support Fair Trade, Organic and sustainable farming
• Participate actively in the chamber of commerce
• Purchase fair trade coffee during necessary times
• Provide corresponding products to local charities in terms of fund raising.

Business Model Canvas for Barken Shop

However, some challenges can be credited to the strategic plans enacted by the coffee shop. An example of such negative impacts include environmental pollution. Technically, this aspect may be in form of excess waste products being mishandled within the environs of the coffee shop. In relation, this is how we plan to surpass such challenges and possibly find long lasting solutions for them. We have ways through which we plan to mitigate the problem of environmental protection as well as safety (Asaba & Lieberman, 2017). Consequently, we plan to advocate for purchasing supplies in bulk form, work with our suppliers to reuse crates as well as pallets and make purchases of reusable napkins, utensils and place settings. In terms of society enhancement, we plan to instill the values of integrity, passion, success, citizenship, Quality, brand, guest’s satisfaction and respect to enable us to operate with sensitivity and dignity to prevent compromising situations for both our customers (Carvalho, Paiva & Vieira, 2016).

References

Asaba, S., & Lieberman, M. (2017). A study on new product introductions in the Japanese non-alcoholic beverage industry. Japanese Management in Evolution: New Directions, Breaks, and Emerging Practices, 127.

Babin, B. J., & Zikmund, W. G. (2015). Exploring marketing research. Cengage Learning.

Brooks, G., Heffner, A., & Henderson, D. (2014). A SWOT analysis of competitive knowledge from social media for a small start-up business. The Review of Business Information Systems (Online), 18(1), 23.

Carvalho, J. M., Paiva, E. L., & Vieira, L. M. (2016). Quality attributes of a high specification product: evidences from the speciality coffee business. British Food Journal, 118(1), 132-149.

Chang, W. L., & Chen, S. T. (2015). The impact of World Café on entrepreneurial strategic planning capability. Journal of Business Research, 68(6), 1283-1290.

Dictionary, B. (2016). Using SWOT Analysis to Develop a Marketing Strategy.

Frynas, J. G. (2015). Strategic CSR, value creation and competitive advantage. The Routledge Companion to Non-Market Strategy, 245-262.

Hill, C. W., Jones, G. R., & Schilling, M. A. (2014). Strategic management: theory: an integrated approach. Cengage Learning.

Igou, A., & Coe, M. (2016). Vistabeans coffee shop data analytics teaching case. Journal of Accounting Education, 36, 75-86.

Phadermrod, B., Crowder, R. M., & Wills, G. B. (2016). Importance-Performance Analysis based SWOT analysis. International Journal of Information Management.

Tovstiga, G. (2015). Strategy in practice: A practitioner’s guide to strategic thinking. John Wiley & Sons.

Wheelen, T. L., & Hunger, J. D. (2017). Strategic management and business policy. pearson.

Zikmund, W. G., Babin, B. J., Carr, J. C., & Griffin, M. (2013). Business research methods. Cengage Learning