Reddish Green Coffee Bar

Reddish Green Coffee Bar
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BUSINESS PLAN
Date: 31thAugust, 2016

To,
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Jamee Ahmed
Faculty, CBA
I.U.B.A.T.
Subject: Letter of transmittal

Dear Sir,
Here is the business plan that we assigned on the topic as per your
request. The assignment has been completed by the knowledge that we
have gathered from the course Entrepreneurship. Our group name is
Reddish Green.
We have tried our level best to complete this assignment with respect to
the desired requirements. However, if any explaining is required, we
would be honor to oblige.
Thank you.
Reddish Green
Afsana Jahan Simki 12202004
Tahmina Rahman
___________________________
____________________________
Arjina Akter
13102664
Ayesha
12202154
___________________________
Abdulla Hel Kaf
13202083
___________________________
ACKNOWLEDGEMENT
12202026
Begum
____________________________
Beathi
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Bissmillahirrahmanirrahim,
This fnal project was prepared for Jamee Ahmed faculty
of College of Business Administration in IUBAT. First of
all we are grateful to Allah who gives us sound mind
& sound health to accomplish our assignment. The
completion of the report gives us much Pleasure.
Deepest thanks and appreciation to our parents, family,
and others for their cooperation, encouragement,
constructive suggestion and full of support for the
report completion, from the beginning till the end. Also
thanks to all of our friends and everyone, who has been
contributed by supporting our work and helps us during
the fnal project progress till it is fully completed
Table of contents
Types Of Business
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Executive Summary
Mission & Vision
Company Summary
Size of business
Keys to success
Stratagies
Product
Service
Start-up Summary
Personnel
10
Marketing plan
10
Pricing
10
Promotion
13
Product Forecast
13
Analysis of competitor
14
Target
Strategy
Market
Strategy and
Summary
Segment 14
Implementation 15
Competitive Edge
16
Marketing Strategy
16
Sales Strategy
19
Sales Forecast
19
Management Team
20
Organizational Structure
21
Financial Plan
21
Risk Management
22
Exit Strategy
23
SWOT Analysis
24
Refining The Plan
25
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Appendices for business plan
28
Types of Business
Reddish Green Coffee Bar is a partnership business under the act 1932,
with ownership shared by fve persons. The owners are Abdulla Hel Kaf,
Afsana Jahan Simki, Tahmina Rahman, Arjina Akter & Ayesha Begum
Beathi. Everyone owns 20% of the company
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Executive Summary
The interest by consumers in the coffee bar industry is sweeping the

country. Reddish Green Coffee Bar will provide a friendly, comfortable
atmosphere where the customer can receive quality food, service and
entertainment at a reasonable price. The coffee bar will offer a variety of
choices to the customers.
Reddish Green Coffee Bars primary customers are students, shoppers and
staff within the Shopping Centre who take a break from their shopping or
work and enjoy fne coffee or other beverages as well as for people
wanting a light, quick and healthy meal that provide a good alternative to
the fast food options. The success of the business is based on its excellent
location, quality of management and staff, great value for money coffee
and meals.
Mission
We would like you to spend the best moments of your day with us. We aim to
transform every store into a living place where communication can happen in all
its forms.
Vision
We want to be the social coffee shop of the 21st century, the place where
everyone can meet and build relationships.
Company Summary
Reddish Green Coffee Bar is a specialty coffee shop. We will provide hot
and cold beverages in a convenient and time-efficient way. Reddish Green
Coffee Bar will provide its customers custom blended espresso drink,
freshly brewed coffee, or other beverage. Reddish Green Coffee Bar will
also offer a high quality option to the fast-food, live music and game zone.
The caf is proftable, has a strong positive cash flow and may be seen as
a strong viable and growing business.
Size of business
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Reddish Green Coffee Bar launches with its frst coffeehouse located in
Uttara. Reddish Green Coffee Bar will offer residents and visitors a totally
new style of coffeehouse one offering a uniquely flavorful coffee, drink,
fast food items, ice cream and a comfortable, upscale environment at
which to socialize , relax Coffee Bar or work.
I.
Variety: No other coffeehouse in the area will provide the

range of coffee drinks, tea, cocoa, juice, smoothies, soft
drinks, fast food and ice cream and other products that
Reddish Green Coffee Bar does.
II.
Location: Reddish Green Coffee Bar will be located in the

prime section of Uttara. In the heart of the shopping and
entertainment district. Reddish green coffee bar locations
are designed for high volume year round, with revenues
and profts to match.
Expansion: Assuming this store is successful, it will be the
frst of a chain of Reddish Green Coffee Bar located in
markets that have similar demographic profles, signifcant
traffic by the store, year-round tourist activity and a
sizeable student population.
III.
Keys to Success
The keys to success in this business are:
a) Product
quality:
Food,
coffee-based
beverages,
and
entertainment are our products. They must be of the high quality
and value.
b) Service: Our patrons are paying to have a good time. Their
experience will suffer if service is not of the highest caliber. Each
member of the staff will be courteous, efficient, and attentive.
c) Marketing: A dynamic website with online sales capability
d) Management: We will need to have a frm grasp on food,
beverage, and labor costs. The dining/entertainment/coffeehouse
experience must be delivered in a fashion that will not only inspire
repeat business, but encourage word-of-mouth recommendations
to others. Proper inventory, employee management, and quality
control are the key.
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Strategies
The Reddish Green Coffee Bar will offer a fresh point of view on Main
Street. The menu will change frequently, the service will be good, and the
food will be the best. The restrooms will be clean.
There are three influential key success factors and activities that will
contribute to the accomplishment of Reddish Green Coffee Bar's goals.
These factors include: our ability to select the best location(s), keeping
variable and overhead expenses as low as possible, and building high
market visibility through brand building and advertising.
With respect to the business transaction, Reddish Green Coffee Bar will
deliberately choose to be distinctive and unique in its customer
experience.
The Reddish Green Coffee Bar will present an image of wholesome,
healthy food in an attractive and clean atmosphere. The floors will be
black and white tile, the curtains and tablecloths will be red and white
check, and work by local artists will hang on the walls. The sign will be
large enough to be read from the street, and will be designed to promote
the Cafs image. Comment cards will be at each table and will be
collected at the register. Suggestions for new or improved meals will be
sought, as well as feedback on service and the dining experience.
Product
The Reddish Green Coffee Bar is a coffee house that sells moderately
priced coffee, ice cream, fast food to an upscale casual dining market.
The venue features brewed coffee and espresso-based beverages, fruit
smoothies and juices, all type of fast food items, soft drinks. And ice
creams are also available here.
Magazines and news paper will be readily available for purchase by venue
patrons.
Musical offerings will Alternative, soft and also urban music traditions. The
performance space will also offer ample opportunities for space for an
artist, poet, reader etc.
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Service
The main activity of the company is the operation of the Reddish Green
Coffee Bar. Business activities include purchasing, storing, preparing,
selling and serving our products to our valued customers. We Reddish
Green Coffee Bar expect to serve over 5,000 customers per month.
The Caf is open from 10:00 am to 10:00 pm every day. But in
occasionally the caf is open from 9:00 am to 12:00 am.
The mission of the business is to satisfy customers needs and wants for
high quality coffee, delicious nutritious meals and excellent service. Our
main point of differentiation from other cafes and coffee shops in the
Centre is that one of the business owners is an internationally trained chef
who will be able to produce fresh, light and healthy meals each day as
well as develop new menu items to meet the changing needs and tastes
of people who care about what they eat.
Start-up Summary
Our initial investment will be 2 lakhs by each member and 50% bank loan.
Our total starting amount will be
200000*5 = 1000000+500000(bank loan) =1500000 (ffteen lakhs).
We have to give 2000000 in advance for the space (1500sq). It is a one
year contract.
Insurance coverage
Inventory, equipment & stationary cost
Long term assets: 94000

Under counter Refrigerators
20000
Service/Prep Counter
8000
Ice Machine
8000
Large Refrigerator
20000
Cash register
10
Milk Coolers (2)
6000
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4000
Espresso Machine
10000
Coffee Brewer
12000
Computers(2)
60000
Short-term assets: 110000

Tables, Chairs, Furnishings
50000
Carpet
40000
Lighting
20000
Personnel
Our initial employees will include one cashier, two cook, and fve waiters. This is
considered an ideal personnel number for a food outlet the size of our own. Each
employee will work for 70-72 hours per week.
In the long run, as we expand our product category and retail outlets, we will
employ more people in the middle management to ensure the focus of our work,
including site managers.
Marketing plan
The most important element of our marketing strategy is the delivery of a
quality product. Our food, beverage, newspaper/magazine, and
entertainment products must frst sell themselves through word of mouth.
Pricing
ESPRESSO
Caffe Latte
Caffe
Mocha
Espresso
Macchiato
Espresso
Con Panna
Espresso
Latte Breve
Espresso
"Red Eye"
Regular(
tk)
A double shot of straight espresso.
200
Espresso combined with hot water, a 250
gourmet brewed coffee.
Espresso with a smooth topping of milk 250
foam.
Espresso combined with steamed milk, 300
topped with a small amount of velvety
milk foam.
A Caffe Latte combined with Ghirardelli 350
chocolate, topped with whipped cream
and chocolate shavings.
A straight shot of espresso topped with 300
a spoonful of rich milk foam.
A straight shot of espresso topped with 300
a generous dollop of whipped cream.
Our famous latte made even creamier 280
with half and half.
Espresso combined with our gourmet 250
coffee of the day to get your day going.
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Espresso
Caffe
Americano
Cappuccino
Description
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Name
Large(
tk)
300
350
350
460
480
400
390
380
350
Juices
Name
Description
Fresh
squeezed
orange juice
Old-fashioned
Lemonade
Genesis Juice
Exclusively
Regular(
tk)
150
Made
fresh
daily
from 120
Pleasant County lemons.
Protein
Boost,
Green 200
Machine, Mango and Guava.
Apple Juice (regular
250
and sparkling)
Large(
tk)
250
180
300
350
Other Drinks
Name
Description
Price(t
k)
80
Natural
Spring
Water
Soft drinks
Root beer, Orange Cream, Ginger Ale, Vanilla 200
Cream and Key Lime.
100
Crystal
Geyser
Tejava Tea
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Snacks and Pastries

Item
Price(tk)
Uttara Cheesecake
150
Fresh scones, hot from the oven.
280
Bagels
150
Brownies
190
Blueberry Muffins
200
Croissants
180
Black Forest chocolate-covered espresso beans
250
Best Ever Bakery Fancy Cookies
250
Deli Items
Item
Sandwiches:
Salami.
Price(tk)
Turkey,
Roast
Beef,
Ham and
450
Soup
200
Quiche
280
Smoothie Bar
Items
Price(tk)
Chocolate Shake
170.00
170.00
Vanilla Shake
170.00
Caramel Shake
Vanilla Espresso
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Strawberry Shake
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170.00
220.00
325.00
Hazelnut
220.00
Banana w Mint and Ginger
120.00
Masala Tea
Promotion
Online Advertising - We will advertise regularly on popular social

media sites, such as Facebook. Compared to traditional print
advertising, this is a cost effective tactic that will allow them to
reach prospects in a highly targeted way (e.g., based on criteria
such as age, gender, geography, etc.).
Web Site We develop a simple Web site, which will provide basic
information about the business, the menu, and links to their
presence on the aforementioned social media channels.
Radio Advertising - During the frst six months of operation, and
during the busy holiday shopping season, the business will advertise
on local radio stations.
Website
The Reddish Green Coffee Bar will have a simple website identifying its
menu items of gourmet coffees, smoothies and pastries, along with the
address, map and hours of operation.
The website will also have a
calendar of any upcoming events or sponsorships. The site will also have
links to their social media sites such as Facebook, Twitter.
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Product Forecast
While The Reddish Green Coffee Bar will initially focus upon the dining,
coffeehouse, and entertainment functions located on the immediate
grounds of the establishment, future expansion efforts will focus upon
providing full-scale catering for events as well as other off-site venues.
The Reddish Green Coffee Bars owner has established relationships with
other frms which offer many opportunities for catering/special event
service.
Coffeehouses traditionally have not been considered kid friendly. To
overcome this hurdle, the Reddish Green Coffee Bar has long term plans
(5 years) to open a 2 nd coffee shop: A combination indoor play area /
coffee bar. This concept allows parents and caregivers an opportunity to
meet and relax with other adults while the children can enjoy the indoor
playground amenities.
Additional future services will include in-store sales for home purchase as
well as an online store.
The website will have an option to purchase prepaid gift card program
Prepaid gift cards not only provide immediate cash, but also reduce credit
card transaction charges and draw new customers to the business.
Analysis of competitor
The competitive analysis is a statement of the business strategy and how
it relates to the competition. The purpose of the competitive analysis is to
determine the strengths and weaknesses of the competitors within
market, strategies that will provide a distinct advantage, the barriers that
can be developed in order to prevent competition from entering the
market, and any weaknesses that can be exploited within the product
development cycle.
A competitor's strengths and weaknesses are usually based on the
presence and absence of key assets and skills needed to compete in the
market.
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Reddish Green Coffee bar will position itself as a unique coffee bar that
not only offers the best tasting coffee and pastries but also provides
home-like, cozy and comfortable environment, which established
corporate establishments lack. We will cater to customers' bodies and
minds, which will help us, grow our market share in this competitive
market.
Target Market Segment Strategy

Overall, our strategy is to maintain a constantly high customer count by
leveraging our appeal to fve groups of potential customers.
Local Residents. Approximately 200,000 people live within fve

miles of our Reddish Green Coffee Bar location. The most affluent
of these live even closer, within three miles. It is a short 5 minute
drive to Reddish Green Coffee Bar for most of our potential local
customers. Excellent public parking is available within 100 yards.
Local customers form the loyal core of our business. We will reach out
to them through local marketing, involvement in the Chamber of
Commerce, support of local charitable organizations and sponsorship of
events and youth sports teams.
Local businesses. Many local businesses, both private and

government, are within two blocks of Reddish Green Coffee Bar.
RAK tower, the prime shopping center of Uttara, is one block
away.
We also offer coffee service to local restaurants, night spots and

businesses. Coffee service brings in additional revenue and promotes
Reddish Green Coffee Bar among employees at these businesses.
We will also reach business customers through Chamber of Commerce
activities and by personally visiting the shops and businesses to
distribute discount coupons and menus.
Students. The area has more than 30,000 students in several

schools, including nearby City College and State University.
Students, most of whom are under the drinking age, have few
places they can go to meet their friends. Coffeehouses have
proven to be very popular with studentseven high school
studentsas an "in" place to go that's also affordable.
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To reach students we offer special student discount cards, pass out free
coffee coupons at student events and offer entertainment on
weekends.
Students represent an excellent customer segment for several reasons:
Students bring an energy and youth to the coffeehouse

By attracting students we generate excellent word-of-mouth
Students represent a large base of potential part-time employees
Often under the drinking age, students need an affordable place to
hang out with their friends
Strategy and Implementation Summary

The Reddish Green Coffee Bar uses a strategy of total qualityin
product and service. Our promise is in our location, the products we
sell, the people we attract and the atmosphere we create.
Strategic Assumptions:
People want a better-tasting coffee drink

Coffee drinkers want a more inviting coffeehouse environment
Coffee drinks are considered an affordable luxury
The coffeehouse industry is largely unaffected by the economy and
world events
Reddish Green Coffee Bar offers several unique advantages over all
other coffeehouses
Competitive Edge
Our competitive edge, compared to the other coffeehouses in the
greater Uttara area includes the following:
A signifcantly higher quality, better tasting coffee product.
Our current location can arguably be considered the best in the

marketin the heart of the downtown shopping, dining,
entertainment and cultural district in Uttara.
An ambiance superior to all other coffeehouses in the area with

upscale "Cote d'Azur" look. It features stained glass decorations, art
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glasswork, Mediterranean Riviera style furnishings and outdoor

dining.
The only coffeehouse downtown to provide regular weekend evening

entertainment.
A wider variety of popular drinks than our competitors, including

flavored coffee drinks, tea, cocoa, juice and Italian sodas. We have
several drink options for people who don't drink coffee: tea, cocoa,
juice and smoothies.
Our Internet website will include sales of whole coffee beans, tea,
chocolates, gift items and gift baskets.
Marketing Strategy
Other coffeehouses rely almost entirely on word-of-mouth marketing to
generate business. We will engage in an ongoing aggressive marketing
program that will help us establish proftability quickly and set the stage
for continual growth.
Our strategy will be to position Reddish Green Coffee Bar as the "Lexus" of
coffeehouses, offering a high quality product and superb service in a
superior environment.
Launch Marketing
Most coffeehouse chains do little or no marketing and advertising. For
example, Starbucks' philosophy is that their ubiquity in the marketplace is
all they need to sustain and grow their customer base. They spend less
than 1% of gross revenues on advertising, and when they do spend, it is
usually to introduce a new product.
The retail coffee industry is a sales-oriented business with historically very
little experience in marketing and advertising. This is likely why little is
done. As yet, the major players have not been taken over by sophisticated
companies like Pepsico, where marketing is viewed as essential to gaining
market share.
An element of our differentiation from other coffeehouse chains will be our
use of advertising and marketing to gain awareness, build customer traffic
and establish a strong brand image. We intend to create immediate
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customer awareness and not wait for word-of-mouth. We are also building
customer traffic immediately with an aggressive Launch Marketing Plan.
Launch Marketing
Launch marketing will promote awareness, build immediate traffic and
establish our brand image via several methods:
Public relations/publicity
Direct mail
Local print and broadcast media
Design and packaging
Community involvement
Sampling
Superior location
Desirable store ambiance
Public Relations
A strong public relations/publicity
"hook" these three main points:
program
uses
as
its primary
1. Reddish Green Coffee Bar is Uttara's frst true gourmet coffeehouse

2. Our unique quality products
3. Our distinctive latte "art"
The goal of the PR/publicity is to achieve local market awareness and
establish the brand on a wider scale to set the stage for future expansion.
Local market awareness is vital because more than 50% of sales will come
from people living within a 5-mile radius of the store.
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National awareness will help drive the expansion by generating

opportunities created by the media buzz and familiarizing people with our
brand name. It will help set the stage for future brand identifcation.
Local Media
Daily Prothom-alo
Ittefaq
Bangladesh Journal
Bangladesh Observer
Daily Star
Financial Express
New Age
Community Involvement
We will make ourselves an integral part of the local and world community.
This will generate goodwill, create opportunities to forge important
contacts with key people and live up to our company Mission Statement.
Some of these community involvement goals include:
Take an active role in the society
Supply complementary product to local charities for fund-raising

activities
Sponsor local sports teams
Purchase fair trade coffee whenever possible
Support Fair Trade, organic, sustainable farming
Pre-paid, re-loadable, frequency and discount cards
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We will promote our program of gift cards and customer frequency cards
to drive business and stimulate cash flow. Industry records indicate that
25% - 40% of all gift card amounts go unused. Also, gift cards have proven
to be a popular holiday item accounting for more than 5% of total sales
during December.
Pre-paid and re-loadable cards have also proven to be very popular with
the major chain coffeehouses, again accounting for a signifcant
percentage of sales. These cards promote customer loyalty as well.
Frequency cards rewarding the repeat customer with a free drink after a
specifed number of visits are popular and proven methods to forge
customer loyalty.
Discount cards are used to build goodwill among specifc groups such as
the Chamber of Commerce members and college students.
By tying in with our computerized sales and inventory system we will
be able to track usage and allocate the expense to marketing.
Sales Strategy
Our sales strategy includes:
Staff salaries that are 10% above the industry average in order to
attract the best people
Hiring for attitude so that we always have a friendly, enthusiastic

staff to make customers feel welcome and appreciated; constant
staff training to assure the best quality possible
State-of-the-art sales/inventory system to (A) reduce customer

waiting time, and (B) create efficient product ordering
Create a mobile kiosk to take Reddish Green Coffee Bar into the
community at special events, farmer's markets, art shows, etc.
Sell coffee, gift baskets and glass artwork on our website
Establish coffee service at local businesses
Sell gift cards, frequency cards, pre-paid cards, and offer discounts
to key groups
Create an ongoing sampling program
Conduct a consistent, aggressive marketing program
Be an active member of the community; be visible at charitable

functions
Solicit customer feedback to constantly improve and streamline our

operation
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Sales Forecast
Conservatively, we are forecasting an average of 100 customers per day
during the frst year. This fgure was arrived at by surveying the customer
traffic at the nearest competing coffeehouses which have a range of 50 100 customers per day. We expect growth to occur across all categories at
about 10% annually as the business becomes more established and wellknown, reaching 200 customers per day within a year and more than
250+ within three years. These estimates are likely conservative.
Sales Forecast
Item
Game charge
Coffee drinks
Tea, soft drinks, water, juice
Pastries, food items
Coffee beans
Events
Coffee service to businesses
Internet sales
Gift items
Total Sales
Year 1
50000
200000
80000
100000
20000
500000
80000
20000
20000
1070000
Development Requirements
Reddish Green Coffee Bar plans to employ a graphic designer and backend user interface technical developer to create our simple, classy, yet
Internet focused site.
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The
maintenance
of
the
site will
be
done
by contracted
outside consultants. As the website is expanded and improved, future
development may include items such as tracking, newsletters, and downloadable menus, a coffee "chat" room and user Web pages.
Management Team
Reddish Green Coffee Bar has selected Afsana Jahan Simki to perform the
duties of General Manager. Tahmina Rahman will be the chief operating
officer, Arjina akter & Ayesha Begug will play the role of human resource
manager & public relation manager respectively. Abdulla hel kaf has been
selected to perform the duties of corporate events manager & marketing
manager
Organizational Structure
The organization will be a relatively flat one, since the majority of
personnel are involved in production and there will be a relatively low
headcount in management.
There are three functioning groups within the company: Production, Sales
and Marketing, and General and Administrative.
Financial Plan
We want to fnance growth mainly through cash flow. We recognize that
this means we will have to grow more slowly than we might like. We do
not want to let our average collection days get above 45 under any
circumstances. This could cause a serious problem with cash flow,
because our working capital situation is tight. Most credit sales will be via
credit and debit cards. We do have plans to initiate direct billing for law
frms and other businesses conducting regular visits. We will capitalize
on the strong demand for high-quality coffee. The owners have provided
the company with sufficient start-up capital. With successful management
aimed at establishing and growing a loyal customer base, the company
will see its net worth doubling in two years. We will maintain a healthy
60% gross margin, which combined with reasonable operating expenses,
will provide enough cash to fnance further growth.
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23
Important Assumptions
The fnancial plan depends on important assumptions, most of which are
shown in the following table. The key underlying assumptions are:
Reddish Green Coffee Bar assumes a slow-growth economy, without

major recession.
Reddish Green Coffee Bar assumes of course that there are no
unforeseen changes in public health perceptions of its general
products.
Risk Management
Priority
Preventative Action
Fire loss M
of
property/li
fe
Change in M
suppliers
terms
Installation
of
smoke
alarms
and
sprinkler
system, fre extinguishers
installed and regularly
checked, regular staff
training in emergency fre
procedures
including
evacuation plans (shop &
centre),
Ensure
insurances including fre,
public
liability
and
business interruption are
adequate and in place
Maintain
good
relationships
with
suppliers and maintain
access to personal cash
Risk
Description
Likelihood
Impact
(L=low, VL=very low, M=medium. H=high, VH=very high)
Contingency
Plans
Immediate access to
personal resources to
rebuild
shop
and
business
quickly
whilst
waiting
for
insurance payments
Utilize
alternative
suppliers or increase
working capital (from
personal
cash
VH
Supplier
L
unable to
supply
Major
dispute
with
centre
owner
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VL
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Food
poisoning
reserves
Use
quality
products,
correct storage of food
stuffs,
train
staff
in
hygiene principles as part
of a Quality Control
Process
Arrange
alternative
suppliers,
evaluate
substitute products
Loss
of VL
key
person
reserves)
Develop a complaint
handling
process.
Investigate source of
food poisoning and
remediate
Purchase
from
alternative suppliers
or
use
suitable
substitute products
Ensure
formal
lease Engage lawyer for
agreement is in order. advice
Develop and maintain a
sound
working
relationship
with
the
Centre Manager.
Take out key person Short term contract
insurance,
effect for
suitable
knowledge
and
skill replacement
(until
transfer to other staff
permanent staff can
do the job). Call up
insurance policy
Exit Strategy
There are three scenarios for the investors and management to recover
their investment--two with signifcant returns on each dollar invested.
Scenario One:
Reddish Green Coffee Bar becomes extremely successful and has requests
from other communities for Reddish Green Coffee Bar operations to be
opened there. This opens the door for franchising opportunity. When one
looks at the wealth that has been created by the likes of Pizza Hut, BFC,
Kentucky Fried Chicken, and A&W, the value of franchising a great idea
cannot be dismissed. However, developing a franchise can be extremely
costly, take years to develop, and be destroyed by one or two franchisees
who fail to deliver the consistency or value on which the founding
company had built its reputation.
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Scenario Two:
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Reddish Green Coffee Bar chooses to become a version of Starbucks,

obtaining a large amount of money through an initial public or private
offering that would allow the company to open 10+ more coffee bars. This
is the preferred Exit Strategy of the Management Team. The danger in this
is that competitors would rise up and establish a foothold on a community
before--or in the midst of--the arrival of Reddish Green Coffee Bar, causing
a potential for a drain on revenues and a dramatic increase in advertising
expenditures to maintain market share.
Scenario Three:
By the third year, the growth and community support for Reddish Green
Coffee Bar will have made the news in more than just the metropolitan
area. It can be assumed that competitors, such as Coffee world or Barista,
will have seen the press and realized the value proposition in The Reddish
Green Coffee Bar's business plan. This will make us an attractive target for
buyout. The company could be purchased by a much larger competitive
concern by the end of the third year.
SWOT Analysis
Strengths
Splendid brand
brand visibility
name
Weaknesses
and
Reputation for quality that is

actually worth the money
Wide variety of products
Quality of service is high
Located only in Uttara
A limited marketing budget to

develop brand awareness
Opportunities
26
Broaden their target market
Merging,
taking
over,
or
forming strategic alliance with
other coffee companies
Page
Threats
Rising prices of coffee beans

and dairy products
Supply disruptions
Increased competition
local
cafes
and
coffeehouse chains
Policy change
Continuously expanding
from
other
Appendices for business plan

Appendix 1: Situational analysis external environment
External Environment
Opportunity
Threat
Influence
(1-10)
ECONOMIC:
Stage of the economic cycle
Yes
Current interest rate
Yes
Average disposable income
Yes
DEMOGRAPHIC
Yes
Household structure (e.g. singles. Yes

families)
Geographic distribution
Yes
Level of education
Page
Population growth and make-up
27
Yes
TECHNOLOGY:
Innovations in the manufacturing
process
Technological
developments
(substitute products)
SOCIAL/CULTURAL
Corporate social responsibility
Yes
Environmentally friendly green Yes

products
Standard of living
Yes
Percentage of work to leisure time
Yes
POLITICAL/LEGAL:
Regulatory
legislation
Compliance
codes
environment
with
standards
and
and
ENVIRONMENTAL
Climate Change & Carbon Trading
Eco-efficient manufacturing
PHYSICAL FACTORS:
Climatic conditions
Water restrictions
Yes
Infrastructure
transport,
communications and services
Yes
Strength
Page
Internal Environment
28
Appendix 2: Situational analysis internal environment

Weakness
Factor
(1-10)
Yes
STRATEGY
Competitive advantage - able to

differentiate
Key drivers of the business are Yes
known
Strategy and resources for Yes
growth
Detailed action plan
Yes
8
5
8
SALES & MARKETING
Clear evidence of market need

for your product/service
Know your specifc market &
competitors in detail
Know exactly who your target
audience is and be able to
describe them in detail
Spend more resources on your
current and most proftable
customers
Competitive
and
proftable
pricing strategy
Your marketing plan and budget
Yes
Yes
Yes
Yes
Yes
Yes
Measure, learn from and adapt

your marketing activities
Yes
STRUCTURE
Business structure maximize

wealth and minimize risk (e.g.
sole
trader,
company,
partnership, trust)
Distribution and sales to target
markets
Are your buildings and facilities
adequate?
Yes
Yes
Yes
for
current
level
of
demand
Is your equipment effective and Yes

up to date?
Yes
7
limited
capacity
for
expansion
5
Able to protect your IP from

being copied?
Page
SYSTEMS
29
Information and management

systems (e.g. CRM)
Performance measurement and
rewards
Documented
processes
and
systems
Strong debt collection systems
Yes
Purchasing
systems
inventory management
Yes
Yes
Yes
6
8
and Yes
Yes
STAFFING & SKILLS
Recruit the right people
Training and development of

staff
Staff motivation, satisfaction and
remuneration
Diversifcation of management Yes
and staff skill base
Management skills, experience & Yes
track record
Establish complementary areas of
skills (e.g. trusted advisors with
skills you dont have)
Distinctive competencies reside in
the business
Yes
Yes
7
8
9
Yes
Yes
People understand why the Yes

business exists
Shared understanding of the Yes
vision
People can describe ways in Yes
which the business is distinctive
FINANCES
Do you have access to further

funds?
Manage budgets, cash flow and
debtors
Is your cash flow adequate for
growth
Manage
and
analyse
performance against fnancial
Yes
10
Yes
Yes
10
Yes
SHARE VALUES
6
5
indicators in your industry
30
Page
Management understand and Yes

use their fnancial accounts on a
regular basis
OTHER FACTORS:
Nil
Rating: 1 = Low, 10 = High
Refining the plan

The specialty-coffee business is growing at a healthy pace. During the
past 5 years, there has not been a single year, in which specialty coffee
sales have not grown. In addition, no coffeehouse chains have failed
during this time. We are starting with a total budget of 15 lakhs taka. Our
fve owners will give 2 lakhs taka each and rest of the money we will take
from bank on a loan.
Reddish Green Coffee bar will focus on two markets:
The Daily Commuter- someone traveling to/from work, out shopping,
delivering goods or services, or just out for a drive.
The Captive Consumer- someone who is in a restricted environment
that does not allow convenient departure and return while searching for
refreshments, or where refreshments stands are an integral part of the
environment.

Reddish Green Coffee Bar

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Reddish Green Coffee Bar

Date: 31thAugust, 2016