Total

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Date Time: Mark:

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Youssef Jumaa Aljunaibi

Student’s
Name and ID BAM1606035

Mohamed Yousef Alhammadi

Student’s
Name and ID BAM1609015

Yousif Hassan Alhammadi

Student’s
Name and ID BAM1606041

Khalid Ali
Student’s
Name and ID BAM1609031

Omar Mohamed Alhammadi

Student’s
Name and ID BAM1609007

Entrepreneurship & Small Business

Course Name/ Code Management (BUS421)

Instructor Dr. Main, Dr. Imen

Semester
Spring 2017

CLOs as per the

Syllabus
From CLO 1- to CLO 10

1
 EXECUTIVE SUMMARY

The United Arab Emirates is considered as one of the most attractive countries for the

entrepreneurs, and they head to the country to do their businesses. So for the local entrepreneurs,

it is a good chance to be in such an atmosphere that motivates and encouraged free investments

and in different areas. This Business plans is for a local business that is going to work under the

name of Fresh Coffee shop. As the name reveals, this business is a local coffee shop with high

standards ,and it services the people in the emirate of Abu Dhabi particularly, and in the

different emirates within the country in general. The business serves beverages of different types

in a welcoming and warm atmosphere and though a cheerful and well qualified staff. The

business has its strong strengths in the internal environment and has outstanding opportunities ,

so as to make use of in the external environment. Yet, there are some of the internal weaknesses

of the business, as well as some of the threats in the external environment and the business has to

take these points under consideration , and to deal with them wisely to be a successful business.

The business has a clear marketing strategy, operational plan and financial plan, and these are

good points representing a good support for the business, so as to be a successful one and to find

for itself a competitive position among the strong competitors in the market with their old and

loyal customers and their well-known brand names.

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 CONTENTS

Executive Summary .................................................................................................................................................................. 2

Business and Industry Profile ............................................................................................................................................. 4
SWOT Analysis .......................................................................................................................................................................... 6
Strengths ............................................................................................................................................................................ 6
WEAKNESSES: ................................................................................................................................................................. 6
OPPORTUNITIES: ........................................................................................................................................................... 7
Threats:............................................................................................................................................................................... 7
Competitive Strategy .............................................................................................................................................................. 8
Business overview (products &services)....................................................................................................................... 8
Operational Plan .................................................................................................................................................................... 10
• Marketing plan ............................................................................................................................................................. 11
WORD OF MOUTH/IN-STORE MARKETING .................................................................................................... 13
LOCAL STORE MARKETING ........................................................................................................................ 13
LOCAL MEDIA......................................................................................................................................................... 13
COMPETITOR ANALYSIS.................................................................................................................................................... 14
Starbucks ........................................................................................................................................................................ 15
HR & MANAGEMENT PLAN ................................................................................................................................ 17
Financial Plan ......................................................................................................................................................................... 18
Conclusion................................................................................................................................................................................ 25
Referenes .................................................................................................................................................................................. 26

3
 BUSINESS AND INDUSTRY PROFILE

The industry of hospitality in the UAE is one of the busiest ones, and as the country is

characterized by a modern lifestyle and people in the country have good come, this industry is a

successful one. Also the UAE is an attractive tourist’s hub and there are too many tourists who

come to the company to enjoy the welcoming atmosphere and to enjoy the nice weather of the

country in winter and also to enjoy the special culture of the country. Add to that global brand

names in the hospitality industry have their investments in the profitable markets in the country.

For these reasons, the businesses belonging to this industry like the restaurants, hotels, coffee

shops and so on are favored , as they are profitable and have a good chance of success.

The figure below shows the growth of the hospitality industry in the Gulf countries in general :

(Source :

https://www.zawya.com/mena/en/story/GCC_Hospitality_Industry_to_sustain_its_growth_mom

entum_says_Alpen_Capital-ZAWYA20140924115458/)

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All of the businesses have their own mission statements that act as leaders to the different people

working for the business.

For" Refresh Coffee shop", the mission statement is as follows:

• To provide good quality beverages of different kinds

• To provide good quality of snacks and sweets for the customers

• To provide a cheerful and comfortable atmosphere

• To provide good services through a cheerful, nice and co-operative staff members.

• To provide an extended menu that contains a wide variety of items that satisfy the

different desires tastes and requirements of the coffee shop customers.

While the vision of the Coffee shop is:

To be the most favorite coffee shop in the city for people of different categories, as individuals,

groups of friends, also for the coworkers and families to meet and spend nice times there.

5
 SWOT ANALYSIS

The SOWT analysis is the set of the different strengths, weaknesses, opportunities and threats,

which the businesses might be impacted by in the internal or external environment.

STRENGTHS

The strengths refer to the points that add to the business and make it more capable of achieving

its goals . These factors are related to the internal environment .

The strengths of the planned business include the following:

 Good location

 Good quality of products.

 matches the life style of the people in the UAE

 Diversified products

 High qualified team

WEAKNESSES:

The weaknesses refer to the negative points that affect the business and arise from the internal

environment .

The weaknesses of the business, which are the negative points in the internal environment,

include the following

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  A new business that is not known to customers as it should be .

 The limited branches , which make the business not able to reach to a braid base of

customers , as the limited branches mean limited access to the potential customers .

OPPORTUNITIES:

There are various business opportunities including the following:

 The UAE is an open market for the local and global investments

 The possibility of having new customers

 Good advertising campaigns that expand the base of customers

 Extensive market research that helps in investigating the customers’ needs and new

trends as well as knowing about the competitors and their strategies.

 Invading new markets in the region

 Increasing sales by opening new branches and introducing new items.

THREATS:

The threats are the negative points in the external environment that affect the business

negatively, involving these points:

 The global coffee shops with their bright names and good bases of customers.

 The local coffee shops.

 The new entrants to the same market.

 The financial problems that affect all the world of business universally

7
 COMPETITIVE STRATEGY

The competitive strategy of the business is based on being special, through these different points:

• High quality services and excellent products.

• High level of customer’s satisfaction.

• The use of modern technology and introducing innovative ideas.

• Creating a bright reputation for the business.

• Making good relations with the different stakeholders

BUSINESS OVERVIEW (PRODUCTS &SERVICES)

The business provides the customers a wide spectrum of the products and services, including the

following:

 Refresh special coffee that is favored by its traditional flavors like the Arabic coffee,

Turkish coffee and others.

 Black tea

 Tea with milk

 Different hot herbs drinks

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  Potable water

 Cakes of different sizes and different flavors

 Doughnuts of different sizes and different flavors

 Sandwiches

 Pizza pieces

The coffee shop provides free WI FI services for the customers.

Regarding the targeted customers, the population in the UAE is in continuous growth as shown

below, so the market is busy and also, as the business suits the different age groups, so all of the

population is a potential customer for the business:

(http://www.financialplannerdubai.com/uae-population-growth-since-1960)

9
 OPERATIONAL PLAN

This management and operation of a coffee shop is composed of four elements, which are:

1. Planning the different coffee shop facilities : this means the following :

 Planning the different coffee shop operations according to the available facilities

and customer expectations

 Developing a floor plan of production and service areas

 Developing a floor plan of customer area

 Identifying the different elements of fixture, fittings, décor and equipment according

to business plan, floor plan and budget

2. Planning the different product and service elements of the coffee shop operation: The

planning of the different products and services include the following:

 Planning the coffee shop facilities

 Planning operations due to the facilities and expectations of customers

 Market place entry

 Business style

 Business size

3. Preparing food and drink item display and serve coffee shop produce:

Planning the different food and drink items display and serve coffee shop items, means to plan

the display food items taking under consideration the following:

 High risk food items

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  Refrigerate below 5°C

 Keep protected from contamination Room temperature Some foods can be stored at room

temperature

 Cakes and pastries with no cream

 Cookies

4. Organizing the storage of coffee shop produce: The produced food items should be stored at

correct temperature and condition, taking the following risks into consideration:

 High risk raw

 High risk cooked

 Low risk fresh

 Low risk dry

• MARKETING PLAN

The different marketing objectives of the coffee shop include the following:

• Providing good quality of products and services that satisfy the different trends and

needs of the customers with their different age groups and different levels of income. This way

the business expands its base of customers and keeps them loyal to its brand name.

• Gaining good revenue and profits, as that is the main goal of the business , and in case

that this objective is not achieved it means that the business is not successful.

• Creating a famous brand name, which the customers are loyal to , as these customers

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are going to be a good advertising means for the business. through the “word of mouth”.

• Having a good reputation through the excellent quality of the products provided by

the business , and the healthy atmosphere that welcomes and attracts the customers.

• Being a competitive business, by having good competitive advantages that help the

new business find for itself a good and string position among the customers with this old history

and already established base of customers.

The promotion strategy is very important for the success of a business, and it refers the way that

the business go through to introduce the several products and services produced by the business

to the different customers. The promotion strategy helps a lot in increasing the market share of

the business, and results in increasing the business revenue and profits. For this reason, shaping

the promotion strategy of the started business in a good way is very important to the business

success.

For "Refresh Coffee shop", the promotion strategy depends on the following:

 word of mouth / in - store marketing

 Local store marketing

 Local media

With the following details:

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 WORD OF MOUTH/IN-STORE MARKETING

 Table tents.

 Family portions

 Festivals

 Big opening celebration.

 Birthday parties

LOCAL STORE MARKETING

 Brochures that show the various services the coffee shop provides for customers

 Small Toys for kids ( girls & boys ) , holding the coffee shop logo

 Mugs holding the coffee shop logo

LOCAL MEDIA

Advertisements through the local media for the coffee shop can also be highly beneficial, and

they are going to be via the various media means, including the following:

 The business internet web site

 TV advertising

 Radio channels

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  Newspapers and magazines

 Coupons and vouchers

 Direct e - mails

COMPETITOR ANALYSIS

There are too many competitors for the business, as this field is an old one and it is easy to be

invaded by new businesses. For the strongest competitors in the market, they include the

following:

• Costa Coffee shop

Costa Coffee shop is among the famous coffee shops in the world and it has different branches
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in Abu Dhabi , and this way it has a broad base of customers . It is a British multinational

coffeehouse company , and its headquarter is in Dunstable, Bedfordshire . It is considered as

number two largest coffeehouse chain worldwide after Starbucks , but in the UK it is the

biggest . The business was created in 1971 by in 1971 by the Costa family .

STARBUCKS

Starbucks Company is an American global coffee corporation established in 1971, and

coffee house chain based in Seattle, Washington. Starbucks is the largest coffee house company

in the world with 20,891 stores in 62 countries.

Starbucks includes nearly 600 stores in 12 Middle Eastern and northern African

countries, and about 26 stores in the UAE alone. Starbucks serves a wide range of the finest

15
coffee to exist for people worldwide and manages to satisfy them. Starbucks purchases and

roasts high quality whole coffee beans and sells them along with fresh, rich-brewed Italian style

espresso beverages, a variety of pastries and confections, and coffee-related accessories and

equipment. Additionally, the company sells coffee products through a specialty sales group and

supermarkets. They also offer their specials which are unique drinks made for different

countries. Their objective is to establish Starbucks as the most recognized and respected brand in

the world.

• Tim Hortons

Tim Hortons Inc. is a Canadian multinational fast food restaurant that is famous for its special

and high quality coffee and outstanding delicious donuts. In addition , it is the biggest quick

service restaurant chain in Canada ; as of December 31, 2016, it had a total of 4,613 restaurants

in nine countries. The company headquarter is in Oakville , Canada . The business was founded

in 1964 in Hamilton Canada , and today it has 4613 locations , with about 10,000 employees

working there .
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 HR & MANAGEMENT P LAN

The human resources organization chart is as follows :

CEO

Vice president- HR
Vice President - Supply

Vice President - Marketing

Vice president -Supply

Store Mangers Store employees

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 FINANCIAL PLAN

The financial plan aims to create a clear financial vision for the business , so as to a successful

one and this part of the business plan is if special sensitivity .That is because the main aim of the

business is to be profitable , and to cover its expenses within a reasonable period of time . For

this reason the financial plan should be set with great care taking into consideration the different

points of concern and considering the different financial details.

This financial plan should cover the following points:

Making financial records of the coffee shop transactional –keeping accounts and drawing

up the income statement

working out the financial position of the coffee shop at a specific moment in time by

drawing a balance sheet

tracking the movement of the cash flow to and from the business

The good analysis for the investment and production.

The following chart shows how the financial department is organized

There are different ways that we can get fund for this business s, such as the stocks, bonds and

cash, for us , we prefer to take cash money as we intend to use that money in establishing the

businesses and in paying for the fixed assets of the business.

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The business that we plan to create is a coffee shop , and it is obvious that such type of business

requires good assets and that needs good amount of money.

The amount of fund that we intend to ask for is 50,000,000 DH , and we intend to contact one of

the trusted banks in the country, so as to provide this amount for us.

The question that we are keen on finding an answer to is where to use these amounts of money

.In general we intend to use them in buying the required equipment and other types of sales,

buying for the rent of the entire first year, paying the salaries of the employees for the first year

and furnishing the building with the all required furniture's.

The budget we are going to create can help in clarifying the matters and show how much money

I need in each of the first three years and the expected revenue so as to count the amount of profit

I can get.

The graph below shows the planned sales objectives through the business the first three years, in

addition to the net p4rofits that the company can get through the work in the coffee shop. It

shows that the sales , as well as the net profit of the business are expected to increase year by

year :

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 1,800,000
1,600,000
1,400,000
1,200,000
1,000,000
800,000
600,000
400,000
200,000
0
Year1 Year2 Year3

This is the detailed budget for the first year:

BUSINESS

BUDGET

Month/Year: Dec-17

OVER UNDER
SUMMARY ACTUAL BUDGETED
BUDGET BUDGET

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Total income 13,000,000.00 10,000,000.00 3,000,000.00

Total expenses 8,750,000.00 6,320,000.00 2,430,000.00

Income less expenses: 4,250,000.00 3,680,000.00 570,000.00

OVER UNDER
INCOME DETAILS ACTUAL BUDGETED NOTES
BUDGET BUDGET

Increase

advertising

Sales 15,000,000.00 12,000,000.00 3,000,000.00 next year.

Interest earned 2,000,000.00 1,500,000.00 500,000.00

Fees 500,000.00 600,000.00 -100,000.00

Commissions 200,000.00 100,000.00 100,000.00

Rent 600,000.00 700,000.00 -100,000.00

Royalties 250,000.00 200,000.00 50,000.00

Other 150,000.00 150,000.00

Total income: 18,700,000.00 15,250,000.00 3,450,000.00

OVER UNDER
EXPENSE DETAILS ACTUAL BUDGETED NOTES
BUDGET BUDGET

SELLING 750,000.00 700,000.00

Salaries and wages 650,000.00 650,000.00

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Commissions 300,000.00 300,000.00

Increase

Advertising 500,000.00 500,000.00 Here 3%.

Delivery 200,000.00 150,000.00 50,000.00

Shipping 250,000.00 300,000.00 -50,000.00

Travel 100,000.00 200,000.00 -100,000.00

Other 150,000.00 150,000.00

Total sales expenses: 2,150,000.00 2,250,000.00 -100,000.00

Percent of total: 24.57% 35.60%

ADMINISTRATIVE

Salaries and wages 650,000.00 650,000.00

Employee benefits 350,000.00 400,000.00 -50,000.00

Payroll taxes 250,000.00 200,000.00 50,000.00

Insurance 600,000.00 500,000.00 100,000.00

Loans 600,000.00 550,000.00 50,000.00

Office supplies 250,000.00 200,000.00 50,000.00

Travel & entertainment 150,000.00 100,000.00 50,000.00

Postage 50,000.00 20,000.00 30,000.00

Furnishings 750,000.00 800,000.00 -50,000.00

Contributions 250,000.00 200,000.00 50,000.00

Dues 150,000.00 150,000.00

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Other 200,000.00 300,000.00 -100,000.00

Total admin. expenses: 4,250,000.00 4,070,000.00 180,000.00

Percent of total: 48.57% 64.40%

SERVICE &

EQUIPMENT

Accounting 200,000.00 200,000.00

Legal 150,000.00 200,000.00 -50,000.00

Utilities 250,000.00 250,000.00 Too high.

Telephone 300,000.00 250,000.00 50,000.00

Equipment purchases 650,000.00 600,000.00 50,000.00

Rent & maintenance 600,000.00 600,000.00

Other 200,000.00 200,000.00

Total S&E expenses: 2,350,000.00 2,300,000.00 50,000.00

Percent of total: 0.27 0.36

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The graph above shows is about the income details , it shows that the actual income and the

estimated income are close to each other , so the financial projections are accurate .

For the expenses of the administration shown below , they also show that the estimations for this

category of expenses are close to the actual values , also indicating that the financial estimation of

the overall business are close to the actual ones .

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 CONCLUSION

In conclusion, this business plan of the Refresh Coffee shop indicates that the business has a

good chance of profitability and success in the UAE market with its favored conditions. The

business is expected to satisfy the different needs and trends of the customers through its

diversified and good quality products and by the help of the capable human resources working

for the business. So, it is recommended that such a business to be opened and work in the UAE

markets.

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 REFERENES

Tim Hortons ( n.d). Retrieved from:

http://www.timhortons.com/ca/en/index.php

How to create a marketing plan. Retrieved from:

http://www.entrepreneur.com/article/43018

Marketing – promotion strategy. Retrieved from:

http://www.smallbusiness.wa.gov.au/marketing-promotion-strategy/

Manage and operate a coffee shop. (2001). Retrieved from:

http://slideplayer.com/slide/6916831/

GCC Hospitality Industry to sustain its growth momentum, says Alpen Capital (2014). Retrieved

from:

https://www.zawya.com/mena/en/story/GCC_Hospitality_Industry_to_sustain_its_growth_mom

entum_says_Alpen_Capital-ZAWYA20140924115458/

The Basic Steps in the Management Planning Process . (n.d). Retrieved from:

http://smallbusiness.chron.com/basic-steps-management-planning-process-17646.html

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