Greig Case Study: Beyond The Bean

In our society, we can see many different kinds of social setting and one of the most common settings is coffee shop. Indeed, there is at least one coffee shop on each block. According to Coffee Association of Canada, the market size of coffee industry in Canada is more than 6.2 billion dollars. It shows that how big and important this social setting is. Among a lot of coffee shops, Starbucks, Tim Horton, and Second Cup are the biggest and the most popular franchisers in Canada. If the purpose of visiting coffee shop is only for coffee itself, they might have not been grown like these days.

According to statistics, Finland is the country with the highest per capita consumption of coffee, and China is the lowest one, but in Finland there are nearly five million residents only, which means Finland will consume a million bags of coffee every year, but the 1.3 billion residents of China will provide approximately 200 million potential coffee consumers, and this will make China becomes a major coffee market. On the other hand, under the same culture background, compare to Japan and Korea, Chinese average annual per capita consumption is only around 20 Cups, but this also means Chinese consumer coffee market has a big room for future growth.

The specialty coffee industry had seen steady growth for years and the trend was expected to continue until at least 2015. Of the various segments within the specialty coffee industry, most of the growth was attributable to beverage retailers “Coffee and kiosks”. In 1979 there were approximately 250 specialty coffee retailers. The number quadrupled by 1989 to approx 1000 outlets, and it exploded to roughly 15000 by 2002. Nationally, specialty coffee sales totaled over $ 10 billion in 2005.

The partners of Beyond the Bean want to combine a traditional coffee shop with table/ board game rentals, where customers can socialize, in a relaxing environment. Our case analysis will demonstrate the appropriate decisions Beyond the Bean should apply to their business plan in order to achieve their goals.  The report clearly identifies the problems within the case, and what choices the business should make to in order to be successful in the given area during a time of rescission. We explore the strengths, weaknesses, opportunities, and threats of Beyond the Bean’s business structure, identifying vital decisions that the business should

Canadians drink coffee every day and with 67% of the adult population coffee drinkers, the demand is there if a business can capitalize on it.

Opportunities: Large growing segment of gourmet coffee drinkers. Canada is a large market segment that buys despite current economic downturn.

The market for board games has seen annual increases of 10-20 per cent over the last decade, leading some to suggest we are in a “board game renaissance” (Carlson, 2013).

The company’s main objective is to introduce ‘; Beyond the bean’’ to the Canadian market in London Ontario on the Richmond road and open up a café for mainly students, to get together and serve as a recreational center. This will be possible through the café and/or by having a variety of board games for the public. The initial approach will be to gain a market share for leveling out the playing field and being a root competitor for similar types of businesses. In the external and internal analysis you will be able to find all the necessary information that will provide you with a generous overview of the company’s

Please remember that Part 1 and Part 2 of the report are each worth 50% of the total

People love to drink coffee. Coffee shops, independently owned or chains are every corner. Statistics show that people are taking more coffee every day. It is a very profitable business.

A review of the estimated growth in retail sales of coffee over the next four years indicates that while sales of non-specialty coffee products are expected to decline, sales of ground specialty coffee products and whole bean coffee should rise. Further, sales of ready-to-drink products are projected to rise almost 50%.

The larger known coffee businesses were beginning to show signs of stagnation in the 1970’s and 1980’s. Unlike Proctor & Gamble other large manufacturers, specialty coffee producers were small independent distributors. According to the Harvard Business School report on Howard Schultz; During the early 1980’s the average American consumed less than two cups of coffee per day, with almost one of every two men , women and children over the age of 10 does not drink coffee at all. The large coffee business started to compete for market share in a shrinking market. The smaller independent specialty coffee producers were selling only high quality Arabica beans. Arabica beans have less caffeine, less

In general the coffeehouse industry in the United States was experiencing an increase in coffee consumption per capita due to the “Starbucks effect”. At this time Starbucks was operating approximately 20,000 stores in the United States and was living a fast expansion strategy worldwide.

Expresso Espresso coffee shop (EE) opened in March 2006 across the street from the University of South Alabama in Mobile. The shop targeted the 13,000 students as well as the faculty and staff. Todd Sylvester, the owner, has big dreams of expanding to another location. Although the business concept offered a warm environment with high quality products, it lacked sustainability, market knowledge, and competitive options. In spring 2006 the business was operating at a negative net-income. The following report explores the case of EE during the spring of 2006 and discusses alternative courses of action to current business strategies.

External customers: Where external customers includes college students, tourist, business class people, aged people, children, couples, families etc. King have large group of external customers and it includes college students, tourist, business class people, aged people, children ,couples ,families etc., but its most visiting customers are college students, families and tourist. In each and every business there are competitors. In addition, it obvious that in fast food business there is more than one organization McDonald, Subway, Andoos, Kfc are the strong competitors of burger king and to survive in this strong market it has to give quality service and food at compatible price. 2.2. SWOT ANALYSIS SWOT analysis (strengths, weaknesses, opportunities, and threats analysis) is a framework for identifying and analysing the internal and external factors that can have an impact on the viability of a project, product, place or person. SWOT Analysis Strength 1.Huge popular brand name and high brand loyalty 2. Burger King serves many burgers that is typically not available in other fast food restaurant. 3. Product differentiation with large size. 4. Growth model not very capital