Introduction To Entrepreneurship Assignment Sample

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Introduction

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The report intends to focus mainly on the retail coffee chain business named Starcafe Pvt ltd. It will primally focus on the aspects of the Starcafe personnel for their hybrid organizational structure. Next, the report will focus on the details of the product for starcafé over their different product range of coffee and beverages as that reoffered other customers. It will also follow the four P’s (Product, Price., Place and Promotion) as a marketing mix strategy. Next, the report readily focuses on the marketing research strategy where Starcafe follows the demographic and geographic segmentation approach for reaching the customer as per their age and location. Lastly, it also focuses on the Starcafe operation and financials and five major smart exit strategy options for their business operation.

Personnel

Starcafe Pvt Ltd is an American multinational chain of coffee houses and roastery and it is located in many regions. The main stakeholder of Starcafe Pvt ltd for the business function are employees, customers, suppliers (supply firms for raw materials, coffee farmers), environmental expertise, Investor, and Government. Starcafe Pvt ltd has about 3 lakhs 40 thousand employees till 2020 (Tubert-Oklander, 2018). The business structure of Starcafé Pvt Ltd is typically and matrix organizational structure that is a hybrid mixture of different features.

 Fig: Organizational structure of Starcafe Pvt Ltd

(Source:Tubert-Oklander, 2018)

Details of product

Starcafe typically serves hot and cold drinks, its main attraction for the customer is the whole bean coffee, which is micro grained for instant coffee, espresso, cafe latte, and juices. Starcafe usually roasts high-quality whole bean coffees and sells them for their daily business operation (Favi et al., 2020). The most prominent product of their business is the “vanilla latte”, “Hot chocolate”, “iced white chocolate mocha”. Starcafe poses about 250 plus products and in near future, with innovation, there might be over 500 products as the chain grows there to share all over a global basis.

Marketing Mix

The Four “Ps” of Marketing Mix are as follows-

Product

• Starcafe proceed unbeatable and unmatchable experiences of various product
• Starcafe provide their product in the following categories
• Format- “whole bean”
• Roast- “blonde dark and medium”
• Caffeine – “regular and decaffeinated”
• Flavoured and unflavoured

Price

To compete in the market with other competitors of coffee chain restaurant and their products star café initiated with low cost over of few outlets to cater their customer for not being attracted by the high prices (Koojaroenprasit, 2018). It helps to maintain the quality with optimal pricing strategy of their product

Place

Starcafe has its presence in more than 80 countries, such as “Europe, Asia, North America, South America, and Oceania”. It has got about 4500 licensed locations for their outlets to un in the countries. Their maximum outlets are available in America.

Promotion

The advertising and promotion strategy of starcafé is done by the many media channels platforms such as online, television, printed advertising, etc (Koojaroenprasit, 2018). Its campaigns strategy program like “post a coffee” over “Facebook” and “Instagram” has attracted many customers of their product to get informed.

Fig: Four Ps of Marketing Mix Strategy

(Source: Koojaroenprasit, 2018)

Market Research

Starcafe usually follows an econometric in its more mature markets, which are also included in the United Kingdom. Simply it follows the dark social market research strategy. This coffee giant is usually trying its marketing and product development closer together for jumping faster into the trends and getting better understandings of what resonates with Starcafe products. Starbucks typically segments their market as per the demographic segmentation methods that are between the age of 25 and 40 years with high income and the second most targeted group is 18 to 24 (Wibowo and Pattyranie, 2021). Starcafe also segments through geographic segmentation methodology as their store presence is all over the country.

Fig: Graphica Reperensataiton of UK coffee chain

(Source: Wibowo and Pattyranie, 2021)

Operations

Starcafe primary operates and competes over the retail coffee and snacks store industry. Its operations usually function by making six decisional areas such as

• Designing of goods and services- like starcafé Mugs
• Quality management-
• Strategic location- clustering of cafes over same geographic areas in the United Kingdom
• Work design and human resources (Darmawan et al., 2020).
• Process and capacity design
• Inventory management

Fig: Operational Coffee chain Maker size, Growth, and Value in the United Kingdom

(Source: Darmawan et al., 2020)

Financials

Starcafe might hold their annual gross profit for 2021 is about revenue cost budget $20.322B and as it was predicted earlier that about 28 percent increase from last year projection. In the United Kingdom, the annual turnover of Starcafé was about £243m and was down by 32 percent as the reduction of their revenue was due to the restriction imposed upon the Covid-19 spread.

Exit Strategies

Starbucks considerably fails to generate or attract their customers over a longer run (2-3 years). The possible exit strategy would follow six smart technologies such as

• Merger and acquisition
• By listings over initial public offering (IPO)
• Selling of their Shares.
• Making a partnership business
• Liquidation and closing of operations.
• Selling the stake to other companies
• Restructuring (Huvaj, 2020).

Exit strategy would largely assist in managing the portfolio because it can help to take the profit a stop for the losses that have been incurred.

Fig: Exit Strategy (here Company is Starcafe Pvt Ltd)

(Source: Huvaj, 2020)