"Business Plan 1Business Plan for Boutique CaféWord Count: 3000[Name of the Writer][Name of the Institute] Business Plan 2Contents1. Introduction of Business Idea ............................................................................................................... 42. Background ........................................................................................................................................... 43. Business Feasibility Analysis................................................................................................................ 53.1. Market Segmentation ........................................................................................................................ 53.1.1. Size and Behaviour of Target Market ........................................................................................... 53.2. PEST Analysis (Macro level Analysis) .............................................................................................. 53.2.1. Political ......................................................................................................................................... 63.2.2. Economic....................................................................................................................................... 63.2.3. Social............................................................................................................................................. 63.2.4. Technological ................................................................................................................................ 63.3. Porter’s Five Forces (Industry) Analysis .......................................................................................... 73.3.1. Power of Buyers ............................................................................................................................ 73.3.2. Power of Suppliers ........................................................................................................................ 73.3.3. Threats of Entrants ....................................................................................................................... 83.3.4. Threats of Rivalry ......................................................................................................................... 83.3.5. Threats of Substitutes .................................................................................................................... 83.4. SWOT Analysis of Boutique Café ...................................................................................................... 84. Marketing Plan ...................................................................................................................................... 94.1. Marketing Strategy ............................................................................................................................ 94.2. Marketing Plan ................................................................................................................................. 94.2.1. Product ........................................................................................................................................ 104.2.2. Price ............................................................................................................................................ 104.2.3. Place ........................................................................................................................................... 104.2.4. Promotion ................................................................................................................................... 114.2.5. People ......................................................................................................................................... 114.2.6. Processes..................................................................................................................................... 124.2.7. Physical Environment ................................................................................................................. 124.3. Marketing Objectives ...................................................................................................................... 124.4. Target Market Size .......................................................................................................................... 124.5. Sales Projection .............................................................................................................................. 125. Operational Plan .................................................................................................................................. 135.1. Management Details ....................................................................................................................... 13 Business Plan 35.2. Staffing and Structure of Boutique Café ......................................................................................... 135.3. Equipment Required ........................................................................................................................ 145.4. Production Processes ...................................................................................................................... 156. Financial Projections ........................................................................................................................... 156.1. Basic Assumptions and Information ............................................................................................... 156.1.1. Business Financing ..................................................................................................................... 156.1.2. Income and Expenses Calculation .............................................................................................. 156.1.3. Financial Forecasts .................................................................................................................... 156.1.4. Break-even Point: ....................................................................................................................... 166.2. Cash Flow Forecast for the Year 2014 ........................................................................................... 176.3. Forecast for Profit and Loss Statement .......................................................................................... 186.4. Forecasted Balance Sheet ............................................................................................................... 196.5. Critical Success Factor for Boutique Café ..................................................................................... 197. Timeline .............................................................................................................................................. 208. References ........................................................................................................................................... 2110. Appendices ...................................................................................................................................... 22Business Plan 41. Introduction of Business IdeaThis business plan intends to propose the new and innovative business idea of a fashion orientedcafé i.e. “Boutique Café” in Malaysia. This Café is not the merger of the two different sort ofbusinesses rather it intends to revolutionise the traditional coffee café industry with the merger offashion industry. The idea is unique is a sense that it embeds the allure of fashion world in thecoffee shop. Surrounded by the incredible antiquity of coffee industry with the touch of amazingmoments, Boutique Cafeis aimed to provide a unique experience to its valuable customers byexposing them to the latest trends and styles of the fashion world through small fashion showsand ramp walks while sipping their coffees and having snacks with their friends and matesaround. Boutique Café is the wholly owned business that will be operated by the general manager. Thecafé will employ 10 people excluding the general manager in which 2 will be chefs, 1 will beprep chefs, 5 will be waiters and 2 will be counter staff.Boutique Café will also for contract withthe suppliers of coffee and other food ingredients and famous fashion designers that will supplythe coffee and other food items and launch their small fashion shows at the Boutiquerespectively.2. BackgroundThe Malaysian industry has witnessed the coffee drinking culture for many years. This coffeeculture does not much realise the western trends of coffee drinking that are emerging in Malaysiadue to the influence of foreign residents living in Malaysia for work or other needs.Nevertheless, with the emergence of more sophisticated demands of consumer and increasingnumber of coffee cafes, the Malaysian coffee industry is undergoing significant changes andvariations. During 2012, the most popular type of coffee was the instant standard coffee withinthe retail channels but with the increasing consumption and sophisticated demands of coffee,consumers moved towards different elite and premium coffee cafes (Euromonitor, 2013).Therefore keeping in focus the growing demands and challenges of the coffee market inMalaysia, Boutique Café seems to be an appealing idea for customers seeking to get maximumvalue and enjoy the latest trends in the Coffee market. The idea of fashion shows and ramp walksfurther complements the idea of sophisticated and tranquil coffee café where both foreign and Business Plan 5local residents in Malaysia will enjoy their coffees and snack time with colourful designs andattractive work of fashion art.3. Business Feasibility AnalysisA Business Feasibility Analysis is “a controlled process for identifying problems and opportunities, determining objectives, describing situations, defining successful outcomes andassessing the range of cost and benefits associated with several alternatives for solving aproblem”.(Thompson, 2005; 185)3.1. Market SegmentationIn Malaysia, most of the coffee consumption is attributed to the young consumers that like toengage in the social activities with their friends, colleagues and family and find the better placessuch as coffee shops and coffee outlets to spend their time with them. Moreover, most foreignersliving in Malaysia also seek the western blend of coffee into the coffee outlets of Malaysia thatalso present a lucrative segment for growing coffee industry (Euromonitor, 2013). Therefore, theprimary target market for coffee is the foreigners and youngsters that want to socialise in thetranquil and calm environment and enjoy their coffees with the sight of latest fashion trends andnew fashion wear collection at the café.3.1.1. Size and Behaviour of Target MarketThe population aged between 15 and 64 accounted for 65.16% of the overall populated inMalaysian 2011 (Trading Economic, 2014).Therefore this market presents the sizeable marketthat has the motive to socialise and engage in coffee drinking behaviour. Therefore above agegroup is targeted by Boutique Café.3.2. PEST Analysis (Macro level Analysis)According to Raduan, Jegak, Haslindaand Alimin (2009),the macro environmental analysis is theanalysis factors and changes taking place in the external environment. This analysis is usually Business Plan 6done with the help of PEST analysis that helps to assess the external environment of the businesswith the help of political, economic, social and technological factorsas analysed below for theMalaysian Coffee Café industry:3.2.1. Political? In Malaysia, among various restricted imported items, Coffee is one of them. It issubjected to government imposed restrictions for protecting the local brands.? Thus, the protection of local coffee brands and shops is supported by governments inMalaysia (Mofcom, 2007).3.2.2. Economic? Better economic conditions of Malaysia with the expected growth of coffee industry byCAGR of 6%.? Higher purchasing power of consumers. ? Growth in the coffee shops format in Malaysia.3.2.3. Social? The rise in the coffee drinking behaviour due to the integration of Western trends incoffee drinking.? Increase in the number of Western residents in Malaysia during 2012.? Demands of consumers in the coffee industry are becoming more sophisticated andquality oriented.? Demands for premium coffee brands and cafes are increasing.? During 2012, various consumers switched their demands to fresh coffees.? Increase in the social activities of young Malaysian people has led to increase the demandfor coffee outlets and specialists coffee shops (Euromonitor, 2013).3.2.4. Technological? The integration of latest technologies and coffee making machineries has enhanced theoperations of coffee industry. Business Plan 7? Different Coffee kiosks deploy latest coffee making machineries to fulfil increasingcustomer demands (Euromonitor, 2013).3.3. Porter’s Five Forces (Industry) AnalysisThe industry analysis is carried out for assessing the attractiveness and competitiveness of theindustry for the firm. Porter?s Five Forces Model is used to analyse the industry with the help ofthe following factors(Hill and Jones, 2008):Source: (Hill et al., 2008)3.3.1. Power of Buyers? Consumers are largely influencing the Malaysia Coffee café industry through increasingsophistication of their demands.? Opening of large number of premium and specialist coffee outlets are offering morechoices for customers to switch among different coffee outlets (Euromonitor, 2013).? Consumer demands are driving significant growth in the Malaysia Coffee café industrytherefore their power is significantly high.3.3.2. Power of Suppliers? Various retailers and suppliers are available that offer private coffee brands directly tocustomers. Business Plan 8? Growing social activities are shifting supply networks to specialty coffee cafes.? Large number of suppliers is available to source coffee from (Euromonitor, 2013).? Supplier power is low.3.3.3. Threats of Entrants? Malaysia Coffee market is growing rapidly with the integration of Western trends in thecoffee industry.? This industry is offering lucrative options for new entrants to leverage their success oninnovative and special coffee cafes formats (Euromonitor, 2013).? Threats of entrants in very high.3.3.4. Threats of Rivalry? Starbucks, Espresso, Coffee Bean & Tea Leaf and Gloria Jeans are some of the leadingcoffee café offering cappuccinos and lattes to consumers (Espresso Coffee Guide, 2013).? Price based competition is also raising in the coffee market.? Threat of competition is high.3.3.5. Threats of Substitutes? Nestle and Haco Swiss Coffee offers the substitute coffee retailing format over coffeecafes in Malaysia.? Tea being the locally producer good remained the focus of consumption for manyMalaysians (Euromonitor, 2013).? Growing needs and western oriented demands of coffee has overcome these threats ofsubstitutes to a larger extent.3.4. SWOT Analysis of Boutique CaféSWOT analysis identifies the strengths, weaknesses, opportunities and threats of the firm (Hill etal., 2008). The following table will highlight SWOT analysis for Boutique Café:Strengths? Integration of fashion sense in the coffee culture. "