Coffee Planet — SME Case Study (UAE)

Picking Coffee Planet as a case study subject was very exciting. It first began as a coffee project in 2005, when the regional coffee environment in the UAE was incredibly diverse and common. With the aim to help individuals with knowledge of the best worldwide Arabica coffee, we looked at ways coffee was being made, who was increasing what, and exactly how we could create our own fantastic tasting mixes. Opening Coffee Planet on the Arabian Headland made sense to us. What better position to discover methods from the previous 500 years of Arabica coffee and make our own innovative method?

In Coffee Planet, the core mission is to help people acknowledge premium Arabica coffee with the imprint of Coffee Planet a wide variety of harvested, while all the coffee remained pointer designated by the devoted side though also if the best client facility with an astonishing devotion in attaining so. We want to give our clients the globe’s best freshly heated coffees with outstanding benefits at a value that is reasonable to manufacturers and our clients.

Our dedication is towards client service, our workers, the natural environment and the society.

Vision In our devoted pursuit of quality, we are dedicated to the exceptional value of our cuisine, assistance, community and away from home eating and recreational ideas that enhance the lives and knowledge of our visitors and team equally.

Organizational Structure

President CFO

Salesman Salesman Receptionist Figure 66: Leadership Chart of Coffee Planet Leadership/Founders Robert Jones: Chief Manager In 2007, Jones has defended Coffee Planet’s growth through nourishment maintenance and trade separations, as well as positively engaging the product’s answers into a coffee philosophy and flattering a major roaster in the UAE within his position as chief manager.

With the main goals of assisting more individuals and understanding the best worldwide Arabica coffee, Jones is accountable for supervising the continual expansion of Coffee Planet’s Gulf countries and broader Asia processes, as well as global growth into marketplaces within the UK.

Prior to entering Coffee Planet, Jones managed small businesses while he was postgraduate business student at Cardiff’s Small Business Facility.

Jones was awarded with a computer scholarship from Kingston College in 2005. As a component of his grade, he studied at Harvard University and finished a year in London operating for a dedicated IT firm.

Matthew Yorke: Smith Operations Executive Responsible for co-founding the brand name in 2005, Coffee Planet was Yorke’s idea. He plays a major role in managing the heating, manufacturing, selling chain, logistics and manufacturing segments of the company in his role as co-founder and principal jobs manager.

Supervising the coffee store, Yorke is accountable for finding and selling everything of Coffee Planet, from olive green beans of over 19 diverse nations to guaranteeing excellence and constancy in each mug.

Early on in his profession, Yorke showcased his business abilities and established a private retained company in 1993. The firm, Yorke Pots, used wholesale items for porcelain tiles and sanitary ware. By early 2000, Yorke worked as the manager for Fearless, where he was accountable for steering the product’s imprint in the GCC, with customers with Carrefour Intercontinental and the One and Just Royal Delusion. Prior to entering Coffee Planet, Yorke moved to the UK as lead director of technology for the company.

Alan Hardman: Sales and Marketing Chief Hardman joined the Coffee Planet crew in 2017 first as investment manager, then took interest in the part of sales manager in 2018. Now he is the auctions and advertising manager and has been since 2019.

In his part, he manages the whole thing carefully with memberships of an older organization, supervised planned preparation, implementation of all auctions and advertising doings inside the company and executes the auctions and advertising plans at crossways of all stations both nearby and globally, by means of his knowledge of assisting energy development in the commercial world.

He started his job in economics as an apprentice auditor of the Granada Collections Motel and Melody Square Commercial, later touching on asset investments and money with a set of. In 2008, Hardman entered the biggest virtual store in the United Kingdom as business auditor, acting originally on the business preparing for distribution and then again in the company helping the principal investing manager.

Hardman traveled to Dubai in 2013 along with his young household to work for Jumirah Grouping. Prior to entering Coffee Planet, he remained business director for Emirates Holiday Wholesale. His role now is to get small business tributaries to guarantee auctions are enhanced and efficiently achieved.

Hardman is a member of the Hired Licensed Bookkeepers Group and is a representative of the UAE Leased Auditors and Hired Institution for Guarantees and Investing Group.

Coffee Planet has restructured for a range of purposes, like reacting to small business recessions, shifting landscape of small business, new job techniques, new tools, new assets, combinations, purchases, and to cut costs. Equally, there is a range of other advantages, like revitalizing a dwindling small business, expanding a business’s price, planning to sell the theatre company, securing a viable lead, and setting iteself up for expansion.

With restructure finding and trimming the cost of work, it has an immediate effect on the employees who lose their positions and it may affect the neighboring society. Though, reorganization does not take the lead in redundancies or firings. A business might be competent.

It is critical to assess precisely how to make the business clear and strong.

A well-planned restructure could better locate business retrieval, but an ill-intended restructure could unfavorably affect business presentation by corroding confidence and faith of laborers and the public, and damage accomplished, knowledgeable laborers with incorrect information.

At Coffee Planet, we are delighted to extend to our clients a wide array of distilling tools and devices for highly fashionable products. Customers are able to discover the best choices of products, such as the Aero Press much more. So, if you are looking for an ideal cup of coffee that you are able to drink at home, look no further than this diverse variety of tools and devices offered now. The African mix is the latest variety at Coffee Planet. This mixture of 100% Arabica field coffee was established using a selection of our best single source beans from throughout the coffee-generating areas of Africa

• The Quality of Coffee is Vital

Value of the coffee and accessibility are the major motivations that consumers recognize to boost in coffee costs. To make sure that value is kept, Robert Jones spends a lot of time training his staff.

• Consistency is Key

If you go to all the additional coffee houses on the block, you improve deal stability. Though it is difficult to deliver the same feature each time, it is important in the coffee industry, particularly in a period when individuals are developing more informed opinions regarding field coffee.

• A Warm and Inviting Atmosphere

A coffee store is certainly not really about a great mug of coffee. Several individuals regularly visit coffee stores as a spot to do their job. The atmosphere is also well-known to be a great spot to do contemplative daydreaming.

Several people choose to attend seminars in accessible coffee shops. Business employees make use of coffee trips as a rest from their hectic day.

• Adopt a Good Inventory Structure

“Profligacy is one of the biggest mistakes card holders do,” said Robert Jones. For his personal resources, he supplies and utilizes regional contractors ever since they remain close by. Jones likes sharing where he receives his supplies from. Coffee Planet utilizes a good plan to follow the necessary consumer contentment as stated in the graph below.

An operational strategy is primarily a structure that is designed to enhance goods of a small business, the essential services that the company offers and all the functions and procedures that are accomplished in the company.

At Coffee Planet, lowering prices and increasing transactions is the goal line. Company ventures represent many procedures, including raw material purchase, production costs and retail delivery. Small company strategies include the scope and site of services, merchandise expansion and growth. It is not unusual that numerous venture might occur inside a company at the same time.

Managing Director The manager in return responds to the customer feedback and satisfies their requirements.

Well trained staff The staff is very well trained in phases and always in good communication with the manager.

Satisfied Customers The customer always provides feedback to the staff and from staff to management.

Figure 67: Best Practices of Coffee Planet

At Coffee Planet they use a marketing strategy called “THE DECOY” and in simple terms, this strategy states to the customer multiple options to choose from, starting for instance, from small to large drinks making the SMALL and LARGE drinks appear to be overpriced or expensive making the LARGE option the best possible

deal, as described in the table below

SIZE PRICE OUNCES SMALL 12 oz MEDIUM 16 oz LARGE 20 oz

¡ Poor marketing: Due to it being a coffee shop, Coffee Planet mostly depends on a marketing strategy that is not very effective or efficient, which is called word-of-mouth. It all depends on if a customer comes in, likes the place and has a lot of connections and friends. If he/she tells them about the place and they come, then it’s great marketing.

However, that is very rarely the case and it’s usually hard to grab the attention of customers in a coffee shop.

¡ Low Cash Flow to Cover All Costs: Limitation of marketing and customers leads to low cash flow for the Coffee Planet and makes it very difficult to manage costs and reach break-even.

¡ Too High of Rent: This is because of the location of Coffee Planet, which is Sheikh Zayed Road.

Due to it being a very famous and popular road which is filled with customers and shops, the rent is higher than average, leading to extra costs for the business and that makes it harder for Coffee Planet to manage costs and to break-even.

Overcoming Poor Marketing: The best alternative for word-of-mouth marketing is through digital marketing.

For instance, using Instagram, Facebook, Snapchat and SEOs to enhance their reputation and increase reach to the maximum amount of people.

¡ Overcoming Low Cash Flow: A great suggestion to overcome such an issue is by using modern robots instead of baristas to make the drinks. It will be a big leap for the company and will enhance its reputation. Although, it is a going to be a big investment in the beginning, long-term it would be worth the investment.

¡ Overcoming Too High of Rent: This can be accomplished by wisely choosing an affordable shop in a well-known area and combine it with good marketing to attract desired customers and even more people

• Be enthusiastic and pass it on to all workers.

There is no replacement for real enthusiasm about your merchandise and your shop, so do not be frightened to display it. Build a cozy, unique, welcoming shop, and all around, your enthusiasm will attract clients in a positive way. Give interest to surplus income.

This is computed by separating your company’s net revenue by its profit transactions. If the percentage is more than zero, your small business is getting cash and that is an extremely good thing.

• Put an emphasis on espresso drinks.

The revenue for these type of drinks are often two, maybe three times the price of regular coffee.

• Build relationships with your customers.

This can be done by considering anything they make and just how they behave in your store. You must totally question their view too.

• Convince the store to go where traffic flows.

You can do this by pushing through road traffic and watch your numbers soar.

• Poor Location

Everybody has got to sell at the proper site, place, spot.

For some companies, the site may not be an issue, as they be able to go mostly electronic. Although this is not the issue for coffee stores, which vary greatly on traffic flow. They want to be anywhere that is simply available to consumers. Every small business wants a spot in the hipper areas. The dilemma here, however, is that rent can be enormous in some places. If you cannot be around the center of the town, at minimum consider other facets of your possible site. Feel about space and the situation of the whole community. Also, consider what kind of companies would be around yours. If you are encircled by headquarters that have starving workers on dinner breakes, you want to have a delightful place.

• Competition with Others

Competition is surprisingly intense in the coffee business.

Several merely cannot stay up with it. Depending on your town, there will possibly be a bunch of competition.

Survey your competition. See whatever they need to deal with and decide what potential prospects they are not filling. If your rivals are not utilizing any sort of consumer loyalty packages, for example, that is your moment to jump in and excite consumers with your personal gifts.

• Need of a Rare Skill

You need to make what consumers can’t find in other areas. Various coffee houses are identical from one to the other. Why would a client go to a particular coffee store if it is really like any number of others closer to their houses. That is where you will need to make sure that you your business is what consumers cannot find in several more areas. In this respect, it is particularly crucial to get a feeling for whatever your competition is serving. With clear knowledge of what is out in your neighborhood, you will understand what is missing.

• High-Ranking of Worker Trade/Tension

Workers who are unhappy in their position don’t do their best job. At the worst, they may even quit their firms in hordes. The terrible news is it gets pricey to supply workers who go out by paying those sums numerous hours a day. The price increases. The answer to this problem is making it to a factory that your workers will not want to leave behind. Make for sure they are listened to and that you rightfully attend to their worries and give advice. Also, feel free to give them job privileges, like a free lunch and hot drink throughout their shift.

• Offering a Poor Client Service

Your baristas are the individuals who offer client assistance to your visitors.

Consumer assistance is certainly a huge element of knowledge with companies. Your baristas are the ones who offer client assistance to your visitors. As the frontier of your firm, contemplate how many hours they should make up that valuable initial impact on every single individual who goes in the door.

As I matured through this assignment and learned more about Coffee Planet as a business, I learned the following

points

¡ Focus on good marketing practices ¡ Have a well-trained staff ¡ Pay close attention to low cash flow and prevent it by either reducing costs or increasing sales.

¡ Always maintain a great reputation ¡ Seek new ways to evolve in the market.

¡ Target a research team that will look for market analysis and potential openings.

Thereby I conclude that Coffee Planet had an optimal business plan with a lot of lessons learned and I feel that after this, I have gained more knowledge about small to medium businesses and how they function, as well as how to target possible weaknesses and enhance the business to its full potential.