GAC012 Assessment Event 2: Project-Written Report
Business Plan:
Student’s Name:
Seungsoo Oh
Student ID #:
Teacher:
Due Date:
Word Count:
Gord Ojala
GAC012 AE#2
Table of Contents
Executive Summary ...................................................................................................................................... 2
1.0
Introduction ........................................................................................................................................ 2
1.1
The objectives of the research ........................................................................................................ 2
1.2
The context ..................................................................................................................................... 2
1.2.1
Prime function ......................................................................................................................... 2
1.2.2
Key competitors ...................................................................................................................... 2
1.2.3
Legal structure ........................................................................................................................ 2
1.2.4
Choice of Business .................................................................................................................. 2
1.3
Background knowledge .................................................................................................................. 3
1.4
Thesis Statement............................................................................................................................. 3
2.0
Method ............................................................................................................................................... 3
2.1
Data collection ................................................................................................................................ 3
2.2
Research objectives from data collection ....................................................................................... 3
3.0
Findings.............................................................................................................................................. 3
3.1
Key success factors......................................................................................................................... 3
3.2
SWOT analysis of the business and an alternative ......................................................................... 4
3.3
Summarization................................................................................................................................ 5
4.1
Interpretation .................................................................................................................................. 5
4.2
Assess the effectiveness of the research ......................................................................................... 5
5.0
Conclusion and recommendation ....................................................................................................... 6
5.1
Identification and Justification ....................................................................................................... 6
5.2
Competitive edge ............................................................................................................................ 6
Reference List ............................................................................................................................................... 6
Appendices.................................................................................................................................................... 6
page 1
GAC012 AE#2
Executive Summary
1.0
Introduction
1.1
The objectives of the research
To make café business prosper in local area, setting up the prime function and planning
how to operate the business will be an essential procedure. By researching the field of
café business, it will be helpful to learn the way of running the café.
1.2
The context
1.2.1
Prime function
As a café, this business will provide customers various kinds of coffee, beverages
and desserts in cozy ambiance.
1.2.2
Key competitors
Key competitors will be franchise cafés such as Starbucks, Caffe Pascucci,
Coffee Bean and Caffe Bene. With their massive amount of capital, verified
menus and stable system of marketing, they have higher chance to be successful
in the area.
1.2.3
Legal structure
It will be operated as a partnership. Partnership will be the most efficient way to
run this business by distributing works such as marketing, purchasing materials
and managing the store.
1.2.4
Choice of Business
In Korea, large number of people goes to local cafes to have conversation with
their friends, do group works or spend some time reading books quietly. To meet
these needs, the café need to have more rooms and more comfortable furniture.
However, there are not many cafes which satisfy theses needs. Thus, there is high
chance to be successful in business of café even though there are many cafes all
around any places.
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GAC012 AE#2
1.3
Background knowledge
A business runner can clarify the goal of business, strategy to achieve it and additional
information for investors with business plan. There is a SWOT analysis within the
business plan. By analyzing SWOT which is an acronym of Strengths, Weaknesses,
Opportunities and Threats, the business runner will have general overview of potential
chances and risks in addition to its merits and demerits.
1.4
Thesis Statement
The size of café industry has been growing because of the economic growth of Korea.
Thus, there are many cafes almost everywhere in Korea. By researching how existing
cafes are operated, their strengths and weaknesses will be identified. This business will
be operated much efficiently with understanding and learning from their strengths and
weaknesses. Similar with other retail businesses, location of the café will be most
important factor to succeed. In addition to the location, comfort of the café and the
quality of menus would be essential factors to meet customers’ wants.
2.0
Method
2.1
Data collection



2.2
Collect information of key competitors such as Starbucks, Coffee Bean and Caffe
Pascucci by online searching.
Have Interviews with actual café managers to learn how they operate their cafes.
Visit local cafes to see how they design their stores.
Research objectives from data collection
By researching the field of business of café,
3.0
Findings
3.1
Key success factors

Location
Location of the café is one of the most important factors to make good amount of profit.
To have a large number of customers, the café should be located in crowded area. In
addition to it, because the café is designed for those who want to do group works and
meet friends, it is better to be located near universities.
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GAC012 AE#2

Comfortable furniture and ambiance
Recently, people go to cafes not only for having a cup of coffee but to meet their friends
or do group work. Therefore, with cozy furniture and ambiance in addition to proper
structure, the café will be the best place for people.

3.2
Decent price of tasty beverages
Even though the café is located in the area where there are many floating population and
has good layouts of furniture, if coffee
SWOT analysis of the business and an alternative
Strength Weakness



A large number of floating
population – potential customers
Comfortable furniture and
ambiance – couches, seminar
rooms
Decent price of coffee and
beverages


Relatively slow circulation of
customers
Lack of experience of running
business
Opportunities Threats


Rapid growth of market of coffee
More flexible menus than other
franchise cafes


Many franchise cafes in the area.
Korea economy is in recession due
to European financial crisis
Plan A
Plan B
ˇLocated in the area where there are
many floating population (Shinchon –
where many universities are located)
ˇComfortable furniture and ambiance –
couches, seminar rooms
ˇDecent price of beverages
ˇCompensate slow circulation of
customers with office workers in lunch
time
ˇLocated in Myongdong – where there
are lots of people gather
ˇCozy atmosphere and comfortable
couches for tired people with work or
shopping
ˇOffer various types of coffee and
beverage for decent price
ˇfaster circulation of customers thanks to
office workers especially in lunch time
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GAC012 AE#2
3.3
Summarization
Summary of SWOT Analysis and more explanation about it if there is any.
Basic idea of the café is that it provides customers comfortable and cozy place to have
conversation with friends and do works together in quiet and relaxing ambience. Recently,
people visit cafes not only for having a cup of coffee but also to meet people. Thus,
people seek cafes which has relaxing atmosphere. If there is a café that satisfy theses
wants, it would be successful even in the crowded area.
4.1
Have you ever studied for getting a job in cafes?
Interpretation
YES
NO
How often do you go to cafes to study?
Almost daily
Once per two days
Once or twice per week
Once or twice per two weeks
Once or twice per month
Rarely
According to Incruit which is famous website of employment information, job seekers go
to cafes to study at least once or twice a week. In addition, customers prioritize
comfortable tables and chairs as an interior factor, according to Kyunghyang newspaper.
4.2
Assess the effectiveness of the research
Through online research, the information of preferences of customers was clarified
thanks to surveys about cafes.
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GAC012 AE#2
5.0 Conclusion and recommendation
5.1 Identification and Justification
As data about cafes was suggested in interpretation section, young people enjoy going cafes
to study or meet their friends. Therefore,
5.2
Competitive edge
Reference List
Appendices
page 6