GAC012 Assessment Event 2:Project-Written Report
Business Plan:
Student’s Name:
Park Junmin
Student ID #:
Teacher:
Mr. Choi
Due Date:
Word Count:
1238
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 ................................................................................................................ 3
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 ...................................................................................... 4
3.0
Findings............................................................................................................................................. 6
3.1
Key success factors ....................................................................................................................... 6
3.2
SWOT analysis of the business and an alternative ....................................................................... 6
3.3
Summarization .............................................................................................................................. 7
4.0
Discussion ....................................................................................... Error! Bookmark not defined.
4.1
Interpretation ................................................................................................................................. 8
4.2
Assess the effectiveness of the research........................................................................................ 8
5.0
Conclusion and recommendation ...................................................................................................... 8
5.1
Identification and Justification ...................................................................................................... 8
5.2
Competitive edge .......................................................................................................................... 8
Reference List ............................................................................................................................................... 8
Appendices.................................................................................................................................................... 9
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Executive Summary
Purpose: Introduced our company and Korean cafés.
Thesis Statement: This business plan shows the background about the cafés in Korea and introduce our
company’s strategy to succeed in the coffee business.
Method: Internet, Interview.
Findings: graph information related in Korean café market, information of example actual café situation,
information of different coffees.
Key conclusion: Cafe business has many advantages so our café will succeeed by using our unique
strategy and the business’s advantage.
Recommendations: Consider the growing state of Korea’s café market and our company’s unique
strategy.
1.0
Introduction
1.1
The objectives of the research
There are many coffee companies in Korea. However, almost all coffee companies are
similar. In my opinion, Starbucks’, coffee bene’s, and coffee bean’s menus and taste were
very similar except for the company’s name. Therefore, companies need unique things
for consumer. Our company start “unique coffee” and many people can enjoy our
products. In summary, first, our company starts a new coffee company field. Second, our
company becomes a more famous than coffebean, coffebene. Finally, making many
people enjoy our coffee. In addition, Our company should aim to 700.000won per day.
1.2
The context
1.2.1
Prime function
Our company makes good quality coffee that consumers enjoy and serve with our
company sprit.
1.2.2
Key competitors
Starbucks and Coffee Bean came from theU.S.A and two of the world’s biggest
coffee companies, and Coffeebene is Korea’s because of TV commercial and
design they became very famous .
1.2.3
Legal structure
Sole Trader. Problems come out if a small company is owned by more than one
owner. Our company more than one owner it will be made problem because our
company is small. For example: the leadership who will the boss and the share.
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In addition, our company’s motive is unique so it needs flexible mind. Therefore,
our company’s legal structure should be sole trader.
1.2.4
Choice of Business
Recently, coffee is the most popular drinks in the world so there are many coffee
companies. In that area, there are also many providers but they are not very unique. My
goal is to create a unique experience for customers. As a brief, café business has many
advantages about monetary and chances so I choose coffee business.
1.3
Background knowledge
1.4
Thesis Statement
.
These days many people drink and enjoy coffee but there are not unique things. In this situation,
we study a lot for unique good coffee and services. In addition, starting a small company is preferable
because we have many chances but small companies have an advantage about starting unique things.
Our café provides good quality and unique coffee for customers with our service and company esprits. In
addition, we try to make many people enjoy our coffee and also our company service. As a result, it
became known like Starbucks and coffee bean.
2.0
Method
2.1
Data collection
Internet-
The Korea herald :
The Korea Blog : http://blog.korea.net/?p=4142
The Marmot’s Hole : http://www.rjkoehler.com/2012/01/26/south-korea-and-coffee/
Caffesociety : http://www.caffesociety.co.uk/coffee-menu
KopiLuwakOnline : http://www.kopiluwakonline.com/
World coffee news: http://www.worldcoffeenews.com/?s=korea
Nielsenwird: http://blog.nielsen.com/nielsenwire/consumer/koreas-coffee-craze-perks-upopportunities-for-retailers-and-manufacturers/
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Yonhapnews :http://www.yonhapnews.co.kr/bulletin/2011/12/17/0200000000AKR2011121705910000
3.HTML
Interview
2.2
Research objectives from data collection
The Korea herald produce information about Korea’s coffee consumption and The Korea Blog
produce information about Korea’s coffee culture. The Marmot’s Hole explain’s the present status of
Korea’s coffee market. In addition, the other news sites prove an increasing café market using
information. Coffee society shows the Italian coffee menu and KopiLuwak Online introduces Luwak one
of the most expensive coffees. The World coffee news gives information on the whole of Korea’s coffee
markets’ situation.
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3.0
Findings
3.1
Key success factors
There are three key success factors in our coffee company. First, is the increase of
demand because of the increasing popularity of coffee. According to the research, in
Korea average adults drink 338 cups of coffee per year. Second, It can be niche market in
Korea there is no diversity and uniqueness in coffee. Most popular cafés in Korea like
Starbucks and Coffee bean come from America so in Korea almost all cafes are focused
only on America. Third, cafe has extensibility. Café is not only focus on coffee we can
sell dessert or mug cup it can make extensibility to our company’s enterprise.
3.2
SWOT analysis of the business and an alternative
Plan A : Unique café shop
Strength Weakness



Unique coffee
Special service with using our café
space
Niche market




Risk of uniqueness
Small scale company
At first, our company is not a
famous brand
Expensive unique coffee material.
Opportunities Threats


A big demand of coffee in Korea.
Not expensive raw materials Café
has good selling reputation



There is too much competition in
café markets
Risk of uniqueness of the product
Danger due to people`s critique
Plan B: small cafe using diverse menu and flexibility of services
Strength Weakness



We can change products easily
 limited inventory
Diverse menu
 insufficient capital
It follows trends and profitable due unpopularity puts the business at risks.
to trends
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GAC012 AE#2
Opportunities Threats

Flexibility depends on the new
brand.
Easy to start




Required a lot of skills
Limited investment
High risk
Similar products with other cafes
\
3.3
Summarization
Question
Interview1
How much do earn a month?
Where is a suitable place to
establish a cafe?
10,000,000~12,000,000 won per
month
Americano is the
In addition, in summer cold menu
sells well and hot coffee and tea
sells well in winter.
Other cafés usually use cheap
materials but our café uses
expensive things.
It is a very effective market but
today there are too many cafes.
At first it is easy but actually it is
very hard.
Around a university or company
building.
When do a lot people come ?
After meals
What is in the menu that sells
most l?
How much is the material
price?
What is your opinion about
café market?
Café work is hard?
Does this café have special
menu?
How much is the initial
capital?
Interview2
I check cafés using the internet.
On the ordinary days people
usually come in afternoon and on
weekend people come at any
time.
Our café offers special coffee. It
is luwak coffee that known as the
most expensive and best coffee
in the world.
We expense 4.00.000.000 won
because our café locate in
expensive area and not franchise
company
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What is your opinion about
café market?
How much is the fixed cost?
4.1
There is too much competition.
Moreover competition will be
increased but it is a very
advantage market so if it survives
this market can be of great
benefit.
It is about 10.000.000 won
included street tax, material fee
and personal expense.
Interpretation
Likewise restaurant, café have set time when do customers come like lunchtime.
According to an interview, people usually drink coffee at lunch and dinner so cafés try to
attract customer at that time. To do that, cafés should have enough area to accommodate
many people and have most products that people usually enjoyed. Cafés should do better
crowded places for example around a university or building. In addition, according to the
internet and interviews, there are many basic coffees and well selling products. In the
world of cafés new Korean café company market is booming.
4.2
Assess the effectiveness of the research
Well selling basic product for example Americano so our café should also prepare good
basic coffee menu. In addition, we need an area which is big enough in order to accommodate many
people in certain times like lunch.. In café market, there is too much competition but also there are many
advantages so it can be a very successful business.
5.0 Conclusion and recommendation
5.1
Identification and Justification
5.2
Competitive edge
Reference List
Yee, Young Sea. personal interview. 12 July 2012.
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Kim, Young Sin. Personal interview, 13 July 2012.
Appendices
Transcript of the Interviews
>Korean
Interview1
Q. 카페는 한달에 수입이 어느 정도 되나요?
A. 저희 카페 같은 경우는 월 1000 에서 1200 만원 정도 됩니다.
Q. 어느 상품이 제일 잘 팔리나요?
A. 카페는 일단 아메리카노가 제일 잘 팔립니다. 그리고 여름에는 스무디나 에이드 빙수등 시원한
음료나 간식이 잘 팔립니다. 겨울에는 따뜻한 아메리카노, 라떼, 녹차, 핫초코가 잘팔립니다.
Q. 재료의 가격은 얼마나 되나요?
A.일반적으로 가격이 비싸지 않지만 저의 카페는 다른 카페와 다르게 가격이 좀 더 비쌉니다
왜냐하면 커피원두에 예가체프, 수프리모, 루왁이 첨가 되었기 때문에 원가 가 비싼 편입니다.
Q.카페시장에 대해서 어떻게 생각하시나요?
A.굉장히 장점이 있는 시장이라고 생각합니다. 그러나 최근 카페에 대한 인식이 높아져 경쟁열이
치열하고 여러부분에서 힘든점이 많이 있습니다.
Q.카페일은 어렵나요?
A.처음에는 쉬어보이지만 하면 할수록 어려운 일인 것 같습니다.
Q.어느 장소가 카페하기에 최적의 장소라고 생각하시나요?
A.아무래도 사람이 많은 대학가 주변이나 고층건물이 있는 회사주변이 아무래도 수요가 많아
유리하다고 생각합니다.
Interview2
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Q. 카페에는 어느 시간대에 사람들이 가장 많이 오나요?
>English
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