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Coffee Delight 34 Marker

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Using all the information available to you, complete the following tasks: * Analyse the case for Coffee delight plc expanding further in the UK * Analyse the case for Coffee Delight PLC opening outlets in Romania.
Make a justified recommendation on which option the company should use. (34 Marks)
Coffee Delight plc is a late arrival in the UK coffee shop market, they operate combined coffee bars and sandwich shops with Internet access available in most outlets. The company uses space intensively to give a busy active feel for the customers. Market research shows that Coffee Delight is established in the UK market and well known, they are always seeking to lower costs of production. Coffee Delight has very competitive prices for virtually all of their products they feel this is the best way to win over customers. They are very efficient with what they do and have some USP’s such as using the latest technology to prepare drinks and food, as well as operating later opening hours than most of their competitors.
There are many reasons why it would be more beneficial to expand further in the UK. Firstly, they are already operating within a strong, existing business model which is generating good profits, and seeing a strong growth in sales year by year. Therefore why feel the need to expand overseas when the business is running well within the UK. They also have a strong knowledge of the market within the UK and many years’ experience, this can be used to their advantage if they were to expand within the UK rather than expanding overseas where there is fairly limited knowledge of the market. By staying in the UK and expanding, this will be a good example of market penetration. This represents a lower risk strategy than opening outlets in Romania. It enables the business to operate at a lower risk than take on the possible implications associated with the

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