The paper 'Entrepreneurship Rubrics ' is a great example of a Management Case Study. This report looks towards presenting a business plan for a new coffee venture which will look to provide freshly brewed coffee to its coffee lovers. The report, in the beginning, provides an idea about the business which is followed by market feasibility, technical feasibility, financial feasibility, and human resource feasibility. This will help the readers to understand the reason for undertaking the venture and the manner in which it will be profitable for them. This would thereby provide important information through which the working mechanism can be developed. About the Business The coffee venture will start in the name of Russet coffee and will provide its customers with gourmet coffee, espresso and drip coffee, lattes, and smoothies in the Kansas region.
The pastry which will be offered to customers will keep on evolving and changing but will mainly have muffins, bread, cookies, scones, and rolls. The pastries will be procured from a local bakery to ensure freshness and consistency in taste. The store will have a seating capacity of 40 persons and will be given a modern look with all the comforts so that the experience of customers drinking coffee multiplies.
This will be matched by a calmer environment and facilities which will look to meet the different needs and requirements of customers so that they become satisfied with the level of service. Market Feasibility The US coffee industry is huge and has about 20,000 stores with a revenue of over $10 billion. The industry is highly concentrated and the top 50 players contribute around 70 percent of the revenues. The industry is highly competitive and the profits for individual organizations largely depend on the place where the store is opened, the service level, the different products being offered, and the overall ambiance.
A look at the surrounding distance of 5 miles shows that there are around 37 businesses that are involved in the coffee industry and have revenues around $54 million. Out of the 37 stores 8 stores are small which has around 15% market share and Russet coffee will be fighting to capture the same market share and segment of customers (Meike & Ulrich, 2012). The number of people consuming coffee is increasing as coffee beverages make around 83.3% of the total hot beverages served in the country.
Despite a slowdown people continue to drink coffee and the market is expected to grow at an average annual rate of 2.7%. The rate is slow as the coffee market is already matured and innovations in the coffee industry are required to bring about a change in the perception of consumers drinking coffee. In addition to it around 54% of the people start to consume coffee when they between 13 and 19 years of age whereas another 22% start drinking coffee between the age of 20 to 24 years.
This makes a total of 76% of people start drinking coffee by the age of 24 thereby providing a huge market as the young population is slowly growing (Alan, Sakhi, Arabella, Elizabeth & Karen, 2009). Russet coffee is looking to attract customers based on service quality and something new which the customers will get. They expect to attract the top three segments of customers which are around 39% of the population.
This includes younger families, singles, and educated personnel. The overall business model is competitive as both local and international players are actively participating in it. This will require that Russet coffee looks at identifying the mechanism through which they will be able to develop a better market understanding (Dreezens, Martijn, Tenbu¨ lt Kok & Vries, 2005). Overall the barrier of entry is low and the changing business environment provides an opportunity to maximize business. Since the market size is huge and the market is growing at a sluggish pace the risk is high but having individual stores that look at innovation will help to improve the chances of being successful.
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