Executive Summary

A research was conducted on one of the SME’s of UK Café Zee which is a coffee shop and a roster.
The research methodology was interview method and collection of data from various sources
like internet and books. The research focuses on the business startup and its brief summary of
revenues, products it sells and its man power. It also has elaborative internal and external
analysis like PESTEL and SWOT. Overall research depicts a great opportunity of new SMEs to enter
into the UK market by keeping up with the socio economic and technological trends.
Contents
Executive Summary....................................................................................................................................... 1
Introduction: ................................................................................................................................................. 3
Business Aims & Objectives .......................................................................................................................... 3
Competition and Environment ..................................................................................................................... 3
The Research Process: .................................................................................................................................. 3
Department of International Development & SMEs in UK ........................................................................... 4
External Analysis of Café Zee ........................................................................................................................ 4
PESTLE Analysis ......................................................................................................................................... 4
Political .................................................................................................................................................. 4
Economic ............................................................................................................................................... 4
Sociocultural.......................................................................................................................................... 4
Technological ........................................................................................................................................ 4
Ecological .............................................................................................................................................. 5
Legal ...................................................................................................................................................... 5
Internal Analysis of Café Zee ......................................................................................................................... 5
View Based on Resource ........................................................................................................................... 5
Valuable ................................................................................................................................................ 5
Rarity ..................................................................................................................................................... 5
Inimitable .............................................................................................................................................. 5
Non-substitutable ................................................................................................................................. 6
Internal Analysis of Café Zee ......................................................................................................................... 6
SWOT Analysis........................................................................................................................................... 6
Business Challenges and Strategies for Growth and Development.............................................................. 6
Recommendation.......................................................................................................................................... 7
Conclusion ..................................................................................................................................................... 7
References .................................................................................................................................................... 8
Introduction:
Café Zee is a coffee Specialty café and small scale roaster situated in New Broadway, Ealing high street,
which was opened in July 2014. The bistro has 20 workers and has a total assets of approximately £500,000
which lists the organization as an SME. The business was established by Mr. Sebastian Olid who is also
the Head Roaster of the organization. The vision of the organization is an assurance that quality ought to
be the privilege of the customer and a value that high street bistros should be putting forth a superior item.

Business Aims & Objectives

The vision of superb espresso and incredible new nourishment is the thing that WAS started BY Café Zee
(Café Zee, 2016). They put stock in creating high caliber and fresher items for their clients. They meet these
value by broiling Fairtrade espresso consistently in little batches and planning crisp sustenance. They have
remained consistent with verifiable roots by showing their Greek legacy in their items. Their focused on
clients are for the most part between the age of 18 or more. Their principle USP is unmistakably their
espresso and fresh food, yet in addition an imperative wellspring of upper hand is their novel in-store
condition and agreeable, all around prepared staff. Their store condition is exceptionally open and antique
with heaps of room and extremely secure. They likewise have a gathering room accessible. These draw in
an engaged market base of enthusiastic coffee drinking clients. They additionally utilize online business as
a plan of action for advertising and do discount retailing of espresso beans and bread kitchen.

Competition and Environment

In this segment we discover a great deal of similarities between the two companies. Both Café Zee and Tea
Pigs work in a market which very much Competitive and also is monopolistic in nature. Both the businesses
of tea and the espresso are gigantic in estimate and exceptionally steady. Yet, the entire market structure
recommends that the competition is being overwhelmed by enormous brands for both the businesses, for
example, Costa, Starbucks and Tetley. Both the structure of their businesses and competitive advantages of
drive them to be extremely concentrated businesses which is because of rare products that are high in
quality, a solid brand name and clients that are loyal. Café Zee faces high level rivalry from well established
brands, for example, Costa Coffee, Starbucks and other Artisan cafés around Ealing Broadway. So To
separate their identity from the competition the organization has made an interesting domain that is
particular to its image. Indeed, even aberrant rivalry represents a risk to the organizations, which include
Subway, Bubble tea, and even Tea shops. Tea Pigs Pvt. Ltd, can likewise be viewed as a Competition that
offers a supplementary product from that of Café Zee. Tea Pigs' competes directly with Yoga tea, Dr Stuarts,
Yorkshire Tea, T2 and Twining. Be that as it may, the organization has comparably centered around a
concentrated client base and are turned out to be exceptional between the majority of giants.

The Research Process:

This report will center around basically investigating and assessing Café Zee Pvt. Ltd. The information
gathered is a blend of primary and secondary data. The essential information was gathered from a one on
one meeting with the organization's business visionaries while the secondary information was gathered
from the organization's sites and different other scholarly sources. The point and target of the report are
recorded underneath.
 To feature the Business idea, the competition and competitive edge
 To basically assess the discoveries for Business' technique for development improvement and how they
oversee approaching difficulties
  Give recommendations to the advancement and further development of Café Zee.

Department of International Development & SMEs in UK

The department of international development is playing a vital role in UK to help the SMEs develop. The
various methods used by the DFID are by making the processes easy for the engagement of SMEs,
introducing SME friendly procurement practices, strengthening SME relationships with prime contractors
and by providing procurement interventions aimed at increasing the SME access.

External Analysis of Café Zee

PESTLE Analysis

Political
As per the Research and Markets, changes in "enactment, controls and Government approaches" are the
primary political components. The controls and strategies in the espresso developed in creating nations have
stir such a large number of concerns, for example, tyke work, conditions of working and operating costs.
Moreover another incredible effect on the business has been the duties and expenses happening between
outskirts while exchanging espresso beans.

Economic
The industry had been challenged monetarily amid the economic downturn of 2008, as the discretionary
cashflow of the clients wasn't as promptly open to the organizations. As expressed by, "tax assessment has
been proposed as a methods for decreasing the admission of these refreshments and along these lines
bringing down human services costs". The recuperation from the downturn started in 2010, still with the
VAT being raised and expansion increased product prices.

Sociocultural
A Healthy Lifestyle as characterized by [Bloch (1984)], a way of keeping any event of Health issues away
and embracing Personal Well-`being. While the description could incorporate different property, mostly
the healthy way of life has been centered on eating routine and exercise [Kraft and Goodell, (1993)]. Way
of life is a key element of PESTLE’s sociocultural factor. Following the 2008 downturn, in the UK there
has been a rise of the spending of white collar class. Consequently, Businesses inside the espresso industry
can take monstrous favorable position of the prospects without alienating any other marketing prospects.

Technological
Customer demand change in time. With a specific end goal to meet those demands, Technological headway
and new hardware makes new brand image and products [SAR, (2016)]. Unique competitiveness and edge
can be gained by augmenting new, and reasonable innovation [Mckeown, M. (2012)]. Innovation can be
utilized as a part of the environment to present efficient operational brilliance in the business and to serve
the customers best. The Players in coffee business must address the issue by manipulating the experience.
Progressions in IT like EPOS (electronic point of sales) so as to keep up with the quick pace way of life of
the customer [ComputerWeekly, (2016)].
Ecological
Another vital factor environment is the Ecological driver. Because of the espresso business being a part of
the Ecology It needs to look towards its assembling procedure of the espresso beans and additionally
supplies when they deliver. A key part in duty regarding the biology is to ensure their inventory network
and the arrangement and retailing of items and administrations is in standard with their treatment of
condition when taking care of the ranger service. The Take away containers and boxes are on the whole
recyclable too. [Hayman, (2016)].

Legal
The legal benchmarks for working together and business have been reliably met my Café Zee. With the
presentation and partnership with different bodies, for example, Food Standard Agencies. On the off chance
that any of the models was to be ruptured, the organization would need to pay high fines to the legislature
and also their brand image would be compromised. Health and Safety is additionally a lawful concern and
a challenge for the industry that can't be ignored.

Internal Analysis of Café Zee

As per Porter (1985), Resource Based View speaks to different inner exercises of a firm and usage of all
their accessible assets to increase the value of their core capabilities. Internal examination and analysis is a
procedure of assessing an organization's qualities and shortcomings; additionally featuring all the upper
hand of the association (NUK, 2014). An inner investigation is fundamental, since it helps to compose the
key estimations of the assets and keep up them with a specific end goal to accomplish their objectives by
means of its attributes and culture.

View Based on Resource

Different Tangible and Intangible assets packaged by the association is used and applicate so as to increase
upper hand. Asset Based View investigates these assets as far as Value, Uniqueness and Substitutability.
The model is utilized to change short-run upper hand into a maintained upper hand (Penrose, 2013).

Valuable
Product Value in Café Zee is made by cooking the espresso themselves for all their outstanding drinks.
Some espresso Zee makes is produced using newly ground beans, arranged predictable and top notch
guidelines, guaranteeing incredible flavors and smells. Zee is viewed as a world class standard conveying
business with an interesting client esteem and advertising procedure. Café Zee have demonstrated to
reliably utilized the correct devices to go after an incentive in the market. Their Business model of holding
Talent and additionally their novel refreshments has been effective (Mckeown, M. 2012).

Rarity
Zee has made a one of a kind generation line and marketing approach. Physically moderated the roasting
of their coffee beans is the primary phase of setting up their signature blend. The prepared Baristas in stores
guarantees impeccably made drinks to the organization norms and keep up their client base. All these
special features make them special and uncommon in task from their nearest matches in the UK
countrywide.

Inimitable
Café Zee draws in a decent number of clients every week and unmatched as far as piece of the pie of the
market surroundings. Zee gives out their product in an exceptionally special manner from the market. For
instance, their coffee is handpicked. They mix their two sorts of espresso beans in an extremely one of a
kind way. This mystery has been spared in the organization vault for a considerable length of time that
nobody has possessed the capacity to copy it. The greater part of the beans are 100% rainforest Alliance
and have a particular taste that draws the clients. The contenders don't have such measures as they have an
alternate model and approach.

Non-substitutable
Café Zee has substantiated itself by being extraordinary in different ways. Their novel espresso mix that is
supreme and their magnificent environment for their clients have given them a one of a kind fan following
of clients and a best spot in the market. They have a genuinely medium level of substitutability with regards
to their center items on account of the numerous number of contenders.

Internal Analysis of Café Zee

SWOT Analysis
Strengths (internal)
 The reputation of the brand name and
product quality is high
 The stores are opening on country level
 The Business intelligence is quite
efficient
 The focus of the management on
customer care is very high
 The financial status of the organization is
quite stable
 The owner is quite interested in increasing
the presence of IT and make systems
more automated
Opportunities
(external)
 Has potential opportunities to takeover
other SMEs or going into strategic
ventures in UK
 Great opportunity of expansion in Europe.
 Can include new technology in the stores
and install express machines also
 Increase the market share of the company
 Expand internationally
Weaknesses (internal)
 The control over the overall business is
weak and the IT system is not much
modern
 The company is not able to reach more
markets countrywide
 The entrepreneur lacks flexibility in terms
of competition
 The staff is not well trained
 There is no absolute cash flow to expand
and introduce new products in the future
Threats
(external)
 Local competitors and other specialty
coffee shops
 Political issues of the country
 Rapidly changing economy and prices
 Decrease in operational cost due to price
wars
 A continues evolving IT industry
 Increase in the raw material prices

Business Challenges and Strategies for Growth and Development

The organization faces different challenges in the administration of the outlets. While talking with Sabastian
he has shared numerous administrative concerns shared by the management. The fundamental business
challenge was keeping up the demand of the product and supply of new fresh and great coffee in a normal
premise as compared with other high volume espresso stores, for example, Costa and Starbucks. The main
reason is that they put stock in the freshest of their products and they set up everything in small batches
with the goal that their quality and freshness can be guaranteed to the most importance. One more challenge
that they confront that ought to be brought up that their value return is higher as compared with other
competitors around Ealing Broadway. Also, to add Café Zee discovered Ealing to have a less customers
who truly appeared to be attracted towards coffee and all the history that goes behind it. Nonetheless, the
bistro has enhanced increase in sales amid its years of operations with a weekly average sale of £10,000 in
2016 than that of £4000 in 2014. Café Zee takes after a development technique that spotlights on new item
and market advancement in addition to enhancement. They have expressed that they might want to
additionally extend their stores in different areas and furthermore by joining vertical incorporation they
intend to remove their agent and create a nearer connection with their vendors.

Recommendation
The strategy of Café Zee's development needs expansion and horizontal integration, which is its prescribed
model to pursue. They require to reduce and annihilate the gaps of the market with its competition by taking
over the SMEs and growing further in the market. The most ideal suggestion for Café Zee is to get hands
on investments to increase their revenue and open more branches (Ottesen, 2001). Likewise a procedure
of marketing should be created with a specific end goal to enhance the image of the brand and advertise
their image and products onto their clients. A great deal of resources are accessible and could be utilized,
for example, Vouchers, Event Sponsorships, Posters, Leaflets and Social Media. Café Zee additionally
should make note of enhancing their human force as to coordinate their expanding income and evlovement
(Varey, 2002). Café Zee needs to revise their prices for their coffee products since they do not have a
focused level. They should be decreased to keep up adjust so they pull in the clients and furthermore keep
up net revenue.

Conclusion
It can be seen that Café Zee is a more of an infant SME contrasted with different organizations conversely
of Capital and Brand Name. Its Management has confidence in giving the most astounding nature of product
and services and emphasizes on a little market portion of specific client base. Café Zee has indicated critical
development amid its times of activity and its business visionary is completely mindful of what challenges
they are confronting and need to move beyond for assist development and advancement.
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