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This strategy outlines the development of a business growth plan for SFCH, focusing on introducing franchise opportunities in the Croatian coffee market. Despite challenges such as high youth unemployment (40%) and a need for political and economic reforms, the potential for market entry is significant. Recommendations include brand awareness initiatives, exploring franchising in key cities (Osijek and Zagreb), and differentiating SFCH's offerings from local competition. The goal is to establish a long-term presence, aiming for a sustainable decrease in social inequalities and increased revenue.
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BREWING COFFEE BEANS Aymeric Beard Marc-André Bigras Jennifer Viscosi
MANDATE Develop a business growth strategy for SFCH in the Croatian market
THE Analysis
Politique Réformes : économiepréparation entrée UE 2013 Élections: stabilité (2015) Corruption: score de 4 (66ième pays)
Politique Réformesàcompléter + entrée Euro Intérêt des investisseursétrangers Réformes : économiepréparation entrée UE 2013 Élections: stabilité (2015) Corruption: score de 4 (66ième pays)
ÉconomiQUE Taux de chômagejeunes: 40 % Retour à la croissance en 2014 Influence UE
Économie Forte instabilité (crisefinancière) 2. Retour àl’équilibreprévu2014 3. Inlfation plus importantequ’anticipée Taux de chômagejeunes: 40 % Retour à la croissance en 2014 Influence UE
Social Café insérédans mode de vie croate Aucune diversification des autres cafés Croissancerevenudisponible Réductioninégalitéssociales
Social Café insérédans mode de vie croate Opportunitéprésenteà long terme 2. Différenciation possible 3. Amélioration situation sociale Aucune diversification des autres cafés Croissancerevenudisponible Reduction inégalitéssociales
THE STRATEGY
RECOMMENDATION Develop a long-term expansion strategy that will allow the SFCH to one day franchise
THE FRANCHISING WORLD DISADVANTAGES: No support from financial institutions Lack of information Lack of a legal framework Brand reputation Small market
THE FRANCHISING WORLD • ADVANTAGES: • Smaller investment required • National prominence possible • Can use local’s market knowledge • Concentration of efforts on one coffee house • Two centers for franchising ( Osijek and Zagreb)
FRANCHISE VS OWN OUTLET Franchise development based upon market needs
Financial projections ASSUMPTIONS Increase in cost = 5% Operating cost is unchanged
THE IMPLEMENTATION
IMPLEMENTATION OVERVIEW 12 9 6 0 3 Increase brand awareness Months Develop business strategies Explore franchising
KEY PERFORMANCE INDICATORS • Increase in brand awareness • Finding future franchisees • Increase in revenues ( 15%) Increase in brand awareness Finding future franchises Increase in revenue of 15%
RISKS MITIGATION MITIGATION RISKS • Insufficient knowledge on franchising • Unstable environment • Education through the Franchising Center • Constant market analysis