Business Essentials

Task 1

It is essential for the Marvin and Smith to increase their business to grow their revenues so they have to make analyse properly about those markets in which has all the qualities and features which they want. Political, legal, social and technological factors are having huge impact on the companies activities which have to be analyse by them. Market growth is a factors which can create a direct impact on the companies business so it is necessary to analyse the GDP rate and GNP rates which can shows the country's growth in the recent times. As the Marvin and Smith are focused to grow their business in the European Union so they have to analyse the countries which are having all the things and features which can be used by them to develop their business in these countries. As the European Union has 28 nations in it which are having a trade policy so they have to analyse the needs of the customers in those countries as per the products (Hair, 2015). To expand business it is essential for them to analyse the needs of the customers and social trends which has a huge impact on the business. Germany is also a EU nation which has a cold climate which creates a need in the consumers to eat and drink hot products so Marvin and Smith can expand their business in the Germany. Some factors are here given under below which can help to describe the reasons to start business in it;

Fair Trade policy: German government supports to those business entities which are using fair trade policy in their business. According to this supplier can make their supply to the organisations which are working across the boundaries which are providing them impressive benefits against to the products. German government is supports for those companies which wants to expand their business in their nations cause it increase their foreign funds. Germany is providing proper support to new companies which are not having a proper knowledge of the market, government rules, tax and other responsibilities.

Environmental aspects: As the Germany is having cold environment which creates need in the customers to take a hot drinks. As they are having deals in the coffees, it helps them to attract the customers easily (Wilson, 2014). Most of the peoples which are living in the Germany likes the black coffee which is healthy and as well as helps to retain the body temperature while working in the outer areas. As the Marvin and Smith believes to provide a basic taste in the coffee it can helps them to meet the needs of the customers.

Market: Most of the German peoples are intakes coffee in the regular basis which is effective for the Marvin and Smith, approx 25,000 branded outlets are available in the market which shows that peoples are interested to drink coffee.

Gross Domestic Production: Germany has € 3.70 Trillion gross domestic production and auto mobile industries are having full support in this. So it can be used by the Marvin and Smith they can make a deal with these companies to provide coffee's in lunch and evening time.

Task 2

Marketing mix are having focus on all of those factors which are essential to decide, as the Marvin and Smith are planning to expand their business in a European Union nation. They have to use marketing mix to take decisions on product, price, promotions, place etc. They have to make their plan and strategies according to the marketing mix to be successful in the market. So factors are described under here for the marketing mix decisions:

Products:As the Marvin and Smith are having their expertise in coffee and they are having target to expand it in the Germany, they have to make analyse the needs of the peoples and their target audience. They have to make research on the taste which their customers wants from them. Most of the Germans are having focus on their health and they want to take healthy drinks, so Marvin and Smith have to provide a proper healthy coffee to their customers which has a taste and nutritions in it (Guffey and Loewy, 2012).

Price: As they are entering in the country and wants to increase their business, they have to analyse the market. They have to analyse that retaining companies and business entities pricing strategies. They have to use cost effectiveness in their activities to decrease their prices for those peoples which are having focus to purchase a cost effective products. So they have to use cost effective price strategies and have to use comparative prices for those coffee which are available in the market. It can help them to make initial customers and it can helps them to increase their number of customers in the starting phase.

Place: It is essential for them to choose a right place to deliver their services and products to customers, it has a huge impact on the business and revenues cause most of the customers wants a convenience to reach out to their target products. As the Germany is having a cold environment so have to start their business from a shop which is situated in the market and having a little open space in it's front (Anderson and et. al., 2014). They have to start their business in the market which is easy to reach for their customers. They have to use online sales also for those customers which wants to take a coffee at their home.

Promotions: It is essential part to increase the number of peoples which knows them so they have to use effective promotion strategies to advertise their products and services in their targeted market. Most of the peoples are having connected with the internet, e mails and social media so Marvin and Smith have to use it to advertise their brand and as well as their products, place also. They can make their Facebook account to make promotion of their products in their target audience. They can use print media also but it is costly and old method for the advertising. So they have to emphasis on the e marketing tools which are contemporary and effective to impact on the target audience.

Peoples:It is essential for the Marvin and Smith to use peoples in the organisation which knows the local language, so they have to recruit German peoples in it which knows the customer's exactions and needs. As well as it is helpful for those customer which does not know the English to communicate.

Process: It is related to the process which is used by the company to make the product as the Marvin and Smith are having focus to provide proper taste of the coffee so they have to use their traditional method to make a coffee, they have to use their traditional recipe to make coffee with the latest machines (Omachonu and Einspruch, 2010).

Physical evidence: Packaging of the product and it's presentation creates a huge influence on the customer's to attract them. So they have to use in a impressive way to attract customers in the coffee shop, so interiors, colours and furniture can make a huge influence on the customers so it can be used by the Marvin and Smith.

Task 3

Some points are here which is essential for Marvin and Smith to cover a wider market in the Germany, these points are here:

Organisational culture: It has a huge impact on the business as Marvin and Smith are working in the London, they are highly customers oriented to provide them proper customers satisfaction. A corporate culture contains beliefs and environment of the organisation which creates a huge impact on the business and as well as on the customers. So Smith and Marvin have to maintain this culture in Germany also to manage their business activities according to the London and as well as to make a positive impression on the customers (Mendling, Recker and Reijers, 2010.). As they are working open mindedly to adopt changes as per the requirements of the customers which help them to be better as per the customers needs. Innovative changes are acceptable by the customers which helps to make changes in the products, so they have to use innovative changes in the coffee and as well as in their trading style to meet the customer's expectations.

Supply chain: It is has direct impact on the customers as they are targetting on those customers which wants to take a home delivery, so it is essential for them to manage a proper supply chain to manage the effective supply against to the orders. Along with they have to make their proper focus on those customers which are direct consuming their product in their outlet. The supply management has a focus to deliver the right product to the right customers on right time. So they have to use different team for online customers and present customers in the outlet. It can help them to make their supplies effectively (Li, Lai and Wang, 2010). They have to use proper supply management in Germany to provide proper customers assistance. It can increase the profitability of the company and it can increase number of satisfied customers.

So above presented points are having huge significance and it has implication to increase the customer satisfaction.

Task 4

Liquidity ratio: it is one of the ratio which defines the liquidity status of the company. It defines the total ability of the firm for paying off its short term debts against its assets out of total profits of the company. Liquidity is calculated by dividing total cash by debts which are short term in nature. After the calculation part if answer is more than one then it will mean that it is fully recovered. Liquidity ratios have different forms or types:

• Current ratios: current ratios are those ratios which are calculated by a firm in order to determine whether it is capable to fulfil its short term debts or not. It is also calculated by dividing total assets by total liability of firm. The ideal ratio is 2:1. the higher the ratio, the higher the company is bale to pay its liabilities off against its assets. Lower ratio is bad for company as it create bad image in the market industry. Here the following is the calculation of current ratio of Marvin and Smith as:

• Quick ratio: It is calculated for identification of abilities of a company to pay short term debts . Acid ratio is an another name for quick ratio (Mendling, Recker and Reijers, 2010). If the ratio is less than 1 , then the firm is not able to pay its liabilities and debs. But if it is more than 1 it is able to pay off the debts and liabilities.

Profitability ratios: it is the ratio which identifies the capability of the company to make income as compared to its expenses and costs that has been incurred . The various forms are:

• Gross profit ratios: Marvin and Smith calculates this ratio because for identification of cost of goods and services against sale are generated by it.

Net Profit Margin:It has used by the company to make identification of the net profits which are earned by the companies by their business activities. It is based on the sales and it is calculated from sales (Hair, 2015). It can be calculated by the subtracting all of the indirect cost and expenses from gross profits to analyse the net profits which is earned by the company in a limited time period. It can determine the organisation's progress by comparing it to the recent year's net profit. It is an essential part for the organisation to analyse their profit quarterly to make essential changes in their business activities according to increase and decrease in their net profit.

Here is calculation presented for the Marvin and Smith:

Task 5

As the Marvin and Smith wants to expand their business in the Germany, it creates a huge need for them to make proper analysis of the market and as well as customers. Most of the companies which are successfully working in their own country wants to expand their business in the overseas to increase their revenues. Mostly these organisation are having focus to expand their business in their retaining product and services. Most of the companies which are having trade wants to explore their business in the overseas (Yang, Davis and Robertson, 2012). It creates a compulsion for them to create a proper market analysis of the targeted market, as in the given scenario Marvin and Smith have to make analysis of the market and it's growth before investing in it. They have to analyse the needs of the customers in the products and as well as the business methods which can increase the effectiveness as per the needs of the customers. Developing products and business activities can help them to attain the business objectives. Raw materials, distribution centre and promotions also have to be based on the consumers cause customer is a core part and they has a potential to provide business and revenues. Competitors which are working in their target market is a risk for them so it is essential for them to make a proper competitive strategy to be stronger in the market.

Conclusion

The above concluded report is having focus on the needs for businessmen which wants to expand their business in the foreign country. Marketing mix is essential part which can be used by the Smith and Marvin to take decisions to make marketing strategies. They have to make proper analysis of the market to make products more better as per the needs of the customers of the Germany. Along with they have to provide extra benefits to attract customers towards them and use their services initially.

References

Books and Journals

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• Anderson, D.R. and et. al., 2014. Essentials of statistics for business and economics. Cengage Learning.
• Cobanoglu, C. and et. al., 2011. The impact of technology amenities on hotel guest overall satisfaction. Journal of Quality Assurance in Hospitality & Tourism. 12(4). pp.272-288.
• Ebert, R.J. and et. al., 2014. Business essentials. Pearson Education Canada.
• Ferrero, I. and Sison, A.J.G., 2014. A quantitative analysis of authors, schools and themes in virtue ethics articles in business ethics and management journals (1980–2011). Business Ethics: A European Review. 23(4). pp.375-400.
• Guffey, M.E. and Loewy, D., 2012. Essentials of business communication. Cengage Learning.
• Hair, J.F., 2015. Essentials of business research methods. ME Sharpe.
• Li, D., Lai, F. and Wang, J., 2010. E-business assimilation in China's international trade firms: the technology-organization-environment framework. Journal of Global Information Management (JGIM). 18(1). pp.39-65.
• Mendling, J., Recker, J. and Reijers, H.A., 2010. On the usage of labels and icons in business process modeling. International Journal of Information System Modeling and Design (IJISMD). 1(2). pp.40-58.
• Omachonu, V.K. and Einspruch, N.G., 2010. Innovation in healthcare delivery systems: a conceptual framework. The Innovation Journal: The Public Sector Innovation Journal. 15(1). pp.1-20.
• Smith, T.A., Mills, A.M. and Dion, P., 2012. Linking business strategy and knowledge management capabilities for organizational effectiveness. In Conceptual Models and Outcomes of Advancing Knowledge Management: New Technologies (pp. 186-207). IGI Global.
• Wilson, J., 2014. Essentials of business research: A guide to doing your research project. Sage.
• Yang, D., Davis, D.A. and Robertson, K.R., 2012. Integrated branding with mergers and acquisitions. Journal of Brand Management. 19(5). pp.438-456.

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