Case Study –Filiz and Smith’s Coffee Shop
The fact that Filiz and Smith’s Coffee Shop under the ownership of Elma and Henry has managed to open in competitive business environment of Islington in North London ascertains that the business has the validity to open in an equally competitive environment. However, that assertion does not justify every business move. That calls for a review of the target market to determine the most optimal target market. In this case, the selected location that the coffees shop could expand to is Helsinki, Uusimaa in the Southern region of Finland (Authority, 2016). Ideally, the first and most attractive feature of the location is that it has a high population as compared to other business oriented cities in Finland.
There are a set of factors to consider before investing in the country. From a logical perspective, Finland is considered to have a very stable operating environment which is equally predictable. It has been a crucial member of the EU. Its corporate tax rates are very low since they are rated at 20 percent. Logically, the taxes are low enough to attract investment (Authority, 2016). That implies that investing in the country would mean some high level of returns on investment. In addition, Finland is characterized with its high tech and Silicon Valley inspired business culture making it a suitable target market where business transformation is a real phenomenon (Doing Business in Finland, 2017). The country offers a warm welcome to the international players and assures them of similar benefits and even grants like the domestic companies get. The fact that the common language of communication in the business sector is English makes it even better (Authority, 2016).
The country, further, has a very complex and reliable system of education that has supported innovation and economic success. It is a system that promotes innovation of fresh solutions and technologies. From a global perspective, the country is said to have one amongst the best education systems. The task force is highly skillful. It is through this system that the country was named as the most competitive country in the European region regarding the World Economic Forum’s The Europe 2020 Competitive Index (Authority, 2016).
Finland does not have very strict ethical requirements in the business sector besides the elementary ones. For instance, according to research, Finland is only considered to prioritize the issues affiliated with environmental protection, consumer rights, production responsibilities, ownership and accountability, as well as, labor rights (Lindfelt, 2004). In addition, it requires that any investors domestic or international ensure that the international laws and agreement are obeyed in the helm of business operations.
Regarding the structural challenges, Finland is not badly off from a comparative perspective. However, there is a slight decline in terms of how the systems are working in the country without having to compare with other nations in the European Union. One example is that of sleeping off trend in terms of macro-economy (Authority, 2016). The debt- GDP ratio is escalating calling for an increase in the tax rate. In addition, the labor market performance has been increasingly weakening (European Commission, 2016). Despite the fact that the country is favorably better that the other European players, the level of unemployment is increasing since the unemployment benefits are diminishing. However, the business may play part in creating employment in the near future.
The Marketing Mix Plan
In a bid to generate a reasonable marketing mix, it is necessary and sufficient that the plan uses the 4Ps approach. Below is an in-depth analysis of this mix.