The implications of the organisational structure of this business. (Ch 8.5)
- BBPL is a private company, limiting access to large-scale capital.
- Could become a public company to sell shares on the stock exchange.
- Would gain more funding opportunities.
- Faces stricter reporting requirements.
- Owners lose some control over the business.
What is the purpose of a business plan in expansion?
A business plan outlines goals, strategies, and financial forecasts, essential for guiding BBPL’s expansion.
What should be analyzed in market research for expansion?
- National coffee trends
- consumer preferences
- competitors in target cities.
What type of locations should be considered for expansion?
- High-traffic urban areas
- near offices or universities
- accessible by public transport.
What demographics should BBPL focus on for its target market?
- Young professionals
- students
- coffee enthusiasts.
What staffing considerations are important for expansion?
- Address staff shortages; invest in recruitment
- training
- retention programs
- recruit trained baristas and customer service staff.
What equipment is necessary for the expansion of BBPL?
- Coffee machines
- grinders
- POS systems; ensure standardisation across stores.
Who are the key competitors BBPL should identify?
Starbucks and local boutique cafes.
How can BBPL differentiate itself from competitors?
Through quality and loyalty programs.
What is the target market age range for BBPL?
18-40-year-old urban consumers seeking premium coffee and comfortable café spaces.
What are the most appropriate financing options for BBPL to fund their expansion?
- Bank loan
- Private Investors
- Government loans
- Public Company shares
Bank loan advantages and disadvantages
- Type: Debt
- Advantages: Keeps full ownership; fixed repayments
- Disadvantages: Interest costs; harder to borrow when rates rise
Private investors advantages and disadvantages
- Type: Equity
- Advantages: Brings money and expertise
- Disadvantages: Shares control and profits
Government loan advantages and disadvantages
- Type: External
- Advantages: Reduces costs; grants don’t need repayment
- Disadvantages: Hard to get; long application process
Public company shares advantages and disadvantages
- Type: Equity
- Advantages: Can raise a lot of money
- Disadvantages: Loss of control; strict rules and high costs
Legal and regulatory requirements for this business. (Ch 8.7)
- Legal and regulatory requirements ensure businesses operate legally and responsibly.
- Legal: laws made by governments (federal, state, local).
- Regulatory: rules set by government agencies or industry bodies.
What are federal regulations related to workplace laws in Australia?
- Fair Work Act
- consumer law (ACCC)
- taxation (ATO)
What is the role of Food Standards Australia?
To regulate food safety and standards in Australia.
What are some state regulations in NSW regarding food safety?
- Food safety licences
- Business licensing
- SafeWork NSW regulations
What are local council regulations that cafes must comply with?
- Cafe permits
- outdoor seating permits
- waste disposal rules
- signage approvals
What are some environmental regulations businesses must follow?
- Waste reduction
- recycling rules
- sustainable packaging
- noise & waste control
What are key components of Work Health & Safety laws?
- Staff training
- Safe equipment use
- hygiene standards
- WHS Act obligations
What are the main types of taxation that businesses in Australia must consider?
- GST
- PAYG
- company tax
- superannuation for employees
Marketing strategies that would be most appropriate and most effective for this business. (Ch 8.7)
- Implement a mobile app or rewards card to boost retention.
- Customers earn points for every dollar spent.
- Points redeemable for free coffee, discounts or exclusive offers.
- App sends personalised promos and birthday rewards.
- Push notifications for new products and limited-time deals.
- Track engagement and tailor offers to increase repeat purchases.
