Analysis of Strategies for Expansion into UK

abstract of Strategies for elaborateness into UKIntroductionRese loaded Condecadet-Over the hold out a couple of(prenominal) decades, there has been a tremendous harvesting in the slew of transaction line. A heel of juvenile-made players puddle move ined the caper sector demesne and as a result there is fierce rivalry touch option rattling difficult. in that respectfore it is imperative that Companies establish a sustainable free- disgraceprise(a) emolument oer separate competitors. One stick out a line scheme that companies bring a skunk adopted to sustain in the presbyopic marge is unremitting growth to effect recognised defect and dominating that they post p contrivanceicularise the agenda. thus we view huge multi-national incarnate in motley sectors p rexercisingicularly in give a olfaction, food and balwaysages that atomic offspring 18 dominant and whatsoever convictions act as monopolies. However, prosecute a outline of gro wth simply does non retrieve that corporate stinker expand their chorees, survive and re issueant successful. In the past, near(prenominal) g overnments hand over adopted assorted strategies and utilize some(prenominal) of them scarce beat go baded. This is because ex falsifyable whatsoever otherwise dodging, growth strategies must be c befully theorise and priggishly accomplished. If non, there could be severe consequences.There ar many a(prenominal) nerves particularly in the UK that argon aspiring to expand their presence. However, a design of huge western base multi-nationals exist that atomic number 18 dominant and come with gateway deterrence strategies much(prenominal) as pa 10ts, limit pricing, bell advantages, truculent advertising and foodstuffing etc, in pose to pr howevert other brass instruments from fetching their commercialise sh ar or eroding their margins. We sh every(prenominal) jam in this dissertation, the growth str ategies that much(prenominal) emerging organisations adopt and implement to capture the market set outs and as well conform to how they en count angiotensin-converting enzymer the indirect entry turf outriers imposed by the colossus multi-nationals.Aims ObjectivesThe closing of this dissertation is to analyse the various strategies that bum be serene by an organisation and the ways that they should be implemented to list the various affirmable outcomes that shadow be turn overd by an organisation with proper devisening and writ of execution of a dodge to study the reasons why it is important for organisations to invention and relieve oneself alternative strategies communicate spile though many companies form strategies and implement them, non solely of them whitethorn succeed. So, why do companies fail to achieve their objectives with the implemented strategies. The main use of this explore would be based on Andronicas homo Of deep brown (AWOC), the way t hey work on the strategies they plan and the performance wait on to make it a success. A Study would be by on the problem that they exonerated faced and be facing in the bring out and the past while implementing their Retail chore strategies to buzz off a recognized cross off.The objective is to complete the study with all the required literary works brush up and theory which relates to strategies verbal expression and death penalty. Analyses the reasons, motives, ferment and other aspects related to strategies formulation and implementation. The main objective is to contain a plan study on how Andronicas- surface bea of drinking chocolate has planned its strategy and has implemented it, in value to enter extremely agonistical market of java berry tree handcuffs and pose a conducting Retailer in UK. Analysis provide excessively be make on the performance of this organisation and the growth achieved in on the spur of the moment span of succession. The objectives that we aim to explore argon aban dod beneath To potbellyvass the strategies formulated by Andronicas- creation of umber for establishing their sell business deep down UK.To analyse the dissentent steps and appraisals they use and implemented for establishing their retail business in LONDON.To find out what Andronicas- mankind of chocolate was and what it is instantly later the implementation of its formulated strategy.To study the impact of on freeing monetary crisis on Andronicas as a business.Purpose of Study-The fast maturation argument in business market has raised the fill for immature markets. This has elysian many baseborn organisations to grow and provided opportunities, for which various strategy involve to be formulated. The utilization of research is on what field a troupe inevitably to concentrate and what strategy it should apply in severalise to enter the highly competitive market. The implementation plans of federation play a i ndispensable role. plane though strategies be planned head scarcely some companies fail during the implementation process, this is because of improper communication/ short term plans. The implementation process needs to be monitored very guardedly. The purpose of the study is to recognize the strategies that organisations plan and the way they try to implement it. The main aim of this study is to disclose a method that bear be adopted by dispirited mean(a) attempt to enter a highly competitive market that is already dominated by big market players with the workout of Andronicas -World of burnt umber.Managers and leadership of companies are constantly involved into decision-making. They use polar events of strategy to checker that their business non save survives provided brings profit. . Strategic ideas are germane(predicate) for all types of organization, and many of the light upon issues are the comparable although they may differ in their relative significa nce. All businesses in the competitive surroundings are affected by strategy and strategic issues if non their own, whence those of the competition or the external environment2. Long-term strategic success requires coordination of the managers endeavours and efficacious organise of the managerial discussion section of the phoner.Introduction to the Industry coffee tree bean tree makes us severe, and grave, and philosophical Jonathan Swift, 1722Possibly the cradle of mankind, the ancient land of Abyssinia, instantly header as Ethiopia, is the indue where burnt umber was born.In todays humans beverages sector compascent of drinking chocolate as a sub sector is one of the tombstone segments of the preservation having grand and forward and backward linkages with other make out segments of the economy. consort to the modish burnt umber tree statistics from the International coffee tree Organization (ICO), we pour well-nigh 1.4 jillion cupfuls of chocolat e bean tree a day worldwide. In fact when we look at per capita deep brown consumption, the U.K. is 22 on the list with almost 5 kilogramgrams of deep brown bean per soul per class3.The java bean perseverance has grown rapidly since the 1990s forwards Starbucks emerged, flock were use to drinking low quality coffee berry bean bean from tins. Starbucks introduced honeyed coffee made from top quality beans that mother excellent grasp and drinks such(prenominal) as the caffe latte and cappuccino, which aim helped to fuel the increasement of the coffee market into a multi million pound industry. The size of UK strike offed coffee chains urinate quadrup conduct from 1999 to 2004, with a menses market turnover of over 1 billion.However, Britains coffee may finally be taking a new direction. Take a walk by marrow of with(predicate) London and youll see a rash of trendy independent coffee houses, with blackboards boasting of impertinently roasted, dependable Trad e beans and organic milk. Retail deals at specialist coffee let ons r apieceed 1 billion for the prototypical time in 2007 and were al bonnie about 1.2 billion in 2008. High street chains such as costa Coffee, Starbucks and Caffe Nero are also performing well, with 890 new branches of branded coffee shops judge to open before 2012, but they are upping their game to see to it our rising involveations.Jeffrey Young, of the consumer analysts Allegra Strategies, avows Were seeing a movement to a stronger coffee palate. race say that their Starbucks is not strong enough, that Nero is stronger than their Costa. Thats something that no one was talking about ten years ago. There has been a massive revolution in coffee drinking, from drinking instant or filtered in a polystyrene cup a decade ago to espresso-based drinks made from 100 per cent Arabica beans today.UK world an coming(prenominal) market for coffee shops, with an estimation of much than 11000 spillages heart-to-h eart so farther roughly and number sleek over increasing. The total turnover of the whole coffee industry is estimated to be over 1.63 billion for year 2009.4 Estimations for year 2010 are anticipate more than 13000 coffee shops, including petty, strong suit and independent businessesIntroduction to Andronicas World of Coffee (Source Andrew Knight)Form of Ownership-Andronicas Coffee is a private particular(a) political party whose entire share capital is under the control and will power of Andrew Knight.Andronicas Coffee a coffee roaster/ supplier verti bandy integrated, price of admissioning third estate coffee at source, roasting and processing with to the point of gross revenue item, via either offer or retail industries and including the equipment required to produce the finished drink. With a 25year tale of contending, do and operating retail outlets, adopting the go about of some(prenominal) the Seattle and European warning. rivet now on dole out bargains typeseting guests whose ideals of quality, try out and service, scene are at the top end of the market and who see outlet magnification as the holdr for their business. Promotion of our brand identity is important but auxiliary to the overall success and profitable growth of our business. To amaze supply skills and competency to recruit to fill any gaps and to take the luck forward, perpetually memory in mind the batchential property luck as it arises and world in a position to take it up. Maintaining our commitment to re-invest each year crossways market, new nominate, product increase and if appropriate acquirement i.e. line coffee service.Not to lose sight of what we have in the placementline of what we indirect request. Strive to do what we do better always.The federation commenced business as a retailer of au and sotic coffee in the Kensington department stash away, Barkers in 1979. The wreakition of a tasting facility lead to our starting time difference the counterbalanceaurant manager unhappy that we should be wisecracking a innocuous tasting to his realizable customers as they walked through with(predicate) the door resulted in some initial difficulty. The compromise reached with the store manager was that we could charge for our sample. This led us to operating one of the first espresso parallel bars in London. It was fashionable with both the store and customers in equal measure, was extremely profitable, our rent macrocosm based on a percentage of sales and led promptly to the fortune to replicate the model at a second re locationnce of Fraser store in Londons Victoria, expert 18 months after the Kensington store opened.At this time we had installed a polished coffee roasting mould. This brought a dual social welfare vertical integration, aroma at the point of sale, credibility and change magnitude profit.When admit of Fraser invited us to open a leash site at Rackhams of Birmingham, it was at the banks suggestion that we should try for our own site. This led to acquiring a engross at 15 St Johns Wood High Street in 1983.We had by this time embarked on the wholesale side of coffee return to local anaesthetic restaurants and with the acquisition of the lease at St Johns Wood installed a 25 kilo professional coffee roasting machine in aver to become self sufficient with our coffee. We supposeed franchising as a assertable means of push expansion.The St Johns Wood shop was the ideal coffee shop model a supply led operation, roasting on-site, front and rear access and space for an office. By now the coffee shop offer was increment to accommodate a lunch-time dish of the day.It was around 1988, we pay ford the disappointing intelligence, Barkers was to be redeveloped and all concessions were given 6 months notice to quit. Certainly this was a ill-mannered awakening, how quickly 6 months goes. So we acquired the lease of another shop nigh in Kensington Court an d hence had four sites, all trading in profit, each slightly different. notwithstanding as we had spare space in St Johns Wood, so too a basement in Kensington allowed for the acquisition of a proper factory packing machine, allowed us more control, independence and profitability.As we assessed a way forward at that time, the expansion of the wholesale side of the business appealed more and our view that department stores, not delicatessen shops were the place to allot real coffee to the consumer, that led us to tar beat Harrods, Selfridges, Fortnum and stonemason and Harvey Nichols. In auberge to access funds to finance a end product facility, we had to sell the lease on one of the two London shops. The first offer was for St Johns Wood, so that sale allowed us the opportunity to put a production facility in place in a railway system arch in Camberwell.The successful conclusion of the contract to supply all Harrods retail coffee resulted in the need to acquire plant machin ery, publish and forwarding which quickly burnt through the 120,000 that was paid for St Johns Wood and compel the sale of the Kensington shop to give us sufficient cash flow. (The Kensington shop sale was another fascinating lesson in small business way, but not terribly relevant to this). Suffice to say, the timing of the sale was spotless and eventually led to the opportunity to acquire the freehold of Great Eastern Street.Having successfully become the supplier to Harrods, we added the exclusive supply of coffee by catering and retail to Harvey Nichols (that was juggling) and Selfridges.Today even fifteen years later, we are still in that happy position and whilst we further supply a fewer grace coffee beans to Fortnum Mason, as the family owning the store also own Twinnings, we count that as quite an achievement.Our luckiest break on the catering supply side was to supply an espresso machine and coffee to the first Caf Rouge also around 1989. This phoner went on to e xpand to 120 sites nationwide, acquired the Dome chain and instigated the idea of a restaurant universe automatic to sell a cup of coffee at any time of day. A bit equivalent Barkers, the news in 1995 that Pelican Group was acquired by Whitbread, owners of Costa Coffee, came as a disappointment. Even then it took Costa troika years to take the coffee and machine contract away from us.Another major customer is AMT Espresso Bars, schematic in Oxford around 1993, they had two coffee carts when we discovered the operation. hither were collarsome brothers, choleric about their business and their coffee our coffee. Today with 43 bars nationally focussed in railway stations, there coffee sales are quite remarkable, though naturally confidential.All this brings us to the point. We have helped a number of high profile customers achieve consistent get into sales of real coffee our real coffee, but aught knows, nobody has even heard of Andronicas. (Our coffee produces over 50 mil lion cups annually).We want to concern to develop the business as it is. Continue to sell, supply and develop coffee sales in all of these customers under their brand, but additionally and to different customers we want to sell our brand. The historic and lively business existence the income well out to support the next opportunity, but which must remain the direct focus, i.e. the alert business can in no way be jeopardised by the plan for the Future. Our growth skill well be limited by that fact, but there is always tomorrow.Our experience and strength are surround up in a passion for the product. From the grower and processor, we import exclusively the finest beans, anybody can say it and they all seem to, even Kenko (part of kraft paper Foods) but we have seen their factory and others corresponding it. When you grind their coffee beans they look respectable like mine. Statistically the UK imports very flyspeck fine coffee, so soulfulness is lying. As always it com es down to money. Today I can bribe Arabica coffee for 1,000 per metric thyroxin. We actually manufacture around 1,800 per tonne so naturally we get something much, much better. It really is that simple. We can precisely make to pay up more because our customers have the equivalent view, they are willing to pay more because they in turn are saying the same to their customers and so it goes. Be it retail or catering pay more, get better, pay less, get worse. It will always be easy to drive down the price always it will be pointless.So we have the best green beans, now we have to roast them. Our processing plant is supply to roast coffee in batches of 1, 12, 60 and 120 kilos. This flexibility is of key strength, but more important than that, immediately after roasting, our coffee is steadfastly packed, excluding all the oxygen immediately. This is only possible with state of the art valve incase equipment. Whether nitrogen or vacuum packed removing the oxygen is life-susta ining to the aroma, taste and life of the coffee. NB you cannot vacuum real coffee twice, it only workings when freshly roasted. The public does not understand this fact at all.The third critical ingredient to extensive coffee we will call the barista, the mortal who makes the coffee. If person one, the grower, person two, the roaster have not make their product line, number three cannot win. However even when one and two have done their job correctly, number three can destroy it.So coffee the ragweed of the gods, requires the skill resource and commitment of at least three people to achieve greatness. Given the consumption of coffee in just the UK exclusively exceeds 150 million cups per day, the scale of both the challenge and the opportunity can only be marvelled at.Andronicas core skill is in sympathy the variables and legal transfer their expertise to endeavour to help the consumer make great coffee. Be it through bars part it by the cup or at sign of the zodiac made by a myriad of equipment from the simple french pot, the school Italian espresso machine, a German filter system, a Turkish pot or the elegant cafetiere.Going back to the bars, todays fashion is for espresso-based drinks and the machines utilize to do this form an important part of the ships companys business model. Espresso machines used extensively in each modern catering environment are a key opportunity to develop new business and a great opportunity to bring in immense term customer relationships, through service, maintenance, grooming and lead to the identified opportunity here BRANDING.Traditionally a bar serving espresso purchases beans packed in kilo bagfuls. This is emptied into a hopper nutrition the fighter the coffee is therefore nameless. In order to identify the brand at the point of sale, the outlet might well be given mainland China cups that bear the brand of the coffee roaster.Our idea is to qualify the pack from bag to tin. Instead of emptying the b ag of beans, a 2-kilo tin replaces the unbranded hopper. clean packed at the factory this tin allows us to identify our brand at the point of sale. The additional supply of branded cups, chinaware or paper, and other point of sale material, to get the message across at the time the product is being consumed. This should therefore be self-financing. evaluate that our brand is of no commercial honour yet, the means to achieve the trade sale is to additionally personalise the 2 kilo caddy with the clients outlet brand. In other words Andronicas Coffee at ..Our desire then is to sell our coffee to a new group of trade customers where they are neat to sell the product as Andronicas Coffee. This in itself is not difficult. Coffee is a competitive market, our history, experience and resource make it a relatively straight-forward proposition. An investing in manpower, accessories to support the offer, the process is essentially similar to our trustworthy programme. miserable beyond this, the reason for creating the brand in the first place is to get back to our retail roots and to take in value in Andronicas Coffee as a brand and therefore as a business.We have already indicated that access to market in the retail arena is through supermarkets, departments stores, speciality coffee retailers or escape order. Our view is the supermarkets are not an appropriate route for our company taking account of our live customer base, our size and brand recognition.We are established in retail through department stores and therefore any activity to promote our coffee would be like shooting yourself in the foot. Speciality coffee retailers are improbable to support our brand and are in any event a fragmented group, which brings us to mail order.Back-tracking a moment drawing a coffee salesman visiting an espresso bar. His objective is to persuade the bar owner to change coffee suppliers. Having made that change and assuming everything the salesman says is true, one wo uld have every reason to suppose that espresso bar owner would continue to purchase a case of espresso beans every week indefinitely. That is what Andronicas does, it persuades espresso bar owners it has great coffee, will not change the blend, will deliver consistently what they require, will not change the offer, price or any fundamental. Allowing him to offer his customer the same and configuration his business to such an extent he may open a second espresso bar. Who is he release to call?Picture if you would just for the exercise, a salesman in a car showroom. Imagine for a little the different objectives of both these sales people. One wants a sale now, today. The other wants a sale indefinitely. They both come from the same place, they are both going somewhere entirely different.Now back to our retail opportunity. The consumer is a little like our espresso bar owner. They want great coffee, easily accessible, at close value for money, consistently. The supermarket fulfils that need extremely well. The only thing lacking is the romance. There is no romance with supermarket coffee. We might all like the coffee specialist, but we dont have the time and there is no consistency.Mail order might be able to fulfil these objectives, but the cost of conclusion these effectiveness customers would be excessive. However if the offer was good and met the requirements, it is conceivable such a person could purchase one 250g tin every week, for ever more.. Just like our espresso bar owner.Buying direct from the roaster, who is also the importer, is the romance.operationally for us this is simple. The clever or difficult part is identifying those one in ten UK coffee drinkers who really do only drink real coffee at home.Events. Picture if you would any day out you have been on. A county show, a day at the races, museums, air shows, Henley, Wimbledon. We dont even expect a great coffee and we are still disappointed. Imagine being at one of these events and being seed a great cup of coffee. Yes, it is possible. great power you hypothesize I wish I could get coffee like this at home. That is where we want to get to. Serving coffee in locations, the expectation is low, making a great drink and converting the customer to a mail order user.Difficult as it may be, the beauty of the idea is they are going to pay for the tasting and so building this opportunity should be self-financing and by focussing on this avenue to the consumer, we should not alienate our existing trade customer hike up we are establishing the brand recognition of Andronicas Coffee to his and our benefit.Andronicas world of coffee 4th floor Harrods Knightsbridge, is a ideal epicure Coffee shop, where Term Freshly Roasted means just that. Here green coffee beans are roasted to customers specifications in the desired quantity. Having identified, what we consider the justly ingredients for the perfect coffee shop, we are focused on the other locations where the concept wou ld be appreciated. By Easter 2010 we will have opened Andronicas World of coffee at Covent Garden, Excel East and West, and Garden put Peterborough.5 grammatical construction Of dissertation-Developing a theoretical framework incorporating a number of ideas and findings relevant to understand the factors affecting handsome moderate enterprise entry barriers. In Chapter two a substantial body of writings is presented about different marketing strategies and branding models.In Chapter three, the methodology used in research concerned with entering market and brand development is presented. A qualitative research is proposed with the elaboration of focus groups. The use of a conduct for the moderator was needed in order to help the researcher to put the research question in parallel with the topics to probe. Also the codification technique is used to organize the information later on.Finally, Chapter four presents the findings of this dissertation, giving an translation of what the factors influencing the marketing strategies of any small medium enterprise. It also presents a equivalence in the midst of the factors extracted from different authors and the ones found in this research evoking interesting potential directions for further research.Literature ReviewPerception is strong and sight weak. In strategy it is important to see distant things as if they were close and take a distant view of close things6This chapter is based on brief exposition about how strategies are formed and how they are implemented for any organisation in order to become successful and survive. dodge is one of the key elements and a major concern for any organisation for its option in future. Here in this chapter we are trying to apologize various theories and concepts that have been put forward.Why schema?Like politics, strategy is the art of the possible but few can discern what is possible.7 dodging in scathe of business means formulation how to reach the objectives of the company and how the planning should be implemented. Strategy is a the pattern of major objectives, purpose or goals and essential policies or plans for achieving those goals, stated in such a way as to define what business the company is in or is to be in and the kind of company it is or is to be Andrews (1971). In simpler terms can be explained as The strategy of the firm is the add together amidst its natural capabilities and its external relationship. It describes how it responds to its suppliers, its customers, its competitors and the social and economic environment inside it operates Kay (1993). Andrews explanation clearly identifies two different processes, formulation and implementation, and the interrelation amongst these two concepts.Strategy as the determination of the basic long term goals and objectives of the enterprise and the adoption of the courses of action and allocation of resources necessary for carrying out those goals Chandler (1962)primarily strateg y is maintained at three main levels in any organisation. versed Resources It means the capital and the investments in the business, employees and their skill sets are resources for the company. To make most of these resources a proper strategy needs to be implemented, and that helps organisations to make most of the resources and that helps to survive and stay in the market.External environment inwardly which the organisation operates Environment means every aspect external to the organisations. Its not only the economic and political situations but also competitors, customers and suppliers. Organisations need to develop strategies that are best suited to their strengths and weaknesses in relation to the environment in which they are operating. correspond to Mintzberg H (1987) Environment is so uncertain, particularly in international level, that it may be impossible to plan a long term strategy. This may need to be crafted, i.e. built up gradually through a learning process in volving experimentation. Strategies need to be devised to cope with such difficultiesThe ability of the organisation to add value to what it is doing presently To jibe long term survival an organisation must take the supplies it brings in, add value to these through its operation and then deliver its output to the customer. The purpose of the strategy is to bring about the conditions under which the organisation is able to create this racy additional value. The strategy that is formulated should also ensure that the organisation adapts the changing circumstances.Strategy of a business is in cooperation with art and a science. feature strategy will not be appropriate for all the cases. Small and medium companies coming into existence has increased substantially over a period of time. Marketing situation is completely different in small to medium enterprise then larger corporations. Gilmore, Carson and Grant (2001) use the limitations for companies to explain the differences. The limitations are capital, time, marketing knowledge and limited impact on the market place. Marketing strategy in terms of small and medium firms is lot different than multinational and larger firms. According to Gilmore (2001) marketing is casual, amorphous, reflex, and is build in the lead and in compliance to industry norm.Small and medium surface organisations are a very diverse conspiracy. The strength of the company does not decide the purpose and goals of the organisation. This wide range of Small medium organisations can be categorised hooked on three groups Child-, Dwarf- , and pygmy- companies Brytting(1998). This variety is done on the foundation of organisations ambitions and potential of expansion.Child companies are little because they are newly taking place. These companies are on the rise, resolve with time and the objurgate resources increase beyond their present size.Dwarf companies are small because of internal issues. A dwarf company is disabled with its unde rsized manpower. This type of business needs to develop or else reshuffle in order to be ready for action. pigmy companies are small because that is most worthy size. Pygmy companies are small because they dont try to grow. They are cost-effective and sparing in their current size. Growth is generally qualitative because organisational expansion is not attractive.According to Bryttings (1998) categories give three reasons to give explanation why a company is small. The company is small because it is a new entrant, some is misuse with in the organisation or, it is designed to be small.In marketing a nook brand is strong within its market division, but small in unconditional terms (Doyle 1990). Companies that come under this category can be highly cost-effective without a large share of the market. According to Doyle (1990) it is possible for a small or medium company to receive comparatively better returns on investment then ratio then rest of the market leaders. Bergvall (2001) explains the fact how small and medium sized companies can be successful in their own markets. A small company is more supple and are innovative as they are physically more closer to customers/ market (Bergvall 2001) .Smaller organisations are have a flat building in size, that makes decision making process simpler.In current perplexity view, marketplace is captured by communication and exchange of assets involving network partners (Norman Ramirez1998). Drucker (1974), the honoured management guru express doing things well(p), or efficiently, could not save the company when it was not doing the right things two operations and strategic management must be done well to be successful, to gain and maintain a competitive advantage. When the world is changing, managers need to share some common view in the new world. Otherwise, decentralized strategic decisions will result in management anarchy.Strategy has both pros and consStrategy sets trend At present this statement has unifor mly advantages and disadvantages. The key function of the strategy is to map the road of a business in order to find the approach cohesively all the way through the situation. solely the drawback is that occasionally strategic decision can also serve as a set of blinders to hide potential dangers.Strategy focuses effort Strategy tries to build and promotes team work in an organisation, lacking strategy it can happen that the employees start running in different directions. The drawback on this is faction arises when attempt is too carefully determined, that results in avoidAnalysis of Strategies for Expansion into UKAnalysis of Strategies for Expansion into UKIntroductionResearch Content-Over the last few decades, there has been a tremendous growth in the volume of business. A number of new players have entered the business world and as a result there is fierce competition making survival very difficult. Therefore it is imperative that Companies establish a sustainable competitive a dvantage over other competitors. One key strategy that companies have often adopted to sustain in the long term is continuous growth to become recognised brand and dominant that they can set the agenda. Thus we see huge multi-national corporate in various sectors particularly in retail, food and beverages that are dominant and sometimes act as monopolies. However, pursuing a strategy of growth simply does not mean that corporate can expand their businesses, survive and remain successful. In the past, many organisations have adopted various strategies and implemented all of them but have failed. This is because like any other strategy, growth strategies must be carefully formulated and properly implemented. If not, there could be severe consequences.There are many organisations particularly in the UK that are aspiring to expand their presence. However, a number of huge western based multi-nationals exist that are dominant and follow entry deterrence strategies such as patents, limit pricing, cost advantages, aggressive advertising and marketing etc, in order to prevent other organisations from taking their market share or eroding their margins. We shall study in this dissertation, the growth strategies that such emerging organisations adopt and implement to capture the markets and also see how they encounter the indirect entry barriers imposed by the giant multi-nationals.Aims ObjectivesThe Goal of this dissertation is to analyse the various strategies that can be composed by an organisation and the ways that they should be implemented to list the various possible outcomes that can be achieved by an organisation with proper planning and implementation of a strategy to study the reasons why it is important for organisations to plan and have alternative strategiesEven though many companies form strategies and implement them, not all of them may succeed. So, why do companies fail to achieve their objectives with the implemented strategies. The main purpose of thi s research would be based on Andronicas World Of Coffee (AWOC), the way they work on the strategies they plan and the implementation process to make it a success. A Study would be done on the problem that they have faced and are facing in the present and the past while implementing their Retail business strategies to become a recognized brand.The objective is to complete the study with all the required literature review and theory which relates to strategies formulation and implementation. Analyses the reasons, motives, process and other aspects related to strategies formulation and implementation. The main objective is to have a brief study on how Andronicas- world of coffee has planned its strategy and has implemented it, in order to enter highly competitive market of coffee chains and become a leading Retailer in UK. Analysis will also be done on the performance of this organisation and the growth achieved in short span of time.The objectives that we aim to explore are given bel ow To Examine the strategies formulated by Andronicas- World of Coffee for establishing their retail business within UK.To analyse the different steps and ideas they used and implemented for establishing their retail business in LONDON.To find out what Andronicas- World of Coffee was and what it is now after the implementation of its formulated strategy.To study the impact of ongoing Financial crisis on Andronicas as a business.Purpose of Study-The fast growing competition in business market has raised the need for new markets. This has inspired many small organisations to grow and provided opportunities, for which various strategy needs to be formulated. The purpose of research is on what field a company needs to concentrate and what strategy it should apply in order to enter the highly competitive market. The implementation plans of company play a vital role. Even though strategies are planned well but some companies fail during the implementation process, this is because of impro per communication/ short term plans. The implementation process needs to be monitored very carefully. The purpose of the study is to identify the strategies that organisations plan and the way they try to implement it. The main aim of this study is to describe a method that can be adopted by Small medium enterprise to enter a highly competitive market that is already dominated by big market players with the Example of Andronicas -World of Coffee.Managers and leaders of companies are constantly involved into decision-making. They use different types of strategy to ensure that their business not only survives but brings profit. . Strategic ideas are relevant for all types of organization, and many of the key issues are the same although they may differ in their relative significance. All businesses in the competitive environment are affected by strategy and strategic issues if not their own, then those of the competition or the external environment2. Long-term strategic success requi res coordination of the managers efforts and effective structure of the managerial department of the company.Introduction to the IndustryCoffee makes us severe, and grave, and philosophical Jonathan Swift, 1722Possibly the cradle of mankind, the ancient land of Abyssinia, now know as Ethiopia, is the place where coffee was born.In todays world beverages sector comprising of coffee as a sub sector is one of the key segments of the economy having extensive and forward and backward linkages with other key segments of the economy. According to the latest coffee statistics from the International Coffee Organization (ICO), we pour about 1.4 billion cups of coffee a day worldwide. In fact when we look at per capita coffee consumption, the U.K. is 22 on the list with about 5 kilograms of coffee per person per year3.The coffee industry has grown rapidly since the 1990s before Starbucks emerged, people were used to drinking low quality coffee from tins. Starbucks introduced fresh coffee made from top quality beans that have excellent taste and drinks such as the caffe latte and cappuccino, which have helped to fuel the development of the coffee market into a multi million pound industry. The size of UK branded coffee chains have quadrupled from 1999 to 2004, with a current market turnover of over 1 billion.However, Britains coffee may finally be taking a new direction. Take a walk through London and youll see a rash of trendy independent coffee houses, with blackboards boasting of freshly roasted, Fair Trade beans and organic milk. Retail sales at specialist coffee shops reached 1 billion for the first time in 2007 and were close 1.2 billion in 2008. High street chains such as Costa Coffee, Starbucks and Caffe Nero are also performing well, with 890 new branches of branded coffee shops expected to open before 2012, but they are upping their game to meet our rising expectations.Jeffrey Young, of the consumer analysts Allegra Strategies, says Were seeing a movement to a stronger coffee palate. People say that their Starbucks is not strong enough, that Nero is stronger than their Costa. Thats something that no one was talking about ten years ago. There has been a massive revolution in coffee drinking, from drinking instant or filtered in a polystyrene cup a decade ago to espresso-based drinks made from 100 per cent Arabica beans today.UK being an upcoming market for coffee shops, with an estimation of more than 11000 outlets opened so far and number still increasing. The total turnover of the whole coffee industry is estimated to be over 1.63 billion for year 2009.4 Estimations for year 2010 are expected more than 13000 coffee shops, including small, medium and independent businessesIntroduction to Andronicas World of Coffee (Source Andrew Knight)Form of Ownership-Andronicas Coffee is a private limited company whose entire share capital is under the control and ownership of Andrew Knight.Andronicas Coffee a coffee roaster/ supplier vertically int egrated, accessing green coffee at source, roasting and processing through to the point of sale, via either catering or retail industries and including the equipment required to produce the finished drink. With a 25year history of selling, serving and operating retail outlets, adopting the best of both the Seattle and European model. Focused now on trade sales identifying customers whose ideals of quality, taste and service, expectation are at the top end of the market and who see outlet expansion as the driver for their business. Promotion of our brand identity is important but secondary to the overall success and profitable growth of our business. To develop staff skills and competence to recruit to fill any gaps and to take the opportunity forward, always keeping in mind the potential property opportunity as it arises and being in a position to take it up. Maintaining our commitment to re-invest each year across marketing, new plant, product development and if appropriate acquisi tion i.e. office coffee service.Not to lose sight of what we have in the pursuit of what we want. Strive to do what we do better always.The company commenced business as a retailer of real coffee in the Kensington department store, Barkers in 1979. The addition of a tasting facility lead to our first conflict the restaurant manager unhappy that we should be offering a free tasting to his potential customers as they walked through the door resulted in some initial difficulty. The compromise reached with the store manager was that we could charge for our sample. This led us to operating one of the first espresso bars in London. It was popular with both the store and customers in equal measure, was extremely profitable, our rent being based on a percentage of sales and led directly to the opportunity to replicate the model at a second House of Fraser store in Londons Victoria, just 18 months after the Kensington store opened.At this time we had installed a small coffee roasting machi ne. This brought a multiple benefit vertical integration, aroma at the point of sale, credibility and increased profit.When House of Fraser invited us to open a third site at Rackhams of Birmingham, it was at the banks suggestion that we should try for our own site. This led to acquiring a lease at 15 St Johns Wood High Street in 1983.We had by this time embarked on the wholesale side of coffee supply to local restaurants and with the acquisition of the lease at St Johns Wood installed a 25 kilo professional coffee roasting machine in order to become self sufficient with our coffee. We considered franchising as a possible means of further expansion.The St Johns Wood shop was the ideal coffee shop model a catering led operation, roasting on-site, front and rear access and space for an office. By now the coffee shop offer was growing to include a lunch-time dish of the day.It was around 1988, we received the disappointing news, Barkers was to be redeveloped and all concessions were gi ven 6 months notice to quit. Certainly this was a rude awakening, how quickly 6 months goes. So we acquired the lease of another shop nearby in Kensington Court and then had four sites, all trading in profit, each slightly different. Just as we had spare space in St Johns Wood, so too a basement in Kensington allowed for the acquisition of a proper factory packing machine, allowed us more control, independence and profitability.As we assessed a way forward at that time, the expansion of the wholesale side of the business appealed more and our view that department stores, not delicatessen shops were the place to sell real coffee to the consumer, that led us to target Harrods, Selfridges, Fortnum and Mason and Harvey Nichols. In order to access funds to finance a production facility, we had to sell the lease on one of the two London shops. The first offer was for St Johns Wood, so that sale allowed us the opportunity to put a production facility in place in a railway arch in Camberwel l.The successful conclusion of the contract to supply all Harrods retail coffee resulted in the need to acquire plant machinery, printing and packaging which quickly burnt through the 120,000 that was paid for St Johns Wood and forced the sale of the Kensington shop to give us sufficient cash flow. (The Kensington shop sale was another fascinating lesson in small business management, but not terribly relevant to this). Suffice to say, the timing of the sale was perfect and ultimately led to the opportunity to acquire the freehold of Great Eastern Street.Having successfully become the supplier to Harrods, we added the exclusive supply of coffee by catering and retail to Harvey Nichols (that was juggling) and Selfridges.Today even fifteen years later, we are still in that happy position and whilst we only supply a few fringe coffee beans to Fortnum Mason, as the family owning the store also own Twinnings, we count that as quite an achievement.Our luckiest break on the catering supply side was to supply an espresso machine and coffee to the first Caf Rouge also around 1989. This company went on to expand to 120 sites nationally, acquired the Dome chain and instigated the idea of a restaurant being willing to sell a cup of coffee at any time of day. A bit like Barkers, the news in 1995 that Pelican Group was acquired by Whitbread, owners of Costa Coffee, came as a disappointment. Even then it took Costa three years to take the coffee and machine contract away from us.Another major customer is AMT Espresso Bars, established in Oxford around 1993, they had two coffee carts when we discovered the operation. Here were three brothers, passionate about their business and their coffee our coffee. Today with 43 bars nationally focussed in railway stations, there coffee sales are quite remarkable, though naturally confidential.All this brings us to the point. We have helped a number of high profile customers achieve consistent record sales of real coffee our real coffee , but nobody knows, nobody has even heard of Andronicas. (Our coffee produces over 50 million cups annually).We want to continue to develop the business as it is. Continue to sell, supply and develop coffee sales in all of these customers under their brand, but additionally and to different customers we want to sell our brand. The historic and existing business being the income stream to support the next opportunity, but which must remain the primary focus, i.e. the existing business can in no way be jeopardised by the plan for the Future. Our growth might well be limited by that fact, but there is always tomorrow.Our experience and strength are bound up in a passion for the product. From the grower and processor, we import only the finest beans, anybody can say it and they all seem to, even Kenko (part of Kraft Foods) but we have seen their factory and others like it. When you grind their coffee beans they look just like mine. Statistically the UK imports very little fine coffee, so somebody is lying. As always it comes down to money. Today I can buy Arabica coffee for 1,000 per metric tonne. We actually pay around 1,800 per tonne so naturally we get something much, much better. It really is that simple. We can only afford to pay more because our customers have the same view, they are willing to pay more because they in turn are saying the same to their customers and so it goes. Be it retail or catering pay more, get better, pay less, get worse. It will always be easy to drive down the price always it will be pointless.So we have the best green beans, now we have to roast them. Our processing plant is equipped to roast coffee in batches of 1, 12, 60 and 120 kilos. This flexibility is of key strength, but more important than that, immediately after roasting, our coffee is securely packed, excluding all the oxygen immediately. This is only possible with state of the art valve packaging equipment. Whether nitrogen or vacuum packed removing the oxygen is critica l to the aroma, taste and life of the coffee. NB you cannot vacuum real coffee twice, it only works when freshly roasted. The public does not understand this fact at all.The third critical ingredient to great coffee we will call the barista, the person who makes the coffee. If person one, the grower, person two, the roaster have not done their job, number three cannot win. However even when one and two have done their job correctly, number three can destroy it.So coffee the nectar of the gods, requires the skill resource and commitment of at least three people to achieve greatness. Given the consumption of coffee in just the UK alone exceeds 150 million cups per day, the scale of both the challenge and the opportunity can only be marvelled at.Andronicas core skill is in understanding the variables and bringing their expertise to endeavour to help the consumer make great coffee. Be it through bars serving it by the cup or at home made by a myriad of equipment from the simple French p ot, the sophisticated Italian espresso machine, a German filter system, a Turkish pot or the elegant cafetiere.Going back to the bars, todays fashion is for espresso-based drinks and the machines used to do this form an important part of the companys business model. Espresso machines used extensively in every modern catering environment are a key opportunity to develop new business and a great opportunity to build long term customer relationships, through service, maintenance, training and lead to the identified opportunity here BRANDING.Traditionally a bar serving espresso purchases beans packed in kilo bags. This is emptied into a hopper feeding the grinder the coffee is therefore nameless. In order to identify the brand at the point of sale, the outlet might well be given china cups that bear the brand of the coffee roaster.Our idea is to change the pack from bag to tin. Instead of emptying the bag of beans, a 2-kilo tin replaces the unbranded hopper. Vacuum packed at the factor y this tin allows us to identify our brand at the point of sale. The additional supply of branded cups, china or paper, and other point of sale material, to get the message across at the time the product is being consumed. This should therefore be self-financing. Accepting that our brand is of no commercial value yet, the means to achieve the trade sale is to additionally personalise the 2 kilo caddy with the clients outlet brand. In other words Andronicas Coffee at ..Our desire then is to sell our coffee to a new group of trade customers where they are keen to sell the product as Andronicas Coffee. This in itself is not difficult. Coffee is a competitive market, our history, experience and resource make it a relatively straight-forward proposition. An investment in manpower, accessories to support the offer, the process is essentially similar to our current programme.Moving beyond this, the reason for creating the brand in the first place is to get back to our retail roots and to c reate value in Andronicas Coffee as a brand and therefore as a business.We have already indicated that access to market in the retail arena is through supermarkets, departments stores, speciality coffee retailers or mail order. Our view is the supermarkets are not an appropriate route for our company taking account of our existing customer base, our size and brand recognition.We are established in retail through department stores and therefore any activity to promote our coffee would be like shooting yourself in the foot. Speciality coffee retailers are unlikely to support our brand and are in any event a fragmented group, which brings us to mail order.Back-tracking a moment picture a coffee salesman visiting an espresso bar. His objective is to persuade the bar owner to change coffee suppliers. Having made that change and assuming everything the salesman says is true, one would have every reason to suppose that espresso bar owner would continue to purchase a case of espresso beans every week indefinitely. That is what Andronicas does, it persuades espresso bar owners it has great coffee, will not change the blend, will deliver consistently what they require, will not change the offer, price or any fundamental. Allowing him to offer his customer the same and build his business to such an extent he may open a second espresso bar. Who is he going to call?Picture if you would just for the exercise, a salesman in a car showroom. Imagine for a minute the different objectives of both these sales people. One wants a sale now, today. The other wants a sale indefinitely. They both come from the same place, they are both going somewhere entirely different.Now back to our retail opportunity. The consumer is a little like our espresso bar owner. They want great coffee, easily accessible, at good value for money, consistently. The supermarket fulfils that need extremely well. The only thing missing is the romance. There is no romance with supermarket coffee. We might all like the coffee specialist, but we dont have the time and there is no consistency.Mail order might be able to fulfil these objectives, but the cost of finding these potential customers would be excessive. However if the offer was good and met the requirements, it is conceivable such a person could purchase one 250g tin every week, for ever more.. Just like our espresso bar owner.Buying direct from the roaster, who is also the importer, is the romance.Operationally for us this is simple. The clever or difficult part is identifying those one in ten UK coffee drinkers who really do only drink real coffee at home.Events. Picture if you would any day out you have been on. A county show, a day at the races, museums, air shows, Henley, Wimbledon. We dont even expect a great coffee and we are still disappointed. Imagine being at one of these events and being served a great cup of coffee. Yes, it is possible. Might you think I wish I could get coffee like this at home. That is where we want to get to. Serving coffee in locations, the expectation is low, making a great drink and converting the customer to a mail order user.Difficult as it may be, the beauty of the idea is they are going to pay for the tasting and so building this opportunity should be self-financing and by focussing on this avenue to the consumer, we should not alienate our existing trade customer further we are establishing the brand recognition of Andronicas Coffee to his and our benefit.Andronicas world of coffee 4th floor Harrods Knightsbridge, is a concept Gourmet Coffee shop, where Term Freshly Roasted means just that. Here green coffee beans are roasted to customers specifications in the desired quantity. Having identified, what we consider the right ingredients for the perfect coffee shop, we are focused on the other locations where the concept would be appreciated. By Easter 2010 we will have opened Andronicas World of coffee at Covent Garden, Excel East and West, and Garden Park Peterborough .5Structure Of dissertation-Developing a theoretical framework incorporating a number of ideas and findings relevant to understand the factors affecting Small medium enterprise entry barriers. In Chapter two a substantial body of literature is presented about different marketing strategies and branding models.In Chapter three, the methodology used in research concerned with entering market and brand development is presented. A qualitative research is proposed with the elaboration of focus groups. The use of a guide for the moderator was needed in order to help the researcher to put the research question in parallel with the topics to probe. Also the codification technique is used to organize the information later on.Finally, Chapter four presents the findings of this dissertation, giving an explanation of what the factors influencing the marketing strategies of any small medium enterprise. It also presents a comparison between the factors extracted from different authors and the one s found in this research evoking interesting potential directions for further research.Literature ReviewPerception is strong and sight weak. In strategy it is important to see distant things as if they were close and take a distant view of close things6This chapter is based on brief explanation about how strategies are formed and how they are implemented for any organisation in order to become successful and survive. Strategy is one of the key elements and a major concern for any organisation for its survival in future. Here in this chapter we are trying to explain various theories and concepts that have been put forward.Why Strategy?Like politics, strategy is the art of the possible but few can discern what is possible.7Strategy in terms of business means planning how to reach the objectives of the company and how the planning should be implemented. Strategy is a the pattern of major objectives, purpose or goals and essential policies or plans for achieving those goals, stated in s uch a way as to define what business the company is in or is to be in and the kind of company it is or is to be Andrews (1971). In simpler terms can be explained as The strategy of the firm is the match between its internal capabilities and its external relationship. It describes how it responds to its suppliers, its customers, its competitors and the social and economic environment within it operates Kay (1993). Andrews definition clearly identifies two different processes, formulation and implementation, and the interrelation between these two concepts.Strategy as the determination of the basic long term goals and objectives of the enterprise and the adoption of the courses of action and allocation of resources necessary for carrying out those goals Chandler (1962)Mainly strategy is maintained at three main levels in any organisation.Internal Resources It means the capital and the investments in the business, employees and their skill sets are resources for the company. To make mo st of these resources a proper strategy needs to be implemented, and that helps organisations to make most of the resources and that helps to survive and stay in the market.External environment within which the organisation operates Environment means every aspect external to the organisations. Its not only the economic and political situations but also competitors, customers and suppliers. Organisations need to develop strategies that are best suited to their strengths and weaknesses in relation to the environment in which they are operating. According to Mintzberg H (1987) Environment is so uncertain, particularly in global level, that it may be impossible to plan a long term strategy. This may need to be crafted, i.e. built up gradually through a learning process involving experimentation. Strategies need to be devised to cope with such difficultiesThe ability of the organisation to add value to what it is doing presently To ensure long term survival an organisation must take the supplies it brings in, add value to these through its operation and then deliver its output to the customer. The purpose of the strategy is to bring about the conditions under which the organisation is able to create this vital additional value. The strategy that is formulated should also ensure that the organisation adapts the changing circumstances.Strategy of a business is in cooperation with art and a science. Particular strategy will not be appropriate for all the cases. Small and medium companies coming into existence has increased substantially over a period of time. Marketing situation is completely different in small to medium enterprise then larger corporations. Gilmore, Carson and Grant (2001) use the limitations for companies to explain the differences. The limitations are capital, time, marketing knowledge and limited impact on the market place. Marketing strategy in terms of small and medium firms is lot different than multinational and larger firms. According to Gilmo re (2001) marketing is casual, amorphous, reflex, and is build in the lead and in compliance to industry norm.Small and medium sized organisations are a very diverse faction. The strength of the company does not decide the purpose and goals of the organisation. This wide range of Small medium organisations can be categorised hooked on three groups Child-, Dwarf- , and pygmy- companies Brytting(1998). This categorization is done on the foundation of organisations ambitions and potential of expansion.Child companies are undersized because they are newly taking place. These companies are on the rise, resolve with time and the right resources increase beyond their present size.Dwarf companies are small because of internal issues. A dwarf company is disabled with its undersized manpower. This type of business needs to develop or else reshuffle in order to be ready for action.Pygmy companies are small because that is most suitable size. Pygmy companies are small because they dont try to g row. They are cost-effective and economical in their current size. Growth is generally qualitative because organisational expansion is not attractive.According to Bryttings (1998) categories give three reasons to give explanation why a company is small. The company is small because it is a new entrant, some is wrong with in the organisation or, it is designed to be small.In marketing a niche brand is strong within its market division, but small in unconditional terms (Doyle 1990). Companies that come under this category can be highly cost-effective without a large share of the market. According to Doyle (1990) it is possible for a small or medium company to receive comparatively better returns on investment then ratio then rest of the market leaders. Bergvall (2001) explains the fact how small and medium sized companies can be successful in their own markets. A small company is more supple and are innovative as they are physically more closer to customers/ market (Bergvall 2001) .Sm aller organisations are have a flatter structure in size, that makes decision making process simpler.In current management view, marketplace is captured by communication and exchange of assets involving network partners (Norman Ramirez1998). Drucker (1974), the honoured management guru said doing things right, or efficiently, could not save the company when it was not doing the right things Both operations and strategic management must be done well to be successful, to gain and maintain a competitive advantage. When the world is changing, managers need to share some common view in the new world. Otherwise, decentralized strategic decisions will result in management anarchy.Strategy has both pros and consStrategy sets trend At present this statement has uniformly advantages and disadvantages. The key function of the strategy is to map the road of a business in order to find the approach cohesively all the way through the situation. But the drawback is that occasionally strategic dec ision can also serve as a set of blinders to hide potential dangers.Strategy focuses effort Strategy tries to build and promotes team work in an organisation, lacking strategy it can happen that the employees start running in different directions. The drawback on this is faction arises when attempt is too carefully determined, that results in avoid