Finchley Central Essay Example for Free

Finchley Central Essay There is a selection of good transport links available in Finchley Central. The evidence of this point is shown in [Graph 7], which shows West Finchley census data; on the mode of transport people use to travel to work. The most common form of transport is the underground, which can mean that there can be many potential customers from the underground station as a lot of employed people would be leaving the station to go home in Finchley Central; thus meaning that they could stop off at Coffee Republic to get a beverage. This can mean locating near to the train station, customers can be targeted strategically. Furthermore, Coffee Republic is able to promote their products through advertising at these train stations and bus stops, so they are able to gain passing trade in the form of people exiting the train station, going home in Finchley Central. Also, transportation links could result in Coffee Republics suppliers may not be able to deliver goods efficiently. This demonstrates the idea of a sound business decision to locate here due to the amount of prospective customers they can gain, and the amount of transport links that can cause deliveries to be made on time. Another argument for, is the fact that Finchley Central has a large working population; 71% of all residents in Finchley Central, are in someway economically active [Table 5]. 18% of which are in Class A, of the socio-economic classification, which shows that they are in high paid jobs such as lawyers, judges etc. Also, the majority of the population are in Class B, so they would also be earning a relatively high amount of income, they would usually be in jobs such as teachers, solicitors etc, [Table 6]. This can mean that a lot of the population in Finchley Central would have a lot of disposable income to spend on the luxury products that Coffee Republic offer. However, a counter-argument for this point is that a large population can in fact lead to a shortage of labour, which can mean that when looking for staff, they may need to resort to looking at local schools and colleges to find staff, as they can hire minors like these, for cheap wages to work part-time. But, this doesnt necessarily mean that these workers will be skilled, so on-the-job training will need to be provided, which will then increase business costs. However, it can mean that staff can gain skills over time, which means that operations on the shop floor can be more efficient. Opportunities:- An argument for, to do with an opportunity is the fact that a joint venture can be done be done with Tesco, so that both businesses can win. A deal can be done between both businesses, as the probable locations where this Coffee Republic can locate are within the vicinity of Tesco. The proposed deal can be that if a customer shows Coffee Republic a Tesco receipt on the same day, it means that the customer can get half price off coffee, this way both businesses can win, as both can get trade from customers. From my data, the majority of people in Finchley Central are willing to pay [Graph 3], this means that people do not necessarily want an extremely high price or low price for their coffee, this amount is a very respectable amount, and if this venture is completed, it will mean customers will pay 75-99p. This seems like a low amount, but this sales promotion will attract a lot of customers, so there is likely to be a rise in sales and ultimately, a profit. This illustrates the idea of a sound business decision as both businesses earn customers, and will help to increase the popularity for both firms and could earn Coffee Republic a profit. A final opportunity and argument for, is the fact that competition can be eliminated easily due to Coffee Republics reputable name. According to my data [Graph 4], the most popular coffee shop that people prefer a Costa shop, followed by a local. However, there are no large competitors in the area such as Costa [data from upmystreet], there are only small scale competitors, mainly local cafs. However the data from peoples feedback shows that people like the local caf, so people may not want to buy from a branded franchise like Coffee Republic. But, this may not be the case, as Coffee Republic is likely to eliminate such small scale competition, due to its reputable name, so it will attract many customers that would go to the local cafs. This would then increase Coffee Republics sales and as competition gets wiped out, market share will increase. This indicates the idea of a sound business decision, as Coffee Republic is almost guaranteed to get a lot of customers, as the affluent are a of Finchley Central doesnt have a proper coffee shop; its an untapped market, which will mean that it will be easy to wipe out any probable competition. Arguments against locating in Finchley Central:-Â  Weaknesses:Â  An argument against, which is a weakness, is the fact that the credit crunch has cut peoples spending on indulgences such as what Coffee Republic has to offer. This is best reflected in the interview which I conducted, [refer to interview], where a owner gave us his first hand view of what has happened to its sales in this economic dilemma. The owner stated that recently, maybe as a result of the credit crunch, its very quiet. Instead of buying two cups of coffee with a snack or meal they are buying a single. This shows that the credit crunch may have hit hard on the Finchley Central population, as the owner stated that its much quieter since the credit crunch has happened. A counter-argument which can solve this issue is something that another big branded coffee franchise has initiated. Starbucks has issued free refills on their coffee due to the credit crunch. This could be something that Coffee Republic can initiate if they want to beat the credit crunch, and retain their customers. This would not be a sound business decision, as the people who are affected by the credit crunch may not want to pay the high price for the quality products that Coffee Republic provide, so they may not have as many customers as they would want. Recommendation:- Finchley Central is a well off area brimming with a lot of potential and in my opinion, a sound business decision to set up a new Coffee Republic franchise there. It is an area with a very affluent community and has great transport links making the accessibility high; because it is close to the motorways, it can ensure that efficient deliveries are made. Taking into account all the research which I have done, I would conclude that Finchley Central is a very good location to set up a Coffee Republic, however there are many potential exact locations where it can be set up in Finchley Central. A potential site for a new Coffee Republic would be inside Tescos. Tescos is one of the most leading supermarkets in the UK; they have a large customer base ranging between all ages. By locating inside the Tesco store, the two businesses can undergo a joint venture, which I already have mentioned in my evaluation; show Coffee Republic a Tescos receipt and get half price off a standard cup of coffee. If a Coffee Republic were to open in Tescos it is likely that people would buy Coffee whilst shopping or after shopping. However, the initial costs for opening up the new franchise in Tescos will be considerably more than if it opened up elsewhere. Also, placing a Coffee Republic inside the UKs leading supermarket would cost a lot. Tescos may have to negotiate a fair share of the profits made by Coffee Republic. By looking at my secondary data from the West Finchley Census, I can see that the majority of residents in Finchley Central, travel to work using the underground [Graph 7]. Consequently, the location of a Coffee Republic inside Finchley Central underground tube station could be a sound business idea. By locating in the station, there is a possibility of applying for a government grant. Due to the credit crunch and economic downturn, creating jobs is something that the government would want big companies like Coffee Republic to do; this would increase the chance of Coffee Republic getting a grant. On the other hand, by locating inside the tube station, Coffee Republic would be narrowing down their potential market, as it may not be seen inside the tube station; they wouldnt have a lot of scope for customers. But a counter-argument for this is that, hundreds of people use the underground each day, so its likely that Coffee Republic may pick up some customers, as commuters enter and exit the tube station. The final option is to locate on Station Road which is close to Finchley Central station. In my opinion this where Coffee Republic should locate. The site at the moment is vacant and is situated close to potential customers such as offices, banks etc. The advantage of locating on Station Road is that it is of substantial size. If opened up on Station Road, they wouldnt have to pay money to other company, if they want to lease the building; it also has a large potential customer base. However, it may be more expensive setting up the new franchise on Station Road as opposed to inside the station or in Tescos. This is because this a hotspot as it is situated near to the main road, so there could be potential competition between firms for that spot. Nonetheless, I think that Coffee Republic should locate here due to the potential customer base, probability of joint ventures, and the size of the site.