AMT5 Group 1



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2 COFFEE BEAN AND TEA LEAF

Executive Summary

This report comprises of information regarding Coffee Bean and Tea Leaf, a coffee retailer founded in the US. The report will begin with an introduction of the company, discussing the origins, values and mission of the coffee retailer. This will be followed by a business canvas model, a detailed study of nine essential elements that create an idealistic portfolio of the company's operational background and relationships. A further analysis will take the form of a Porter analysis, which defines the competition the company must face as well as external factors affecting the companies performance, such as the threat of substitutes, new entrants to the market, and the powers held by suppliers and buyers. The external analysis continues in the form of a PESTEL analysis, which focuses on the US and factors within the US that can effect Coffee Bean and Tea Leaf's course of business. Finally, a SWOT analysis will bring to reality the strengths, weaknesses, threats and opportunities faced by the company.

The report will begin to discuss Coffee Bean and Tea Leafs strategy, bringing focus to the areas they emphasize to be critical to their success. The strategy will then be plotted on a strategy map to outline the steps to be made to achieve their financial goals. The map comprises of 4 perspectives, starting from Learning & Growth, then Internal Processes, Customers, and finally the Financial. Each of these stages are analyzed individually, where the objectives of each stage are recognized and a means of measurement for each objective are made. Lastly, before the conclusion, a balance scorecard will be presented to portray a strategy map, objectives and measures that summarize the perspectives into a strategy.

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Table of Contents

Introduction . ....................................................................................................................... 5

Business Model Canvas. ................................................................................................... 6

Key Partners ................................................................................................................................ 6

Key Activities . .............................................................................................................................. 6

Key Resources ............................................................................................................................. 6

Cost Structure . ............................................................................................................................. 6

Value Proposition ...................................................................................................................... 6

Customer Relationships . .......................................................................................................... 6

Channels . ....................................................................................................................................... 7

Revenue streams . ....................................................................................................................... 9

Porter's Five Forces of Coffee Bean and Tea Leaf . ............................................... 11 Threat of new entrants. ..........................................................................................................1 1 The bargaining power of suppliers . ...................................................................................1 1 Threat of substitute . ................................................................................................................1 1 Bargaining power of buyers . ................................................................................................1 2 Rivalry among existing competitors. .................................................................................1 2

PESTEL USA COFFEE INDUSTRY. ................................................................................ 13

SWOT Analysis. ................................................................................................................ 14 Strengths . ....................................................................................................................................1 4 Weaknesses. ...............................................................................................................................1 5 Opportunities . ...........................................................................................................................1 5 Threats. ........................................................................................................................................1 5

SWOT Matrix .................................................................................................................... 16 SO . ..................................................................................................................................................1 6 ST . ..................................................................................................................................................1 7 WO . ................................................................................................................................................1 7 WT . ................................................................................................................................................1 7

Coffee Bean and Tea Leaf's Strategy. ........................................................................ 18 Product Oriented Strategy ....................................................................................................1 8 Customer Oriented Strategy . ................................................................................................1 8 Financial oriented strategy. ..................................................................................................1 9 The Critical Success factors ..................................................................................................1 9

Strategy Map .................................................................................................................... 21

Learning and Growth .................................................................................................... 22 Knowledgeable Employees . ..................................................................................................2 2 Nature of Organizational Culture .......................................................................................2 2 Employee Productivity . ..........................................................................................................2 3 Employee Retention . ...............................................................................................................2 3 Franchising Support . ...............................................................................................................2 3 Social Responsibility Process. ..............................................................................................2 3

Internal .............................................................................................................................. 24 Use the Best Ingredients . .......................................................................................................2 5 Deliver the Best Taste and Aroma . .....................................................................................2 5 Increase Loyalty. .......................................................................................................................2 5 Franchising Opportunities and Process . ..........................................................................2 5

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4 COFFEE BEAN AND TEA LEAF

Business to Business Processes ..........................................................................................2 5

Customer ........................................................................................................................... 26 Maintain and Increase Customer Satisfaction Level ....................................................2 6 Increase Customer Relationships . ......................................................................................2 7 To Increase Brand Image and Reputation . ......................................................................2 7 To Increase Customer Profitability. ...................................................................................2 7

Financial . ........................................................................................................................... 28 Increase Profitability . .............................................................................................................2 8 Revenue Growth . ......................................................................................................................2 9

Balanced Scorecard ....................................................................................................... 30

Conclusion. ........................................................................................................................ 31

Bibliography. .................................................................................................................... 31

Index . .................................................................................................................................. 34

Business Model Canvas ..........................................................................................................3 4

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Introduction

Coffee Bean and Tea Leaf was first formed in 1963 in Los Angeles, California. This year marks their 50th anniversary in selling high quality coffee and tea around the US and Asia. Coffee Bean and Tea Leaf strive to deliver the maximum satisfaction to their customers, and do so by handcrafting their beverages to the customer's preference (Franchisepool, 2010). Much of their success is due to their well--known customer service. Their company vision and mission revolve around this fact. Their vision is to be "simply the best roaster and global retailer of coffee and tea", and their mission is "to create a spirit within our Company that inspires our Team Members to provide our customers with a Total Quality Experience: Quality of Product, Service and Environment" (Franchisepool, 2010). Coffee Bean and Tea Leaf currently have over 900 stores around the US and Asia. It is the largest and oldest privately held specialty coffee and tea retailer in the US with company owned stores in California, Arizona, Singapore and Malaysia. Their franchises are spread across the US and Asia, with new stores in Australia, Egypt, India and Mexico. Coffee Bean and Tea Leaf serve over 100 million coffee and tea beverages every year worldwide (Franchisepool, 2010).

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