Marvin and Smith’s Business in Holland
Marvin and Smith’s business is a promising investment with high prospects for growth and expansion into international markets. The expansion must, however, be informed by research and evaluating the financial potential of the business. In this work, the focus is on conducting a case study research analysis to examine whether Marvin and Smith’s business expansion plan is viable including other factors they need to focus on the business expansion path
Country of choice Holland
When considering putting up the coffee shop there are important factors that one need to put into consideration. Expansion of business into the international market is quite a challenging exercise one that requires a lot of planning. First countries in Europe have different sets of values, business laws, cultures, climate, and income levels among several other dynamics. All these factors are very important when considering setting up a business since they have a direct influence on the business. A look at country political, economic, cultural and legal aspects help one to understand whether it is friendly to the nature of business at hand or otherwise. Compared to other countries in Europe Holland is a strategic country that is worth consideration for setting up a coffee shop (Eshuis and Harmsen 2013). Customers are key since for the Marvin and Smith’s coffee shop to thrive they must have a target customer. Customer targeting is a great aspect that guarantees success if well analyzed and the business meets the expectations of targeted customers.
Coffee drinking culture is very common in Holland especially given the regions cold climate. Holland is one of the coldest parts of the globe, especially during winter seasons. People would like to keep themselves warm and active through a refined quality coffee products. Netherlands is among the top highest consumers of coffee with an average consumption per individual averaging at 8.4 kilograms annually (Chapagain and Hoekstra 2007). People at work in companies will have a morning breakfast and evening coffee times and this is a great culture with that supports coffee shop set up in the area.
Local people has a culture of inviting family and friends even after the work for a cup of coffee as they chat and catch up with each other or make business deals. Coffee drinking is therefore regarded as a social event in Holland and most people enjoy fresh and relaxing moments in the popular coffee shop joints which they are popular for offering best quality products and services.
The Marvin and Smith’s targets those coffee drinkers to offer them east African inspired coffee products and other freshly prepared beverages. The target customers are therefore likely to respond positively to the variety of unique products and services that are offered by Marvin and Smith’s.
According to World Bank Holland has a very attractive destination for setting up business particular in strategic cities such as Amsterdam. The region is ranked position 27 according to the latest data with regard to the simple procedures required of operationalizing business in the area. It is a heavily populated region with cities such as Amsterdam having a very efficient infrastructure. It is a strategic position from which to connect with other regions such as Eastern Europe, Middle East, central Europe and other parts of the world including Africa. The service and tourism industry is well established in Holland and hence an attractive place to set up a coffee shop. The strong justice system also makes it possible to enforce contracts and protect the trading patents. With a good justice system, the country stands the best chance to enforce contracts as well as respecting the rights of foreign investors. Compared to other countries in the Europe Holland has posted a significant improvement in improving business operating environment (Giovannucci and Koekoek 2013).The heavy investment in infrastructure and the availability of Amsterdam airport best recognized for its efficient services across Europe makes it the best destination of Marvin and Smith’s new coffee shop. The country’s political and financial climate has remained relatively stable for several decades. Holland also was ranked in the eighth position among the countries with the most favorable business climate by the world economic forum in 2015 (Noe, Hollenbeck, Gerhart and Wright 2016).
The level of government taxation is also low with corporate tax at twenty-five percent. This is especially very favorable for the foreign investors as double taxation is always avoided and for foreign investors, there is no tax withholding on royalties and interests. Expatriates especially those with specialized skills has the potential of enjoying a thirty percent non-taxed allowance.
The availability of the human resource is also a very important factor when considering setting up a business. Holland has a highly educated and flexible human resource. The cou
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