1. Introduction. Café Desange Is A Coffee Shop That Was

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Café Desange is a coffee shop that was set up half way on Monck Street (Westminster) and traded from April 2012 to December 2012. The premises were located at a walking distance of the Home Office building and other government offices as other major company such as channel 4. Although it only traded for few months, most locals and regular customers would associated the café with ‘excellent tailored-made hot beverages’.
At the time of trading, Café Desange offered a mix of product including roasted and high-quality hot beverages, a diversity of fresh hot and cold food items and other beverages.
The strategic problem considered is to analysed Café Desange operations at the time it ceased to trade and suggest recommendations
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A number set to grow to almost 21,000 by 2020, according to Allegra Strategies.
3.2 Industry demand determinants and profitability drivers:
Among others, profitability depends greatly on the organisation ability to
• Secure prime location
• Deliver high quality beverages
• Drive store footfall
• Offer specialised products
• Quality of service delivery
• Brand recognition and differentiation
• Power of purchasing
• Financial back up
• Labour market
• Personal level of customer service
• Product consistency through training
• Rigorous inventory processes

3.3 PESTEL Analysis
See Fig 1 below

Factors Environmental analysis

Political/Legal Few but mainly consisted of:
Minimum wage
Change of UK political environment with coalition government
Employment law changes
Tax policy
Increased pressure for businesses to trade ethically
Increased of Valued Added Tax (VAT) to 20%
Introduction of laws such as the Consumer Protection act, the Discrimination Act and the Food and Hygiene Regulations in order to offer healthier food products

Economical Slow recovery from economic recession
Economic downturn meant tightened consumer spending
Increased in unemployment equal decrease in spending
Coffee is a non-essential item putting pressure on sales

Social Increase in IT and white collar jobs
High standard of living

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