Coffee Business Strategy Planning

Project Charter

Project Title:  Funky Shea Coffee Company

Background Information:

 According to the market forecast for the coffee industry, coffee is the most consumed beverage worldwide (M, 2018). The demand for coffee has increased in the recent years due to the millennial population fueling its growth and craving more options and variety (M, 2018). The average consumer drinks about two cups of coffee per day (Goldschein, 2011). In 2018 an estimated 158 million bags of coffee were sold and produced(M,2018).

Scope:

The scope of this project is to organize, plot, and constitute a modern- retro coffee shop with a drive thru that offers a variety of customizable coffee, tea and breakfast options. The location is set for downtown Tampa, Florida. Downtown Tampa is filled with many businesses and people always on the go but has only a few common coffee businesses in place. With an increasing consumer demand for more options and variety in the coffee industry, this business will fill the niche in the market to compete with companies like Starbucks and Dunkin Donuts. This project will cover all processes from the physical construction of the store to the interior design, set up, management, best practice method and resources needed to start this business.

Objectives:

• Construct new building within 6 months
• Create Customer awareness through marketing
• 80% or higher customer satisfaction within the first year of operation
• Create a website for business
• Invest in google maps listing
• Maintain 75% gross margin
• Generate at least $50,000 in sales revenue per month
• Maintain a high standard of quality and service provided
• Create friendly / comfortable atmosphere
• Become recognized as “new best coffee spot” in Downtown Tampa

Success criteria:

The success criteria for Funky Shea Coffee company will reflect the requirements that ensure successful implementation and completion of this project. Success in this project is defined as the following:

• Complete all tasks within scheduled times
• Stay within budgeted amount for project
• Minimize delays by Daily, weekly and monthly evaluations
• Minimize Risks by enforcing strict protocols
• Evaluate employee performance to ensure maximum efficiency
• Create a positive culture within the workplace
• Strong strategy and practice
• Keep up with metrics and track repeat business
• Staying competitive within the area/ industry
• High repeat business

Funky Shea Coffee Company is planning on proceeding with a customer-oriented approach to ensure that the business will be given the best opportunity to succeed and grow. Funky Shea Coffee Company will focus on provide the highest quality products and services to customers, which will help the company expand its customer awareness.

Proposed Budget/ Timeline:

Funky Shea Coffee Company will set aside a budget to include constructive costs, materials, resources, employment, internal design, equipment, grand opening, marketing and promotions. The set budget for this project is $500,000. The estimate time for store opening is 1 year from the construction date.

High-Level Requirements:

• Successful implementation of strategic plan for business operations
• Hire reputable construction company
• Funding for materials, equipment, and resources
• Full staff for grand opening
• Exceed monthly sales goals
• Keep errors/ delays to a minimum
• Stay on top of construction schedule
• Be attentive and proactive to any setbacks/ deadlines
• Manage Material/ product Inventory
• Acquire all necessary resources
• Align vision, mission and values
• Target appropriate age consumers

High Level Project Description/ Boundaries:

The main goal of this company is to develop other options and varieties of coffee, tea and breakfast options for consumers to satisfy the increased demand for the popular beverage/ breakfast on the go concept. Considering the demographics of the downtown Tampa, this business will be fulfilling a niche market of increasing coffee businesses and competition in the area. By opening Funky Shea Coffee Company, the business should be able to achieve their goals of meeting their monthly sales goals with competitive pricing, quality and service. The new presence in the community will help attract customers, revenue and repeat business once they experience the high-quality service and options that Funky Shea has to offer.

Boundaries related to this project consist of:

• Thoroughly training all employees
• Having sufficient amounts of product to meet consumer needs
• Installing all necessary utilities
• Organized work schedule
• Written policies and procedures for each process needed to run the business
• Schematic/ store set up
• Smart Location choice/ marketing strategy for area
• Limiting changes to construction schedule

Assumptions:

Funky Shea Coffee Company is assuming that by investing in the niche market in the downtown Tampa area and expanding customers options for coffee, tea and breakfast spots will give them an opportunity to make a significant presence and offer their service and quality to the community. Exposure will aid Funky Shea Coffee Company in attaining revenue and customers.  Funky Shea Coffee Company is assuming to be able stay on budget and complete all tasks including construction within the intended time frame. Funky Shea Coffee Company is assuming that their commitment to their service, quality and customers will provide the repeat business they are looking for in the long run. Funky Shea Coffee Company is assuming they will be able to stay competitive with the surrounding coffee businesses by meeting customers price, quality, and service needs better than their competitors.

Constraints:

Possible constraints that Funky Shea Coffee Company may face can include poor market size, decrease sales, delays in obtaining necessary resources, delayed deadlines, increased expense causing business to go over the budget. Problems staying competitive within the downtown area, and decreased customer satisfaction are all restrictions that could keep this business from completing the project successfully.

High Level Risks:

• Decreased economic conditions

• Decreased profit and sales revenue
• Competitive pricing
• Theft and damage
• Meeting supply and demand requirements

• State/ city limitations/ restrictions
• Constructions delays
• Delaying grand opening

Milestone Schedule:

Milestone   Expected Date   Actual Date

Financial Resources/ Budget:

                   Category      Monthly Cost Associated

Stakeholders List:

• Property/Business Owner
• Construction Team
• Suppliers
• Shareholders
• Employees of business
• Project Manager
• Community/ Customers
• City/ State

Project Approval Requirements/ Exist Criteria:

Some requirements for Funky Shea Coffee Company consist of obtaining a construction permit, passing building inspection, obtaining sales tax license, Business license/ permit, Fire department permit, Budget approval, and lastly funds approval. All these major components are crucial to the success of the project. The Project manager will decide if project is on track to meet expectations set by the Owner. The project manager will have the sign off on all final decisions for the project.

Project Manager will be prepared will all necessary tools, polices, procedures, deadlines prior to the process bringing. The project manager will be responsible for producing a final report to assure the project has meet requirements and deadlines.

Assigned Project Manager, Responsibility & Authority Level:

The Project Manager will be Stephen Mayer’s. Mr. Mayer’s will be in charge of making sure the strategic plan is implemented as intended.  Mr. Mayer’s will also be responsible for assuring all employees are complaint in Funky Shea Coffee Company processes, procedures, and polices. The Project Manager will assume responsibility for any obstacles that way arise. The project Manager will stay organized communication and an appropriate schedule for tasks. The project manager will use good time management processes when coordinating work place schedules and coverage for all shifts.

Authority/ Sponsor Authorizing Project Charter:

Approved by Project Sponsor:

Name and title:     Date:

References:

• A guide to the project management body of knowledge: (PMBOK® guide). (2017). Newtown Square, PA, USA: Project Management Institute.
• Goldschein, E. (2011, November 14). 11 Incredible Facts About the Global Coffee Industry. Retrieved from https://www.businessinsider.com/facts-about-the-coffee-industry-2011-11#fair-trade-coffee-is-still-a-small-portion-of-the-market-but-it-is-the-most-popular-fair-trade-commodity-in-the-world-10
• Kerzner, H. R. (2014). Project Management – Best Practices: Achieving Global Excellence, 3rd Editi. John Wiley & Sons.
• M. (2018). Coffee Market – Growth, Trends and Forecasts (2019 – 2024). Retrieved from https://www.mordorintelligence.com/industry-reports/coffee-market