PART B: 25 Marks (A1, A3, B1, C1, C3)

Case study

Caff Bean is a European style coffee house brand with main office located in Italy. It is already being recognized as one of the most successful coffee businesses in Europe with more than 1400 coffee houses in 17 countries. Although being criticized for offering limited menu options for vegetarians and vegans, Caff Bean attracts high profile coffee lovers who would not mind paying more on an array of exotic coffees, beverages and meals. They procure high quality coffee beans only from of Latin America and that too directly from farmers eliminating the role of intermediaries. The highest level of quality is ensured while selecting the ingredients using technology including Artificial Intelligence enabled coffee quality testing. However, Caff Bean is facing criticism from several Environmental agencies claiming about their use of disposable plastic and thereby causing more environmental pollution.

Caff Bean has incurred unexpected fall in the revenue during COVID 19 pandemic. Further, there is a possibility that some Governments may increase the taxes that might worsen the companys financial situation. In addition, the farmers are demanding for a higher price for the exotic coffee varieties. Despite this situation, company is trying to expand its network stores in Europe for gaining a greater market share. Caff Bean has signed an agreement a Bahrain based company which would be a franchisee and will be opening many stores across the GCC under Caff Beans brand name. However, not much is known about whether customers would be willing to pay a premium for the exotic coffees wherein these markets already have international brands like Starbucks, Costa, and local coffeehouses. A partnership agreement is in progress with Emirates Airline for serving the coffee onboard which can be a move towards acquiring greater market share and attracting a newer consumer segment.

1. SWOT Analysis (8 marks) (A1, A3, C1)

Based on information provided in this case, (a) conduct a SWOT analysis of Caff Bean using the case above only. Identify at least 2 points for each category.

Strengths
Weaknesses
Opportunities
Threats

2. External Environment Analysis (8 marks) (B1, C1, C3)

The case above discusses several external environmental factors related to Caff Bean (a) List 4 of them, (b) giving examples from the case for each and (c) mention if they are specific or general environmental factors.

One example has been done for you:

External Environmental Factor	General or Specific environment	Example from the case
Customers	Specific environment	Caff Bean attract high profile coffee lovers
1.
2.
3.
4.

3. Strategies to become global Companies (3 marks) (A1, C1, C3)

Read the case carefully. Several strategies adopted by Caff Bean to become a global/ international company has been mentioned in the case. Identify any TWO of those strategies and fill in the table below.

One example has been done for you:

Name of the Strategy	Meaning/ definition of the Strategy	Example from the case
Global outsourcing	Buying materials/ parts or components from a country where its available for cheaper cost and good quality.	They procure high quality coffee beans only from of Latin America
1.
2.

4. Managerial decision Making: (6 marks) (A3, B1, C1)

You are the Purchase Manager of a company. You have been asked to buy Laptops for your sales team. The budget should not exceed BHD 300.00. Based on your study of the decision-making process, how would take a decision on choosing a laptop that can serve their needs? Fill in the table below and explain every step in a clear, detailed, and focused manner.

	Steps	Complete the steps based on your situation
1	Identifying the managerial Problem	Buying a new . For the sales team
2
3
4
5
6