Business plan project
Ugonna 
TeaBook-Showcase.pdf
BUSINESS PLANNING
PROJECT 1-ENG402
Feasibility Analysis of Business Plan
Teas N'Books
Student Name:
Group Leader:
….
Group Members:
…..
Word Count:
3,408 Words
Submission Date:
Submitted to:
Mrs. Evelina Gillard
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Concept Statement
Our concept statement is based on the tea shop and where people can enjoy themselves
with a cup of tea in a busy city, as it will be located in Macau, China. Our idea is to sell different
variety of tea from hot to cold including: aromatic teas, herbal teas, flower teas, Chinese teas (Oo-
long, Jasmine, Camomile, Pu-Er and others), milk teas and fruit teas. In addition, tea inspired
snacks are also featured in our shop, for example: cakes, macarons, cookies and muffins. While
our guests can enjoy various types of tea, we also offer a reading area where the guests can enjoy
reading different categories of books. Besides offering books on shelves, we also provide e-books
installed in tablets, in which guests can choose to read through our e-books library. Since nowa-
days, the society has became more high technology oriented, the tablets provided in our shop can
also be used as research tools for guests to look in to other informations, as our shop provides
unlimited Wi-Fi. Since our shop combines the idea of a tea shop and the concept of reading, we
came up with the name “ Tea N’ Books”. The reasons that we choose Macau as our location of
“Teas N’ Books” is because, Macau is one of the busiest and most flourishing city in Asia, which
attracts lots of tourists and gathers people from different nationalities worldwide. Plus, we believe
that there should be a quiet environment in a busy city. Our ultimate goal is to spread the tea culture
in the area and provide a pleasant reading space where people can take a small pause from their
busy lives.
Besides only offering teas and books, we also organize special activities during the week-
ends such as tea courses which the customers can learn how to make traditional Chinese tea. Fur-
thermore, if customers are really interested in our books, we can let them bring their own books to
exchange of ours one at a time. Our main concept of book exchanging relies on the customer
sharing their favorite books with other people, at the same time, customers are more satisfied and
will not get tired easily as our books are being exchanged and updated from time to time. Moreo-
ver, since people are more relying on the technology in today’s society, this activity can reconnect
the relationship between the people and the books.
We believe that the concept of “Teas N’ Books” can become a popular place in Macau
since this type of business is not yet introduced in the place.
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Justification of Business Idea
The shop being located in Macau, a busy and active city, people tend to have a very fast
pace of life. The fast style of living increases the number of several issues such as time-pressure;
health and comfort and the lack of meaningful experiences. But it is believed that living a slow
lifestyle can bring out joy and pleasure and enhance meaning of life. Zeestraten (2008) conducted
a survey in which many participants think that there is a absence of meaning in life due to the fast-
paced society. People still value freedom and want to take back the control of their lives rather
than being controlled by the society, firstly by managing their own pace of life.
Tea is the most consumed drink worldwide after water and it is currently planted in at least
30 countries all around the world (Sharma et al., 2007). Tea being one of the most consumed
beverages in human population, can certainly bring a lot of benefits to the human body. Since the
leaf from the plant can generate different varieties of teas, such as white, green, oolong and black
teas, they all have various advantages to health (Jolliffe, 2007). For instance, herbal teas have
therapeutic and vitalizing impacts on human metabolism, in which it relieve stress, along with
stomach or digestive problems; green tea intensifies the immune system and prevents certain kinds
of cancer; black tea is commonly known for bringing positive impacts on Parkinson's disease and
heart-related problems; oolong tea helps cure type 2 diabetes; and chamomile tea helps people get
to sleep (Ravikumar, 2014).
The popular beverage has a deep and strong linkage with the hospitality industry, which is
a fundamental part of the food service. Tea can also reflect the commoditized relationship between
the guest and host. Besides being a daily simple drink, tea lead to the evolution of tea rooms in UK
in the late 19th century, in which tea houses were considered to be a safe haven for women to meet
and mingle with others. Not only reflects how close the connection between tea and hospitality is,
but also demonstrates the local culture. With a vast and rich history behind the beverage, tea has
became the option of many countries, in which all of the nations approach and perceive tea differ-
ently. As for the Chinese, it is the "art of tea", for the Japanese "the way of tea" and for the British
"afternoon tea" (Jolliffe, 2007). In other words, every society is spreading its tea culture in its own
ways. For example, the traditional Taiwanese "bubble tea shops" are slowly opening oversees,
such as big cities in the North America. On the other hand, the tea houses featuring English-style
service are gradually becoming more popular in Taiwan (Euromonitor, 2004 cited by Jolliffe,
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2007). These emerging trends in different nations can only reflect the spreading of tea cultures and
traditions among the world.
Apart from teas that can mainly release stress, books also have the same positive effect on
human body. Books are instruments with the broadest capacity of storage, retrieval and transmis-
sion of knowledge (Littau, 2006). According to National Reading Campaign (n.d.), "reading books
is associated with better health, volunteering and strong satisfaction with life." Statistics have
shown that book readers are more likely to have better health than non-book readers. On top of
that, reading books can definitely reduce stress, at 68% more efficient than listening to music, in
which it only requires six minutes to be enough to reduce stress level by 60%. Also, when reading
a book, it can enhance inner peace, calm, and serenity, and reduce blood pressures. Plus, Winter-
Hebert (n.d.) emphasizes that reading books can improve an individual's memory by remembering
characters, backgrounds, ambitions, history and nuances. Over the past decade, reading behaviors
have been changing with the introduction of technology. With the advancement of the digital me-
dia, it is evident that has brought a lot of advantages, such as interactivity, non-linear reading, ease
to access information, and the consolidation of text, images, audio and video (Landow, 1992; Lan-
ham, 1993; Murray, 1997; Ross, 2003 cited by Liu, 2005). That is why, we decided to incorporate
some electronic tablets for our customers to use for diverse purposes. We did not want to create a
traditional image to the consumers, rather a modern and pleasant book store combined with a tea
shop.
In order to prove that "Teas N' Books" will be a demand business in the market and that
people will have the desire to purchase our products and services, several case studies were served
as our base of research. "Sonoma Chocolatiers" is a start-up business in California in which it
features organic teas and dark chocolates. The main purpose of the this traditional tea house is to
create and provide an outstanding variety of teas, snacks and premium dark chocolates. Their target
market are California locals that recognizes the tea room as the most relaxed place to socialize
with friends. Since then, the tea house has been a very famous place for people to mingle (Fei,
2012). Another success story lays on "Scrumptious Reads", a book store where it was introduced
a tea shop operated by "The Tea Lady" in Hong Kong and China, Sinmei Cheung. She says that
the young generation is more attracted to matcha green tea, which has became a popular tea among
young people in China and Hong Kong. In addition, the tea shop provides varieties of desserts and
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savories that customers are also a fan of. Since customers are not allowed to bring food and bev-
erage into normal book stores and libraries, this combination of tea and book shop in Brisbane is
very fashionable nowadays (Mirosch, 2015).
We believe that "Teas N' Books" can satisfy the our customers and will become a very
popular trend in Macau. Not only people are more and more aware of their health, but having a
meaningful life is the living trend.
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Buying Intention Survey
We are students from César Ritz Colleges Switzerland and we are currently completing our Bach-
elor degree on Hospitality Management. We are currently starting up our own business in Macau,
China which we will name it "Teas N' Books". The business is based on the concept of the com-
bination of a tea house and book shop. We offer different kinds of teas and tea-infused snacks and
desserts. At the same time, it features an area where different selections of printed books and e-
books on tablets are provided. So, "Teas N' Books" is trying to create a relaxing and cozy atmos-
phere where customers can slower their pace of life in a busy city. In addition, during weekends,
tea courses are offered as a culture exchange activity in which customers can learn the process of
tea making. Also, a book-exchange activity is organized in which customers can bring their own
books and exchange it with one of ours at any time of the day.
We really appreciate your participation!
1. What location do you prefer?
• Downtown area
• Shopping Center
• Suburb
• Others _____________________________________
2. What attracts you the most in our shop?
• Tea
• Books
• Tea-Inspired Snacks
• Tea Courses
• Book-exchange activity
3. Do you prefer to read a printed books or through tablets?
• Printed Books
• E-books through tablets
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4. What factors do you considered the most when you consume in a tea shop?
• Environment
• Services
• Quality of the drinks and foods
• Variety of drinks and foods
• Locations
• Others _______________________________________
5. In each visit, how much are you likely to spend in “Teas N’ Books”?
• Under 50 MOP
• 50 to 100 MOP
• 100 to 200 MOP
• Above 200 MOP
6. How acceptable would it be for you to buy the products or services with an unknown
brand?
• Totally Acceptable
• Slightly Acceptable
• Neutrally
• Slightly Unacceptable
• Unacceptable
7. How likely would you buy the product or service described above?
• Definitely would buy
• Probably would buy
• Might or might not buy
• Probably would not buy
• Definitely would not buy
8. How likely are you to recommend our product / service to a friend or a colleague?
Not Recommended 0 1 2 3 4 5 Very Recommended
9. Please indicate your gender.
• Female
• Male
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10. What is your age?
• Under 18 years old
• 19 to 29 years old
• 30 to 45 years old
• Over 45 years old
11. Please indicate your profession:
• Students
• Entrepreneurs
• White collars
• Retired
• Unemployed
• Others _____________________________________
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According to our Buying Intention Survey, the first question gives us a guidance and direct
us in where to build the shop. In addition, the second question provides us information on which
component that customers prefer the most and at the same time the shop can emphasize on it, for
example, if customers prefer reading books, we can increase the selections of books. Further on,
since our shop provides e-books, and based on the sixth question, we can manage our budget more
effectively, as if customers are more likely to read books in paper, we will provide more books in
paper; however, if customers prefer reading through tablets, then the shop can provide more tab-
lets. On the next question, we can get the overview of the most crucial element in starting a tea
shop. On question five, we can know the approximate acceptable price range that customers are
willing to spend in Teas N’ Books.
Based on the sixth question, we chose to keep this question from the generic questionnaire
for buying intentions survey because we believe the results of the question can provide us how
much marketing should we employ in this business and how much should we stress on the brand-
ing. From the results on question seven, we can have a brief sense of how feasible our business is.
On question eight, we would like to know if our potential customers will recommend our shop to
others.
Last but not least, the three last questions are based on the objective to identify our target
market, in other words, the potential customers of Teas N’ Books. We chose to put it last because
we do not want our participants to feel intimidated when they start our survey. Through the ques-
tionnaire developed, we can estimate various factors of the shop such as the opening time, as dif-
ferent demographic groups and occupations have divergent available hours, and we can easily
estimate the rush hour and allocate efficiently our human resources; the types of books to provide
in our shop, for example if main target market is students, then the shop can provide more ency-
clopedias, dictionaries or research books rather than magazines or fiction novels; the kinds of teas
and snacks to offer which depends particularly on the gender, as women would probably choose
healthier teas such as fruit teas or floral teas and are much more likely to consume desserts, which
can help the shop to control the inventory and to estimate the quantity to be made per day; the
genre of music play, as different age of people prefer to different music.
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Management Prowess
Referring to Table 1 responds:
• Passion for the business idea
We are very concerned on the population’s health nowadays, and since Macau is a very busy and
agitated city, so we want to create a very quiet and relaxing environment for these occupied people.
• Relevant industry experience
In our management team, we have a team member that was trained for several months that has
basic understanding of tea, and we believe that with her knowledge and experience, we can be
more innovative and proactive.
• Prior entrepreneurial experience
We do not have any entrepreneurial experience since we are still currently in college; however, we
can look up for more case studies and ask for industry experts’ experiences.
• Depth of professional and social networks
In order to support our business, we need to find more contacts in related to the specific industry
since we do not have any sufficient contacts. As we further develop our business, we believe that
we will gain more connections within the industry.
• Creativity among management team members
We are the first tea-and-book shop that opens in Macau, even though there are plenty of cafes. In
addition, we also came up with courses and activities in order to attract our potential customers
such as tea courses on weekend and the book exchanging activity.
• Experience and expertise in cash flow management
Even though we do not have any cash flow management experience; however since we are under-
graduate students, our college course includes financial, economic and accounting, which helps us
to further learn the cash flow management in depth.
• College graduate
Even though we are still college students, each of us has some Food and Beverage experience in
the past.
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Resource Sufficiency
Referring to the Table 2 responds:
• Office space
Besides the public area for the customers to enjoy tea and books, it is not crucial for us to have an
office space but we also need a small room as an office in order to control and overview the daily
operation’s costs and revenue, have our meetings regularly and discuss our further development.
• Lab space, manufacturing space, or space to launch a service business
It is very necessary to have a manufacturing space in order to serve and provide our
customers their food and drinks ordered, and in addition to develop new and innovative drinks and
desserts.
• Contract manufacturers or outsource providers
Since we need to have a good quality and stable supply of tea selections, we need to build up a
strong relationship with the tea providers. Furthermore, to increase the choice of books
provided, we also have to maintain a positive relationship with the book publishers.
• Key management employee
Now as a start up business, the four of us in the management team will be enough to run the
business. As our business grows, we will hire some part-time workers such as university
students and some full-time staff.
• Key support personnel
We need the expertise’s opinions to ensure that the quality meets our desired standards and to
provide us some ideas for further development.
• Key equipment needed to operate the business (computers, machinery, delivery vehicles)
It is very important to have professional tea-making equipments, kitchen equipments and several
tablets. For our small office, we also need one computer in order to keep track our daily costs and
revenue.
• Ability to obtain intellectual property protection on key aspects of the business
In order to maintain our reputation in this industry, we must have a brand name to attract the
customers and differentiate ourselves from other competitors, also to keep the originality of our
products, the copy right is important as well.
• Support of local and state government if applicable for business launch
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First of all, in order to start up a business, we need a government’s license issued, even though we
do not need the support of the local government, but a legal license is a must for
business launch.
• Ability to form favorable business partnerships
In order to facilitate the future development, we need to form favorable business partnerships such
as incorporate with tea farmers and book publishers.
• Proximity to similar firms (for the purpose of knowledge sharing)
Although we have different themed cafes and dessert shops around Macau, there are no prior busi-
ness such as the combination of tea and books shop, so we believe that this innovative idea will be
a popular trend in the market.
• Proximity to suppliers
Since we do not have the knowledge and experience in tea farming, it is necessary to find a tea
suppliers.
• Proximity to customers
As a start up business, noting the guests’ preferences and by providing personal service can help
us gain and accumulate regular guests to keep our business successful.
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Group Assessment of Product/Service Feasibility
One of our objectives to open Teas N’ Books is to create a more relaxing atmosphere where
our customers can enjoy a cup of tea along with their favorite book in order to release their stress
and slower their pace of life. We believe that people who live under pressure will need such peace-
ful place to take their time off. That’s why we chose to combine tea and books into a shop, in
which tea brings a lot of positive impacts on human’s body while books increase the brain’s com-
petency.
Since Macau has a lot of business opportunities, and even though there are a lot of themed
cafes around the area, we still believe that the combination of tea and books is a pretty new and
fresh business idea. In addition, as Teas N’ Books embraces the high-tech society which has slowly
replaced books in paper, it provides tablets where we believe it will recreate a
popular trend of book reading. Also, through our book exchanging activity, we believe that cus-
tomers are more willing to come since our shop is not a typical and traditional tea shop.
Furthermore, tea is a major part of the Asian culture. Since there are a lot of tourists visiting
Macau every day, we are aiming to introduce the tea culture through tea courses held in our shop
on the weekends. Not only providing the tea knowledge to the customers but also creating a culture
exchange environment between our participants. Plus, the tea courses can be served as a weekly
activity in which increases revenue in our shop.
To conclude, we believe that all of these factors and innovative ideas can make our business
stand out in the competitive market in Macau, so we are very confident that our business will be
feasible.
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Tables and Figures
Table 1
Criteria Low Potential Moderate Potential High Potential 1. Passion for the business
idea
Low Moderate High
2. Relevant industry expe-
rience
None Moderate Extensive
3. Prior entrepreneurial
experience
None Moderate Extensive
4. Depth of professional
and social networks
Weak Moderate Strong
5. Creativity among man-
agement team members
Low Moderate High
6. Experience and exper-
tise in cash flow man-
agement
None Moderate High
7. College graduate No college education Some college educa-
tion but not currently
in college
Graduated or are
currently in col-
lege
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Table 2
1
Available
2 Likely to be available: will probably be available and
will be within my budget
3 Unlikely to be available: will probably be hard to find
or gain access to, and may exceed my budget
4 Unavailable
5 NA: not applicable for my business
Ratings Resource
1 2 3 4 5 Office space
1 2 3 4 5 Lab space, manufacturing space, or space to launch a service business
1 2 3 4 5 Contract manufacturers or outsource providers
1 2 3 4 5 Key management employees (now and in the future)
1 2 3 4 5 Key support personnel (now and in the future)
1 2 3 4 5 Key equipment needed to operate the business (computers, machinery,
delivery vehicles)
1 2 3 4 5 Ability to obtain intellectual property protection on key aspects of the
business
1 2 3 4 5 Support of local and state government if applicable for business launch
1 2 3 4 5 Ability to form favorable business partnerships
Ratings: Strong, Neutral, or Weak
Neutral Proximity to similar firms (for the purpose of knowledge sharing)
Strong Proximity to suppliers
Strong Proximity to customers
Weak Proximity to a major research university (if applicable)
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Appendix
Buying Intention Survey Data Collection
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Bibliography
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