Coursework One Worth 100% of the module mark Deadline: Friday, 16 December 2022, before 3 p.m. GMT The coursework consists of two parts. All tasks in both parts need to be attempted. NB: CCN and Cheetah are fictitious clients. The UBER scenario is fictitious. PART 1 Task 1: Cream Cake Nation [30 marks] The client is the CEO of the Cream Cake Nation (CCN), an upmarket London-based patisserie, specialising in hand-made artisan cream patisseries and gateaux. Previously, you have already worked on optimising their cost structure. Your final recommendations related to this consultation were presented to the client in January 2022. The CEO, Honey Sweet, has now asked you to help further improve their profitability. Additional Information: Customers 

• CCN has 2 types of customer: professional (independents: restaurants, tearooms and specialist retailers) and private consumers (in-store / cafe, online).
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• The private consumers are not very loyal.

 Company 

• CCN makes high quality cakes and has good reviews.
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• CCN currently has three distribution channels: 
  1. Three CCN-owned stores, with cafes, in Kensington, Covent Garden and Spitalfields market;
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  3. Independents: restaurants (six), tearooms (two) and specialist retailers (four);
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  5. Cream Cake Nation Online
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• Previously, the client ran Club Cream Cake Nation, where a mystery box of patisseries was delivered to club members on the first Saturday of each month. This channel was closed following the cost structure optimisation consultation, as its cost to revenue ratio was unsustainable.
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• Cream Cake Nations total annual revenue for the year ending 31 December 2022 is 1,366,700. Revenue breakdown: CCN-owned stores contributed 1,078,300; sales to restaurants contributed

 129,600; tearoom contracts generated 28,800, a further 54,400 was earned by supplying specialist retailers, whilst the sale of online patisserie boxes contributed 75,600 to annual revenue. 

• Average transaction values for CCN-owned stores, independents and online sales are 24, 20 and 35 respectively.
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• Return on sales (margin) is 8% for the CCN-owned stores, 4% for the independent tearooms, restaurants and specialist retailers, whilst CCN return on online sales is 7%.
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• Cream Cake Nations target profit for the next financial year is 150,000.

 Industry and Competition 

• The industry growth rate is in line with the UK GDP growth rate.
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• Cream Cake Nation holds 8% of the local patisserie market (London and South East).
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• Its main rival has 12% market share. In addition, there are a number of small local and regional patisseries serving the market.
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• The main rival also has three distribution channels. Data on the main competitors profitability are not available.

 NB: You may assume that Cream Cake Nation is not immune to the impact of increases in inflation (e.g. higher energy and commodity prices) and lower economic growth caused by crises, such as the pandemic or military conflicts. Required (Comments for task 1 should not exceed 800 words in total.) 

1. To understand the underlying dynamics, use Porters Five Forces to analyse the market for luxury patisseries. The words contained in the framework are not part of the word limit.

 

1. Estimate Cream Cake Nations gross profit for the financial year ending 31 December 2022 and present recommendations aimed at improving profitability. NB: Recommendations can be made in relation to any aspect of the business. You may assume you have visited the premises and are familiar with CCNs current offering.

 

1. Comment on the feasibility of the profit target in the current environment. A full cost consultation was conducted in January 2022 but, in your analysis, you may discuss cost projections and the impact on profit, if considered relevant.

 

1. Present your interpretations and analysis (for points (a.) to (c.) above), deliverables (i.e. completed Five Forces analysis and profit estimate) and recommendations in a 600 to 800-word report addressed to the CEO of Cream Cake Nation. Your report should follow a clear structure and contain an introduction and conclusion with recommendations.

 NB: Work for points (a.) to (c.) is completed behind the scenes. The resultant framework, analyses, calculations and recommendations should be presented to the client in the report and / or in the appendix of the report. You are a business analyst consulting for Uber, a global ride-hailing company. It is present in over 85 countries but, as of 2022, it is not yet available in Cyprus. Uber has asked you and your team of analysts to determine whether they should / can (legally) enter Cyprus. Required for Task 2 (Comments for task 2 should not exceed 800 words in total.) Prepare a short 600 to 800-word report for Uber Technologies, Inc. addressing the points / questions below. Your report should follow a clear structure and contain an introduction and conclusion with recommendations. 

1. In the introductory meeting, the client asks you how you plan to approach the viability and market entry questions. Provide a brief overview of the main areas you will focus on to analyse the decision problem.

 

1. Based on the proposed approach, how would you go about conducting the analysis and gathering the data and information required? Clearly identify the proposed data collection methods, as well as the key sources of information and insights you intend to consult.

 

1. Conduct a PESTLE analysis to: 
   • examine the factors that might impact Ubers planned ride-hailing operation in Cyprus;
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   • identify how Uber might compete profitably in the taxi market in Cyprus.

 The words contained in the framework are not part of the word limit. 

1. To consider entering the market, Uber has set a minimum net profit target of $500,000 after the first 3 years. How much market share do Uber drivers need to capture to generate this level of profit for Uber? Desk research in January 2022 revealed the information outlined below.

 NB: You will need to make reasonable assumptions about the reliability of the predictions. Show all calculations and formulae. 

• Total predicted size of the Cyprus Taxi Industry (industry revenue) in 2022 is $55.35 million.
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• Predicted average annual industry revenue growth for the next 3 years is 4.25%.
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• Industry net profit margin is 12% (based on trips between 3 and 6 km).

 Ubers Basic Revenue Model: Uber earns money by operating a ride-hailing service and taking a percentage of fares (commission-based model). Uber takes around 20% of the fare charged to the customer; the remaining 80% is the drivers income. Depending on passenger demand, fares can be charged at 1.5X, 2X or 3X the standard rate (dynamic pricing). Task 1: Statistical Consulting [30 marks] The client is Cheetah, an ultra-rapid grocery delivery company, operating out of several dark stores in central London since June 2022. It offers local grocery deliveries in under 15 minutes. Customers order their groceries via an app on their mobile device. As a consultant to Cheetah, you have been asked to conduct a study to examine the level of take-up for ultra-rapid grocery delivery services. Specifically, you have been asked to evaluate whether there is a difference in the take up rate between consumers who are comfortable using mobile technology and those who are not. The following research questions were set.    The following two sets of hypotheses were stated.    A simple random survey was conducted among traditional supermarket shoppers. Two of the questions, taken from the research instrument, are reproduced below.    To complete the following, you need to refer to the output in the Appendix below. The SPSS tables should be inserted into your report and used as the statistical evidence. Use either a snipping tool to copy the tables in the appendix or copy the tables (saved as PNG images) from the file: SPSS Evidence in the coursework folder. The tables are made available but a data set is NOT made available for Part 2. Tables can be found in the Appendix. 

1. Interpret Table 2.1 and prepare a short comment on your findings.

 

1. Table 2.2 shows the output for a hypothesis test conducted to inform on research question 1 above. Interpret the output and prepare a short statistical report, in the classical style, to summarise your findings. In your report, you need to state the null and alternative hypotheses, name the hypothesis test conducted and fully explain the output (all relevant values), calculate and interpret the effect size, where relevant, and discuss the assumptions of the test.

 Based on your statistical interpretation, write a second comment aimed at the client to explain the outcome of the research in plain English. 

1. Table 2.3 shows the output for a hypothesis test conducted to inform on research question 2 above. Interpret the output and prepare a short statistical report, in the classical style, to summarise your findings. In your report, you need to state the null and alternative hypotheses, name the hypothesis test conducted and fully explain the output (all relevant values), calculate and interpret the effect size, where relevant, and discuss the assumptions.

 Based on your statistical interpretation, write a second comment aimed at the client to explain the outcome of the research in plain English. NB: Up to 10% of the marks is awarded for coursework management. Marks are awarded for professional presentation, use of section and paragraph titles and starting each task on a new page, among others. The coursework deadline is Friday, 16 December 2022 before 3pm (UK time).    Table 2.1    Table 2.2    Table 2.3 

1. This individual coursework consists of two parts. Part 1 consists of 2 tasks. Part 2 consists of 1 task. Tasks need to be clearly labelled in your submission. Each task should start on a fresh page. Deliverables (visuals, frameworks, models, tables and graphs, etc.) must be numbered and titled.
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3. Adopt a formal, professional language (third person, impersonal) throughout. This means you should avoid the use of I, you, we, my, etc.
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5. The word limit for this coursework is max. 2000 words in total: between 1200 and 1600 words for part 1 (max. 800 words per report) and 400 words for part 2. Word limits should be adhered to and are stated for each task. Words in tables and frameworks do not count towards the word limit.
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7.  NB: Academic Misconduct  This is an individual assignment. You should NOT work together with other students, or third parties, to complete the coursework tasks. Likewise, you should not share your observations, models, frameworks, analysis, calculations or interpretations with others. Your work will also not be original (i.e. your own) where you have asked someone else to complete the work for you, whether this was paid for or not. The same applies to asking a third person to check and / or correct your answers and / or grammar. NB: You may learn with other students and you may discuss methods, etc. but the work must be completed individually and all work submitted must be your own.

 Where Academic Misconduct, such as collusion, plagiarism, copying, outsourcing or any other form of cheating, is suspected, your coursework mark will be reduced proportionately to the extent of the misconduct identified; however, more severe penalties are possible. Cases are referred to the Casework Office and substantiated Academic Misconduct will be recorded on the students record. To avoid misunderstanding, please familiarise yourself with the Academic Regulations covering Academic Misconduct Regulations and Procedure (see link below). https://student.londonmet.ac.uk/your-studies/student-administration/rules-and- regulations/academic-misconduct/ 

1. This is an ONLINE WEBLEARN (Turnitin) submission. The deadline for this coursework is Friday,

 16 December 2022 before 3pm (GMT). Late submissions will not be marked. 

1. A Practise link will be made available on Friday, 18 November. Use this practise link to check the originality of your work. You can check your work multiple times. Please note, ensure your final work is uploaded through the correct link and not the Practise link, as work submitted through the Practise link will not be marked by tutors. Please note, originality scores can change (increase) as more pieces of work are submitted. A high unoriginality score does not mean that the work is unoriginal per se.
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3. All output must be saved in a single Word document and uploaded to WebLearn (Turnitin). A single PDF can be accepted as an alternative. Your first submission to Turnitin in final. You cannot replace your work once submitted. Instructions on how to submit work will be provided closer to the submission deadline date. The submitted coursework should include a cover page with your student number. You are advised to keep a copy of all work submitted.
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5.  NB: Do not use Safari or Explorer to upload your work to WebLearn. These browsers have known compatibility issues with WebLearn / Turnitin. Use Chrome or Firefox instead.