INTERNATIONAL BUSINESS

Munich is the capital and largest city of the German state of Bavaria, on the banks of River Isar
north of the Bavarian Alps. Munich is the third largest city in Germany, after Berlin and
Hamburg, with a population of around 1.49 million. The Munich Metropolitan Region is home to
5.6 million people.

The name of the city is derived from the Old High German term Munichen, meaning "by the
monks". It derives from the monks of the Benedictine order who ran a monastery at the place
that was later to become the Old Town of Munich; hence the monk depicted on the city's coat of
arms. Munich was first mentioned in 1158. From 1255 the city was seat of the Bavarian Dukes.
Black and gold the colours of the Holy Roman Empire have been the city's official colours
since the time of Ludwig the Bavarian, when it was an imperial residence. Following a final
reunification of the Wittelsbachian Duchy of Bavaria, previously divided and sub-divided for
more than 200 years, the town became the country's sole capital in 1506. Catholic Munich was a
cultural stronghold of the Counter-Reformation and a political point of divergence during the
resulting Thirty Years' War, but remained physically untouched despite an occupation by the
Protestant Swedes; as the townsfolk would rather open the gates of their town than risk siege and
almost inevitable destruction [citation needed]. Like wide parts of the Holy Roman Empire, the
area recovered slowly economically. Having evolved from a duchy's capital into that of an
electorate (1623), and later a sovereign kingdom (1806), Munich has been a centre of arts,
culture and science since the early 19th century. The city became the Nazi movement's infamous
Hauptstadt der Bewegung (lit.: "Capital of the movement"), and after post-war reconstruction
was the host city of the 1972 Summer Olympics.

Munich is home to many national and international authorities, major universities, major
museums and theaters. Its numerous architectural attractions, international sports events,
exhibitions, conferences and Oktoberfest attract considerable tourism. Since 2006, the city's
motto has been "Mnchen mag dich" ("Munich loves you"). Munich is a traffic hub with
excellent international, national and local connections, running a fast and reliable public
transport system. It is a centre of finance, publishing and advanced technologies. Munich is one
of the most prosperous and fastest growing cities in Germany, and the seat of numerous
corporations and insurance companies. It is a top-ranked destination for migration and expatriate
location, despite being the municipality with the highest density of population (4,500 inh. per
km) in Germany. Munich achieved fourth place in the frequently quoted Mercer livability
rankings in 2011 and 2012. For economic and social innovation, the city was ranked 15th
globally out of 289 cities in 2010, and 5th in Germany by the 2thinknow Innovation Cities Index
based on analysis of 162 indicators. In 2013, Monocle ranked Munich as the world's most livable
city with the highest quality of life.

People
In July 2007, Munich had 1.34 million inhabitants; 300,129 of those did not hold German
citizenship. The city has strong Turkish and Balkan communities. The largest groups of foreign
nationals were Turks (43,309), Albanians (30,385), Croats (24,866), Serbs (24,439), Greeks
(22,486), Austrians (21,411), and Italians (20,847). 37% of foreign nationals come from the
European Union.

From only 24,000 inhabitants in 1700, the population doubled about every 30 years. For
example, it had 100,000 people in 1852 and then 250,000 people in 1883; by 1901, the figure
had doubled again to 500,000. Since then, Munich has become Germany's third largest city. In
1933, 840,901 inhabitants were counted and in 1957, Munich's population passed the 1 million
mark.

About 40% of Munich's residents are not affiliated with any religious group, and this ratio
represents the fastest growing segment of the population. As in the rest of Germany, the Roman
Catholic and Protestant churches have experienced a continuous, slow decline in their
memberships. As of 31 December 2013, 34.7% of the city's inhabitants were Roman Catholic,
12.5% Protestant, and 0.3% Jewish. About 3% adhere to other Christian denominations and 7%
are Muslim. There is also a small Old Catholic parish and an English-speaking parish of the
Episcopal Church in the city.

Economics
Germany is one of the world's most advanced market economies. It is the world's third largest
economy in USD exchange-rate terms, the fifth largest by purchasing power parity (PPP) and the
largest economy in Europe.
The story for Munich is just as flattering. Compared to other German cities, Munich has the
strongest economy and also boasts of the lowest unemployment rate (5.6 %). It is the economic
centre of southern Germany and is considered a global city. Hardly surprising that it is home to
the headquarters of Siemens AG (electronics), BMW (car), MAN AG (truck manufacturer,
engineering), Linde (gases), Allianz (insurance) and Munich Re (re-insurance). Among German
cities with more than 500,000 inhabitants purchasing power is highest in Munich (26.648 Euros
per inhabitant) as of 2007.

Munich is also a centre for biotechnology, software and other service industries. Aircraft engine
manufacturer MTU Aero Engines, the space and defence contractor EADS, the injection molding
machine manufacturer Krauss-Maffei, the camera and lighting manufacturer Arri, the
semiconductor firm Infineon Technologies, the DRAM company Qimonda, as well as many
foreign companies like Precision Plus, McDonalds and Microsoft have their German or
European headquarters in Munich.
In the finance sector, Munich is home to Hypo Vereinsbank, Bayerische Landesbank and
insurance companies like Allianz and Munich Re.
Munich has earned itself the reputation of being Europes publishing capital. It is home to the
Sddeutsche Zeitung, one of Germany's largest daily newspapers. It also plays host to Germany's
largest public broadcasting network, ARD, and its largest commercial network, Pro7-Sat1 Media
AG and the Burda publishing group. One of Europe's biggest and most famous movie production
studios, the Bavaria Film Studios is also located in the suburb of Grunwald.
Lufthansa has opened a second hub at Munich's Franz Josef Strauss International Airport, the
second-largest airport in Germany, after Frankfurt International Airport.

Munichs economy
National Business Environment
Munichs economic strength is founded on several important pillars. The diverse economic structure, the wide
range of growing industries and the successful composition of global players and SMBs offer substantial
opportunities for success.

Laptops and pretzels

The Bavarian capital also has a highly-qualified workforce with an exceptional
infrastructure. The high proportion of modern industries and services make
Munich and its surroundings a magnet that attracts a growing number of people.
The city on the Isar impresses with its attractive geographical location and quality
of life. With everything from high culture to Bavarian cuisine and innovative,
alternative scenes, everyone can find something suited to his/her personal tastes.

Broad economic spectrum

Munichs economy ranges from small craftsmen and the manufacturing
sector to innovative services and high-growth sectors. Munich is at the heart
of Germanys high-tech industries.
In a competition between different European locations, the Bavarian capital
is the leader in the sectors of IT- and communication technology, media,
finance and life sciences. Consequently, Munichs trade fairs are the first
choice of industries that play key roles in international economic
development.

German frontrunner in technology

Munich is Germanys undisputed technology leader. It is home to around
22,000 high-tech companies in the fields of electronics, telecommunications,
aviation, and aerospace as well as electrical, mechanical, and automotive
engineering.

In the middle of Europe

Geographically speaking, Munich is located in Central Europe. Cities such as Brussels, Budapest, London,
Milan, Paris, Prague, Vienna and Zurich are quickly and easily reached.

The citys central location creates ideal conditions for companies to

communicate with the East and the West.
An additional advantage of Munichs location and infrastructure: both
exhibitors and visitors benefit from short distances and delivery times.

MarketingStrategy
The aim is to get the people of Munich aware of the Caf Blue
brand and product offerings. Fliers will be made to put on cars which will have the business
name, logo and address on them. It will also list the day of opening and will state that if you
bring the flyer in through the first week of opening you can get 20% off any beverage of any
size. Also, there will be a feature in the newspaper which will be as coupon for 35% off any
purchase over 4.
Developpromotionalmaterialwithaclearandconcisemessagewhichhasa
consistentvisuallook.
Focusonmarketingobjectivesandmediaoptionswhichtargetcaf blueslocal
communitiesandtargetmarketswithinlocalareas.
ConcentrateeffortsbehindLocalAreaMarketingtocreatelocalandloyalcustomers forour company.

PromotionalMethods
Caf Blues target market includes professional and working class citizens who will appreciate
affordable, good quality coffee on their way to work. Pastry lovers will be attracted to doing
business with Caf Blue because we are conscious, we feature fully compostable cups and lids, a
combination of hot and cold coffee beverages, including espresso, cappuccino and lattes, as well
as black and green herbal teas. They also offer a variety of fresh pastries, including their famous
Espresso Cappuccino Cheese cake, Potato Pudding, Banana Bread, Macaroon and a unique
Jamaican Bread Pudding. High school students from nearby can buy coffee and snacks before
and after school as well as meet at the shop for studying. Local employees from nearby
businesses will want to get coffee in the morning or get a slice of cake on their lunch break. Our
coffee attracts customers of all ages, young and old can both appreciate buying quality coffee
that supports a good cause.

Firstly, Caf Blue thinks it would be a great opportunity to raise awareness about the Caf Blues
coffee blend by entering the iba Munich Trade Fair. Iba is the leading international trade fair for
bakery, confectionery and snacks, which takes place every three years in Munich. It is the
international meeting point for bakers, pastry chefs, restaurateurs, caf owners and grocery
retailers as well as for hotel professionals and caterers. Exhibitors show innovations from the

entire industry and offer a complete overview of all the new items of the market not only in
terms of raw materials and ingredients, but also in terms of production and process technology.
As the competition becomes harder and profit margins shrink more and more, especially
automation and process optimization in the field of innovations are in the foreground for cost
cutting and more efficient working. Again, the iba provides optimal solutions and approaches
tailored to the customer needs. At iba, impulses are generated that provide strong movement to a
growth market with a future. In addition, an extensive program rounds off the offer of the
exhibitors. Particularly noteworthy is the iba-UIBC-cup, a unique international competition for
bakers and confectioners. Furthermore, factory tours will be offered giving mainly foreign
visitors insight into the expertise of German bakeries, while seminars and discussion forums are
showing the trends for the future.
Caf Bluespromotionalmethodinclude:

Hire people to advertise through word of mouth at local supermarkets and businesses
Send out coupons through the mail to the people in the mailing list of our target markets
zip-code
Set up a promotion booth with free samples of coffee and grand opening coupons
Punch Card/Customer Rewards Card
Free publicity through building relationships with schools, businesses and customers:
word of mouth, flyers, free samples, employees speak @ to advertise
Sell at individual events such as parties, fund raisers, schools, and sporting events
Letterboxdistributionasitdirectlytargetsthelocalcommunity
Instoreadvertising&PointOfSale(POS)topromotetocurrentcustomers
ElectronicDirectMailing (EDM) toitsentirecustomerdatabase.
ShoppingCentreAdvertisingthroughmall waysandvisualmediums
Websitewhichcommunicate