Microeconomics Assessment Task 2026 : Coffee Shops Case Study Report | KIC London

Assessment Task: Coffee Shops Case Study Report

Read the information in the ‘Coffee shops’ text below together with the four comprehension questions. Then choose an independent coffee shop in your area, which you will use as a case study for your written report. Research the chosen coffee shop and write a report for an academic audience, presenting your findings and addressing the four comprehension questions.

In your report you must demonstrate the understanding and application of the theory you have learned in the module so far and you must follow the structure outlined below.

Case Study: Coffee Shops

81% of people visit a coffee shop weekly, spending £9.6bn a year in over 24,000 outlets. The UK coffee shop market has grown sharply since the lockdown associated with the pandemic in 2022 and the sector is one of the UK’s strongest performing sectors.

Costa, Starbucks and Caffè Nero share 52.9% of the UK coffee shop market, with 2,326, 956 and 675 outlets respectively. But the smaller chains and independents are gaining more grounds, and selling the experience, not just the coffee.

Choose an independent coffee shop, within a walking distance from a Costa, Starbucks or Caffè Nero and use both businesses as a case study for analysing the monopolistic competition market structure. Write your findings in a report.

Within your report you must address the following points:

1. Outline the characteristics of monopolistic competition structure in comparison to monopoly and perfect competition.
2. Discuss product differentiation and its effects on deciding profit-maximising quantity and price of both the established outlet and your chosen independent coffee shop.
3. Discuss the effect of advertising, brand and loyalty on deciding profit-maximising quantity and price of both the established outlet and your chosen independent coffee shop.
4. Using secondary or primary data to produce diagrams, compare the equilibrium of both the established outlet and your chosen independent coffee shop in the short and long run.

Guidance

For this assessment you should make use of the following formative activities that you have already completed. These activities have been designed to support this summative assessment:

• The Objectives of Business | Kaplan International Pathways | 1 | kaplanpathways.com
• Market equilibrium in the Short Run and Long Run
• Market Forms
• Measures of Market Concentration

Please note:

This is an individual assessment so you should not work with any other student.

Your tutor will also ask for a draft copy of your report and provide written feedback. Before you submit this assessment, you will have an opportunity to receive feedback from your peers (other students in the class). Your tutor will arrange a time for you to share and discuss your progress with your classmates. You do not have to act on their feedback, but you may find it useful to enhance your final submission.

Overall Word Count

1,250–1,500 words

Suggested Structure

(NB: Section word counts are for guidance only)

Your case report must be written with the following structure:

Section 1: Introduction – 150 words maximum

Introducing the focus of your case study, on iindepandand coffee shop FIKA which is located in bournemouth you sould mention all 3 coffee shops in the report costa coffee cafe NERO and starbacks in all sections and their industry, and outlining the main points covered in the report.

Section 2: Monopolistic competition market structures – max 400 words

Outline the general characteristics of monopolistic competition market (e.g. the number and size of firms in the market; market power; barriers of entry; nature of the product; diagrammatic representation etc.), in comparison to the monopoly and perfect competition market structures.

Section 3: Analysis and calculation – max 800 words

Describe how a monopolistic competition market structure impacts on firms and consumers. Provide a brief assessment, with diagrams of product differentiation for maximising profit, the short and long run equilibrium.

3.1 The established outlet and your chosen independent coffee shop data

Describe data type and collection method

3.2 Product differentiation

3.3 Brand, advertising and loyalty

3.4 Short-run equilibrium

3.5 Long-run equilibrium

Section 4: Conclusion – max 150 words

Summarise briefly the main points in this report.

References

Reference list (not included in the word count) – 6 or more relevant academic sources

Theory and/or Task Resources Required for the Assessment

All theory necessary for this assignment have been covered in:

• Theory of the firm: perfect competition and monopoly
• Theory of the firm: monopolistic competition and oligopoly
• Product Differentiation
• Short-run and long-run equilibrium in monopolistic competition

In addition to the recommended resources you must conduct secondary research, finding relevant sources independently.

Referencing Style

You should refer to a minimum of 6 relevant Academic sources for your report, your notes or materials provided in class will not be counted as academic references.

You must include a Harvard style reference list at the end of your report. A full bibliography is NOT required.

| Kaplan International Pathways | 2 | kaplanpathways.com

Expected Word Count

You are expected to write between 1,250 and 1,500 words.

Learning Outcomes Assessed

Microeconomics

• Explain market processes and evaluate the outcomes of consumer choice on output and pricing

• Show how macroeconomic variables may impact markets

You are required to use formulas and give explanation to each definition that you going to write. Please note the independent cafe is called Fika which located in Bournemouth and include diagrams and explanation. Please note do not use AI its going to be cekt for plagiarism.

Assessment Coffee Diagrams

Answer

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