Biz-Cafe Business - Coursework Example

?Running head: Biz-Cafe Business Case Insert Insert Insert 5 August Biz-Cafe Business Case Mission mentfor the start-up business The mission of the firm is to provide our customers with professional and courteous service by selling remarkable coffee at fair prices and maintaining a clean and comfortable space for our customers and staff. This is facilitated by consistently providing our customers with impeccable service by demonstrating warmth, graciousness, efficiency, knowledge, professionalism, and integrity in our work, with focus on style and hygiene. Critique the viability of the Biz Cafe case Despite the business being at a favorable location with demand and competition, Jane’s Biz-cafe space is debatable. The business targets a large number of customers, some of whom prefer take-away, while some host meetings as they take their coffee, hence need for a bigger space. Jane should have not relied on students totally, as they have classes to attend to, which would compromise running of the business. Hiring qualified staff who can work full time while students take over after school would be a good measure that ensures business efficiency. However, the cafe business is viable in the market, since it is at an appealing location. While purchasing equipments, one has to keep in mind that customers have different tastes and preferences, and in this new era, a modern up-to-date restaurant is preferred by many. I would purchase the new green furniture at $4,000, since they provide an attractive and private atmosphere. In addition, I would prefer the new 4-cup espresso, which costs $6,000, as it has a high capacity and it is fast to make, thus would ensure efficiency while serving many customers. The decisions made on the type of furniture and coffee espresso will yield to high costs as opposed to Jane’s choice. Nevertheless, the cafe aims at attracting customers and providing a convenient and appealing look, suitable for the university student, as they are a young generation with style. Jane’s choice of used furniture is a wise decision in costs saving, but her choice could limit the type of customers who come to the restaurant due to the location of her cafe, which is situated near the university that comprises of young generation who prefer style and are time conscious. Rationale for the Business: Each business must have strategies in order for it to survive. With the advancing technology, businesses adopt new strategies that enhance survival through a competitive advantage. A business can attain a competitive advantage through cost leadership, whereby, it becomes the lowest price for its products but still maintains the product’s quality. Product differentiation is another strategy that ensures that a business provides unique services or products as compared to its competitors, thus attracting more customers (Hitt, Ireland & Hokisson, 2009 p117). The cafe name is “never enough cafe,” a name has a motive of attracting customers who are curious of how special is our coffee, such that, one can never have enough of it. The new green type of chosen furniture aims at attracting customers as it has a sense of style in it. The 4-cup automatic espresso aims at serving more customers at once, hence avoiding long queues, or inconveniences to customers. The staff will be paid according to the number of hours worked; however, a manager must work full time and must be punctual. The staff will be paid well to avoid quitting, which results to inconveniences. When employees are paid well, they are motivated. Therefore, this tool will be used by our business in order to attain a competitive advantage. In marketing strategies, the cafe seeks to utilize the 3-cup sizes instead of one cup; as a result, the cafe is considerate of different classes of customers, as each cup has its price. This is a competitive strategy as other restaurants concentrate on one size of cup only, of which the price is definitely fixed and high. However, different sizes of cups give a customer a variety to choose from, depending on his/ her taste and capability. Our business aims at maximizing on product differentiation in order to achieve a competitive advantage. This will be achieved by offering customers services that are unique, for instance, different sizes of coffee at different prices. The coffee prices will range between $2 to $7 depending on the type and size of coffee. Coffee will be offered in different types - coffee black, coffee latte, coffee white, and cappuccino. Customers have different preferences, some preferring black coffee while other preferring cappuccino, and therefore, it is important as a cafe to have a variety of coffee types for customers to choose from. The beverage will be offered at a low price, as compared to other competitors in order to achieve cost leadership (Stahl & Grigsby, 1997 p151). Sales promotion is very important for any business, as it creates awareness of the product and service being offered. We chose to advertise in newspapers and via the internet, as majority of people have access to these two means. Therefore, our cafe will be easily accessible. Advertisement is an essential tool when marketing a business, as it acts as an informer to may people. Therefore, “never enough cafe “will constantly advertise as a way of attracting customers. In addition, labeling the cafe’s cups with its logo will ensure that more people learn about the cafe as customers carry their coffee to work, or in the street. The operational hours are set between 7am -9 am and will be closing between 8pm -9.30 pm; this includes weekends. The cup used will be ordered in bulk to ensure cut in costs. Bulk purchases will also ensure that cups do not run out of stock. These cups will also have the company’s logo on them; this strategy enhances advertisement, as a customer carries the cup around. The quality of coffee will be high to ensure freshness and aroma. Customers are attracted by the quality of a product, and therefore, in order to attain a substantial number of customers, our cafe will put the interest of customers first by ensuring quality in all types of coffee offered. This in return will yield to high returns, as customers attain satisfaction and value for their money. References Hitt, M. Hoskisson, R. and Ireland, R. (2009). Strategic management: competitiveness and globalization: concepts & cases. OH: Cengage Learning Publisher. Stahl, M. and Grigsby, D. (1997). Strategic management: total quality and global competition. Oxford: Wiley-Blackwell Publisher. Read More